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

[SUPERDOC]

The Problem I see with the e-commerce is the fact that it already exists... Jomashop/AuthenticWatches/every "trusted seller" on the forums... what would motivate anyone to buy from omega at no discount?...

Rolex does it right by creating this idea of "Artificial Scarcity" .. these hotly sought after models..Ceramic Daytona, SS Skydewller, etc are gift to the AD, because it allows them to sell at MSRP or above, or even demand more purchases from the buyer before "allowing them on the list", and it results in greater margins for the dealer, allowing them to be more competitive with the grey market on the less popular models...

Omega still has a wide AD network, in addition to the Boutique network.... and they're planning increased points of sale... so why would anyone pay full prce MSRP unless you are getting sometype of value added perk in exchange... I was always happy to pay full till, knowing that a trip to switzerland, or the olympics, or dinner with Daniel Craig was part of the trade off...

being robbed of these experiences, there is no motivation to pay more... and Omega couldn't survive without the Grey market... every watch that leaves Switzerland is "sold" as far as Swatch is concerned... the price the end consumer pays is immaterial to them... anyone buying a snoopy at 20k doesnot put more money in Omega's pocket.

What bothers me is that Omega could have done the Rolex Daytona strategy with the Darkside of the moon... instead, they chose to milk the success and flood the market, and now, a watch that could be selling at a premium, is selling for half of its MSRP on the grey market... that is the problem with being part of a large conglomerate rather than being privately run.. for the people in charge at Omega, their jobs will always depend on the next quarter.. no long game mentality there... always just doing whatever they can to make quotas by next quarter... sacrificing the long game...

ecommerce, Hodinkee selling watches... might capture a few sales of the uninitiated... but you can only fool some of the people some of the time...

AND Who in the world is internet savvy enough to be confident paying thousands of dollars on line for a watch... but doesn't know about online dealers/forums/websites...

Do they assume that someone would just type in an Http address... purchase, and then go offline? no google search? no Cookies then flashing ads for chronos 24?
The problem is that the PTB in switzerland seem to be just discovering the internet...

[RW16610]

Originally Posted by SUPERDOC

The Problem I see with the e-commerce is the fact that it already exists... Jomashop/AuthenticWatches/every "trusted seller" on the forums... what would motivate anyone to buy from omega at no discount?...

Rolex does it right by creating this idea of "Artificial Scarcity" .. these hotly sought after models..Ceramic Daytona, SS Skydewller, etc are gift to the AD, because it allows them to sell at MSRP or above, or even demand more purchases from the buyer before "allowing them on the list", and it results in greater margins for the dealer, allowing them to be more competitive with the grey market on the less popular models...

Omega still has a wide AD network, in addition to the Boutique network.... and they're planning increased points of sale... so why would anyone pay full prce MSRP unless you are getting sometype of value added perk in exchange... I was always happy to pay full till, knowing that a trip to switzerland, or the olympics, or dinner with Daniel Craig was part of the trade off...

being robbed of these experiences, there is no motivation to pay more... and Omega couldn't survive without the Grey market... every watch that leaves Switzerland is "sold" as far as Swatch is concerned... the price the end consumer pays is immaterial to them... anyone buying a snoopy at 20k doesnot put more money in Omega's pocket.

What bothers me is that Omega could have done the Rolex Daytona strategy with the Darkside of the moon... instead, they chose to milk the success and flood the market, and now, a watch that could be selling at a premium, is selling for half of its MSRP on the grey market... that is the problem with being part of a large conglomerate rather than being privately run.. for the people in charge at Omega, their jobs will always depend on the next quarter.. no long game mentality there... always just doing whatever they can to make quotas by next quarter... sacrificing the long game...

ecommerce, Hodinkee selling watches... might capture a few sales of the uninitiated... but you can only fool some of the people some of the time...

AND Who in the world is internet savvy enough to be confident paying thousands of dollars on line for a watch... but doesn't know about online dealers/forums/websites...

