Rolex As A Status Symbol

[OG1982]

I remember a train ride I had a good number of years ago, when the train entered the station we stood up, ad I said to the guy from the opposite bay of seats, 'nice GMT', he responded by nonchalantly saying 'actually it's a Rolex'. Says it all really.

Most people that buy and own a Rolex does so for the perceived status the watch brings. Remember, this is our little echo chamber for all things Rolex, the rest of the world is not like us!!

[padi56]

Originally Posted by TexEd

I realize there are folks on this site, including myself, that do not consider Rolex watches, or any watches, as investments. Folks enjoy the ownership with little or no thought on future value. However, one cannot escape the fact that Rolex watches are considered status symbols. There is a common term that describes ownership of luxury goods whether they be watches, luxury cars, designer jewelry, etc. The term is Veblem Goods. Basically a Veblem good is one that is exclusive and sold in boutiques rather than in department stores. As the price of these goods increases it tends to increase the demand as it creates more exclusivity for the product and puts it in a situation where less folks can afford to purchase it. One only needs to look at a Rolex price at an AD when compared to the Rolex gray market. There are certain Rolex models that are highly sought after and the prices are reflective of that fact. The Pepsi comes to mind. One would think that normally as demand increases for an item the prices would go down but that is not the case for Veblen goods (e.g. Rolex watches). Anyway, I just thought I would throw this out there. I do enjoy my Rolex watches and one reason of many is the exclusivity. They are not as commonly worn as other inexpensive type watches. I do own a Citizen and wear it when working on cars, doing yard work, etc.

Rolex As A Status Symbol afraid watches don't make the man or perceived status.

[Daytona king]

A Rolex watch is a status symbol no matter how you cut it. Some say they like them for the build quality or the accuracy. Whatever the reason it is a status symbol. Rolex isn’t the only status symbol but because of strong marketing to the general public It is the number 1 status symbol.

We are all wearing clocks on our Wrist worth many thousands of dollars. A lot of us have multiple watches as well. I would say any watch over 1 thousand dollars is a status symbol. Disposable income. As most non watch people consider Rolex the best, most expensive watch. They would think it’s absolutely insane to be on a waitlist for many years to buy a watch for $10,000 and up.

There are tiers to the Rolex watches that have different status among the brand and there are different brands that us enthusiasts know about which we would rank above and below Rolex.

Let’s all be honest. When we see someone with a Rolex or an expensive watch watch we think they are successful. That is the definition of a status symbol.

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[Daytona king]

Originally Posted by Kevin of Larchmont

It’s only a status symbol if people observe you wearing it. In twenty-five years of Rolex ownership I’ve had four people total notice and comment on the Rolex I was wearing at the time. If I was looking for my Rolex to convey status I would be painfully disappointed.

I would say there is a huge difference between noticing and saying something. I notice a lot of people wearing a Rolex. I rarely if ever comment unless they are wearing the exact same watch as me. It’s awkward commenting on a strangers watch in a public space.


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[Daytona king]

Originally Posted by KatGirl

I like them because I like watches, and I appreciate high quality classic looking watches. Rolex is probably the best brand I can comfortably afford, but I’m not sure status is involved, unless it is subliminally.

Kat


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I would say you may not wear it for a status symbol for yourself but to others in this world Rolex is definitely a status symbol.

Think of the times you go out to a nice event/dinner and you dress up. Don’t you usually grab your best watch?

I would say Rolex watches are the most recognizable status symbol in the world.


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[Daytona king]

Originally Posted by huncho

noticing and commenting are completely different things though. the consensus on this site that "nobody notices your rolex" is the biggest fallacy because it's just based on people not commenting. i've had maybe 1 or 2 people comment but i constantly see people's eyes glancing when i'm on the subway in the summer. whether or not they know what it is is a different story but they're definitely looking and some times it even makes me uncomfortable

This!


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[Daytona king]

Originally Posted by brandrea

IMHO, Rolex has built its brand around being an aspirational purchase … the “I’ve made it” symbol of success.

100 percent agree with this.


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[Daytona king]

Originally Posted by Mystro

Of course Rolex is a status symbol. Rolex has marketed it that way and has very cleverly kept that idea alive in very subtle and not so subtle ways. It’s just advertising that has caught on to popular acceptance.
Why is this undeniable connection with the brand and “status symbol” so uncomfortable for some is puzzling??? There are many other fine watch brands that don’t embrace the “status crown” so unapologetically. It is what it is and the “status” image comes strait from Rolex themselves.

