Rolex Trends and the affect on the Younger Demographic

[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.

[csaltphoto]

I was kind of in the same boat. Decided I wanted a sub (after YEARS of thinking about it). My GF and I took a field trip to the AD in her area and got the same story. I was kind of weirded out by the whole experience. Bought used. Super happy (went semi-vintage anyway and I'm happier with it than the new models.) BUT the point is they could of had my money.

At the same time all the online research has led to a non-stop bunch of ads on my phone (IG mostly). But no Rolex ads, at least from AD's. I can order a 10K Breitling from my phone but if I want a Rolex I have to do the work. Which, in the end, makes my like my watch a bit more. I worked for it. Not just the $$ part but just getting it at all.

[RolexNinja7]

I agree that the whole waitlist issue is frustrating for many people, but for the AD's perspective, he simply doesn't care who buys the watch as long as he makes enough to stay afloat.

Trust me, SOMEONE is paying for those professional models and the ADs are getting paid... Be it a loyal long time customer or a grey market dealer.

It's funny when I see people get upset that the AD wouldn't take their money... Depending on the size of the AD, there are 40+ people with more cash than you waiting years for a phone call from them.

It's upsetting I know, but that's what the current Rolex market is, unfortunately.

[ct.matt]

I could see how it helps the perception of the brand's exclusivity in the short to medium run but hurt Rolex in the long run as it turns off people before they can even get their feet wet. Ultimately, unless we know what they discuss in meetings in Geneva and for lack of data there are too many theories floating around why stainless steel Rolex is so hard to come 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!

[georgekart]

I really hope Rolex embraces direct sales model. Nowadays we buy all sorts of things online. People buy cars from Tesla and don't seem to have an issue. Why not Rolex? If we could get on a WL online on Rolex website and they had a nice algorithm factoring in our previous collection, it would work just as well as ADs if not better.

[ct.matt]

Originally Posted by georgekart

I really hope Rolex embraces direct sales model. Nowadays we buy all sorts of things online. People buy cars from Tesla and don't seem to have an issue. Why not Rolex? If we could get on a WL online on Rolex website and they had a nice algorithm factoring in our previous collection, it would work just as well as ADs if not better.

Wouldn't that be nice. A world where ADs are just a showroom where you get fitted for a watch/try them on and an order is placed

[MTBer]

Originally Posted by georgekart

I really hope Rolex embraces direct sales model. Nowadays we buy all sorts of things online. People buy cars from Tesla and don't seem to have an issue. Why not Rolex? If we could get on a WL online on Rolex website and they had a nice algorithm factoring in our previous collection, it would work just as well as ADs if not better.

Won't happen- as it stands, Rolex gets to hide behind their ADs and blame them for selling to the grey, while letting them take flack from customers over lack of availability.

I like my watch and appreciate the history behind the brand, but I don't see myself buying another for quite some time.

[Switch]

I have a feeling that a majority of first time Rolex watch owners are DJ buyers, not sport models. So Rolex is still doing fine with getting first time buyers feet wet. Aside from Bond aspirations and wis, Joe public probably associates Rolex with the DJ/DD and in precious metal, more often in gold.

[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

[georgekart]

Originally Posted by MTBer

Won't happen- as it stands, Rolex gets to hide behind their ADs and blame them for selling to the grey, while letting them take flack from customers over lack of availability.

I like my watch and appreciate the history behind the brand, but I don't see myself buying another for quite some time.

Sooner or later it will have to. E.g. I was born in one country, went to HS in another and now am studying in uni in third country, after I graduate bachelors I might do masters in yet another country and then work in yet another country. The world is becoming more and more connected. Which AD should I pledge allegiance with only getting watches from? I wouldn't mind showing loyalty to Rolex directly, but with AD model? Forget about it.

[subzilla]

Certain Rolex models have been in high demand for a long time, I understand that Daytonas used to have very little interest, then all of a sudden there’s a seven year waitlist for the white face (stainless bezel). The demand has been created by choking supply and we’ve all fallen for it.
The thrill of the chase is what life is about, if you could just walk in any AD and order your Rolex for delivery within a few weeks, people would move on to a more “exclusive” brand.
Exclusive generally means bore expensive, Rolex have been very clever in marketing and controlling the flow of their SS “affordable” line of watches making them generally more desirable than PM versions in the lineup.
I used to buy watches other than Rolex, looking for something different, when I got tanked on a few trade in values I switched my allegiance to Rolex.
I was bought a breitling for my 30th birthday but almost bought a GMT coke instead. The breitling tanked in value, the GMT would be worth more than twice the original RRP, where you going to put your money?

[Brew]

Perhaps the sm "buzz" created by the younger demographic's ceaseless yearning for pieces that aren't really core to the company's real market is worth more to Rolex than the foregone sales opportunity?

[chris12]

If a first time buyer of a Rolex goes into the AD with the intention of buying a SS watch and finds out there is a 2 year waiting list they can easily be convinced to spend more for a TT. As long as he or she has the cash or credit and the burning desire to walk out of the store a proud owner of their first brand new Rolex they will buy the more expensive available watch in a heartbeat.