Do they assume that someone would just type in an Http address... purchase, and then go offline? no google search? no Cookies then flashing ads for chronos 24?
The problem is that the PTB in switzerland seem to be just discovering the internet...

Great post, R.J. Having owned a bunch of Omega watches over the years I know exactly what you mean there.

[asiparks]

Why not? Seems like buying a watch from the AD has gone from a simple cash transaction to a complicated dance of sucking up and sneering put downs, peeled stickers and witheld warranty cards. If your cool with all that just to buy a watch, have at it...
How would buying from Rolex.com be different from buying from DavidSW or Takuya ? Y’know, other than not paying above MSRP....
How will it damage the brand ? Is it magically going to make Rolex less desirable? There been in Costco for a few years and yet demand seems to have only increased in that time...
Or is it just snobbery? Do you feel that you have to earn the right to buy one, go through the ritual and pain, whereas online any Joe Sixpack can get one ?

[maton12]

Costco and Jomashop don't come with Rolex warranty cards

AD's paying plenty of fixed costs and would surely be upset at Rolex should they ever decide to sell direct



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[airchitect]

Why? People flock to buy their products via the current model. Not to mention, this type of purchase is meant to be an exclusive experience (maybe not for a bunch of wis) ...... which you lose online. Also for most buyers it’s a ton of money to throw out into the great unknown, so why do it if you can just go pick it up. And then there’s discounts. At this point I’m conditioned to receive a good discount and without it I won’t buy..... No I think as long as people are paying over retail for certain models and values keep creeping up, they have absolutely no need to change the model.....

[NLYogi]

Wonder how this will be in let’s say 15 years from now, when Rolex could have increased its production capacity and more and more countries’ middle classes have grown.

[semi-ambivalent]

Originally Posted by asiparks

Why not? Seems like buying a watch from the AD has gone from a simple cash transaction to a complicated dance of sucking up and sneering put downs, peeled stickers and witheld warranty cards. If your cool with all that just to buy a watch, have at it...
How would buying from Rolex.com be different from buying from DavidSW or Takuya ? Y’know, other than not paying above MSRP....
How will it damage the brand ? Is it magically going to make Rolex less desirable? There been in Costco for a few years and yet demand seems to have only increased in that time...
Or is it just snobbery? Do you feel that you have to earn the right to buy one, go through the ritual and pain, whereas online any Joe Sixpack can get one ?

Snobbery is very much a part of it. Advances in manufacture produce technologically superb watches but cut out more and more of the human element which is an important part of the "warmth" of such a product/purchase. But don't worry, Rolex reminds us that humans are allowed to place the batons! Seriously, could it be any other way if you're making 800,000 watches a year? But where's the exclusivity? Well, at the AD, of course. They're not on every corner. And price increases. That's always been an effective filter, but cheap credit lessens its efficacy and (in the US) the internet lets me buy across state lines and save what can be a substantial amount of money in sales taxes. Why should Rolex the producer tout its technological efficiency but deny me the consumer financial efficiency? Why should I be the schmuck? They're still fantastic watches so if you want to have one then buy one, but it's a bit unwise to place too much importance on exclusivity in the equation. That and the ADs will have to step up their game. They have to offer more on their side of things than just inventory because, it would appear, they often don't even have that. But that's Rolex that's hurting them there, not the savvy buyer.

[outtatime]

I only use AD’s/boutiques to try stuff on it possible. I care nothing for the “experience” (which is basically terribly informed pushy/annoying sales people trying to act like they’re doing you a favor by trying to sell you a luxury watch).

[aquatimerfla]

Originally Posted by SUPERDOC

The Problem I see with the e-commerce is the fact that it already exists... Jomashop/AuthenticWatches/every "trusted seller" on the forums... what would motivate anyone to buy from omega at no discount?...

