What is the “new norm” for Rolex?

[Turbo Racer]

Originally Posted by daddywalrus

If there is an economic downturn they might not have a choice. They will sell what they can to survive.

Have peope suddenly forgotten what happens during a recession???

100%. There are a ton of working professionals that have never seen what a recession looks like. It can be ugly. Right now, seems like we are in correction mode with prices of luxury goods declining. In the watch world, imo, there are many models still way overvalued chief of which are Daytona and gmt in the Rolex catalogue. Dd, dj, ak, exp 1 all are reverting towards msrp and other models that are in the pm versions as well (eg wg Pepsi, rg root beer, dd, tt models, etc.).

[rolex16]

Originally Posted by Mystro

You’re generalizing. Why do you assume so many in the luxury watch buying demographic have mortgages and don’t own everything that they have? There is a lot of money out there in middle America that isn’t leveraged at all.
To put it this way, enough people are financially above it in the small luxury watch buying demographic to still keep the demand up.

I was generalizing, but so were you. The reality is there are some like those you mention, and some like those I mention. My point was to highlight those you had left out, since they exist and will be impacted. The fact is that there are Rolex owners or would-be buyers that will be impacted in a recession.

[TswaneNguni]

Originally Posted by Turbo Racer

100%. There are a ton of working professionals that have never seen what a recession looks like. It can be ugly. Right now, seems like we are in correction mode with prices of luxury goods declining. In the watch world, imo, there are many models still way overvalued chief of which are Daytona and gmt in the Rolex catalogue. Dd, dj, ak, exp 1 all are reverting towards msrp and other models that are in the pm versions as well (eg wg Pepsi, rg root beer, dd, tt models, etc.).

The signs were there ...Pandas selling for 52k ,lines in front of LV stores etc.
When the circus hits town,they pack up and leave at some stage .....

Recessions dont last forever .Now,is the time to push money.
Those always living within there means,wont have a problem .

Recession nicely points out what a swear word debt really is .

[Mystro]

Originally Posted by rolex16

I was generalizing, but so were you. The reality is there are some like those you mention, and some like those I mention. My point was to highlight those you had left out, since they exist and will be impacted. The fact is that there are Rolex owners or would-be buyers that will be impacted in a recession.

My logic is there will always be more people that are more financially equipped to deal with a recession that are in the Rolex buying demographic that AD’s can still play their little bundling game to buy a Rolex. When two highly leveraged potential Rolex buyers drop out because of a current change in the economic climate, five more will fill their place that will welcome their spot on the AD list. Rolex themself is more dangerous of stripping a jewelers Rolex franchise than the economy.

[Calatrava r]

Originally Posted by rolex16

Why do you guys think we can’t go back to what was normal for decades? I don’t get it.

To me it's very simple. For decades Rolex was a small player with product all over the place just sitting in cases unsold and being sold on the secondary market for major losses. Few people really wanted watches beyond the 25 to50 buck price point. Twistoflex bands were king on gold toned timexes. Now the hype is through the roof for Rolex. That is not changing soon and demand far exceeds supply. This is the new normal, like it or not. Luxury watch brands have found a niche customer base and they fully intend to keep it.