Rolex As A Status Symbol

[BraveBold]

Originally Posted by Kevin of Larchmont

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?

It is deliberate, strategic and considered. Artificial (to me) is just a way to attach a negative connotation that in reality has limited useful meaning in this context.

Virtually any manufactured item has its supply set in some “deliberate” manner. How that is set is based on different criteria / drivers, depending on the nature of the item (commodity, near-commodity / highly competitive, branded, luxury etc). In some cases there are true constraints but they are usually either time-limited or in fact a constraint based on another principle (eg costs no longer are competitive).

Patek could increase their supply 10x. Will the market accept this at current msrps? No. Can Patek do this without significant cost (expansion investment, finding and paying for skilled labor)? No. Is it a smart business move? No. Can they do it in one month? No…

So calling Rolex supply “artificial” is pretty meaningless to me. They deliberately plan production increases to lag demand over time. They also likely manage near term production - in favor of protecting brand expectations. Smart long-term business approach…

I also keep reading people thinking Rolex could still sell everything if they bump supply up massively. This reflects a poor understanding of economics. Rolex does maintain excess demand vs supply at msrp. But that excess demand is at msrp AT today’s supply. If supply increases then you will see pressure on pricing (downwards) and eventually Rolex would need to CUT prices to keep selling… even though the end market for their watches is many, many multiples of their total output.

[akrapovic]

So true, i can count on one hand how many times people have commented. If you know you know. But unless im wearing something pretty flashy, most don’t bat an eye unless theyre watch people.

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.

[CH69]

Rolex may not be the most exclusive brand but it is certainly one of (if not the most) the most recognised watch brand in the world. The status symbol is tied to it’s branding and of course pricing.

The other reason for it’s popularity is value retention. I am not talking about making $$$ or investment pieces. Rolex watches, in general, is more “liquid” and is best at retaining value in the secondary market on average comparing to other brands.

[Mystro]

These threads come up from time to time. I will summarize it as best as I can.

The fact that you are on TRF probably excludes you from needing your Rolex to be a “status symbol” or the primary reason you purchased it. We obviously are not the normal Rolex buyers as they don’t eat and sleep Rolex reference numbers or critique minor cosmetic changes to the tenth power. The Rolex “status symbol” is the baggage we speak of regularly and do are best to keep that element in proper context from how we enjoy these wonderful and robust watches. We can’t control how others view are motives for purchasing much like many of us that enjoy pricey performance cars. It’s a lifestyle we enjoy and should not be ashamed of.

[INC]

Honestly, I do not really understand the point of the increasing number of "why does anyone wear a Rolex" questions these days?

To me, it is starting to sound like people with low self-esteem are trying to prove how successful they are by showing off and spending money. This is when they are desperately trying to prove that "they are somebody" because "they already have a status symbol", they have already reached the point where "they are somebody because they have a Rolex."

Let us be honest, in the world of affordable luxury watches, Rolex is the cheap watch category, and besides, apart from a few models, all models are available through grey traders. That is why owning one is not a matter of status, but only of money. And to be honest, it is immediately noticeable when someone wears their watch as a status symbol: They are not acting confident in a world where that is normal, but rather like they are trying to convince themselves that they belong there.

This is a watch. Status comes from where and how you wear it.

[BraveBold]

It is an online forum. While some questions are boring (to me) I don’t tend to extrapolate so far/reach as you are doing with respect to motive.

Also, you seem to find it necessary to make objectively inaccurate statements… to what end? I won’t try and judge motive or intent.

But to say “in the world of affordable luxury watches, Rolexes are in the cheap category” is so bizarrely off-base and detached from reality as to make me wonder about motive…ooops, I went there.

;-)

Originally Posted by INC

Honestly, I do not really understand the point of the increasing number of "why does anyone wear a Rolex" questions these days?

To me, it is starting to sound like people with low self-esteem are trying to prove how successful they are by showing off and spending money. This is when they are desperately trying to prove that "they are somebody" because "they already have a status symbol", they have already reached the point where "they are somebody because they have a Rolex."

Let us be honest, in the world of affordable luxury watches, Rolex is the cheap watch category, and besides, apart from a few models, all models are available through grey traders. That is why owning one is not a matter of status, but only of money. And to be honest, it is immediately noticeable when someone wears their watch as a status symbol: They are not acting confident in a world where that is normal, but rather like they are trying to convince themselves that they belong there.

This is a watch. Status comes from where and how you wear it.

[Seddyspaghetti]

Rolex IS a status symbol. Not sure what is so confusing or hard to admit. If you don’t think so then you are in denial. Cut all the fake humble “it’s just a watch” BS. You’re not fooling anyone but yourself.

[gamingdoctor]

Originally Posted by Seddyspaghetti

Rolex IS a status symbol. Not sure what is so confusing or hard to admit. If you don’t think so then you are in denial. Cut all the fake humble “it’s just a watch” BS. You’re not fooling anyone but yourself.

From reading this thread I think most people agree with you. I don't think most TRF users wear the brand because of that, though.

[bluestreak]

Originally Posted by gamingdoctor

From reading this thread I think most people agree with you. I don't think most TRF users wear the brand because of that, though.

