CONFIRMED news regarding the professional line

[Bigblu10]

Originally Posted by padi56

Have to agree have not seen any !00% true facts, Rolex is a business just like any other business,to make and sell as many products that there current production line or future production will allow.

Well something is going on, before the Christmas season last year all Rolex shipments had stopped and there were folks posting pics here of empty display cases. Now we are well into 2018 and many AD's still have empty display cases with no desirable stock to sell and frustration level at AD's with the mothership is very high. Many here on the forum that wish to buy something as common as a black Submariner Date can't find them in the AD. So what is the deal?

[peterpl]

I personally know some AD's that are VERY VERY pissed off with Rolex. It not only reflects badly on their name by having cases and cases of empty Rolex cases its digging into their profit now.

At the end of the day ADs are there to make money. They cant make money when one of their biggest suppliers and most popular watch brand limits the supply. Its been too long now already mid 2018. If supply doesnt improve I know some ADs thinking of getting rid of Rolex completely. Why stock something and dedicate walls of space to a brand they cant even sell or supply to their customers. crazy.

Business 101.

[tjbender]

Originally Posted by peterpl

I personally know some AD's that are VERY VERY pissed off with Rolex. It not only reflects badly on their name by having cases and cases of empty Rolex cases its digging into their profit now.

At the end of the day ADs are there to make money. They cant make money when one of their biggest suppliers and most popular watch brand limits the supply. Its been too long now already mid 2018. If supply doesnt improve I know some ADs thinking of getting rid of Rolex completely. Why stock something and dedicate walls of space to a brand they cant even sell or supply to their customers. crazy.

Business 101.

Precisely. Or perhaps that’s the goal? Only sell direct to curb the flipping?

[GerardoG]

I just saw that there are more comments on this thread (yes, Paul will be very upset!). It has been some time since all started, and things continue like this in most places.

Having met with several ADs and watch industry executives, I constantly hear two very important facts that I would like to share:

1. Rolex is ROLEX. When Rolex tells you (AD) 'jump', you JUMP as high as you can. No questions asked. Period.

2. "You are watch geeks and are looking at this with a consumer passion for a unique love affair with the brand, but you are forgetting something: Rolex is a GENIUS in marketing. No other company has their impressive marketing and business models, so you have to think out of the box. Forget business 101 and what companies would do; Rolex is creating something completely new business wise, and since it has not been done before, we do not even conceive the concept. Trust me, Rolex has something under their sleeve, something that has been very carefully planned and brilliantly executed....but unknown to everyone."

[Bigblu10]

Originally Posted by GerardoG

I just saw that there are more comments on this thread (yes, Paul will be very upset!). It has been some time since all started, and things continue like this in most places.

Having met with several ADs and watch industry executives, I constantly hear two very important facts that I would like to share:

1. Rolex is ROLEX. When Rolex tells you (AD) 'jump', you JUMP as high as you can. No questions asked. Period.

2. "You are watch geeks and are looking at this with a consumer passion for a unique love affair with the brand, but you are forgetting something: Rolex is a GENIUS in marketing. No other company has their impressive marketing and business models, so you have to think out of the box. Forget business 101 and what companies would do; Rolex is creating something completely new business wise, and since it has not been done before, we do not even conceive the concept. Trust me, Rolex has something under their sleeve, something that has been very carefully planned and brilliantly executed....but unknown to everyone."

Please read post #1082. He summed it up in a nutshell. I can't imagine having a Rolex AD, with all the massive overhead, and empty display cases with nothing but undesirable models sitting there collecting dust. This is not a successful strategy for a business, IMO. Regardless, of what Rolex has conjured up as "a plan" that nobody knows.
If I go to my local Chevy dealership to buy a new truck and there are none on the sales lot, I am moving on to somewhere else.

[GerardoG]

Originally Posted by Bigblu10

Please read post #1082. He summed it up in a nutshell. I can't imagine having a Rolex AD, with all the massive overhead, and empty display cases with nothing but undesirable models sitting there collecting dust. This is not a successful strategy for a business, IMO. Regardless, of what Rolex has conjured up as "a plan" that nobody knows.
If I go to my local Chevy dealership to buy a new truck and there are none on the sales lot, I am moving on to somewhere else.

I completely understand and respect all opinions; just sharing some points of view.

[peterpl]

Rolex may be good at marketing - but when ADs are not selling there is no money coming in. No money coming in = ZERO profit.

Dont matter money talks and bullshit walks. Everyone wants money. I own a fairly successful business. If my main supplier stopped providing my products I sell - guess what? My profits will plummet and I'd be pissed off to the max.

There is no ifs and buts about that.

