Omega launches e-commerce, what will Rolex do about it?

[johnnyjazz]

I think the same was said about hi-fi, you need to hear it, or guitars, you need to play it, now most of these are sold online. It might take a good number of years, but yes i think at some point Rolex will and still offer the AD experience too.

[SevenWays]

Originally Posted by gtruex

Jaeger-LeCoultre sells online and has done so for years. They even offered to sell me the boutique edition blue tribute Reverso over the phone. I ended up buying at the Wynn boutique, but I considered the online/phone option. I don't think offering online lowers the prestige of the brand. I love Rolex, but the AD experience is often not worth the price/hassle/time/etc... I think ADs and in person shopping has it's place, but I think the online choice is a great option.

How do the trusted sellers and grey market dealers stay alive? Obviously online works for them and people buy without seeing the watches in person.

Before I came to this site, I'd never even heard of Jaeger-LeCoultre. Or Lange or VC or any of the high end brands. I knew Rolex, though. The dairy farmer down the road from me has heard of Rolex but not any other high end brand, including Omega.

When you compare JLC or any of those other brands to Rolex, or when you talk about the gray market and trusted sellers, you are really talking about something only real watch hobbyists or "those in the know" understand. That is a very small slice of Rolex's customer base. Rolex's base is everyone is WANTS to join that group, not just the people already there. They won't do anything that lowers the exclusive feel of the brand - that is their business model.

[Wahlberg]

Originally Posted by rexG

I think with the death of retail stores and shopping malls.....so will the desire to buy high priced luxury items. There’s something about peering at the display windows and seeing those beautiful watches that stirs people and creates a pool of future Rolex buyers. That’s all lost, in my opinion, with online shopping as it is intangible.....out of sight, out of mind. It’s a difficult spot for Rolex to be in.

So in the end, every store will disappear and it's all about shopping online and then people crave for the good old fashioned stores and the people who start them will make a lot of money. Is this what we are looking at?

[aquatimerfla]

I have one problem with E-Commerce. No discount.

No discount is fine if ADs are not discounting but if your going to have ADs that discount than why have e-commerce?

Rolex indeed could go E-commerce IF they closed all ADs and only had Boutiques or had ADs with 'show' pieces only for people to try before they place an order.

Either way e-commerce is a mixed bag right now and imo only works if said manufacturer has zero discounts.

I have always had a problem with discounting anyways.List your price and someone either buys it or they dont. Than again its not the brands that discount its the 'dealers'.

Watch industry is at a crossroads and I believe we will see a dramatic shift in the next couple of years.

[rexG]

Originally Posted by Wahlberg

So in the end, every store will disappear and it's all about shopping online and then people crave for the good old fashioned stores and the people who start them will make a lot of money. Is this what we are looking at?

I don’t know about “every”....but look at the trend. “Cyber Monday” is expected to be the largest ever. Malls are struggling, Amazon, for example, is a juggernaut and a threat to many small businesses and shopping malls. Hell, even Wal-Mart is feeling it. I’m just watching the trends. However, I believe people will naturally be drawn to the shopping/social experience.... actually seeing and touching......so it will come down to what makes sense financially in the end.....as always.

[semi-ambivalent]

Very interesting thread. For most forum members, except a few, Rolex is a black box. For every forum member there are tens of thousands of Rolex owners who don't care, who buy a single watch and keep it for the rest of their lives. They don't join forums, they don't "collect", they don't flip. That's why the AD experience is so important, why Rolex *has* to get and keep it right in the face of online retailing. If a customer pines for the SS DJ or DD in the window then that's good but, when they trigger (and in this Age of Credit Cards this can happen fast) and actually go in to buy but find the AD had only one of each and it was sold that's very bad. They (Rolex) have to find a process that lets them sell prestige and aspiration but still gets the product itself in the buyer's hands without cheapening the emotional and psychological experience. The idea mentioned upthread of ordering a watch bespoke which is then delivered to an AD is a good start. It's like Leica's a la carte process, which I've used. It's arrogant to tell your customer the price is US$20k but they can't get what they want. And if the AD is told they have to stock one of every iteration so the customer can get the touchy feely that's such an important part of selling aspiration there will soon be about a dozen ADs left on the planet.

[ap1]

Originally Posted by aquatimerfla

I have one problem with E-Commerce. No discount.

No discount is fine if ADs are not discounting but if your going to have ADs that discount than why have e-commerce?

Rolex indeed could go E-commerce IF they closed all ADs and only had Boutiques or had ADs with 'show' pieces only for people to try before they place an order.

Either way e-commerce is a mixed bag right now and imo only works if said manufacturer has zero discounts.

