Rolex's solution to the inventory problem

[HiBoost]

Just stopped into my AD and they have been forced by Rolex to replace all their display cabinets with these hilariously small cases. Rolex said they didn't want it to look like the dealer was getting out of the Rolex business by having 70% of the real estate empty, so now they have cases which are sized to fit only the exhibition collection they previously received.

This seems so silly. To fill the previous voids, why wouldn't Rolex make up some little plaques with historical info about various models, or engineering tidbits, or current athletes/explorers/etc wearing the product? The look of this new display is just odd. It certainly doesn't make a customer think "oh ok, everything looks normal now"

Have any of you seen something similar at your ADs?

[S52]

I know I would be pretty annoyed if I owned a small AD and recently did one of those renovations (at great expense, no doubt) Rolex required where they expected their dealers to carve out an entire section of their shop space to be Rolex only with its own special entrance etc...

My local AD did that and I would guess about 1/3 of the square footage is dedicated to their special Rolex section which for the better part of the last 2 years was barren, and now only has about a dozen exhibition only watches.

[askdanny]

Originally Posted by HiBoost

Just stopped into my AD and they have been forced by Rolex to replace all their display cabinets with these hilariously small cases. Rolex said they didn't want it to look like the dealer was getting out of the Rolex business by having 70% of the real estate empty, so now they have cases which are sized to fit only the exhibition collection they previously received.

This seems so silly. To fill the previous voids, why wouldn't Rolex make up some little plaques with historical info about various models, or engineering tidbits, or current athletes/explorers/etc wearing the product? The look of this new display is just odd. It certainly doesn't make a customer think "oh ok, everything looks normal now"

Have any of you seen something similar at your ADs?

Wait, I thought the watch market was crashing and ADs would be begging us to take their inventory?

Were reports of the watch market's death greatly exaggerated?

[rushca01]

I’m told Rolex ADs are doing the best they’ve ever done in history and selling every watch they receive from Rolex. The renovations they completed should have no effect on their revenue.

[Driver8]

Originally Posted by S52

I know I would be pretty annoyed if I owned a small AD and recently did one of those renovations (at great expense, no doubt) Rolex required where they expected their dealers to carve out an entire section of their shop space to be Rolex only with its own special entrance etc...

My local AD did that and I would guess about 1/3 of the square footage is dedicated to their special Rolex section which for the better part of the last 2 years was barren, and now only has about a dozen exhibition only watches.

Not directly related to smaller display cases, but an AD near me recently spent £300k on setting up a Rolex-approved workshop on-site, only for Rolex to tell them they're losing their AD status at the end of the year. They've been a Rolex AD for 60 years, and done nothing wrong - they're just being canned as part of Rolex's consolidation drive - and they have apparently made just £15k from the workshop "investment". Easily a couple of hundred K down the drain by year-end.

Pretty out of order IMO, but I don't think Rolex particularly cares about the financial impact of their decisions, so smaller cases will just have to be "sucked up" by ADs.

[LJubel328]

Originally Posted by S52

I know I would be pretty annoyed if I owned a small AD and recently did one of those renovations (at great expense, no doubt) Rolex required where they expected their dealers to carve out an entire section of their shop space to be Rolex only with its own special entrance etc...

My local AD did that and I would guess about 1/3 of the square footage is dedicated to their special Rolex section which for the better part of the last 2 years was barren, and now only has about a dozen exhibition only watches.

I agree, the capex Rolex is “politely suggesting” these small ADs to do is, in my opinion, holding their feet to the fire. These cash outlays are not insignificant and I feel for the ADs. Do all this work to convert a space for one particular brand and then it’s barely filled.

I can understand the rationale in a traditional clothing store for shop-in-shops where there are sometimes specials collections/collaborations between the two brands.


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[Mendota]

Originally Posted by HiBoost

Just stopped into my AD and they have been forced by Rolex to replace all their display cabinets with these hilariously small cases. Rolex said they didn't want it to look like the dealer was getting out of the Rolex business by having 70% of the real estate empty, so now they have cases which are sized to fit only the exhibition collection they previously received.

This seems so silly. To fill the previous voids, why wouldn't Rolex make up some little plaques with historical info about various models, or engineering tidbits, or current athletes/explorers/etc wearing the product? The look of this new display is just odd. It certainly doesn't make a customer think "oh ok, everything looks normal now"

Have any of you seen something similar at your ADs?

