Semi-OT: Audemars taking sales in-house

[jfmiii]

https://www.reuters.com/article/us-w...-idUSKCN1LM2MI

Here's hoping Rolex follows suit, or, at the very least, some less than scrupulous ADs who supply the grey market will realize that their golden goose will be killed if they continue to sell all their hot watches out the back door.

[beshannon]

This would be great!

[Vipes]

Interesting read. Thanks.

[Locust]

Interesting. I wonder with an e boutique how audemars will handle sales of 15407st and 15202st. I would imagine those wouldn't be sold online and you'd have to call a boutique of AP house maybe? interesting......

[jfmiii]

Originally Posted by Locust

Interesting. I wonder with an e boutique how audemars will handle sales of 15407st and 15202st (hot hard to get pieces in steel). I would imagine those wouldn't be sold online and you'd have to call a boutique of AP house maybe? interesting......

or, you place a 10% deposit to secure your place in line, and you are called when your place in line comes up. no games, no VIPs only.

one can dream!

[beshannon]

Originally Posted by jfmiii

or, you place a 10% deposit to secure your place in line, and you are called when your place in line comes up. no games, no VIPs only.

one can dream!

Well lets be honest, that will never happen

If a faux celebrity calls and wants something they will get it, there will just be no middlemen involved

[tyler1980]

Originally Posted by jfmiii

https://www.reuters.com/article/us-w...-idUSKCN1LM2MI

Here's hoping Rolex follows suit, or, at the very least, some less than scrupulous ADs who supply the grey market will realize that their golden goose will be killed if they continue to sell all their hot watches out the back door.

If you think AP boutiques dont play the same allocation games as AD's you are kidding yourself.

Also its 40,000 watches per year for AP verses close to 1 million for Rolex so its not as feasible logistically to go boutique only when they currently only have one, at that is in geneva. A niche brand which AP is can do this, Rolex is so mass market and part of their appeal is that its recognizable and almost every normal sized city has an AD.

I have found that i have been seeing way less AP watches around generally so they are harder to find with less points of sale. Its either going to help the brand remain profitable, or make them irrelevant as when its out of sight its out of mind. No idea which way its going to go though and no idea if people will actually buy watches without trying them on first from an e commerce platform.

[GoingPlaces]

This has been discussed many times. I believe that Rolex will eventually have an E commerce component, albeit later than sooner.

All-boutique however will never happen. Whole different business model, especially when you're trying to pump 800K+ watches into the marketplace.

[tyler1980]

Originally Posted by jfmiii

or, you place a 10% deposit to secure your place in line, and you are called when your place in line comes up. no games, no VIPs only.

one can dream!

why would any brand, especially a small one want to make their customers who spend six figures a year mad?

Its sort of like premium class passengers on airlines. Its like 20% of the seats and as much as 75% of the profits generated. The margins are razor thin in coach. So they get what they want and get extra perks. If you are buying one watch you will never not get bumped for someone who spends more as they can afford to lose you and not a VIP.

[Spectral_Method]

Interesting...I went to an AD last week to try on some AP's, I have small wrists and wanted to get a feel of how a 37mm wears as opposed to a 41mm. If I understand this correctly they want to completely do away with AD's, how would newcomers to the brand try on their watches?

Do ya'll think this will hurt or boost their brand name?

[singe89]

With the rise of social media AP doesn't really need ADs anymore. The average watch purchaser might have heard of AP, Patek, ALS, Rolex, etc and they would go to their local AD and see what watch they like best then make a purchase. Now with the internet/social media consumers know the brands in far more detail and know they want an AP. AP can better control the customer experience (and price control) through boutique sales and online. They can also use the additional margin for customer appreciation gifts and events. It will also help to secure pricing on the secondary market. The days of deep discounts might be gone but it will be good for AP watch owners.

[jfmiii]

Originally Posted by Spectral_Method

Interesting...I went to an AD last week to try on some AP's, I have small wrists and wanted to get a feel of how a 37mm wears as opposed to a 41mm. If I understand this correctly they want to completely do away with AD's, how would newcomers to the brand try on their watches?

Do ya'll think this will hurt or boost their brand name?

How do Rolex customers try on SS Daytonas, SS Pepsi, BLNR, Hulk, etc etc?

[GB-man]

I find it hard to believe FHB said he was competing with omega per the article lol

I like what AP is doing because they are being direct. They are telling us the plan and executing it quickly. What pisses me off is a middle ground where they still have ADs but choke the inventory to them leading you to believe you might be able to get xyz at a discount but are left waiting in limbo.

[Spectral_Method]

Originally Posted by jfmiii

How do Rolex customers try on SS Daytonas, SS Pepsi, BLNR, Hulk, etc etc?

In my case I wanted to see and feel how the sizes wear. I didn't get to try on the exact model/dial combo. But it gave me a great idea of what feels best on my wrist.

You can go to a Rolex AD and try on PM Daytonas/GMT's/Subs. If your intent is to see what the exact model looks like, you have a point, people will be out of luck. But if all you want to do is get a dimensional feel for the watch, a Boutique/AD will have comparable models for consumers to try on.

[redsubby]

Originally Posted by GoingPlaces

This has been discussed many times. I believe that Rolex will eventually have an E commerce component, albeit later than sooner.

All-boutique however will never happen. Whole different business model, especially when you're trying to pump 800K+ watches into the marketplace.