Rolex does it right by creating this idea of "Artificial Scarcity" .. these hotly sought after models..Ceramic Daytona, SS Skydewller, etc are gift to the AD, because it allows them to sell at MSRP or above, or even demand more purchases from the buyer before "allowing them on the list", and it results in greater margins for the dealer, allowing them to be more competitive with the grey market on the less popular models...

Omega still has a wide AD network, in addition to the Boutique network.... and they're planning increased points of sale... so why would anyone pay full prce MSRP unless you are getting sometype of value added perk in exchange... I was always happy to pay full till, knowing that a trip to switzerland, or the olympics, or dinner with Daniel Craig was part of the trade off...

being robbed of these experiences, there is no motivation to pay more... and Omega couldn't survive without the Grey market... every watch that leaves Switzerland is "sold" as far as Swatch is concerned... the price the end consumer pays is immaterial to them... anyone buying a snoopy at 20k doesnot put more money in Omega's pocket.

What bothers me is that Omega could have done the Rolex Daytona strategy with the Darkside of the moon... instead, they chose to milk the success and flood the market, and now, a watch that could be selling at a premium, is selling for half of its MSRP on the grey market... that is the problem with being part of a large conglomerate rather than being privately run.. for the people in charge at Omega, their jobs will always depend on the next quarter.. no long game mentality there... always just doing whatever they can to make quotas by next quarter... sacrificing the long game...

ecommerce, Hodinkee selling watches... might capture a few sales of the uninitiated... but you can only fool some of the people some of the time...

AND Who in the world is internet savvy enough to be confident paying thousands of dollars on line for a watch... but doesn't know about online dealers/forums/websites...

Do they assume that someone would just type in an Http address... purchase, and then go offline? no google search? no Cookies then flashing ads for chronos 24?
The problem is that the PTB in switzerland seem to be just discovering the internet...

This is what I said. E-Commerce only works if ADs no longer offer discounts. Why would anyone order online when a discount be had at AD.

[aquatimerfla]

Originally Posted by outtatime

I only use AD’s/boutiques to try stuff on it possible. I care nothing for the “experience” (which is basically terribly informed pushy/annoying sales people trying to act like they’re doing you a favor by trying to sell you a luxury watch).

Agreed.

I hate to stereotype but in general I believe this to be the behaviour 95% of the time.

Not sure why this is however. Makes no sense.

[gtruex]

I like the ADs to see in person as well. However, buying from them has been hit or miss in terms of service for me. I have bought from ADs, grey market, and pre-owned. I use whichever option is best for the particular watch/situation.

I will never forget the 1st Rolex I bought (Sub-C). I wanted to buy it new as it was my first. My only local AD would not discount a penny for me. I called a couple of out of state ADs, and got 10% off, no tax, and next day shipping to my front door. When I was in the AD shortly after said purchase looking at some jewelry for my wife, the salesman asked why I didn't buy from him. I told him because they weren't competitive with the other AD. He just told me I was the one that needed to build a relationship and history with them before they will consider giving me a discount. ADs with this approach/attitude turn people off in my opinion.

[Andrejb]

They’ll never sell online. I feel like Rolex wants buying one of their watches to be an experience, which means walking into AD. Looking behind the glass case at all the beautiful watches, touching feeling and picking out your watch. The whole customer experience aspect adds more brand value IMHO. I assume this is why Rolex is very particular with who is authorized to sell their product


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[texasmade]

Originally Posted by Andrejb

They’ll never sell online. I feel like Rolex wants buying one of their watches to be an experience, which means walking into AD. Looking behind the glass case at all the beautiful watches, touching feeling and picking out your watch. The whole customer experience aspect adds more brand value IMHO. I assume this is why Rolex is very particular with who is authorized to sell their product


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All that sounds nice but you’re forgetting the fact that AD’s never have inventory now for touching, feeling, and picking out your watch unless you want a DJ or some super expensive PM watch. At that point, what is the AD really providing that buying online isn’t? You’re getting better pricing, next day shipping, and in a lot of cases no sales tax buying online. Main thing AD is providing now is manufacturers warranty and piece of mind your watch isn’t fake.

