It's the internet stupid!

[Watch This]

My oh my, this current mess we are in. Shortages, bundling, wait lists, deposits. Grey's thriving with all the inventory much of which commands a premium. The "should I send chocolate to my AD" thread blew my mind.

Here's my theory. Rolex has adhered to a 100 year old business model that does not function in the age of the internet. The growth of Greys would not have been possible without the internet. Removing stickers and holding warranty cards is not the answer and is basically a joke. Look at what Amazon has become. Look how malls are struggling to re-invent themselves. Countless other examples. Rolex is employing 100 year old ways of doing business and the good stuff still goes out the back door.

In 2018 there are far more sophisticated ways to control inventory, distribution, pricing, and sales. In these respects, the great and mighty Rolex has failed and will continue to do so until they adapt. It's the internet, stupid!

[Goin2drt]

Yep and they could care less. It’s a business and clearly their financials are just fine. When money gets tight, folks will make different decisions. Until then they will carry on as is.

[melrob1]

Originally Posted by Watch This

My oh my, this current mess we are in. Shortages, bundling, wait lists, deposits. Grey's thriving with all the inventory much of which commands a premium. The "should I send chocolate to my AD" thread blew my mind.

Here's my theory. Rolex has adhered to a 100 year old business model that does not function in the age of the internet. The growth of Greys would not have been possible without the internet. Removing stickers and holding warranty cards is not the answer and is basically a joke. Look at what Amazon has become. Look how malls are struggling to re-invent themselves. Countless other examples. Rolex is employing 100 year old ways of doing business and the good stuff still goes out the back door.

In 2018 there are far more sophisticated ways to control inventory, distribution, pricing, and sales. In these respects, the great and mighty Rolex has failed and will continue to do so until they adapt. It's the internet, stupid!

What would be your progressive plan if you were Rolex brass?

[beshannon]

Originally Posted by melrob1

What would be your progressive plan if you were Rolex brass?

Continue to sell luxury, ignore the whining

[Ruud Van Driver]

Originally Posted by Watch This

The "should I send chocolate to my AD" thread blew my mind.

Somebody seriously asked this?

[Fencer]

Originally Posted by Goin2drt

clearly their financials are just fine.

Source?

[watchwatcher]

Originally Posted by Watch This

In these respects, the great and mighty Rolex has failed and will continue to do so until they adapt. It's the internet, stupid!

Really. Tell us more how Rolex has "failed." I'm all ears.

[Watch This]

Originally Posted by watchwatcher

Really. Tell us more how Rolex has "failed." I'm all ears.

Ignoring your somewhat antagonistic tone, I would say that when the average Joe who has saved for three years to buy their grail Submariner walks into an AD ready to buy and there is no stock available, the brand has failed the consumer.

[AK797]

SM is fast, internet shopping is fast. Rolex is slow. But Rolex will survive these short term trends and probably the huge shrinkage in the luxury watch market that is coming, so slow and steady wins the races.

[yessir69]

I would love my business to be performing as poorly as Rolex...


Sent from my iPhone using Tapatalk

[AK797]

Originally Posted by Watch This

Ignoring your somewhat antagonistic tone, I would say that when the average Joe who has saved for three years to buy their grail Submariner walks into an AD ready to buy and there is no stock available, the brand has failed the consumer.

Not the consumer, the latest consumer, but Rolex have taken care of all they predicted and planned for. Most of the rest are flippers and trend buyers only and thus can be dismissed.

[ALF61]

Originally Posted by Watch This

My oh my, this current mess we are in. Shortages, bundling, wait lists, deposits. Grey's thriving with all the inventory much of which commands a premium. The "should I send chocolate to my AD" thread blew my mind.

Here's my theory. Rolex has adhered to a 100 year old business model that does not function in the age of the internet. The growth of Greys would not have been possible without the internet. Removing stickers and holding warranty cards is not the answer and is basically a joke. Look at what Amazon has become. Look how malls are struggling to re-invent themselves. Countless other examples. Rolex is employing 100 year old ways of doing business and the good stuff still goes out the back door.

In 2018 there are far more sophisticated ways to control inventory, distribution, pricing, and sales. In these respects, the great and mighty Rolex has failed and will continue to do so until they adapt. It's the internet, stupid!

My oh my what a bunch of hogwash pardon my french. Rolex adopting a 100 year old policy in modern era ? what exactly do you mean ? their marketing is just fine are you trying to reinvent tactics for them ? they don´t need to reinvent. The watches are being produced and sold very quickly how much more successful can you be ?