Trust me - I don't think you really want that. The last time I stopped into my AD in person was last October or November, and at the time they actually had exactly what you were describing you would want to see. Every single case was filled with large brochure pages, like out of a product catalog but professionally printed and mounted onto frames laying flat, talking about the history of the brand or the history of different models. Then there would be 1 watch in that case. So out of a 2 or 3 feet deep by 6 feet wide case, there would be 4 or 5 big 8.5 x 11 catalog pages displayed discussing the Datejust or another model and then 1 watch or maybe 2 tops. Some had no watches, just these marketing pieces. It looked so pathetic, and this is one of the largest ADs in this area. Literally every other case for the other brands had tons of watches to look at. If a random and clueless Joe didn't know any better, seeing that display would make them think Rolex was going out of business. It looks that bad.

Honestly, it sounds like it would be a good idea when you type it out but trust me... when you actually see that idea in real life it just makes you either sad or angry depending on your thoughts about this insanity. I remember the days when the cases were chock full of every watch and you could have loads of fun just trying on the various models and get a feel for what you like or don't like.

[kieselguhr]

Rolex’s (the manufacturer) true customers are the various vendors (retailers) that they have set contracts with. The vendors who wish to maintain their authorized dealership status are also required to conform to interior design requirements set by Rolex. The required furniture and furnishings are supplied by Rolex affiliated/owned companies. As far as Rolex is concerned, business is going very well. All their watches are being delivered to their true customers, and these same customers also have to purchase all the Rolex upholstery and furniture. Business is great.

The end user (us normal people) is the authorized dealer’s concern.

[HiBoost]

Originally Posted by Mendota

Trust me - I don't think you really want that. The last time I stopped into my AD in person was last October or November, and at the time they actually had exactly what you were describing you would want to see. Every single case was filled with large brochure pages, like out of a product catalog but professionally printed and mounted onto frames laying flat, talking about the history of the brand or the history of different models. Then there would be 1 watch in that case. So out of a 2 or 3 feet deep by 6 feet wide case, there would be 4 or 5 big 8.5 x 11 catalog pages displayed discussing the Datejust or another model and then 1 watch or maybe 2 tops. Some had no watches, just these marketing pieces. It looked so pathetic, and this is one of the largest ADs in this area. Literally every other case for the other brands had tons of watches to look at. If a random and clueless Joe didn't know any better, seeing that display would make them think Rolex was going out of business. It looks that bad.

Honestly, it sounds like it would be a good idea when you type it out but trust me... when you actually see that idea in real life it just makes you either sad or angry depending on your thoughts about this insanity. I remember the days when the cases were chock full of every watch and you could have loads of fun just trying on the various models and get a feel for what you like or don't like.

Sure, just throwing catalogs in to fill space is half-ass. But these new micro-displays cost tens of thousands of dollars. For that price could we not have some cool and interesting bits instead? Like one of those 100x scale models of the triplock crown mechanism. Or some kind of "evolution of the GMT" timeline showing the different styles/features throughout the decades.

I mean come on, Rolex is known for one thing more than anything else - marketing genius. Surely they could come up with some kind of "experience" to fill the voids. These little boxes look really strange sitting on the same size under cabinet as before. And what happens in 5 years if the hype dies down and now ADs have extra watches needing more space? Now they have to buy bigger cases again like they used to have?

[Mendota]

Originally Posted by rushca01

I’m told Rolex ADs are doing the best they’ve ever done in history and selling every watch they receive from Rolex. The renovations they completed should have no effect on their revenue.

Well, the renovations are required at their own expense. They directly eat into gross revenue until the capex is recovered. If it's not budgeted or planned for, then of course it will negatively impact the P&L and balance sheet until the liability is paid off.

This is exactly what the big 3 auto makers require their dealer networks to do, as well. Chevy/Ford/GM comes in and says you need to spend several million dollars of your own money to remodel the dealership as part of their new brand campaign or you are in direct violation of your franchise agreement. You have no choice. By the time you recoup the capex they come in again and say they are rebranding again and you have to do it all over again. They have to budget for that happening every X number of years.

[amh]

Originally Posted by askdanny

Wait, I thought the watch market was crashing and ADs would be begging us to take their inventory?

Were reports of the watch market's death greatly exaggerated?

The recession will become a recovery before the Rolex market has a chance to crater

[Mendota]

Originally Posted by HiBoost

Sure, just throwing catalogs in to fill space is half-ass. But these new micro-displays cost tens of thousands of dollars. For that price could we not have some cool and interesting bits instead? Like one of those 100x scale models of the triplock crown mechanism. Or some kind of "evolution of the GMT" timeline showing the different styles/features throughout the decades.

I mean come on, Rolex is known for one thing more than anything else - marketing genius. Surely they could come up with some kind of "experience" to fill the voids. These little boxes look really strange sitting on the same size under cabinet as before. And what happens in 5 years if the hype dies down and now ADs have extra watches needing more space? Now they have to buy bigger cases again like they used to have?