I have always had a problem with discounting anyways.List your price and someone either buys it or they dont. Than again its not the brands that discount its the 'dealers'.

Watch industry is at a crossroads and I believe we will see a dramatic shift in the next couple of years.

This is why omega ADs ought to be very concerned. Their sales will look very different in 3 years if omega chooses to even bother with them

[Xerxes77]

Originally Posted by etschell

x2

x3

[BVLDARI]

There are electronics brands who sell on line but the orders are fulfilled by dealers. This gives the dealer the margin they would have made AND gives them an opportunity to sell the new customer additional items. I could see something like that happening. Although, I don't think Rolex is rushing to do this anytime soon. So long as the watches continue to be sold out there, is really no reason to go to eCommerce...

[Boaters]

Dont think it will happen but curious to see what there destiny is in the next couple years.

[mangoseed]

Like gtruex mentioned, Jaeger-Lecoultre sells online and they are on the same level as Rolex, so it is not correct to assume that the boutique experience is needed for watches of this caliber.

[experimentjon]

Originally Posted by douglasf13

They did start listing MSRP online this past year, so who knows?

I personally thought this was a big move on their part because many non-watch-obsessed people generally believe that the entry point for Rolex is significantly higher than what it really is.

However, this step seems like something that just helps to drive people to ADs/Boutiques once that first awkward step of pricing is taken care of. Having been in that spot before, going into a boutique and asking a salesperson about price is certainly a bit intimidating for first-time shoppers. So for now, with such a good in-place distribution network, it makes sense for Rolex to eschew online sales and keep funneling people to B&M.

[Tools]

Originally Posted by FTX I

Larry, I believe they joined in the 30s as result of the economic crisis of 1929.


. . .

Yes.. I said that the relationship lasted into the 70's.

[FTX I]

Originally Posted by Tools

Yes.. I said that the relationship lasted into the 70's.

They're still together somehow (SG). I respect both brands.

[Cru Jones]

Funny to read all the fanboy comments... from many of the same people who think buying online from a "trusted seller" is the only way to go...

[Why1504]

Many years ago automotive manufactures tried a “fixed price” boutique store with no inventory business model. It didn’t last. High dollar purchases are generally emotional purchases. You can sell a $3-$4k watch online. I am not so sure about an $8-$12K. PM watches are going to need to be placed in the customers hands. Just like with a car these watches need to be “sold”.

[BreezyMan]

Originally Posted by Why1504

Many years ago automotive manufactures tried a “fixed price” boutique store with no inventory business model. It didn’t last. High dollar purchases are generally emotional purchases. You can sell a $3-$4k watch online. I am not so sure about an $8-$12K. PM watches are going to need to be placed in the customers hands. Just like with a car these watches need to be “sold”.

HODINKEE sold a Paul Newman via Apple Pay in their app sight unseen. They been doing well with watches and now a ad for swatch group brands

[douglasf13]

Originally Posted by BreezyMan

HODINKEE sold a Paul Newman via Apple Pay in their app sight unseen. They been doing well with watches and now a ad for swatch group brands

Yeah, Tesla seems to be pulling it off, too. I think we're ready as a society. I rarely go into stores anymore, and I could care less about the "AD experience."

[BreezyMan]

Originally Posted by douglasf13

Yeah, Tesla seems to be pulling it off, too. I think we're ready as a society. I rarely go into stores anymore, and I could care less about the "AD experience."

I’m not down for it at all omega tsk tsk
HODINKEE is not rolex or omega. They were started from one guys blog into what it is today which is Apple to watch publications. I respect them and kudos for making the watch. Game better. They don’t apply to this. They are awesome I love all their stories and the way they been pushing the watch game

Omega are taking away jobs Period like I said before it’s a fine Swiss watch not a t shirt. They should have more respect for themselves to be frank. For all the guys who worked hard long hours, made the right deals in life, or sacrificed so they could buy a watch. It’s special and something a click on website will never be. All the guys and girls who like this online sales are just not watch enthusiasts. Real collectors and ppl in this game have relationships at ads and respect the business model. I think I’ll say it one more time...omega you suck tsk tsk

[douglasf13]

Originally Posted by BreezyMan

I’m not down for it at all HODINKEE is not rolex or omega. They were started from one guys blog into what it is today which is Apple to watch publications. I respect them and kudos for making the watch. Game better. They don’t apply to this

Omega are taking away jobs Period like I said before it’s a fine Swiss watch not a t shirt. They should have more respect for themselves to be frank. For all the guys who worked hard long hours, made the right deals in life, or sacrificed so they could buy a watch. It’s special and something a click on website will never be. All the guys and girls who like this online sales are just not watch enthusiasts. Real collectors and ppl in this game have relationships at ads and respect the business model. I think I’ll say it one more time...omega you suck

That's a bit silly. I am certainly a watch enthusiasts, and I've only purchased one watch from a dealer in person. If anything, the idea of wanting some champagne and a back rub while I buy a watch is antithetical to just about anything I'd buy.

