Has Rolex reached its peak?

[rolepam312]

I love my 16610 and rolex in general, however due to their marketing and rebranding efforts, (minimizing AD's role, consistent price increases, shifting their supply to Asia, etc) its understandable that they are more image conscious with their brand being aaociated with more high ended, in the line of other haute horological manufacturers...
However, IMHO, they will never be in the likes with PP, AP, VC, JLC, etc...nor do I think they are striving to be as such...
But their prices are inching closer to the likes.. I think they may have reached their peak and their targeted demographics...it's conceivable that as the price increases other brands that was once unattainable slowly becomes attainable...and given the choices for similar price, I personally would buy outside of rolex, which I already have and will continue to do so.....will you? Or is Rolex so desirable that despite the price, will you continue to buy it when you have other options?
I know this is a rolex forum and the opinion will be biased, but I noticed we all own other timepieces as well...its not taking away anything about quality, reliability, of a rolex, rather the limitation of Rolex .......
Thanks for your inputs..

Taylor

[psv]

Not even close. But you need to do some deeper researching into luxury goods branding and marketing.

Sure, they will never be an AP - or vice versa - but they are not trying to either.

[matt4hand]

Originally Posted by rolepam312

I love my 16610 and rolex in general, however due to their marketing and rebranding efforts, (minimizing AD's role, consistent price increases, shifting their supply to Asia, etc) its understandable that they are more image conscious with their brand being aaociated with more high ended, in the line of other haute horological manufacturers...
However, IMHO, they will never be in the likes with PP, AP, VC, JLC, etc...nor do I think they are striving to be as such...
But their prices are inching closer to the likes.. I think they may have reached their peak and their targeted demographics...it's conceivable that as the price increases other brands that was once unattainable slowly becomes attainable...and given the choices for similar price, I personally would buy outside of rolex, which I already have and will continue to do so.....will you? Or is Rolex so desirable that despite the price, will you continue to buy it when you have other options?
I know this is a rolex forum and the opinion will be biased, but I noticed we all own other timepieces as well...its not taking away anything about quality, reliability, of a rolex, rather the limitation of Rolex .......
Thanks for your inputs..

Taylor

You could not be more wrong IMO.

[snaggle]

You also have to understand, that many people do not like styles of the higher "class" watches, such as AP, JLC, VC and even PP (personally i dont like them myself, except PP)... And considering Rolex is still cheaper than most watches from those brands, people will take them because they appeal much more (aesthetic wise, not the mechanics)...

[dddrees]

I'm not sure I know what you mean in regards to reaching their peak? Do you mean popularity or production levels? Do you mean it's somehow all downhill from here?

They have never tried to sell the same kind of watch that Patek sells in the first place.

By the way those other brands prices haven't really been staying the same either.

[btrue]

I would have paid a considerable bit more for mine than I did. I do not believe that Rolex has reached its ceiling in regard to its targeted demographic's price tollerance.

[Spikedlee]

Rolex definitely has yet to peak in price tolerance as well as market growth.

[Fifth Ave Rolex Man]

ROLEX = #1 brand.

[Lion]

There are a lot of great brands out there to choose from but I think Rolexes will continue to sell all over the world because of name recognition and quality. They may be targeting the Asian market now because of growth potential but I think they will still sell here and everywhere.....happy hunting!!!

[rolepam312]

Originally Posted by matt4hand

You could not be more wrong IMO.

While I disagree, I respect your opinion, and only time will tell..i could be wrong but what makes you so sure i'm wrong?

[SoftwareDrone]

I have one word for you: CHINA.

[smartson]

Like a lot of people, it will be a while before I can effort a PP or A Lang. Rolex actually represents one of the best brand value for 'my demographic'. Yes, JLC and VC are great brands. But Rolex holds an unmatched position in used market in both value and liquidity.

[mrbill2mrbill2]

Rolex has always been and will remain Rolex. An affordable, accurate, and durable - and I stress durable time piece.

[rolepam312]

Originally Posted by snaggle

You also have to understand, that many people do not like styles of the higher "class" watches, such as AP, JLC, VC and even PP (personally i dont like them myself, except PP)... And considering Rolex is still cheaper than most watches from those brands, people will take them because they appeal much more (aesthetic wise, not the mechanics)...