Perfectly said.


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[colonelpurple]

1. The watch market is crashing, Rolex used prices are declining. Most Rolex models used sell below retail.
2. New Rolexes are becoming more plentiful.

Is Rolex a status symbol ? yes, but so is cartier, IWC, etc. Anything over £1000 is a status symbol.

The point is that Rolex is subject to the same supply and demand as any other brand. Rolex always plays the game of supplying less to the market then it demands, thus keeping prices up. But this is artificial and not to be relied on.

Its like diamonds. De Beers used to control supply, and just smash excess diamonds into industrial diamonds. Now, due to competition, particularly artificial diamonds, which young people are really going for with engagements and marriages, the used price of diamonds has completely crashed.

The other thing, which is worrying for Rolex, is that the constant price rises, well over inflation and materials, have made many people weary. The amount of gold models for example around london. All ADs have loads of them unsold. I know some very rich people, and I have a friend who wants a day-date, but even though he can easily afford it, he is not buying, as his business brain is just telling him its a con. He is now looking on the used market.

[OG1982]

Originally Posted by Daytona king

A Rolex watch is a status symbol no matter how you cut it. Some say they like them for the build quality or the accuracy. Whatever the reason it is a status symbol. Rolex isn’t the only status symbol but because of strong marketing to the general public It is the number 1 status symbol.

We are all wearing clocks on our Wrist worth many thousands of dollars. A lot of us have multiple watches as well. I would say any watch over 1 thousand dollars is a status symbol. Disposable income. As most non watch people consider Rolex the best, most expensive watch. They would think it’s absolutely insane to be on a waitlist for many years to buy a watch for $10,000 and up.

There are tiers to the Rolex watches that have different status among the brand and there are different brands that us enthusiasts know about which we would rank above and below Rolex.

Let’s all be honest. When we see someone with a Rolex or an expensive watch watch we think they are successful. That is the definition of a status symbol.

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Using your logic, a Rolex is a status symbol for me, even though I don't want people knowing I'm wearing a Rolex? I hide my watches from colleagues and strangers and would rather not engage with people about them, as in the UK, people tend to think negatively of others who show off luxuries like cars and watches. In the US, wearing a Rolex or driving a Porsche seems to be celebrated, but the opposite can be said for people in the UK.

I wear Rolex watches because I like them, not because it supposedly elevates my status to either myself, colleagues or strangers. Frankly, I couldn't care less what people think about my watches.

[bluestreak]

Rolex’s branding is so ubiquitous and it is so ingrained in the cultural Zeitgeist that it’s impossible to distinguish whether one’s feelings about Rolex from that branding. Rolex’s position as a status symbol is already baked into society. Most (many?) people probably aren’t consciously thinking “I’m buying this watch as a status symbol.” But unconsciously? People like to think they aren’t affected by advertising, branding, etc. but everyone is.

[tjs1295]

I might have my terminology wrong, but how can Rolex watches be exclusive? Can’t anyone with a normal limit credit card buy one pretty easily? I remember back in the late 90’s when I was in college. No job, student debt, but I applied for, and was given a gold card with a $5,000 limit. Pretty sure I could have purchased a Rolex with that card. Would that have proven that “I made it”? These aren’t $100,000 plus items. That would be more exclusive in my mind.

[Krash]

Originally Posted by tjs1295

I might have my terminology wrong, but how can Rolex watches be exclusive? Can’t anyone with a normal limit credit card buy one pretty easily? I remember back in the late 90’s when I was in college. No job, student debt, but I applied for, and was given a gold card with a $5,000 limit. Pretty sure I could have purchased a Rolex with that card. Would that have proven that “I made it”? These aren’t $100,000 plus items. That would be more exclusive in my mind.

If you have to finance it or use a credit card to fund it, then you can’t afford it. Driving up your debt for a watch is dumb.

I mean, I can go buy a Lamborghini today if I wanted to, that doesn’t mean I can afford it.

Just because there is a credit card in the wallet, that doesn’t mean there is money in the bank.


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[JRell]

Originally Posted by colonelpurple

1. The watch market is crashing, Rolex used prices are declining. Most Rolex models used sell below retail.
2. New Rolexes are becoming more plentiful.

Is Rolex a status symbol ? yes, but so is cartier, IWC, etc. Anything over £1000 is a status symbol.