Markets have always been markets to say that the internet changes the laws of supply and demand is the hogwash I am referring to, not your assessment of current state of things. The internet might influence the dynamics of supply and demand a little, but eventually you just end up with reality.

[037]

Originally Posted by Watch This

Ignoring your somewhat antagonistic tone, I would say that when the average Joe who has saved for three years to buy their grail Submariner walks into an AD ready to buy and there is no stock available, the brand has failed the consumer.

If things reverse and Subs are sitting in dealer cases, secondhand resale 20% below MSRP and every "average Joe" with a Sub on his wrist, will you truly be happy? Honest question.

[Watch This]

Originally Posted by melrob1

What would be your progressive plan if you were Rolex brass?

There are no easy answers. The internet has forever changed the game. The list of other retailers who have been put out of business by internet sales grows each day. The taxi industry is being decimated by Uber/Lyft. Kids these day are all about the internet.

I am a lawyer, not a business executive, marketing expert, or strategist. If supply is plentiful, they Greys can buy and sell at discount. Bad for Rolex. If supply is short, the Greys still seem to get inventory and can command a premium. Bad for Rolex. It's a no-win.

ADs who ship stuff out the back door seem to largely go unpunished and immune from blame. There are better ways to monitor this. Perhaps make warranties non-transferable for a period of time. Perhaps move to on-line sales. I think that as long as internet Greys exist, this problem will persist. I appreciate the courteous, thoughtful discussion.

[brucethemanlee]

Clearly something needs to be done or at least addressed unless this is Rolex's goal

But however much they have embraced the internet or new technology out maybe lack thereof.....The consumer at this point doesn't care as they want Rolex more than ever. Demand had never been higherfor their wstches. And with or without the internet they are the number one watch brand and the number brand (by reputation) in the world.

Of course, companies need to change with the times and nothing last forever (ie Apple's rise and fall and rise or Dell's rise and fall)

Time will tell but right now Rolex is crushing it!




Sent from my iPhone using Tapatalk

[codester]

I dunno....Rolex seems to be extremely savvy when it comes to technology. Can't imagine they have been sleeping on this thing called the internet.

[Watch This]

Originally Posted by 037

If things reverse and Subs are sitting in dealer cases, secondhand resale 20% below MSRP and every "average Joe" with a Sub on his wrist, will you truly be happy? Honest question.

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

[Chester01]

Originally Posted by Watch This

My oh my, this current mess we are in. Shortages, bundling, wait lists, deposits. Grey's thriving with all the inventory much of which commands a premium. The "should I send chocolate to my AD" thread blew my mind.

Here's my theory. Rolex has adhered to a 100 year old business model that does not function in the age of the internet. The growth of Greys would not have been possible without the internet. Removing stickers and holding warranty cards is not the answer and is basically a joke. Look at what Amazon has become. Look how malls are struggling to re-invent themselves. Countless other examples. Rolex is employing 100 year old ways of doing business and the good stuff still goes out the back door.

In 2018 there are far more sophisticated ways to control inventory, distribution, pricing, and sales. In these respects, the great and mighty Rolex has failed and will continue to do so until they adapt. It's the internet, stupid!

Doesn’t function? Their profits are through the roof lol

[ALF61]

Originally Posted by Watch This

There are no easy answers. The internet has forever changed the game. The list of other retailers who have been put out of business by internet sales grows each day. The taxi industry is being decimated by Uber/Lyft. Kids these day are all about the internet.

I am a lawyer, not a business executive, marketing expert, or strategist. If supply is plentiful, they Greys can buy and sell at discount. Bad for Rolex. If supply is short, the Greys still seem to get inventory and can command a premium. Bad for Rolex. It's a no-win.

ADs who ship stuff out the back door seem to largely go unpunished and immune from blame. There are better ways to monitor this. Perhaps make warranties non-transferable for a period of time. Perhaps move to on-line sales. I think that as long as internet Greys exist, this problem will persist. I appreciate the courteous, thoughtful discussion.

Like I said, it changes the dynamics, but not the basic laws. I see you are now insinuating that they should curb this by increasing supply. Well, that may not be as easy as one thinks or even convenient. It is not unusual for a business model to limit the supply of goods to ensure good long lasting buying interest and stability. Therefore I cannot agree with any wrongdoing in Rolex business strategy.

[Watch This]

Originally Posted by ALF61

My oh my what a bunch of hogwash pardon my french. Rolex adopting a 100 year old policy in modern era ? what exactly do you mean ? their marketing is just fine are you trying to reinvent tactics for them ? they don´t need to reinvent. The watches are being produced and sold very quickly how much more successful can you be ?

