Rolex Business Model Change?

[KatGirl]

Originally Posted by SS Oyster

A business model change would be something like removing ADs and taking ownership of all boutiques, or building to request and fulfilling online. Neither of these are happening. Rolex continues to build watches and their go to market remains through independent ADs that Rolex vet and continue to monitor to maximize the purchase and ownership experience. Rolex wants to remain an aspirational brand, so they closely control everything, but this is not a change in business model. It is a constant refinement in reputation management just as they continuously refine their watches.


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When I saw the thread title, I expected he was going to say they are getting rid of ADs, and opening Company owned boutiques, or something along those lines, as well….

Kat


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[Calatrava r]

Originally Posted by brandrea

It will be interesting to see how this thread and many others like it, age with time

Didn't we just have two here and one on the Patek subforum?

[Calatrava r]

It is true that many posters here say "my AD offered me" this or that as an incoming. Not sure what it all means as we are told by ADs there are waiting lists for most models. Perhaps, it just sounds better than saying my name finally came up on the list. There are also a lot of posters saying they turned down whatever watch their AD offered them. In the current market why would an AD offer anyone a watch they did not request. Seems like placing watches with people who did not request them is a good way to encourage rapid re-selling or flipping.

[Harry-57]

Originally Posted by msdaytona

Now, AD decides who gets to buy a Rolex hence AD-driven sale.

It's not a Rolex business plan, it's AD owners exhibiting human behaviour, running their businesses as they see fit and maximising profits. They can sell to whoever they want, and they do. They will sell an Omega or Breitling to anyone who walks in the door. Omega's business plan doesn't require ADs to sell at below MSRP, but they do. That's business.

[Nads786]

Originally Posted by Calatrava r

It is true that many posters here say "my AD offered me" this or that as an incoming. Not sure what it all means as we are told by ADs there are waiting lists for most models. Perhaps, it just sounds better than saying my name finally came up on the list. There are also a lot of posters saying they turned down whatever watch their AD offered them. In the current market why would an AD offer anyone a watch they did not request. Seems like placing watches with people who did not request them is a good way to encourage rapid re-selling or flipping.

I can think of scenarios where you go above and beyond to delight a client that spends $100K annually on jewelry.

Think of it as a retention play - keep buying jewelry with me and you'll get random Rolex prizes.

[WilsdorfNDavis]

"My AD said..."