[Foxiness]

This is probably hurting a lot of the smaller mom and pop ADs

[Quamby]

Originally Posted by Foxiness

This is probably hurting a lot of the smaller mom and pop ADs

Definitely. It must be tough for these smaller AD's. They really are the ones which Rolex should look after the most. Big chain AD's can take care of themselves.

[jeanjean]

Its not look that complicate, you still could buy any of the Rolex sport model.
You just have to go through the listing of the Rolex AD and to wait.

[kultschar]

My old AD (lost dealership) found losing the brand a relief. Told me they were sick of being bossed around and dictated how to arrange their own store

[oldman2005]

Originally Posted by jeanjean

Its not look that complicate, you still could buy any of the Rolex sport model.
You just have to go through the listing of the Rolex AD and to wait.

Your location is Asia? From what I saw and heard typical buyers have almost no chance of getting a SS Sport from ADs in Asia at MSRP and there's so such thing as waiting list! Even in Thailand you have usually have to buy another undesirable watch to get a SS sport. No SS in HK, Japan, Vietnam, Singapore. Which country are you in?

[Bobby T]

No other company has their impressive marketing and business models, so you have to think out of the box.


Well, I can think of a couple of companies that have more impressive marketing and business models.......let's start off with Apple

[Hramez]

Originally Posted by Bobby T

No other company has their impressive marketing and business models, so you have to think out of the box.


Well, I can think of a couple of companies that have more impressive marketing and business models.......let's start off with Apple

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[Quamby]

Originally Posted by Bobby T

No other company has their impressive marketing and business models, so you have to think out of the box.


Well, I can think of a couple of companies that have more impressive marketing and business models.......let's start off with Apple

PP
AP
Ferrari
Hermes
Leica (to a lesser degree)

[101031-28]

Originally Posted by GerardoG

I just saw that there are more comments on this thread (yes, Paul will be very upset!). It has been some time since all started, and things continue like this in most places.

Having met with several ADs and watch industry executives, I constantly hear two very important facts that I would like to share:

1. Rolex is ROLEX. When Rolex tells you (AD) 'jump', you JUMP as high as you can. No questions asked. Period.

2. "You are watch geeks and are looking at this with a consumer passion for a unique love affair with the brand, but you are forgetting something: Rolex is a GENIUS in marketing. No other company has their impressive marketing and business models, so you have to think out of the box. Forget business 101 and what companies would do; Rolex is creating something completely new business wise, and since it has not been done before, we do not even conceive the concept. Trust me, Rolex has something under their sleeve, something that has been very carefully planned and brilliantly executed....but unknown to everyone."

Agreed. Thank you for sharing

[Rondineli]

Originally Posted by GerardoG

I just saw that there are more comments on this thread (yes, Paul will be very upset!). It has been some time since all started, and things continue like this in most places.

Having met with several ADs and watch industry executives, I constantly hear two very important facts that I would like to share:

1. Rolex is ROLEX. When Rolex tells you (AD) 'jump', you JUMP as high as you can. No questions asked. Period.

2. "You are watch geeks and are looking at this with a consumer passion for a unique love affair with the brand, but you are forgetting something: Rolex is a GENIUS in marketing. No other company has their impressive marketing and business models, so you have to think out of the box. Forget business 101 and what companies would do; Rolex is creating something completely new business wise, and since it has not been done before, we do not even conceive the concept. Trust me, Rolex has something under their sleeve, something that has been very carefully planned and brilliantly executed....but unknown to everyone."

I know you have excellent relationships with several ADs Gerardo, and don’t doubt what you have noted above. But, if this continues much longer and they loose say half of their stores, there will be not many people that will do the jumping.

I wanted to spend day $6k USD on a Sub, but $8k, or even $9k, not really. This is not making really any sense. That new CEO needs to be ousted by somebody really quick... does Rolex have a board of trustees with some power?


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[jeanjean]

Originally Posted by oldman2005

Your location is Asia? From what I saw and heard typical buyers have almost no chance of getting a SS Sport from ADs in Asia at MSRP and there's so such thing as waiting list! Even in Thailand you have usually have to buy another undesirable watch to get a SS sport. No SS in HK, Japan, Vietnam, Singapore. Which country are you in?

Dont worry be on waiting list with serious AD be patient and for sure you will get it....at MSRP.

[thesharkfactor]

I have no faith in waiting lists, I suspect the AD decides who gets the watch and that's not necessarily the next name on the list. If I'm on a list at my AD and George Clooney walks in, he will be placed above me on the list will he not..
---------------

One possible view: I think Rolex are trying to make Sport models rare and exclusive, they know prices will rise.

This new drought may be a 12-18month thing when they starve AD's to force the public to purge the grey market. Once the grey market is sold out, all the AD's will get stock again and the stickers off/warranty held will become more prevalent and the grey market will be killed off. Theory only..

[drgoro]

Explore othe brands people!

