Rolex Trends and the affect on the Younger Demographic

[ArcticMoose]

Rolex sees the recession coming and is positioning accordingly.

They don’t want the market flooded or the associated price dumps when it hits.

[yugxelor]

I definitely see the point OP is making, that being said, I have a couple of different trains of thought as someone that is young and very much invested in the Rolex brand.

First, as much as young people love something cheap, they also love to have things that their peers don't or can't have. The demand for something exclusive definitely entices younger people to get it when they can. While they may pay more for it, that exclusivity is worth a lot.

On that note, tons of kids have something called FoMO, or Fear of Missing Out. If they see their friend (mentioned above) has a Rolex (SS, PM, whatever), they're more apt to pursue a Rolex and compete as well as make sure they aren't missing out on something their friend or peers are experiencing.

Cheers

[rlrobson08]

Originally Posted by 007_Omega

Was just thinking about this and wanted to hear others' thoughts on the situation.



Stainless steel sports models, aside from a few, are basically impossible to get. There used to be waitlists and now you have to earn your way that waitlist.



As a young Rolex owner, I think this whole situation could backfire on Rolex. I was fully ready to buy a Stainless Steel Sub at an AD. The option wasn't available. I was told 1-2 years at all my local ADs. I ended up buying a basically like-new one on the forums here which ended up being an absolute steal looking at today's prices.



My friend really wanted to celebrate his graduation and passing the BAR by buying himself a Sky-Dweller that he lusted after and saved up for. He came to me for advice and I told him it wasn't going to happen and to not buy from the grey market as the premiums were insane, not to mention of the financial irresponsibility of the whole situation.



There are plenty of other stories like this. The point is Rolex used to be a thing you worked hard for, it was a goal, and eventually you saved up the money and went to the Rolex AD and bought the watch. That model just doesn't exist anymore, unless you are after a less desirable model.



Sure, in the short-term catering to an older clientele with a purchase history is profitable for local ADs but building up the future of the brand is also important.



Really, all of it just points to Rolex going upmarket for me. Rolex is acting more like Patek than the Rolex of old. The market isn't huge for young people willing to spend $7.5k+ on a watch and throwing away those customers isn't going to help.



Just my ramblings from a different perspective. Just remember, many of you simply went to store and bought your first Rolex. You probably didn't have to wait years or be flat out told buy an undesirable model to just get on a list.



Personally, I wish Rolex would just deal directly with its customers. I could deal with waiting for a watch, loyalty benefits for customers, and accepting that the brand is trying to be more exclusive but I much rather it be Rolex than some random AD who will simply boot you down a list the second someone comes in and splashes some cash. Not to mention the fact that it is painfully obvious that some ADs are keeping desirable models locked in safes as incentives for a big purchase of a PM model.

We read this sort of thing about Rolex weekly. You and your friends are the market. Rolex produces anywhere from 800,000 to over a million watches per year. This can hardly be considered exclusive by any stretch. So, those of us whom have owned a Rolex (day/date in my case) are truly amazed. One has to ask one's self, what is the limit? We all know there are watches in the same tier as Rolex and in some ways better than Rolex. Rolex, because of you and a huge number of people like you helped create a secondary market for some of the Rolex models. I'm happy not to be so smitten with a brand. I never purchased a luxury watch with pretence of selling it. I purchase luxury watches to wear everyday with a few exceptions. I purchase luxury watches with the thought in my mind as to will I wear this watch in ten years. Anyway, sorry. You sort of asked what time it was and I built you a clock. This Rolex nonsense is in, your and thousands of people like you, hands.

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[AK797]

Originally Posted by yugxelor

I definitely see the point OP is making, that being said, I have a couple of different trains of thought as someone that is young and very much invested in the Rolex brand.

First, as much as young people love something cheap, they also love to have things that their peers don't or can't have. The demand for something exclusive definitely entices younger people to get it when they can. While they may pay more for it, that exclusivity is worth a lot.