I think most are and don’t realize it. Their view of Rolex’s quality, value, beauty is inexorably linked with its branding, which is that of a status symbol. That branding is so ubiquitous it’s impossible to untie from anything else.

I knew what a Rolex was when I was 5. And I knew that 1) it was a watch that rich people had, 2) so desirable that people were always trying to make forgeries and 3) most people were impressed when they found out someone was wearing one.

How much of what’s been ingrained in me since I was five is crafting my view of Rolex in my 40s? I genuinely have no idea. But it’s certainly not zero.

[INC]

Originally Posted by BraveBold

But to say “in the world of affordable luxury watches, Rolexes are in the cheap category” is so bizarrely off-base and detached from reality as to make me wonder about motive…ooops, I went there.

I think it's pointless to argue about this. Just look around and see who offers the cheapest platinum watches in this category.

[INC]

Originally Posted by Seddyspaghetti

Rolex IS a status symbol.

Well, so be it. But then what is the status that a Rolex symbolizes?

[Wee-Willie]

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 guess I shouldn't have gotten my 1st Rolex in 1986...I had been looking at a TT Air King in the jewelry store window for a couple of months. I 1st became aware of Rolex as an Audit Director, noticing most of the business men I was auditing wore Rolex. After sending several of them to prison, I stopped in & bought that watch with a 20% discount, $500 & 12 payments, interest free.
I did buy my Day Date in 2022 & my OP41 in 2023 with ash.

[TexEd]

Originally Posted by 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.

"The luxury watch market has seen remarkable shifts in valuation and demand over the past twelve months, with Rolex models experiencing particularly notable fluctuations. Secondary market data reveals fascinating trends across popular Rolex references, demonstrating how different models have performed in terms of both price appreciation and collector interest.

Rolex Batman: Steady growth with a 10% increase in 2024.
Rolex Root Beer: Massive growth of 433% in 2024, indicating a rising trend for this iconic model.
Pepsi: Significant resurgence with a 134.8% increase in 2024.
Hulk: Flat growth in 2024 after moderate increases in previous years.
Polar: Demand increased by 157% in 2024, showcasing its rising appeal"

[INC]

Originally Posted by Wee-Willie

After sending several of them to prison, I stopped in & bought that watch with a 20% discount, $500 & 12 payments, interest free.

OP was talking about paying with a credit card, not interest-free installments. The latter is always better than paying in one lump sum, because if you have money for something, "it is a shame" to pay it all at once if you can still invest it for a year. However, if you buy something with a credit card and pay the huge card interest for, say, a year, that means you do not have money for something. So this means exactly that whoever buys something according to the former is smart, and whoever buys something according to the latter is not really smart.

[CarlOver]

Originally Posted by TexEd

"The luxury watch market has seen remarkable shifts in valuation and demand over the past twelve months, with Rolex models experiencing particularly notable fluctuations. Secondary market data reveals fascinating trends across popular Rolex references, demonstrating how different models have performed in terms of both price appreciation and collector interest.

Rolex Batman: Steady growth with a 10% increase in 2024.
Rolex Root Beer: Massive growth of 433% in 2024, indicating a rising trend for this iconic model.
Pepsi: Significant resurgence with a 134.8% increase in 2024.
Hulk: Flat growth in 2024 after moderate increases in previous years.
Polar: Demand increased by 157% in 2024, showcasing its rising appeal"

Interesting info. Can you explain how you interpret the 433% number?

[CarlOver]

Status symbol. So many people don’t care what others think in general or what others think of themself. They are caring and polite but they just don’t care about that. If you spend time with like minded people that have similar tastes then no one is passing judgment about status. Everyone is different and live in different worlds. Best to all.

[WatchEater666]

Originally Posted by Krash

I really disagree. A $2000 Tag Heuer is an exclusive watch for the overwhelming majority of the global population.

The “billions of dollars of watches per year” sounds impressive. But less than one percent of the global population are buying them.


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I think it's all contextual/depends on where you live.

If you live in a major tier 1 American city, Rolex is super common. You'll see it everywhere.

In a tier 3 city, like when I was in SLC, it was more rare but would still see them quite often.

Forty-one percent of US households earn $100,000 or more. Spending ~$8k - $12k on a watch is not crazy, or even much of a symbol IMO.

I was just at a dinner thing a few weeks ago and almost everyone had either a Rolex or AP on.

[JRell]

Originally Posted by WatchEater666

I think it's all contextual/depends on where you live.

If you live in a major tier 1 American city, Rolex is super common. You'll see it everywhere.

In a tier 3 city, like when I was in SLC, it was more rare but would still see them quite often.

Forty-one percent of US households earn $100,000 or more. Spending ~$8k - $12k on a watch is not crazy, or even much of a symbol IMO.

I was just at a dinner thing a few weeks ago and almost everyone had either a Rolex or AP on.

Most of 100k in combined family household incomes would mostly go to food, mortgage, bills, etc. 100k doesn’t get you far nowadays. There is a reason people out in big cities are wearing Rolex. They have done well in life, appreciate quality and get a Rolex. Just because they are common in a larger city doesn’t make them any less of a status symbol. If anything it reinforces the point.

