Limited availability and long lists all a product of social media marketing?

[Nav01L]

In thread after thread we hear of limited availability, long waiting lists for steel sport models (where one is lucky enough to even get on them) and frustrated potential buyers. It’s a new reality and we wonder - why?!?

I wonder, might it have anything to do with social media? A byproduct of the rarity of modern Rolex sport models is the bragging rights coming with having got one. And in a braggadocious environment as social media in general and outlets like Instagram in particular, such bragging rights typically don’t remain silence. Quite to the contrary, they may well lead to loads of free advertising.

I mean the guy who walks into the AD and buys his dream watch would more likely than not just slap it on his wrist and be done with it, if at all, he might pass it along around a beer that same night at the pub, but that’s it.

Whereas the guy that gets the call after two years of agonizing over his Daytona - he does a “got the call” thread here, live tweets the pickup, posts the whole event to Facebook and is poised to fill his Instagram page with the new watch for months to follow.

Obviously this might be over characterizing it a bit, but you get the the idea.

And with distribution set to go online more and more, isn’t that social media saturation exactly what a brand should be aiming for?

Who cares how people feel at the AD when the client you’re trying to reach will probably never set foot into one. Who cares about the guy being snubbed by arrogant staff there when you are watering the mouths of thousands of people who can’t wait to press the order button online after being exposed to a barrage of “look at me, I am the greatest because I got the latest” wherever they look on social media...

I think that might well be the long play here. In the meantime, us being turned down at the AD just makes us transitional casualties, and let’s face it, we’re probably (i) not material enough to matter and (ii) going to be back for more anyway.

What do you guys think?

[bonatto]

Nail on the head.

[tyler1980]

of course social media is a factor. It was much easier to move on in the past to something else if a watch was not available... out of sight out of mind. Also these watches you cant see IRL first, Nautilus or some Rolex's for example you can get a much better idea if you want one from all the available wrist shots. I for one cant decide on a watch one way or another based on static official pics from the company.

I tend not to buy the social media argument in some sinister way though, i think its more of a resource.

[Nav01L]

Originally Posted by tyler1980

I tend not to buy the social media argument in some sinister way though, i think its more of a resource.

Not necessarily sinister - but potentially pretty savvy, just a way of reading the market and going with the times.

[tyler1980]

Originally Posted by Nav01L

Not necessarily sinister - but potentially pretty savvy, just a way of reading the market and going with the times.

i think individuals (TRF posts included) do a much better job of making me want a watch then the companies themselves. Real life experience and real life pics go a long way. Its sort of a non official Guerrilla marketing campaign.

[Ichiran]

This is not a new phenomenon. Jean Claude-Biver has been a firm believer of tight control of supply and making consumers yearn for his products - for decades.

[Nav01L]

Originally Posted by tyler1980

i think individuals (TRF posts included) do a much better job of making me want a watch then the companies themselves. Real life experience and real life pics go a long way. Its sort of a non official Guerrilla marketing campaign.

So if a manufacturer found a way to tap into and amplify what you read here, they’d have a better chance at reaching you if I understand correctly, right?

[tyler1980]

Originally Posted by Nav01L

So if a manufacturer found a way to tap into and amplify what you read here, they’d have a better chance at reaching you if I understand correctly, right?

i think its marketing for sure, its just not the company doing it. IMO the manufacturers just need to sit back and let us do the work for them. What i am saying is social media drives sales, but the companies have little to do with it directly, indirectly maybe.

[Bt122]

Or, Rolex has not expanded its production to keep up with demographics growth. This wait list and shortage is not just a Rolex issue. You see it in hand bags as well. My buddy and his girl was at Chanel and she is on a list for a bag 50 deep.

My wife’s recent Chanel bag is sold out.

I really don’t understand...if Rolex makes 800,000 watches a year and there are more people with more money... it just feels like supply demand. How many people here have bought more than 1 watch over past 12 months?.... I bought 3. I am sure I am not the only 1. There are 200k members on this forum alone. Let’s assume all of us bought 2 watches this year. That would absorb 50% of the supply. Etc.

If you guys look at watch trends recent month. I believe sales are up double digits.

I think the marketing is great product placement...owning a Rolex means you are winning lol

[1William]

Interesting points. I think that Rolex has limited the number of watches supplied to AD's and it is not a production issue nor is it that the brand has all of a sudden found new status. Rolex is manipulating the market with supply and obviously believes this is the way to go. I think they should supply the AD's with the watches to meet demand. Grow the brand and it's base. What Rolex and PP are doing is creating a bubble that will not sustain itself and when it breaks it will hurt the brands and the watch industry in general. I think they are pushing people away and in the end they may regret it.

[Nav01L]

Originally Posted by 1William

Interesting points. I think that Rolex has limited the number of watches supplied to AD's and it is not a production issue nor is it that the brand has all of a sudden found new status. Rolex is manipulating the market with supply and obviously believes this is the way to go. I think they should supply the AD's with the watches to meet demand. Grow the brand and it's base. What Rolex and PP are doing is creating a bubble that will not sustain itself and when it breaks it will hurt the brands and the watch industry in general. I think they are pushing people away and in the end they may regret it.