It makes no different to customers whether they buy from ADs or boutiques. If one wants a Rolex, they will head to a Rolex boutique, instead of the AD.

[Gravity]

Won't change a thing. The high demand, hard to get watches will still be just that. It will just be much easier to buy the readily available models at home but will come at the cost of paying full retail + tax.

[tyler1980]

Originally Posted by redsubby

It makes no different to customers whether they buy from ADs or boutiques. If one wants a Rolex, they will head to a Rolex boutique, instead of the AD.

actually it does matter. I like many brands and i have good connections at my AD. If my AD doesnt carry a particular brand, i don't buy it, as im not starting multiple relationships with multiple sales outlets. One brand people, sure its fine

Rolex boutiques are still AD's though. They just only sell one brand at that location.

[tyler1980]

Originally Posted by jfmiii

How do Rolex customers try on SS Daytonas, SS Pepsi, BLNR, Hulk, etc etc?

grey dealers

Ive tried on a ton of watches. Ill never buy one there though.

[tyler1980]

Originally Posted by Spectral_Method

Interesting...I went to an AD last week to try on some AP's, I have small wrists and wanted to get a feel of how a 37mm wears as opposed to a 41mm. If I understand this correctly they want to completely do away with AD's, how would newcomers to the brand try on their watches?

Do ya'll think this will hurt or boost their brand name?

if anything i think its a commitment to staying small. So in that since its probably positive. However getting new customers will be more difficult. They dont have that issue now, but imagine 10-20 years from now when new watch collectors are trying to get into the brand and there is 1 or 2 places in an entire country you can even see them. Thats the downside risk.

[Greenp]

If AP plans to drop ADs, what incentive do current ADs have to promote AP? The ADs should steer customers to other brands.

[SC11]

They want to break the 1 billion Swis Francs mark and without upping production and how do they do that!

Cut out the middle man, bigger margins.

They don’t want discounting as it devalues the brand and how do they do that!

Cut out the middle man, no more discounts.

[bondtoys]

I must say, that I hope that this falls onto their feet!

Pretty sure there are many ADs, who have carried AP thru the bad pre-ROO times and put a lot of effort, money and heartblood into the company.

When I see the quality of knowledge (or rather total lack of) in the HK AP boutique, I am not sure if that all is a wise move and it'll hardly help the customers.

AP will dictate pricing and discounts (lack of) if we all let that fly.

[GB-man]

Originally Posted by Greenp

If AP plans to drop ADs, what incentive do current ADs have to promote AP? The ADs should steer customers to other brands.

None whatsoever. If you want a not so popular model the next year or so is a great time to hunt for deep discounts from ADs losing the brand. Already happened at an AD I use to frequent. I missed all the good stuff.

[AK797]

Originally Posted by jfmiii

How do Rolex customers try on SS Daytonas, SS Pepsi, BLNR, Hulk, etc etc?

Grey dealers are the best bet as been said, and they are becoming huge now and the largest in Europe and probably the world now, Watchfinder, hold many popular models from across the brands and you can arrange to have AP, PP and Rolexes all shipped to the closest branch to you, they have around ten now, and then go try them all on at once.

[AshAP]

Originally Posted by tyler1980

If you think AP boutiques dont play the same allocation games as AD's you are kidding yourself.

Also its 40,000 watches per year for AP verses close to 1 million for Rolex so its not as feasible logistically to go boutique only when they currently only have one, at that is in geneva. A niche brand which AP is can do this, Rolex is so mass market and part of their appeal is that its recognizable and almost every normal sized city has an AD.

I have found that i have been seeing way less AP watches around generally so they are harder to find with less points of sale. Its either going to help the brand remain profitable, or make them irrelevant as when its out of sight its out of mind. No idea which way its going to go though and no idea if people will actually buy watches without trying them on first from an e commerce platform.

Good point, I’ve wanted so many watches based on photos on the internet but then when I get to try them on it’s a different story.


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[AshAP]

Originally Posted by Greenp

If AP plans to drop ADs, what incentive do current ADs have to promote AP? The ADs should steer customers to other brands.

It’s not just AP.......it’s the watch industry in general.


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[tyler1980]

Originally Posted by Greenp

If AP plans to drop ADs, what incentive do current ADs have to promote AP? The ADs should steer customers to other brands.

AD's steer customers to whats in stock no matter the brand. AP or otherwise so no change really.

[tyler1980]

Originally Posted by AshAP

Good point, I’ve wanted so many watches based on photos on the internet but then when I get to try them on it’s a different story.


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yeah. If you want a SS 15202 most AD's have a RG 15202 at some point and im pretty sure most people have tried on for size. Without that ability to showroom i would be concerned especially after time passes and the next generation has never seen one. 39mm is a tough sell based on spec but it wears quite a bit bigger but you would never know if you cant see one at all.

[GoingPlaces]

Originally Posted by redsubby

It makes no different to customers whether they buy from ADs or boutiques. If one wants a Rolex, they will head to a Rolex boutique, instead of the AD.

Please elaborate, first you state it makes no difference, then you state boutique over AD. Just curious, albeit I agree in that to most it won’t make a difference.



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[N&M]

Originally Posted by jfmiii

How do Rolex customers try on SS Daytonas, SS Pepsi, BLNR, Hulk, etc etc?

Thanks God, they have Gold modifications, which are easy to find in stock :)