[gregmoeck]

Do you ask for a discount when ordering a cup of coffee?

Originally Posted by aquatimerfla

I have one problem with E-Commerce. No discount.

No discount is fine if ADs are not discounting but if your going to have ADs that discount than why have e-commerce?

Rolex indeed could go E-commerce IF they closed all ADs and only had Boutiques or had ADs with 'show' pieces only for people to try before they place an order.

Either way e-commerce is a mixed bag right now and imo only works if said manufacturer has zero discounts.

I have always had a problem with discounting anyways.List your price and someone either buys it or they dont. Than again its not the brands that discount its the 'dealers'.

Watch industry is at a crossroads and I believe we will see a dramatic shift in the next couple of years.

[AK797]

Originally Posted by douglasf13

That's a bit silly. I am certainly a watch enthusiasts, and I've only purchased one watch from a dealer in person. If anything, the idea of wanting some champagne and a back rub while I buy a watch is antithetical to just about anything I'd buy.

Do you know I've never had a professional massage in my life, I suppose if Rolex offered one in lieu of any discount I might be game.

[SpyShops718]

It is easier to sell a 500k house than a 2 million dollar home.

[BreezyMan]

Originally Posted by douglasf13

That's a bit silly. I am certainly a watch enthusiasts, and I've only purchased one watch from a dealer in person. If anything, the idea of wanting some champagne and a back rub while I buy a watch is antithetical to just about anything I'd buy.

Is it silly. Tell me I’m silly when they get hit by hackers. It’s 2017 almost 2018 I know everything is going digital and so are the bad guys. I have friends who work in cyber security the threat is real. Who know what they could do to omega and any brands that sell online. Release Basel watches that are not out yet, take your funds and your watch you ordered. Just google all the random companies that been hacked, when you ask yourself why they hacked omega. they do it for fun like video game not even for any reason sometimes. This is digital age people love sooo much. This is all known by police around the world they put out warnings yet ppl still want the Internet of things. Digital is not always the best way to do business. Rolex knows this why they don’t follow the rest

[Bigblu10]

Many malls are struggling to survive and many have already gone the way of the dinosaur. Most but not all Rolex AD's are in upper tier malls. Hard to say what will happen in the future, but one thing for sure is Jeff Bezos is the richest man on Earth for a reason.

[douglasf13]

Originally Posted by AK797

Do you know I've never had a professional massage in my life, I suppose if Rolex offered one in lieu of any discount I might be game.

Maybe I should open a chain of masseuse places next to ADs and try to get a partnership going.

[machob55]

I have to think about my own shopping experience now with e-commerce being in the midst of it all. I hate going to the mall and do ALL my shopping online. All my Rolex watches have been purchased from gray dealers online with the exception of my first Rolex watch in 1991. My second was purchased directly from Rolex via an order from the Navy Exchange when I was retiring from the service in 1999! Overall I love the experience and also that I don't have to drive 4-5 hrs one way to pick up a watch. All are always guaranteed otherwise I would not proceed with the transaction. It may take a while, but Rolex will eventually go that route or at least have that option available. Plus, if the price can be reduced say 2-5% for an online sale, folks will clock to the online site. It's just a matter of time...

Sent from my R1 HD using Tapatalk

[douglasf13]

Originally Posted by Bigblu10

Many malls are struggling to survive and many have already gone the way of the dinosaur. Most but not all Rolex AD's are in upper tier malls. Hard to say what will happen in the future, but one thing for sure is Jeff Bezos is the richest man on Earth for a reason.

Exactly. Brick and mortar is dying, and that's especially the case with malls.

Wouldn't it be a shock if this crazy low stock issue that we're seeing with Rolex this year is because Rolex is building inventory to start selling online? It would be the final piece of complete vertical integration.

[subtona]

Rolex beats their own drum.

[tng11]

Watches are something that I find very difficult to purely buy online, especially in this price tier. Pictures only tell you so much about fit, finish, how well it goes with your skin colour, yada yada yada. It is my typical practice to check out pieces at a dealer first before buying online - most of the pieces I've bought completely sight unseen have ended up on the chopping block. Most of the pieces that are in my collection now were not even on the radar until I saw them in person.