Markets have always been markets to say that the internet changes the laws of supply and demand is the hogwash I am referring to, not your assessment of current state of things. The internet might influence the dynamics of supply and demand a little, but eventually you just end up with reality.

Rolex marketing is second to none. That's not at all what I am talking about. Nor do I intend to "reinvent tactics" for them or for anyone. The main point of my thread is that the internet has given birth to the Greys and the Greys are a headache for Rolex as are AD's who ship their stuff out the back door.

More can be done.

[Watch This]

Originally Posted by Chester01

Doesn’t function? Their profits are through the roof lol

Show us all absolute irrefutable proof of that assertion.

[037]

Originally Posted by Watch This

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

No, and you didn't answer my question.

[ltmgeller]

Originally Posted by yessir69

I would love my business to be performing as poorly as Rolex...


Sent from my iPhone using Tapatalk

X2

[Easy E]

Originally Posted by 037

If things reverse and Subs are sitting in dealer cases, secondhand resale 20% below MSRP and every "average Joe" with a Sub on his wrist, will you truly be happy? Honest question.

Even if you assume the 20%, you are still talking about a roughly $7000 watch. That's a long way from every average Joe. As for me, I could care less if I have the only sub in town or if everyone in line at lunch has one on each wrist.

I appreciate the "average joe" type who worked, maybe an average job, but worked hard and saved his pennies to reward himself with a keepsake. Only now he would get laughed out of an AD.

[klenboy]

Show us Audited Financial Statements! Sorry, as a CPA can't help it

[casadecamporolex]

Originally Posted by Watch This

I think you perceive Rolex to be more exclusive than it is. Where I live most every Average Joe already has a Rolex Submariner on his wrist.

Sorry to disagree on my 777th post.
Did the notion that more people are seeking the brand worldwide than the current production cycle allows enter this perception? If everybody has one, why the shortage?
And from what I understand, every SS Professional reference is presold before it makes it to the display case.
That is a win win for Rolex and AD. Loser is the newby looking to enter the marketplace.
Used to be just a short time ago that a SS Sub could be had for 20% off.
I remember then.....do you?

[ltmgeller]

The lack of availability is frustrating but it does cause the brand to keep its value. Look at brietling. They overflow the market with product and their watches value continue to drop. Thats at least how I perceive it.

[Watch This]

Originally Posted by 037

No, and you didn't answer my question.

The answer is no I would not, assuming that I bought with resale in mind. I am equally dissatisfied with being unable to purchase a SS piece I want at all.

[Cloudchaser]

Originally Posted by Watch This

There are no easy answers. The internet has forever changed the game. The list of other retailers who have been put out of business by internet sales grows each day. The taxi industry is being decimated by Uber/Lyft. Kids these day are all about the internet.

I am a lawyer, not a business executive, marketing expert, or strategist. If supply is plentiful, they Greys can buy and sell at discount. Bad for Rolex. If supply is short, the Greys still seem to get inventory and can command a premium. Bad for Rolex. It's a no-win.

ADs who ship stuff out the back door seem to largely go unpunished and immune from blame. There are better ways to monitor this. Perhaps make warranties non-transferable for a period of time. Perhaps move to on-line sales. I think that as long as internet Greys exist, this problem will persist. I appreciate the courteous, thoughtful discussion.

You.do realize that the "taxi industry" adapted and that many Uber/Lyft cars are just re-branded taxis, right?

Go pull the doors at the new Rolex Service Center in Dallas; they are adapting well, too, obviously.

Also...how is Rolex selling "online" the answer to "the internet?"

Respectfully, you seem more bitter about not getting a watch than you are thoughtful of what is actually happening in the market. It seems like you've given cursory simplistic thought to a complicated distribution model, which sort of makes it seem as though you see simple solutions to something nobody else fully understands.

You are clearly stabbing in the dark without a real clue, so forgive any "antaganistic tone;" posts like yours are constant here and ones with overly-simplistic assumptive logic are going to get chipped at pretty quickly.

Ironically, let's not forget that we are largely still waiting for the legal industry to properly adapt to "the internet" (LegalZoom the first of the big disruptors). Lawyers for internet adaptation is sorta like socialists for tax limits...we don't see many of them.

[Nikrnic]

Im not that guy but I dropped off chocolates to my AD once after l purchased a DJ41 with a good discount.
Rolex does what Rolex does and it seems to be working, it hasn't changed my lifestyle although it did take more effort and some good timing to get the pieces l wanted.


Sent from my SM-G900V using Tapatalk