On that note, tons of kids have something called FoMO, or Fear of Missing Out. If they see their friend (mentioned above) has a Rolex (SS, PM, whatever), they're more apt to pursue a Rolex and compete as well as make sure they aren't missing out on something their friend or peers are experiencing.

Cheers

The whole premise of Instagram, which I was dismayed to learn has over 1 Billion active users, is to show off what you have and make others eat their hearts out. It's pretty horrific to see how human nature really is when laid bare.

[Sprta]

Everyone makes the assumption that certain watches are impossible to obtain, they are not. Whats difficult is trying to get one without any effort.
Its the same old story I want it now and if I cannot get one its the fault of Rolex. Put a plan in place stick with it and you can be successful, patience and persistance.

[Rolexavidfan]

Originally Posted by bp1000

Everything changes - it won’t be like this forever

In the meantime if you are a collector there are plenty of incredible watches to be had from other brands available immediately

Well said. Try Omega, IWC, JLC, GS, Panerai (which used to be in the same boat until something burst and now certain folks don’t even want to touch it with a 10-foot pole). No pun intended.

Just like if Swatch can be credited for introducing wristwatch to the kids in the 80s which brought this mechanical watch phenomenon, I wonder if Rolex would later on be faulted for the loss of horology enthusiasm from these kids of the 2017 and onwards.

I’ve read many theories on the SS sport shortage from the three venerable brands - Rolex, Patek and AP. I came to the conclusion that these brands are doing something to address the situation - like removing stickers, holding on to the watch warranty card or certificate of ownership, and even closing off AD and/or putting up the boutique. The ADs, on the other hand, are either trying to survive or being opportunistic and that’s fine, they are after all businessmen. For me, it’s really par for the course for now and nothing is permanent in this world.

Hope you have a great week ahead!




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[locutus49]

This. Rolex is a coveted luxury item. There are plenty of SS Rolexes out there if you have the money to afford them.

Rolex is successful precisely because they are so coveted. If they adopted the Omega model they would be..well, another Omega.

Originally Posted by imgook

Hear at least 3 of these rants each day. I love what rolex is doing. It's playing on one of humans biggest flaws... You always want something you can't have more!

[Tseg]

“I’m so mad at Rolex I’m going to buy Brietling!”. Yeh, no.

[Sublovin]

Honestly, most of what you describe will likely create more long term desire, not less. The barriers of entry make it more desirable, and more of an accomplishment when you get it.
Do you think Ferrari has lost demand because if their practice of hand selecting clients? Kids still have the posters in the walk and the brand is more successful than ever before...
People may buy other, more available brands, in the short term but it won’t scratch the itch!

[georgekart]

Originally Posted by Sublovin

Honestly, most of what you describe will likely create more long term desire, not less. The barriers of entry make it more desirable, and more of an accomplishment when you get it.
Do you think Ferrari has lost demand because if their practice of hand selecting clients? Kids still have the posters in the walk and the brand is more successful than ever before...
People may buy other, more available brands, in the short term but it won’t scratch the itch!

Sure, but with luxury cars, you don't even really have to show loyalty to AD, you just have to show loyalty to manufacturer. For example, if you want all the collectible McLaren models in the future, get an F1 and a P1, MSO them with custom spec and you can be guaranteed to get a next McLaren hypercar anywhere in the world. Or buy a used 458, service it at the dealership a couple years, get 488 from dealership you want and when a Pista comes out they will offer you one, even if you bought 458 back in the day at other dealership or even used. After some time they offer you next version of their hypercar. And even if you move and buy from other dealerships, it is permanent, because manufacturer calls the shots, not the dealership. With Rolex it is AD specific, if you go to AD today, buy a lot of watches from them, they give you possibility to buy all the new releases and then a year later they close down. Well, time to go to another dealer who will not know that and will not put you high on the list. Or what if you move and it's not convenient for you to buy from old AD anymore? Well tough luck. If we had possibility to do the same as cars, I think it'd be better. For me it'd be hard to prove ADs they want me as their customer at least at this point, because who knows, in a couple of years I move out of uni and I'm not interested at local AD. But I will still be buying Rolex.