[jonnyz1245]

Originally Posted by gregmoeck

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

Nope, but I always always try for one on a 10K+ SS watch that loses 30-50% of its value the second you walk out the door. What does a cup of coffee and a 12K watch have in common? If your'e not negotiating off of MSRP on a Rolex, Omega, IWC, AP etc you're not dealing with a full deck. I have gotten 5-10-15 off and as much as 35% off on other brands, including Rolex. Saving 2K on a 10K watch is usually how people got the 10K to pay for something as frivolous as a luxury watch to begin with :) Its just smart business. Totally different than asking for 25 cents off a 2 buck cup off coffee at the corner deli.

[jonnyz1245]

Originally Posted by texasmade

All that sounds nice but you’re forgetting the fact that AD’s never have inventory now for touching, feeling, and picking out your watch unless you want a DJ or some super expensive PM watch. At that point, what is the AD really providing that buying online isn’t? You’re getting better pricing, next day shipping, and in a lot of cases no sales tax buying online. Main thing AD is providing now is manufacturers warranty and piece of mind your watch isn’t fake.

That's not always the case. Lately it has been due to widely reported stopping of shipments of many SS until 2018. I travel a lot and have never had a problem seeing SS sports models in the case through out the US. Everything but SS Daytonas. This has been my experience for years.

and how are you getting better pricing if an online boutique sells for MSRP only? and one can easily get at least a small discount on pretty much anything. Heck, I can get 20-30 off on any Omega with a phone call.

[Richard Carver]

Rolex has made a career out of not doing what Omega does.

[carlhaluss]

Rolex likely will not go this route largely because that is what Omega does. And I believe Rolex is successful enough as it is, without even considering going this route. To me, this signals that something is wrong, and Omega is desperate to up their sales.

Not really on the subject, but reading through this thread I see so many posts of guys who are disgruntled with their AD experiences. Personally, I have had nothing but stellar experiences locally with all brands I have bought from an AD. I do shop around, though, not for price, but for who I feel will give me the best service. Those who I feel are honest and operate to a moral standard will get my business. So far, it has worked beautifully. Perhaps I am either naive or just plain lucky, but I am also very happy.

I cannot imagine getting a Rolex - or any other brand - by any other method than by going through an AD.

Cheers,
Carl

[Watchgeek5000]

Not sure why you would think because Omega did something Rolex would react. Since when does Omega set the bar? Again another reason Rolex will always be on top!

[SDRider]

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.

You got a back rub? Man, I went to the wrong AD! I need to have a talk with them next time I'm in there.

FTR-I don't mind spending a little more for the ability to see and touch something before I buy it, especially when I'm spending tens of thousands of dollars on it. I also don't have to worry about fakes when buying new from an AD. I like to support local businesses be it a Rolex, a camera lens or a Ducati. Having them around for support after the sale is worth something to me so I will gladly spend a little more for that.

[Nikrnic]

Originally Posted by SDRider

You got a back rub? Man, I went to the wrong AD! I need to have a talk with them next time I'm in there.

FTR-I don't mind spending a little more for the ability to see and touch something before I buy it, especially when I'm spending tens of thousands of dollars on it. I also don't have to worry about fakes when buying new from an AD.

It seems Rolex fills their quota so no need to change

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[texasmade]

Originally Posted by jonnyz1245

and how are you getting better pricing if an online boutique sells for MSRP only? and one can easily get at least a small discount on pretty much anything. Heck, I can get 20-30 off on any Omega with a phone call.

You're right about the MSRP thing through boutiques. Sorry, my brain switched to AD's selling online instead of boutique selling online.

But I still stand by the holding, touching, picking out your watch. With the way things are right now with Rolex's current inventory, it's pretty frustrating walking into a Rolex AD that has no SS sports models and only a vague idea of when they're going to get more. If the AD can't even provide something to try on right now, then what's the point of getting from an AD.

