Rolex really doing anything to put the brakes on Grey Market sales?

[subsky]

What do you think they are doing to stop the grey market and how?

[Brew]

New quartz models!

[RHIII]

The only way you can stifle the secondary market - is buying back unsold stock at some frequency.

Many high end brands do it. And it works.


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[Seibei]

Originally Posted by RHIII

The only way you can stifle the secondary market - is buying back unsold stock at some frequency.

Many high end brands do it. And it works.


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I think you have got this back to front. The reason some high end brands buy back unsold stock is because the retail price is too high and the stock is not selling. The brands do not want their products to be discounted so they do the dealers a favor by buying the stock back instead of leaving them stuck with it. You can view this as a way to create artificial demand and to artificially inflate prices.

The situation with Rolex is totally different. Rolex retail prices are artificially low and the demand is very high.

[RHIII]

Originally Posted by Seibei

I think you have got this back to front. The reason some high end brands buy back unsold stock is because the retail price is too high and the stock is not selling. The brands do not want their products to be discounted so they do the dealers a favor by buying the stock back instead of leaving them stuck with it. You can view this as a way to create artificial demand and to artificially inflate prices.

The situation with Rolex is totally different. Rolex retail prices are artificially low and the demand is very high.

We’re saying just about the same thing.

Although, not sure the inference of ‘artificially low’ MSRPS.


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[Muxi]

Originally Posted by RHIII

We’re saying just about the same thing.

Although, not sure the inference of ‘artificially low’ MSRPS.


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I agree. I doubt Rolex can pull off doubling its prices. Its value proposition is based on its tool watch durability which justifies its current pricing. Those brands with higher msrp are very intricately made despite its fragility for rough use. Significantly raising prices will alienate its customer base for the other 900k units they sell annually.

[zengineer]

Originally Posted by RHIII

The only way you can stifle the secondary market - is buying back unsold stock at some frequency.

Many high end brands do it. And it works.


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Buy it back from who? Of course this happens when sales are slow and a brand wants to avoid the stench of discounting but we don't have that situation. I don't understand how creating any form of increased demand makes any sense here...but maybe you could elaborate?

[RHIII]

Originally Posted by zengineer

Buy it back from who? Of course this happens when sales are slow and a brand wants to avoid the stench of discounting but we don't have that situation. I don't understand how creating any form of increased demand makes any sense here...but maybe you could elaborate?

Just an illustration of some type of market governance that works for some high end manufacturers - likely not the answer - but until significant checks and balances are put in place - no paradigm shift is even possible.

I honestly think Rolex is pretty much ok with the status quo.

I hate it for new enthusiasts and collectors who are essentially laughed out of power ‘struck’ ADs....


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[TswaneNguni]

Originally Posted by RHIII

The only way you can stifle the secondary market - is buying back unsold stock at some frequency.

Many high end brands do it. And it works.


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[watchmework]

Probably laughing at the amount of discussion we seem to be having on these topics, while not worrying about it what so ever.

[BillA]

Answer: Absolutely nothing.

[PeterC4]

Originally Posted by billa

answer: Absolutely nothing.

+1

[Naples09]

Things are working great for them. Why change at this point?

[mray6375]

0.0

[Juantxo]

They should track those dealers dumping on the gray market and cut them off their list of clients. Enough already. Keep the watches on the shelves of authorized dealers at suggested retail prices.

[daOnlyBG]

Supposedly, when grey market dealers expose the warranty card, the AD that sold the watch gets in trouble with Rolex SA.

Supposedly.

I honestly don't know why Rolex would care.

[Gdoc26]

Why would they care

[subsky]

I don’t understand why they would care. It makes absolutely no
sense for Rolex to buy on the Grey market at premiums to
try and cut down on the grey sales. All that would do is create a larger factitious customer base for grey sales and drive up the grey market prices.

[donald83]

How do grey dealers get those hot models so easily?

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[Old Geezer]

Watches are selling, their coffers are full. Doubt Rolex sees a problem.

[CarrJ]

I see nothing broken here. Everything working as intended. If you were able to walk into any AD today and see the full array of SS watches you wanted and could buy at retail then all of this would be no fun. Yes it’s frustrating. I hope that Rolex does nothing to hurt the grey market. I am actually more excited about hunting and waiting for watches more than I have ever been. I actually like the fact that SS Daytona’s are hard to get and DavidSw and others have them for double retail. Makes me appreciate what I acquired in the past. If I can’t get at retail then fine... if I really have to have the watch then I go grey. Buy/Sell or trade up is why I’m fine with the grey market in its current state. Just my opinion


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[RobearH]

Making the same profit margin with or without so why would they care?

Only ones I see bitching are those who have not established a relationship (relationships of any kind take work) and most of those complaining are really out profit to pay the rent anyway.

[subsky]

I don’t see how they would be able to put the brakes on the Grey market sales. I can understand where you are coming from carrj it adds a thrill to the watch buying experiance, even though it may get frustrating at times. The harder they are to acquire the more you will appreciate the time piece.

[tanask211]

They wouldnt do anything that can possibly or lead to devalue the brand. Increasing production can lead to reducing demand therefore no no. Maybe they will impose more rules to ADs

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[dsquared2]

Originally Posted by tanask211

They wouldnt do anything that can possibly or lead to devalue the brand. Increasing production can lead to reducing demand therefore no no. Maybe they will impose more rules to ADs

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Fully agree.

Actually, if Rolex open the doors and provide the ADs with just the half the current demand, many people would loose the interest in the brand.

On the other hand, the Chinese market is so huge that they could buy as many pieces as they want. By the way, when Rolex do not satisfy their needed, the brand will go down because currently Asian market is around 60%.

[Robtayham]

At least the grey’s are in the business of reselling their inventory (albeit at a price currently higher than MSRP). Rolex ought to ban collectors from having more than 1, maybe 2, watches. That would free up supply to help meet demand. It’s not the grey’s, it’s the collectors.

[teck21]

Originally Posted by Robtayham

At least the grey’s are in the business of reselling their inventory (albeit at a price currently higher than MSRP). Rolex ought to ban collectors from having more than 1, maybe 2, watches. That would free up supply to help meet demand. It’s not the grey’s, it’s the collectors.

Why shouldn’t people have as many watches as they want and can afford?


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[Muxi]

Originally Posted by Robtayham

At least the grey’s are in the business of reselling their inventory (albeit at a price currently higher than MSRP). Rolex ought to ban collectors from having more than 1, maybe 2, watches. That would free up supply to help meet demand. It’s not the grey’s, it’s the collectors.

You must be joking, right?

[LeftCoastBias]

Originally Posted by robtayham

at least the grey’s are in the business of reselling their inventory (albeit at a price currently higher than msrp). Rolex ought to ban collectors from having more than 1, maybe 2, watches. That would free up supply to help meet demand. It’s not the grey’s, it’s the collectors.

[Littletommy]

Originally Posted by Robtayham

At least the grey’s are in the business of reselling their inventory (albeit at a price currently higher than MSRP). Rolex ought to ban collectors from having more than 1, maybe 2, watches. That would free up supply to help meet demand. It’s not the grey’s, it’s the collectors.

Huh?