These were actually very professionally created plaques on brass and wood, with the images printed in full color on a metal sheet then mounted onto the wooden plaque or onto a felt riser like the watch pillows sink into. Very professionally done and super expensive... and equally as stupid looking sitting in completely empty cases, in my opinion, when the rest of the store is full of watches from other brands you can look at and buy. They looked like they were created by Rolex themselves as dealer display pieces. It all tied in visually with every case and every other piece of Rolex branding in the AD.

[amanbra]

Nah my ad still has the same cases but they’ve really gone out of there way to have heaps of exhibition watches spread out all over the store to make it not look empty. We’re talking like 40 exhibition pieces.


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[garyk]

Originally Posted by HiBoost

Just stopped into my AD and they have been forced by Rolex to replace all their display cabinets with these hilariously small cases. Rolex said they didn't want it to look like the dealer was getting out of the Rolex business by having 70% of the real estate empty, so now they have cases which are sized to fit only the exhibition collection they previously received.

This seems so silly. To fill the previous voids, why wouldn't Rolex make up some little plaques with historical info about various models, or engineering tidbits, or current athletes/explorers/etc wearing the product? The look of this new display is just odd. It certainly doesn't make a customer think "oh ok, everything looks normal now"

Have any of you seen something similar at your ADs?

WOS opened up near me after the first of the year. I thought those little cases were an on purpose and very cool until you ruined it for me

[JSolution]

Been like this for a very long time

[beshannon]

What inventory problem?

Rolex sells every watch they make.

[Nice marmot]

This sounds a bit like the Rolex equivalent of a man wearing underpants a size too small to make his junk look bigger.

[ap1]

Originally Posted by Nice marmot

This sounds a bit like the Rolex equivalent of a man wearing underpants a size too small to make his junk look bigger.

Omg genius , Never thought of that

[DCheeta]

Originally Posted by Nice marmot

This sounds a bit like the Rolex equivalent of a man wearing underpants a size too small to make his junk look bigger.

Great tip. Ordering new underwear as we speak.

[SLWoodster]

I think they should promote their heritage, history, and romanticize the brand much more.

They should just embrace the “exhibition” style. It is not really about watches anymore. It’s about the idea of the brand.

We all know this already.

A submariner has no real reason to be more than $4k. They already showed us what they can do at $4000 on the Tudors.

[MILGAUSS88]

Originally Posted by HiBoost

This seems so silly. To fill the previous voids, why wouldn't Rolex make up some little plaques with historical info about various models, or engineering tidbits, or current athletes/explorers/etc wearing the product? The look of this new display is just odd. It certainly doesn't make a customer think "oh ok, everything looks normal now"

Have any of you seen something similar at your ADs?

Rolex gave the AD plaques with photos to cover the empty spaces at the AD I went to.

[goldboy]

Originally Posted by Nice marmot

This sounds a bit like the Rolex equivalent of a man wearing underpants a size too small to make his junk look bigger.

Honestly the size too small is probably the proper size, if you’ve been wearing baggy briefs for loose junk that isn’t smart

[Mattt]

I’m really glad we are finally discussing important things in this forum.

Boxers or briefs?

[shaunylw]

Originally Posted by ap1

Omg genius , Never thought of that

I’ve been wearing childrens Batman underwear for years with very little success.


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[richter]

Originally Posted by Mattt

I’m really glad we are finally discussing important things in this forum.

Boxers or briefs?

Is it safe to wear my Sub with briefs?

[DJ2020]

Originally Posted by slwoodster

i think they should promote their heritage, history, and romanticize the brand much more.

They should just embrace the “exhibition” style. It is not really about watches anymore. It’s about the idea of the brand.

We all know this already.

A submariner has no real reason to be more than $4k. They already showed us what they can do at $4000 on the tudors.

+1. If you can purchase a look alike for 600 or less that you can barley distinguish from the real thing?

[zen watch]

I just spit out my coffee. Lol.

Originally Posted by Nice marmot

This sounds a bit like the Rolex equivalent of a man wearing underpants a size too small to make his junk look bigger.

[HAL330]

Originally Posted by askdanny

Wait, I thought the watch market was crashing and ADs would be begging us to take their inventory?

Were reports of the watch market's death greatly exaggerated?

exactly .. right? So I just bought a 126715... after calling 4 AD's that I've bought from before, one of those a Patek 5711/1R .. none of them would even commit to a 1 year or so wait list... all were basically "sorry, can't help you" ... so I paid the $10K over sticker and bought gray market...

I think the market is correcting if anything.. where at least a few overly inflated models are "Crashing" and the rest are just returning to closer to supply=demand pricing..

Im a year, prices will be higher again, and we'll have all forgotten about this "crash"