The point is that Rolex is subject to the same supply and demand as any other brand. Rolex always plays the game of supplying less to the market then it demands, thus keeping prices up. But this is artificial and not to be relied on.

Its like diamonds. De Beers used to control supply, and just smash excess diamonds into industrial diamonds. Now, due to competition, particularly artificial diamonds, which young people are really going for with engagements and marriages, the used price of diamonds has completely crashed.

The other thing, which is worrying for Rolex, is that the constant price rises, well over inflation and materials, have made many people weary. The amount of gold models for example around london. All ADs have loads of them unsold. I know some very rich people, and I have a friend who wants a day-date, but even though he can easily afford it, he is not buying, as his business brain is just telling him its a con. He is now looking on the used market.

Out of the other watches you mentioned only Rolex is the universally understood watch status symbol. Maybe some know Cartier, but I didn’t even know IWC until I got into watches.

[77T]

Yes their branding has succeeded IMHO.

With my first year as a Director in the bag, a lunchtime quest for a Rolex took a 15 minute drive, tried it on, bought it, and was back at the office by 1pm. It worked on me.

25 years hence, that model's MSRP annual inflation is approximately 4.38%.

But a base model Ford F-150 truck over the past 25 years is approximately 6.63%.

Not Veblen IMHO.

Rank and file flippers flood the demand model
Inverse branding exercise?
Sheeple?




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[HogwldFLTR]

It is very dependent on cultural context both relating to ethnicity and socio economic status. There are a fair amount of idiot owners out there all across spectrum of owners.

[TexEd]

Originally Posted by wcgreiner

I know many don't view Rolexes as investments but enjoy them for their unique exclusivity and design...

Yet, a Rolex remains a classic status symbol—a Veblen good—where higher prices and limited supply only enhance its allure...

Personally, I love my Rolex for the prestige it brings...

Bingo!

[1William]

No matter how you look at it, most people look at Rolex as a luxury brand. A few not, but in the end it is both a status symbol and a great watch. If it was not, we would not be having this conversation.

[Calatrava r]

To me it is also true that in this day and age, more and more people recognize luxury items other people are wearing whether they comment on them or not. There is nothing wrong with that except if your intent is to fly under the radar that has become more difficult.

[Nads786]

Originally Posted by OG1982

Using your logic, a Rolex is a status symbol for me, even though I don't want people knowing I'm wearing a Rolex? I hide my watches from colleagues and strangers and would rather not engage with people about them, as in the UK, people tend to think negatively of others who show off luxuries like cars and watches. In the US, wearing a Rolex or driving a Porsche seems to be celebrated, but the opposite can be said for people in the UK.

I wear Rolex watches because I like them, not because it supposedly elevates my status to either myself, colleagues or strangers. Frankly, I couldn't care less what people think about my watches.

100% agreed here. Nobody notices my watches and I prefer it that way. The only exception is a WIS, and then it's fun to talk watches.

If everyone noticed my watch I would become really self conscious of who's staring at my wrist.

[garyk]

Originally Posted by Nads786

100% agreed here. Nobody notices my watches and I prefer it that way. The only exception is a WIS, and then it's fun to talk watches.

If everyone noticed my watch I would become really self conscious of who's staring at my wrist.

I agree!!! I enjoy my watches and my cars, etc., but I'm not an ostentatious person and I try to keep what I like on the down low as much as possible. I go to cars and coffee car shows in the warm months but my cars and my watches are thankfully not the most expensive or flashy things there! I understand how some people thrive on the flash of things but it still seems weird to me...

[tjs1295]

Originally Posted by Krash

If you have to finance it or use a credit card to fund it, then you can’t afford it. Driving up your debt for a watch is dumb.

I mean, I can go buy a Lamborghini today if I wanted to, that doesn’t mean I can afford it.

Just because there is a credit card in the wallet, that doesn’t mean there is money in the bank.


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I totally agree with you. My point was that if I had bought a watch with a credit card when I was a poor college student, based on what people are saying, others would look at me and think “wow, that guy has really arrived.” When in fact, I would have just been a stupid kid who made a terrible decision. No matter how hard I tried at that age I would not have been able to finance a Lamborghini. But it’s not that hard to get a Rolex, and make people think certain things about you. That’s why I’m confused when people say Rolex are exclusive. Lamborghini is for sure.