[Sublovin]

^^fair point for repeat customers, but it doesn’t change the answer to the original question which is “will the difficulty purchasing a Rolex drive away NEW buyers”
I still think people hold Rolex on a pedestal and the scarcity makes it all the more intriguing.

[SMD]

I must be the odd one because the current environment does nothing but lessen my interest in watches of all brands. No issue or ranting from me since I have too many as it is and am using the current environment to sell all my 6 digit rolexes. Also selling some APs. When I have spent over 200K on a brand to only be expected to beg and plead and spend even more money to possibly buy a watch from them is a wake up call for me -- no matter how significant I may feel that much money is for me personally, its not enough for a brand or an AD to care about (at least not now). I am going to try and get down to 6 and call it a day.

[AK797]

Originally Posted by Sublovin

^^fair point for repeat customers, but it doesn’t change the answer to the original question which is “will the difficulty purchasing a Rolex drive away NEW buyers”
I still think people hold Rolex on a pedestal and the scarcity makes it all the more intriguing.

Yup, it's a head v heart thing, the head says stay away and don't join the frenzy but absence makes the heart grow fonder, and as this is a hobby for most of us the heart usually wins out, which is why this thing has kept going on for so long, as well as all the flippers, so money and heart, as ever, beats the head.

[elroypreston]

I think the watch companies are taking a page out of the supercar and sneaker market and venturing into this world of “limited” and “exclusive” models.....a lot

[HogwldFLTR]

[mrcsatx]

Originally Posted by imgook

Hear at least 3 of these rants each day. I love what rolex is doing. It's playing on one of humans biggest flaws... You always want something you can't have more!

Marketing 101

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[onnomon]

Originally Posted by SMD

I must be the odd one because the current environment does nothing but lessen my interest in watches of all brands. No issue or ranting from me since I have too many as it is and am using the current environment to sell all my 6 digit rolexes. Also selling some APs. When I have spent over 200K on a brand to only be expected to beg and plead and spend even more money to possibly buy a watch from them is a wake up call for me -- no matter how significant I may feel that much money is for me personally, its not enough for a brand or an AD to care about (at least not now). I am going to try and get down to 6 and call it a day.

While I'm not in the market for a Rolex I have been entertaining certain hard-to-get specimens (FPJ CB among others) and have gotten the same feelings- some sort of brand pandering. And at the whim of the brand/AD they choose to anoint us with their blessing of the privilege of purchase. I want to condense the collection from 8 pieces down to 4- Four personally cherished pieces, worth keeping for a long time and stylistically timeless- not the flavor of the year. And maybe I can satisfy my watch lust by visiting dealers to play with the metal of pieces I won't purchase, or meet with other aficionados to appreciate their watches, for the moment.

That said- I still really want that Chronometer Bleu since I don't want to spill-out for the Resonance. Then maybe call it a day.

[rlrobson08]

Originally Posted by mrcsatx

Marketing 101

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No that's marketing 410. Marketing 101 is creating a want, need and desire.

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[Geaux Tigers]

Interesting perspectives and fun to read the differing opinions. My two cents:

I don’t believe this is a grand supply scheme engineered by Rolex. They are a business that wisely controls growth in up cycles to insulate their work force and value of their product as best possible from the next down turn. They are obsessed with doing things their way which also places limits on supply. If they ramped up and flooded the market with supply their watches would experience the same significant depreciation we see in other no so astute brands suffer. The exception to this rule seems to be the SS Daytona- I believe they do limit supply just don’t know if it’s to boost value, keep it sought after or it’s a production problem.

The demand for their product right now is at an all time high thanks to a great marketing effort by Rolex, a very strong economic outlook and a new segment of buyers (geographic and demographic). I’m certainly no expert but I’d guess that the next generation will buy from Rolex if they remain a relevant brand. While the folks on this thread may have not bought new this time they ultimately did buy a Rolex and as we all know one is never enough!

[dtwer]

It is utter over-dramatization to talk as if Rolex has no watch to sell you. I am willing to bet you can walk in any AD and find SS DJ, DD, YM, and any number of TT or PM pieces readily available.