[Spartacus]

Oyster Perpetual and even Tudor exist as entry level options.

[Harry-57]

Rolex sells all the watches it can make. I suspect this has been the case for longer than I have lived. They probably know what they are doing. Nothing stays the same, be it good or bad.

On the plus side, if you're young, impatient, think you know how to market Rolex watches better than Rolex, and you are a lover of SS sport models, you will be old and wise by the time you get one! Two things worth waiting for.

[1William]

I am a Rolex fan and have been with the brand for more than 25 years and have owned most of the different types of watches. That said, many younger consumers are looking for the perceived status of buying and owning a Rolex. Nothing wrong with that, but most do not understand the current market and if they cannot just walk in and buy what they want it is a problem with Rolex and the AD's. There is no shortage of Rolex watches available for sale from Trusted Sellers. Do your research and find out what the model is that you want and see where it is price wise with a Trusted Seller. Many of the asking prices are just that and I have never not been able to get somewhat of a price concession. The super hot watches like the SS Daytona-C, SS Pepsi GMT and the blue dial Sky-Dweller are all priced significantly over msrp. That is the market and if you want one of these hot watches you will pay more. If you want a black or white dial SS Sky-Dweller you can pick one up slightly preowned for not much more than retail. If you have to pay taxes on the item through your AD it will be cheaper to go the Trusted Seller route. There are a lot of brands out there and many deals to be had on other watches. I don't think Rolex loses many younger customers and when supply catches up with demand then we will see if some people will put their money where they have been saying it will go.

[AK797]

They aren't really going upmarket, they don't even show their movements or even have a grand complication yet or even Veblen retail prices, no they are just the victim of circumstances, of a lovely global pandemic of demand for their on trend, SM-driven products and it makes sense to then sell your treasured stock to those that have been most loyal or to those that will bundle with slower moving stock. No conspiracy, no grand plan, just business.

[GSBC]

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!

This.
Also, with Instagram the young (and old alike) are constantly reminded of what they “need”.

[TswaneNguni]

Rolex produces an amount in certain percentages of different models.Thats what they can produce in numbers and percentages were determined by Wilsdorf.

Demand is extremely high .

That's the situation.Period

Good luck in finding what you seek.

[watchwatcher]

Originally Posted by 007_Omega

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.

I'm going to have to disagree with you here. The market is insane for people wanting to spend whatever number you can dream of on a watch. Rolex isn't throwing away customers, rather, they're increasing exponentially.

Now, whether that is sustainable or not is the subject of about 20 threads a day here...you can read all about it.

[TimeToWatch]

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!

This

[jsausley]

Young people are obviously eating these watches up due to the insane social media buzz on all stainless Rolex models. I don't think Rolex is in a bad place at all.

[SkyJuice]

It also appeals the upcoming middle class

[landroverking]

My buying new Rolexes from an AD are long over. Pre owned or vintage for me.

[TR6]

It seems I was very lucky. I decided last fall to buy a Submariner, my first Rolex, & was able to find one straight away in the display case at the second shop I went to. This was in Toronto, Canada. I'd asked the first shop if they could call me when they had a Submariner available, and got a call just a few days later, but after I'd already made my purchase. And a couple of weeks ago I picked up my second Rolex, GMT LN, no waiting. To be sure, I was told at both shops that a Daytona would require a lengthy wait, but it was these two watches I wanted most in any event.

[77T]

Originally Posted by landroverking

My buying new Rolexes from an AD are long over. Pre owned or vintage for me.

I think this is the sane course.


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[dafuture]

As someone a bit younger who's into very much into Rolex (and not as a status symbol, but because I respect the craftsmanship and history), I do understand what they're doing here. From a business perspective, this makes perfect sense: drive up demand, control the flow of inventory, create an absolute frenzy for the brand.

That being said, it's also sort of disappointing to see. I don't think Rolex is necessarily moving upmarket in terms of the watches they produce, but they're surely creating a situation in which only people of a certain financial status can get an SS Professional model at MSRP from an AD. While I certainly see the value created here for Rolex, as a consumer not yet in the top 1%, the chances of me obtaining my grail (SS BLRO) are essentially 0. Not because I couldn't afford one, or can't afford to pay grey prices. Rather, (to me) they're no longer worth purchasing at the prices they command.

This isn't a complaint, or an indictment of Rolex's strategy. It is, however, sad acceptance that that I will most likely never purchase a new Rolex of my own.

[dhknola]

I would turn a negative (you can't get a watch at the AD) and turn it in to a positive by getting a 5 digit serial Rolex as the new ones are more jewelry than tool watches. I would take 16610 over the 116610 any and every day.

[Chaching]

The Internet has changed everything! Rolex is a status symbol and signifies wealth. Anybody with a pulse now can finace a Rolex from a grey or aftermarket dealer. The game has changed thus the demand!