Rolex online shop

[rjstuf001]

I'm curious what the consensus here would be about Rolex selling directly online, like Omega, Breitling, IWC, Cartier and others are already doing. What do you all think would be the effect on the grey market and prices in general?

EDIT: And what do you all think are the odds of that happening?

[cdubg21]

If they had inventory, it would kill the incentive to buy and flip, and would eliminate the reliance on gray’s. Grays would need to sell at a discount to compete. If no inventory, no change.

[tyler1980]

Originally Posted by rjstuf001

I'm curious what the consensus here would be about Rolex selling directly online, like Omega, Breitling, IWC, Cartier and others are already doing. What do you all think would be the effect on the grey market and prices in general?

IF i could buy a hot watch in bed in my underwear i suspect flipping would go up. I would add to cart all day long.

i highly doubt a hypothetical online store would sell the hot watches. AP will sell online and no way a 15202 or a 15407 is part of that. For Rolex, a DJ in your preferred configuration is all you would get anyway.

IWC and Panerai do not sell the full catalogue online, I doubt Omega does either for at least a few of their 1000 limited editions.

[lawrence1]

Peobably none. Inventory is limited and it’s not like scalpers dont have internet access. Same as concert tickets, etc. someone buys up a ton of them, and they re sell for more money.

[tyler1980]

Originally Posted by cdubg21

If they had inventory, it would kill the incentive to buy and flip, and would eliminate the reliance on gray’s. Grays would need to sell at a discount to compete. If no inventory, no change.

thats a production argument and a different thing. IF an AD had unlimited inventory it would also create the same result you are suggesting. No incentive to flip.

[cdubg21]

Originally Posted by tyler1980

thats a production argument and a different thing. IF an AD had unlimited inventory it would also create the same result you are suggesting. No incentive to flip.

Ok then, ignoring production it would be no different than the status quo

[tyler1980]

Originally Posted by cdubg21

Ok then, ignoring production it would be no different than the status quo

these threads always end up with people thinking that somehow online is the answer, because you will get a watch. All it would be is shifting the point of sale if nothing else changes. The demand is still the demand and arguably it would be easier to order a watch so demand could actually increase. Usually you have to actually go to an AD in person and talk to them and its harder to do vs ordering at home

Plus hot watches are leverage. AD's get to do the dirty work that Rolex gets to stay out of like moving unpopular watches to get a hot one. Rolex probably likes this because they need to keep shipping watches to these AD's and they can't if they are not selling them. They keep their hands clean though

[THC]

bottom line is more inventory for ADs, solves everything and keeps the greys in a smaller lane

[exador]

I could see it working

[rjstuf001]

Originally Posted by exador

I could see it working

[avidflyer]

Originally Posted by cdubg21

If they had inventory, it would kill the incentive to buy and flip, and would eliminate the reliance on gray’s. Grays would need to sell at a discount to compete. If no inventory, no change.

Exactly

[enjoythemusic]

Originally Posted by cdubg21

If they had inventory, it would kill the incentive to buy and flip, and would eliminate the reliance on gray’s. Grays would need to sell at a discount to compete. If no inventory, no change.

Bingo!

[penguinrolex]

Omega has an online shop. The Ultraman sold out in two hours? The hodinkee speedy tuesday two in an hour? Then chrono24 became full of offers for the omega Ultraman, at huge markup.
Unless they can back it up with a LOT of inventory, an online storefront is just a different way for flippers to buy all stock of the hot models.
The problem isn't the AD channel, the problem is that the "phantom channel" is able to buy all the inventory of hot models. Either raise the price (reduce the arbitrage value for grey) or increase the inventory (make it more expensive to buy out all the stock) to solve the problem. Unfortunately that might mean letting the AD charge 20k for a Pepsi even if they can get 20 a month lol

[Tools]

Originally Posted by rjstuf001

I'm curious what the consensus here would be about Rolex selling directly online, like Omega, Breitling, IWC, Cartier and others are already doing. What do you all think would be the effect on the grey market and prices in general?

EDIT: And what do you all think are the odds of that happening?

Rolex will not do this.

Rolex will protect their Dealers and the carefully delineated Dealer Market Areas that they have contracted with. Online sales would drive many shops out of business, just as it has with other products.

[904VT]

I don't want to compete with all of the resellers that would start outsourcing online work to secure hot watches to resell.

Too much opportunity for fraudulent acquisitions imo

[904VT]

Originally Posted by exador

I could see it working

If Rolex considered every SS Daytona a made to order watch (even if only offering 2 builds) and paid in full prior, they could easily solve the flipper problem. Purchase and wait would deter the flippers and the wait imo would settle to only a year or two.

I don't think they want to though, because it helps their scarcity marketing and drives demand up the model lines.

[tng11]

Originally Posted by tyler1980

these threads always end up with people thinking that somehow online is the answer, because you will get a watch. All it would be is shifting the point of sale if nothing else changes. The demand is still the demand and arguably it would be easier to order a watch so demand could actually increase. Usually you have to actually go to an AD in person and talk to them and its harder to do vs ordering at home

Plus hot watches are leverage. AD's get to do the dirty work that Rolex gets to stay out of like moving unpopular watches to get a hot one. Rolex probably likes this because they need to keep shipping watches to these AD's and they can't if they are not selling them. They keep their hands clean though

People who think direct sales will remove the games are dreaming. Look at AP and the games the company owned boutiques play. You're not getting on a 15407ST, 15202ST or ceramic perpetual lists these days without a significant purchase history. HK will in fact tell you that you need to buy a tourbillon to get a 15407ST.

[rjstuf001]

But is there really an inventory problem? The greys have plenty of DaytonaC's and BLRO's, they're hoarding them and selling them at a premium. With an online store, everyone would have the same opportunity to buy, rather than the greys having a direct exclusive channel to AD's who sell them all their hot inventory. And there are different ways to limit purchases online based on IP address etc. so one guy does not buy 15 Daytonas in one sitting.

[thewildestbuffalo]

Online store would be worse for people complaining about greys. Bots would buy anything before any human could--the same way as it works for the clothing world.

[rjstuf001]

A lot of retailers like Nike and others use a lottery system for their hot releases. You enter your personal and credit card info and then if you're selected they charge you and you're good to go. I think that would work. Of course the flipping problem will never be eliminated but I think it would be significantly reduced and the monopoly of the greys would be broken.

[ltmgeller]

I don't think it will work