[garyk]

Originally Posted by tjs1295

I might have my terminology wrong, but how can Rolex watches be exclusive? Can’t anyone with a normal limit credit card buy one pretty easily? I remember back in the late 90’s when I was in college. No job, student debt, but I applied for, and was given a gold card with a $5,000 limit. Pretty sure I could have purchased a Rolex with that card. Would that have proven that “I made it”? These aren’t $100,000 plus items. That would be more exclusive in my mind.

I agree with this. I became aware of Rolex in the 70s, two people I knew wore GMTs. One was a Brit who was in the US helping a friend get a new eyewear company off the ground and the other was a military school buddy who was an F4 Phantom pilot towards the end of the Vietnam war. Both were cool guys that I admired and I thought their watches were really cool. Prestige to me did not exist... Mystro said it best about Rolex and their marketing which is very successful!!

[Kevin of Larchmont]

Originally Posted by Daytona king

I would say there is a huge difference between noticing and saying something. I notice a lot of people wearing a Rolex. I rarely if ever comment unless they are wearing the exact same watch as me. It’s awkward commenting on a strangers watch in a public space.


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See post #22.

[CarlOver]

OP is saying that as prices increase, demand increases. Rolex has been increasing prices regularly but demand has gone down substantially over the past year. But prices have increased. Trying to make statements that hold under all conditions often don’t work.

Or maybe AI generated the initial statement.

[Kevin of Larchmont]

Originally Posted by OG1982

Using your logic, a Rolex is a status symbol for me, even though I don't want people knowing I'm wearing a Rolex? I hide my watches from colleagues and strangers and would rather not engage with people about them, as in the UK, people tend to think negatively of others who show off luxuries like cars and watches. In the US, wearing a Rolex or driving a Porsche seems to be celebrated, but the opposite can be said for people in the UK.

I wear Rolex watches because I like them, not because it supposedly elevates my status to either myself, colleagues or strangers. Frankly, I couldn't care less what people think about my watches.

Well parsed, well said.

[codecow]

I really wish people didn’t view these as status symbols. I think there are even some silly owners who stack their PM pieces with other Volkswagen goods like VCA Alhambra bracelets. Very gaudy!

[Kevin of Larchmont]

Originally Posted by colonelpurple

The point is that Rolex is subject to the same supply and demand as any other brand. Rolex always plays the game of supplying less to the market than it demands, thus keeping prices up. But this is artificial and not to be relied on.

If Rolex always does it how is it artificial? It’s quite tangible, reliable, clearly predictable. How can a business strategy so intentional be artificial?

[Ravager135]

I've voiced this opinion before, but I believe the absolute overwhelming majority of people who are introduced to Rolex is because of brand prestige. That prestige may be because of reliability or because your father chose to wear one for the same reasons or it may be because you saw it on Instagram. This is usually the first wave of the relationship with Rolex.

The second wave is often a rejection of Rolex. "Everyone has one, not worth the cost, etc..." This is often accompanied by exploration of other brands; which in my opinion is a great thing.

Finally, the third phase tends to be a return to Rolex. Yes, because of the prestige, but also because of a deeper appreciation of the quality, fit, finish, functionality that Rolex has. There's a reason a mass produced timepiece like Rolex appears to be on equal footing or at least in the collections of people who also own far nicer ultra-luxury brands like PP, AP, VC, ALS, etc... It's because Rolex is absolutely the best at where it fits into the market.

[BraveBold]

Originally Posted by tjs1295

I totally agree with you. My point was that if I had bought a watch with a credit card when I was a poor college student, based on what people are saying, others would look at me and think “wow, that guy has really arrived.” When in fact, I would have just been a stupid kid who made a terrible decision. No matter how hard I tried at that age I would not have been able to finance a Lamborghini. But it’s not that hard to get a Rolex, and make people think certain things about you. That’s why I’m confused when people say Rolex are exclusive. Lamborghini is for sure.

You can finance a lambo, buy a house, and do a whole lot more that is stretching affordability. Also, a Rolex is a far greater multiple of its “base alternative” than a Lambo is… also, a Lambo driver has many financing / leasing and rental options.

Now, the entry point is very different towards ownership but the same idea applies. People can make horrible financial decisions to convey a certain lifestyle/status/image.

But, yes, a Rolex IS a status symbol. Whether it is a primary motivating factor for WHY someone buys a Rolex, is likely only knowable on an individual basis…