Agree wholeheartedly, I personally don't like many of the higher ended watches, with the exception of AP and few Panerais...in comparison rolex is still cheaper and appeals to more in aesthetics, Rolex was to me anyways, understated, luxury without a label...now i'm not sure what it symbolizes...

[esm]

Originally Posted by rolepam312

I love my 16610 and rolex in general, however due to their marketing and rebranding efforts, (minimizing AD's role, consistent price increases, shifting their supply to Asia, etc) its understandable that they are more image conscious with their brand being aaociated with more high ended, in the line of other haute horological manufacturers...
However, IMHO, they will never be in the likes with PP, AP, VC, JLC, etc...nor do I think they are striving to be as such...
But their prices are inching closer to the likes.. I think they may have reached their peak and their targeted demographics...it's conceivable that as the price increases other brands that was once unattainable slowly becomes attainable...and given the choices for similar price, I personally would buy outside of rolex, which I already have and will continue to do so.....will you? Or is Rolex so desirable that despite the price, will you continue to buy it when you have other options?
I know this is a rolex forum and the opinion will be biased, but I noticed we all own other timepieces as well...its not taking away anything about quality, reliability, of a rolex, rather the limitation of Rolex .......
Thanks for your inputs..

Taylor

did you know that the brands like PP, AP, VC, JLC and the likes raises their price annually too.... therefore, how can Rolex's price inches closer to those brands?

[rolepam312]

Originally Posted by psv

Not even close. But you need to do some deeper researching into luxury goods branding and marketing.

Sure, they will never be an AP - or vice versa - but they are not trying to either.

I believe I made that clear,
I'm aware of the luxury goods and marketing...and admitted that rolex is not trying to be like them nor their goal...thanks

[McLovin]

The American middle class is in decline, so even without steep price increases fewer people would be able to achieve these aspirational purchases. But Rolex's strategy appears to be a move up-market, and I'd bet it knows what it's doing and will more than make up any losses by going more high end. The company is following the money. Rolex has not peaked, IMHO.

[dddrees]

Originally Posted by McLovin

The American middle class is in decline, so even without steep price increases fewer people would be able to achieve these aspirational purchases. But Rolex's strategy appears to be a move up-market, and I'd bet it knows what it's doing and will more than make up any losses by going more high end. The company is following the money. Rolex has not peaked, IMHO.

I think it has more to do with the location of more of theirs and other watchmakers markets being in different locations.

[RRGHOST1]

I will only buy Rolex and if i was minted would still buy Rolex over AP,PP,JLC etc, as i think some of them,not all, are quite ugly,maybe better movements,but some of them......!

[psv]

The whole point of luxury goods are that they should appear to be somewhat unattainable (while in reality they are not).

Changing demographics, targets or distribution is just smart, it has nothing to do reaching or passing a peak.

With regards to what I buy: if Rolex comes out with some models that interests me, I'll buy it. I do consider them to be a much better buy than most other watches out there in terms of holding their value well and fitting my use-case scenarios (sport & diving while being reliable, sturdy, good lume, waterproof etc). I had a AP ROO Diver, while a spectacular watch in a finish at a much higher level than Rolex, at the same time it was $18,900 for a dive watch in stainless steel on a rubber strap; it sells for $13,500 mint used so you would take a big hit financially; the brushed and polished parts of the case and bezel are very sensitive to wear and it should only be serviced at AP proper; the movement beats at 3Hz instead of 4Hz for the Rolex making it much harder to regulate and more sensitive to shock; and lastly, it has an internal bezel with a screw-down crown at 10 o'clock that isn't functional to operate under water... So if I was looking for a (luxury) diver today with unmatched reliability, classic and timeless design I would still pick a Sub, even if it is $8,000 before discount, or even $9,000 next year.

[f16570]

When we make these items available to the chattering classes, then that indeed will be the downfall of the brand.
Rolex do not want to sell watches to all and sundry.
The price increase is a clever way of ensuring that the resale value of pre owned watches remains buoyant in these otherwise uncertain times.

