SIHH, Global Demand and Overstock

[NorthCoaster]

This article on the BBC offers some interesting points about Global demand for Luxury watches, the value of global stock levels, how some brands have tried to cope with overstock and dilution of brand value.

This may give an insight into current Rolex behaviour and availability.

https://www-bbc-co-uk.cdn.ampproject...rom%20%251%24s

[In-Cog-Neeto]

I may be naive but when the starting price of a Rolex is in the many thousands (in the grand scheme of things this is ridiculous - its a watch!), is brand dilution something you really need to concern yourself with?

[watchwatcher]

Interestingly enough, the very behaviors Rolex exhibit to make sure the strength of the brand continues cause the most complaining on this forum.

When the watch I paid thousands for is worth nothing when I need to dump it is when I'm going to start complaining.

[Boba Fett]

I still love that space pirate (mb&f hm6) pictured.

[GarageBMW]

Originally Posted by watchwatcher

Interestingly enough, the very behaviors Rolex exhibit to make sure the strength of the brand continues cause the most complaining on this forum.

When the watch I paid thousands for is worth nothing when I need to dump it is when I'm going to start complaining.

Absolutely agree with you.

I think Rolex acted upon seeing other groups like Richmont going through buy back to prevent product dumping on grey market.
It was no good for Rolex image when anybody could walk in an AD, easily get double digits % discount and walk out. Secondary prices were also couple thousands lower than retail for NIB on grey market, not good for luxury image.

[In-Cog-Neeto]

Originally Posted by GarageBMW

Absolutely agree with you.

I think Rolex acted upon seeing other groups like Richmont going through buy back to prevent product dumping on grey market.
It was no good for Rolex image when anybody could walk in an AD, easily get double digits % discount and walk out. Secondary prices were also couple thousands lower than retail for NIB on grey market, not good for luxury image.

But until recently, this has always been the case - no? Did it ever harm the brand up to now? The fact you could get a discount, did that signal overpricing?

To be fair, it has never been a case of ‘just anybody’ who could walk in and purchase a watch of this value. The percentage of people who can is extremely small. It may be growing but......but so is the number of those who can’t.

I echo the sentiment that the current approach by Rolex is what most people complain about and for sure it has turned many people off the brand - you read the frustrations weekly - what worse situation is there that when you have your heart set on a certain reference but no matter what you do you just can’t get one without paying grey premiums. Personally, I do not believe this protects a brand. To me, this does the exact opposite.

[AK797]

Originally Posted by GarageBMW

Absolutely agree with you.

I think Rolex acted upon seeing other groups like Richmont going through buy back to prevent product dumping on grey market.
It was no good for Rolex image when anybody could walk in an AD, easily get double digits % discount and walk out. Secondary prices were also couple thousands lower than retail for NIB on grey market, not good for luxury image.

They didn't act, unless they caused Brexit, no it was just a whirlwind of global factors that lead to an explosion in demand in 16/17 for certain brands like Rolex, PP and later AP.

[timedate]

i just wear mine and enjoy it, i dont care about the global market, its out of my hands, we are only discussing articles like this because of the internet, 30 years ago we would be discussing something else.

markets change all the time, its not even news.

[TswaneNguni]

Originally Posted by watchwatcher

Interestingly enough, the very behaviors Rolex exhibit to make sure the strength of the brand continues cause the most complaining on this forum.

When the watch I paid thousands for is worth nothing when I need to dump it is when I'm going to start complaining.

[Dirt]

Originally Posted by timedate

i just wear mine and enjoy it, i dont care about the global market, its out of my hands, we are only discussing articles like this because of the internet, 30 years ago we would be discussing something else.

markets change all the time, its not even news.

Agreed.
Besides, the factors that drive markets are always in flux.

[DoctorA]

Originally Posted by watchwatcher

Interestingly enough, the very behaviors Rolex exhibit to make sure the strength of the brand continues cause the most complaining on this forum.

When the watch I paid thousands for is worth nothing when I need to dump it is when I'm going to start complaining.

[GFONG]

Originally Posted by timedate

i just wear mine and enjoy it, i dont care about the global market, its out of my hands, we are only discussing articles like this because of the internet, 30 years ago we would be discussing something else.

markets change all the time, its not even news.

This