We’ll see where the chips end up falling, but looking at recent years the brand’s that have restricted access the most seem to have fared the best (Rolex, AP, Patek) while those who have made themselves more available have lost in momentum big time (Panerai, IWC, Breitling until the new management, we’ll see where things go under Kern)... but perhaps that’s only a short term phenomenon, I don’t know.

[torrente]

Another factor to take in consideration that is contradictory is from the production planning and stock point of view sport models are much simpler as the number of references are very limited while the combinations of sizes/dials/bezels/bracelets on DJ, DD and OP are huge. From that point of view Rolex production planning should be motivated to deliver more sports if there is enough demand for it, unless there is a production constraint in any of the elements on the sport watches that limit the supply... maybe is the ceramic bezel.

[AK797]

It's not just Rolex or watches, the whole world has something they want to show off to perfect strangers and get likes for, be they young boys or old grandmothers, no one ever imagined back in The Facebook days that people were so much like this.

[brandrea]

There's a certain amount of truth to your theory IMO.

[psychokandy]

the community that keeps on highlighting the shortage and discontinued model are helping them to do their job for the WIS.

[SeaDweller50]

Waiting list for handbags. I’ve heard it all now.

[Rashid.bk]

Originally Posted by bonatto

Nail on the head.

I agree.
Everything is social media driven now. Even to start talking about something that isn't even true makes it a discussion point and now makes it plausible or considerable, i.e. #fakenews.

-Will the SD43 have red text for one year...
-(enter a long time fan) Omg, I'm sure it will. It would make sense..
-Next guy, it would be a huge investment, price will double, triple...
-Hey just got one, look at my unboxing, and all 1,000 pictures, it will be a huge collectible
*Now this becomes a #trendingtopic.....because everyone is talking and saying something, there must be truth to it somewhere....and it continues...

The Submariner is now a "mistake" watch because a vocal sample size of old school lovers(couple hundred, if that) say Rolex got it wrong, meanwhile the general population outside the wis community has zero idea what a maxi dial is, or super case...and people think because they are old school, they have some sort of vast first hand experience into what is a Rolex..
Show your wives, friends or stand outside a Rolex AD with two Submariners, brand new...five digit and six digit. Which would they buy based on just appearance and handling the watch, no questions or discussions...just pick both up and look at them, which would they pick....
I've actually done similar experiments at work with guys who have watches....they always pick the ceramic.
The only one that is chosen enough to note is the 16710 Pepsi.

When a car channel guy or clothing, posts a video or picture of his hot new Rolex that is impossible to get and next year they say the dial will change, #IGM I got mine...
viewers who never even thought about a watch say, oh, that's the latest cool thing..a Ceeweller watch...gotta check it out. Goes online and #trendingtopic
The cycle continues...
It's our world now. You share your life and they data mine and catalog everything.
With the exception of TRF and Bimmerpost, no SM for me.

[Rashid.bk]

Originally Posted by Ra_88

Waiting list for handbags. I’ve heard it all now.

Oh no you haven't...wallets, sneakers, lipstick/nail polish, sweatshirts, olympic white Note 8 is crazy, let's not mention video games...and look up Funko pops if you want to have fun(my son has a few of these costing hundreds of dollars each).
The japanese market limited items like G-Shocks are off the charts...things I never heard of....people flying to Japan on release day to buy a $400 G-Shock or sneakers. I'm glad I have much simpler desires.

[S-F]

Originally Posted by Ra_88

Waiting list for handbags. I’ve heard it all now.

Go into a Hermes store and ask to purchase a Birkin bag. They'll laugh at you harder than if you went into a Rolex store and asked to buy a white faced Daytona at a discount.

[SeaDweller50]

Originally Posted by Rashid.bk

I agree.

Everything is social media driven now. Even to start talking about something that isn't even true makes it a discussion point and now makes it plausible or considerable, i.e. #fakenews.



-Will the SD43 have red text for one year...

-(enter a long time fan) Omg, I'm sure it will. It would make sense..

-Next guy, it would be a huge investment, price will double, triple...

-Hey just got one, look at my unboxing, and all 1,000 pictures, it will be a huge collectible

*Now this becomes a #trendingtopic.....because everyone is talking and saying something, there must be truth to it somewhere....and it continues...



The Submariner is now a "mistake" watch because a vocal sample size of old school lovers(couple hundred, if that) say Rolex got it wrong, meanwhile the general population outside the wis community has zero idea what a maxi dial is, or super case...and people think because they are old school, they have some sort of vast first hand experience into what is a Rolex..

Show your wives, friends or stand outside a Rolex AD with two Submariners, brand new...five digit and six digit. Which would they buy based on just appearance and handling the watch, no questions or discussions...just pick both up and look at them, which would they pick....

I've actually done similar experiments at work with guys who have watches....they always pick the ceramic.

The only one that is chosen enough to note is the 16710 Pepsi.