[enjoythemusic]

Sounds like i've been doing it wrong all this time.

that's ok.

[Daytona king]

Originally Posted by Mystro

These threads come up from time to time. I will summarize it as best as I can.

The fact that you are on TRF probably excludes you from needing your Rolex to be a “status symbol” or the primary reason you purchased it. We obviously are not the normal Rolex buyers as they don’t eat and sleep Rolex reference numbers or critique minor cosmetic changes to the tenth power. The Rolex “status symbol” is the baggage we speak of regularly and do are best to keep that element in proper context from how we enjoy these wonderful and robust watches. We can’t control how others view are motives for purchasing much like many of us that enjoy pricey performance cars. It’s a lifestyle we enjoy and should not be ashamed of.

As always, spot on my friend.


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[Wee-Willie]

Originally Posted by INC

OP was talking about paying with a credit card, not interest-free installments. The latter is always better than paying in one lump sum, because if you have money for something, "it is a shame" to pay it all at once if you can still invest it for a year. However, if you buy something with a credit card and pay the huge card interest for, say, a year, that means you do not have money for something. So this means exactly that whoever buys something according to the former is smart, and whoever buys something according to the latter is not really smart.

Point taken....I wasn't,, being a low-paid government employee, able to spend $2,000 at the time.
I got the watch I had lusted after for months & was damn proud to own it!!

[zengineer]

They are expensive to most people so of course they convey status to many. That doesn't mean everyone buys them for that reason or that they convey that to everyone.

And always nice to see somethings never change, like the semi-quarterly 8th grade textbook explanation of Veblen goods.

[GVAZQUEZ]

Rolex is not a status symbol


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[JRell]

For what it is worth when I Googled it, first AI result:

AI Overview

Status symbols are things that indicate wealth or social standing, such as expensive cars, jewelry, and clothing. However, status symbols can also be immaterial, such as non-fungible tokens.
Examples of status symbols
Cars: Luxury cars like Porsches and Ferraris
Clothing: Haute couture, designer handbags, and other fashionable clothing
Jewelry: Rolex watches and other expensive jewelry
Real estate: Mansions, penthouses, and large houses

[Daytona king]

I decided to wear my OF Daytona today. Why?Because I love this watch. I wear it because I like it and I worked hard for it. To me it’s a reminder of my hard work. But I would be kidding myself if wearing a $40k watch on a rubber strap is not a status symbol regardless of why I wear it.


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[mountainjogger]

Originally Posted by 77T

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%.

Good reality check.

And if I could only keep one, I'd chuck the Sub and keep my F150.

[huncho]

Originally Posted by Mystro

These threads come up from time to time. I will summarize it as best as I can.

The fact that you are on TRF probably excludes you from needing your Rolex to be a “status symbol” or the primary reason you purchased it. We obviously are not the normal Rolex buyers as they don’t eat and sleep Rolex reference numbers or critique minor cosmetic changes to the tenth power. The Rolex “status symbol” is the baggage we speak of regularly and do are best to keep that element in proper context from how we enjoy these wonderful and robust watches. We can’t control how others view are motives for purchasing much like many of us that enjoy pricey performance cars. It’s a lifestyle we enjoy and should not be ashamed of.

it's honestly crazy that people are arguing against your point lol

a rolex can both be a status symbol to the general public and bought because it's a timeless, classic and bulletproof watch

[mickyd329]

Originally Posted by Mystro

These threads come up from time to time. I will summarize it as best as I can.

The fact that you are on TRF probably excludes you from needing your Rolex to be a “status symbol” or the primary reason you purchased it. We obviously are not the normal Rolex buyers as they don’t eat and sleep Rolex reference numbers or critique minor cosmetic changes to the tenth power. The Rolex “status symbol” is the baggage we speak of regularly and do are best to keep that element in proper context from how we enjoy these wonderful and robust watches. We can’t control how others view are motives for purchasing much like many of us that enjoy pricey performance cars. It’s a lifestyle we enjoy and should not be ashamed of.

Very well put. I buy watches, cars, and clothes that I like. If some look at it as a status symbol, so be it. I don't care because I'm buying what I like and enjoy. Reality is, we here on TRF are not normal to the rest of the world as they don't understand our fascination with these trinkets.

[Marcjvr]

Originally Posted by Seddyspaghetti

Rolex IS a status symbol. Not sure what is so confusing or hard to admit. If you don’t think so then you are in denial. Cut all the fake humble “it’s just a watch” BS. You’re not fooling anyone but yourself.

What about omega and Tag heuer? Oris? Hamilton?

Where is the line then?

How much does the watch have to be worth strapped to your wrist for people to say “oh wow look at that symbol of status” ?

Just curious

[garyk]

Originally Posted by Seddyspaghetti

Rolex IS a status symbol. Not sure what is so confusing or hard to admit. If you don’t think so then you are in denial. Cut all the fake humble “it’s just a watch” BS. You’re not fooling anyone but yourself.

Fooling myself? Well, bless your heart….