[tattooedfagin]

if you think the annual Rolex price increases will bring them (eventually) within reach of other brands such as AP for example you'll be in for a long wait

[hatidua]

The continual price increases have been going on for forever. I rushed my first Rolex purchase more than 30 years ago as the prices were about to go up the next month.

I doubt Rolex has come even close to reaching it's peak in terms of price or market saturation. However, in discussing aesthetics, that another matter entirely...

[dddrees]

Originally Posted by psv

The whole point of luxury goods are that they should appear to be somewhat unattainable (while in reality they are not).

Changing demographics, targets or distribution is just smart, it has nothing to do reaching or passing a peak.

With regards to what I buy: if Rolex comes out with some models that interests me, I'll buy it. I do consider them to be a much better buy than most other watches out there in terms of holding their value well and fitting my use-case scenarios (sport & diving while being reliable, sturdy, good lume, waterproof etc). I had a AP ROO Diver, while a spectacular watch in a finish at a much higher level than Rolex, at the same time it was $18,900 for a dive watch in stainless steel on a rubber strap; it sells for $13,500 mint used so you would take a big hit financially; the brushed and polished parts of the case and bezel are very sensitive to wear and it should only be serviced at AP proper; the movement beats at 3Hz instead of 4Hz for the Rolex making it much harder to regulate and more sensitive to shock; and lastly, it has an internal bezel with a screw-down crown at 10 o'clock that isn't functional to operate under water... So if I was looking for a (luxury) diver today with unmatched reliability, classic and timeless design I would still pick a Sub, even if it is $8,000 before discount, or even $9,000 next year.

Well said Patrick.

[psv]

Originally Posted by dddrees

Well said Patrick.

Thank you, Dan! :-) My right hand/arm is in a cast so typing anything requires a lot extra work and dedication! ;-)

[dddrees]

Originally Posted by psv

Thank you, Dan! :-) My right hand/arm is in a cast so typing anything requires a lot extra work and dedication! ;-)

That's not good.

Hope it heals soon.

[Fiery]

Originally Posted by esm

did you know that the brands like PP, AP, VC, JLC and the likes raises their price annually too.... therefore, how can Rolex's price inches closer to those brands?

Rolex still gets closer and closer. At least that has been the case since the '70s. When the original AP Royal Oak (Ref.5402) was released in 1972, it cost over 11 times more than the steel Submariner back then. Now (with AP Royal Oak 15300ST vs. Submariner 116610LN) the difference is less than 2 times. It's a huge step in my book. If people still buy more and more Rolex watches every year, and high-end brands (like AP, PP, VC) still don't want to sell considerably more watches annually, then Rolex somehow will be "forced" to keep raising the bar and -- at least MSRP-wise -- edge closer and closer to the high-end brands.

[Postnikov]

I think it is a matter of taste, money, trends, prestige, knowledge, age, (whatever fits for you) why you buy a certain highend watch. Ten years later everything changes....

[Cuts33]

IMO, the continuous and substantial price increases are going to have a negative impact on sales in the US. It is getting to the point where the value simply isn't there given what you are getting.

Is the SubC for example a great and timeless watch? Absolutely.

Is it worth $10K which is where it is headed? The answer to many on this forum is yes. I would venture to guess that the answer to many not lurking around here is a resounding no.

However, as many pointed out, Rolex sales are going up and China is largely to thank for that. There was an interesting article someone posted awhile back that was an interview with the CEO of Patek. He readily admitted they are nowhere near on scale with Rolex in terms of units produced per year, but he cautioned about marketing to and relying upon China for large percentage of your sales. He discussed marketing his product on a global scale and not putting all his eggs in one basket.

If China's bubble bursts for the lack of a better term and prices keep going up at 3-4x the normal inflation rate, Rolex might get caught with their pants down.

And I don't mean to say the brand will go under or everyone will stop buying them, but it might be time for them to reassess their strategy and stop drinking their own kool-aid.

[capote]

At the same time Omega is also raising their prices. The point is that all brands are raising their prices because what they all are selling is status (to a certain degree anyway). Therefore: Raise the price = raise the status. There are still some Rolexes I would like to buy, so my interest has not peaked yet.