[jonnyz1245]

Originally Posted by texasmade

You're right about the MSRP thing through boutiques. Sorry, my brain switched to AD's selling online instead of boutique selling online.

But I still stand by the holding, touching, picking out your watch. With the way things are right now with Rolex's current inventory, it's pretty frustrating walking into a Rolex AD that has no SS sports models and only a vague idea of when they're going to get more. If the AD can't even provide something to try on right now, then what's the point of getting from an AD.

No worries, its all good

I agree that its better to be able to hold, touch, try on the watch you're interested in before buying. lets hope this temporary shortage of models is just that, temporary.

[AK797]

Originally Posted by SDRider

You got a back rub? Man, I went to the wrong AD! I need to have a talk with them next time I'm in there.

FTR-I don't mind spending a little more for the ability to see and touch something before I buy it, especially when I'm spending tens of thousands of dollars on it. I also don't have to worry about fakes when buying new from an AD. I like to support local businesses be it a Rolex, a camera lens or a Ducati. Having them around for support after the sale is worth something to me so I will gladly spend a little more for that.

I have done this, paid more on a RG Daytona from an AD I had used for a couple of years to try on pieces and so felt I owed them even tho I could have saved a grand going elsewhere.

[jnelson3097]

Breitling also offers the ability to buy online via their website but it's the same as Omega, why pay full retail when discounts are easily available at ADs.

[Syed117]

Originally Posted by jnelson3097

Breitling also offers the ability to buy online via their website but it's the same as Omega, why pay full retail when discounts are easily available at ADs.

I feel the same way, but sometimes discounts aren’t possible.

You want a steel sports model and it’s available to purchase online but not at your AD and they can’t honestly tell you when it will arrive.

For precious metal models it never a good idea to pay msrp. For steel, many times you don’t have a choice.

Who is going to wait for an AD to get a shipment if the watch is available immediately direct from the manufacturer?

[Lambo Jota]

Different buying options for different buyers. The bullshit I had to go thru to order a Rolex reminded me of used car sales tactics. No discounts, can't talk on the phone or email. So I played their stupid game and went back and forth to multiple ADs and played the professional grinding game on them. It took over one month and about 10 trips. Everyone on this forum has more info than the sales side. But in the long run I did still buy it. 4 weeks in on a 6 to 8 week delivery

[kunlun]

As others have said, Omega has to compete with a gray market selling Omegas for what they are really worth...

Rolex is in a much better position and they can afford to make the best moves for them.

[camoedoutlander]

it sure would be nice to add a Daytona C to cart, and buy it, and be warring it in 48 hours... heck id even pay full retail..
i walked into an AD inquiring about a hulk... the sales person blatantly told me why would you want that, here is a no date sub....... i once again said i'm coming here to buy the hulk... i was met with, why do you want that, it wont match anything.... it sure would have been nice to click add to cart, checkout, and be warring the watch next day... once again i would have no problem paying retail for said piece..
also this would put an end to the whole, going to several AD's and getting your name on a waiting list for a mass produced watch... if Rolex doesn't have the Dayton C's it would be nice to be on a Rolex controlled waiting list with a guarantee that you would receive said watch in an anticipated time window.

[regnant]

Rolex should keep doing things on their way, I also think first Tudor then Rolex if it happens to come into reality

[BreezyMan]

Originally Posted by SDRider

You got a back rub? Man, I went to the wrong AD! I need to have a talk with them next time I'm in there.

FTR-I don't mind spending a little more for the ability to see and touch something before I buy it, especially when I'm spending tens of thousands of dollars on it. I also don't have to worry about fakes when buying new from an AD. I like to support local businesses be it a Rolex, a camera lens or a Ducati. Having them around for support after the sale is worth something to me so I will gladly spend a little more for that.

This is a smart man everyone should take notes