[Juantxo]

Great...!!! Less temptation, less gray marketers, more exclusivity.

[Bigblu10]

Originally Posted by Foxiness

This is probably hurting a lot of the smaller mom and pop ADs

Hurts the big ones just as bad, also the boutiques. Imagine being a Rolex boutique(still an indy A.D.) and your only product is Rolex. And the wall to wall ceiling to floor displays are predominantly empty other than DJ's and PM's.

Good luck paying the bills!

[DoraTheExplorerII]

Is this somehow an attempt to sell more of their datejusts? I know they're the most popular/best selling model but definitely not a hundred variations in any AD just sitting there popular...

[Nikrnic]

Sounds like part of the end game will be the loss of many ADs
As many, who depend on Rolex will be gone.

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[waterman1]

I’ll post this for what it’s worth. I found it interesting. I have a relationship with a Rolex Boutique store. Away from my home town. Have purchased a few from them. I was able to acquire the sd43 a year ago in mid-May from the first of 43’s they received. I visited a couple weeks ago and walked in to the store with my sd43 on my wrist to catch up with my friend.

The case was pretty much empty. I asked about the scarcity and if she holds certain watches in the back, does she see many of the sd43, where are the subs, etc. She told me she has no idea what is going on. That the store gets a few watches occasionally but she has no say in what is sent and does not know what is going on. I truly got the feeling this is all a mystery to even a boutique/corporate store and this manager of 20+ years was as in the dark as the public. I have to think this is a marketing tactic at only the highest levels and we will see Rolex change it’s position as a watch brand over the long term as it becomes a much more expensive watch to own with supply levels lowered permanently.

[Rondineli]

This is not a marketing tactic. This is a mistake. A global company cannot reduce the total production and thus disrupt distribution to its network, a number of them exclusive Rolex sellers only, for such an extended period of time without leading to closure of a high percent of Authorized Dealers.

Something really bad is happening at headquarters.


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[Why1504]

Originally Posted by GerardoG

I just saw that there are more comments on this thread (yes, Paul will be very upset!). It has been some time since all started, and things continue like this in most places.

Having met with several ADs and watch industry executives, I constantly hear two very important facts that I would like to share:

1. Rolex is ROLEX. When Rolex tells you (AD) 'jump', you JUMP as high as you can. No questions asked. Period.

2. "You are watch geeks and are looking at this with a consumer passion for a unique love affair with the brand, but you are forgetting something: Rolex is a GENIUS in marketing. No other company has their impressive marketing and business models, so you have to think out of the box. Forget business 101 and what companies would do; Rolex is creating something completely new business wise, and since it has not been done before, we do not even conceive the concept. Trust me, Rolex has something under their sleeve, something that has been very carefully planned and brilliantly executed....but unknown to everyone."

On number 2. I agree they are thinking out of the box. Time will tell on just how brilliant or genius it will turn out. There are many instances of companies taking radical steps to change their business and end up doing significant damage to their company/brand. You never forget Business 101 “You pay your money and you take your chances”.

The advantage Rolex has if they fail are the following:
1. Privately held
2. Presumably very deep pockets
3. A fairly easy path back to the business model prior to 2017

From a business standpoint this will be interesting to watch. It would also be interesting to see how this group responds to how Rolex changes. I took a few minutes and thought about where they could expand their market. The only place I considered are where TAG and Omega live. Generally, lower priced and higher volume. But I could be wrong here. I don’t see Rolex trying to play in the sub $1000 market. How would the world react if Tudor came out with a stylish Smartwatch? These are the places where Rolex doesn’t have much or any presence. I don’t see them increasing profitability by limiting availability even if they significantly increased prices.

[Bigblu10]

Originally Posted by Rondineli

This is not a marketing tactic. This is a mistake. A global company cannot reduce the total production and thus disrupt distribution to its network, a number of them exclusive Rolex sellers only, for such an extended period of time without leading to closure of a high percent of Authorized Dealers.

Something really bad is happening at headquarters.


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I would love to be a fly on the wall in the Rolex CEO office.

[casadecamporolex]

Lots of opinions here based on supposition.
Realize this.....Worldwide sales of Rolex up nearly 20%.
Demand, especially for SS models, never been higher.
Rolex production can not keep up.
Factories in Geneva working overtime.
And, ORJ’s in USA business never better.

[Bigblu10]

Originally Posted by casadecamporolex

Lots of opinions here based on supposition.
Realize this.....Worldwide sales of Rolex up nearly 20%.
Demand, especially for SS models, never been higher.
Rolex production can not keep up.
Factories in Geneva working overtime.
And, ORJ’s in USA business never better.

If production can't keep up, why were the factories shut down and done for the last couple of months last year? No AD's were receiving shipments and there was a stock shortage for the holiday season when many splurge for a Rolex watch.