When a car channel guy or clothing, posts a video or picture of his hot new Rolex that is impossible to get and next year they say the dial will change, #IGM I got mine...

viewers who never even thought about a watch say, oh, that's the latest cool thing..a Ceeweller watch...gotta check it out. Goes online and #trendingtopic

The cycle continues...

It's our world now. You share your life and they data mine and catalog everything.

With the exception of TRF and Bimmerpost, no SM for me.

Couple hundred. Brilliant. Lol.


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[Watch This]

I think you may be on to something. I will elaborate in more detail later after I finish posting a picture of my lunch.

[Rashid.bk]

Originally Posted by Watch This

I think you may be on to something. I will elaborate in more detail later after I finish posting a picture of my lunch.

[HogwldFLTR]

I'd make the cause broader than social media. Easy access to shared information of any sort is significant. The fact that so much can be easily shared causes people to look for opportunity to pick-up the most popular items and causes shortages. I think the earliest examples may have been in the Toy industry with Cabbage Patch Dolls and TY Beanie Babies.

[gt0279a]

Try getting Masters tickets. Scalpers want $650 for a practice round badge.

[AK797]

Originally Posted by Watch This

I think you may be on to something. I will elaborate in more detail later after I finish posting a picture of my lunch.

You joke, but I think I read that food pics are the most prevalent "selfie" type on the net, and so many people are cooking lovely looking meals just to pap them. Suppose that is one good side effect.

[eco8gator]

Hyped back by AD participation.

There are claims out there that AD's will not sell to newer clients with limited history but actually have the desired pieced in the safes (unclaimed).

People want what they can't or is very difficult to acquire.

It's a nasty first world problem:(

[holroale]

Although I’m sure the social media generation has its part to play I personally think it’s more down to low interest rates, extraordinary monetary policy and subsequently a lot of cash in the system that’s chasing too few assets. The reason we have seen such a pick up in the last 18 months is because this has coincided with the strongest growth and lowest unemployment in the last 10 years. Add to this the extra kicker of exchange rate fluctuations and the stronger Euro/Swiss franc and you have the perfect storm for prices going through the roof.

Inflated asset prices haven’t just been seen in watches, they can be seen in almost every asset class.

I would be interested to know if anyone can remember a similar inflation in watch prices and how it ended? I worry that as money gets withdrawn from the system and monetary policy gets tightened assets are at risk of correcting, and watches in particular. Who knows in 18 months I may actually be able to afford vintage watch......wishful thinking!!


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[Khans14]

Originally Posted by S-F

Go into a Hermes store and ask to purchase a Birkin bag. They'll laugh at you harder than if you went into a Rolex store and asked to buy a white faced Daytona at a discount.

Very true. Hermes also does a great job with its marketing strategy.

I am also very sure this will anger some folks on here but I call total bs on everyone who keeps saying "this will hurt Rolex." No it won't big picture wise. If it would hurt them they would not do it. This falls into the realm of being upset and wanting something to be true rather than looking at it objectively. My girlfriend left me and boy will she regret it one day, my boss fired me and he will regret it because he will never find someone as good as me, etc. Rolex is deliberate and measured in their actions. Rolex has been pretty successful marketing for just a bit of time you could say. Everyone on here saying this strategy will hurt them in the big picture is just venting and angry.

And before anyone responds to this with "well I just bought an Omega instead so it is hurting them".... you sir or madam are not looking at the big picture with long term marketing goals. I am not saying I can see them but I suspect Rolex has a least a couple folks who have mapped this out with some level of expertise in marketing. These are probably the same group of people who have handled the marketing in the past who are responsible for why an average person being asked "what is a good watch" instantly responds Rolex without knowing anything about Rolexes or ever even seeing one in person. Just my two cents.

[AK797]

Originally Posted by holroale

Although I’m sure the social media generation has its part to play I personally think it’s more down to low interest rates, extraordinary monetary policy and subsequently a lot of cash in the system that’s chasing too few assets. The reason we have seen such a pick up in the last 18 months is because this has coincided with the strongest growth and lowest unemployment in the last 10 years. Add to this the extra kicker of exchange rate fluctuations and the stronger Euro/Swiss franc and you have the perfect storm for prices going through the roof.

Inflated asset prices haven’t just been seen in watches, they can be seen in almost every asset class.

I would be interested to know if anyone can remember a similar inflation in watch prices and how it ended? I worry that as money gets withdrawn from the system and monetary policy gets tightened assets are at risk of correcting, and watches in particular. Who knows in 18 months I may actually be able to afford vintage watch......wishful thinking!!


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The example often quoted is Hermes, and the Birkin, which had waiting lists when my teenage g/f first told me about them in the 90s, so along with the Daytona, there is precedence for this conspicuous consumption of an ultra Veblen good to be sustainable more long term, but only on select models not the entire SS range.

[Bt122]

Originally Posted by AK797

You joke, but I think I read that food pics are the most prevalent "selfie" type on the net, and so many people are cooking lovely looking meals just to pap them. Suppose that is one good side effect.

Ill leave this here....
I thought it was a joke but a collegue pointed this out to me...when we went to the Modern in nyc


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