AD vs Boutique

[RGAmos]

When the term "AD" is used in this forum, is it understood to include Rolex Boutiques.

[Bobby T]

Of course........most, if not all, Rolex Boutiques are owned by Rolex ADs........here in Los Angeles, Rolex Boutique, both Beverly Hills and Century City, are owned by longtime Rolex AD, Geary's. Down in Orange County, Rolex Boutique is owned by Barron's and Leeds. I'm sure its the same all over the country.

[fjkyle]

Originally Posted by Bobby T

Of course........most, if not all, Rolex Boutiques are owned by Rolex ADs........here in Los Angeles, Rolex Boutique, both Beverly Hills and Century City, are owned by longtime Rolex AD, Geary's. Down in Orange County, Rolex Boutique is owned by Barron's and Leeds. I'm sure its the same all over the country.

Interesting! I live in LA. Didn't know this.

[jon_jon]

Rolex's strategy is to have "boutiques" in partnership with local watch retailers in major cities. This is in contrast to Omega's strategy to have boutiques owned by Omega, alienating the local watch retailers. By having company-owned boutiques, you have more control over sales, inventory, profits, etc. But no one knows the local customers as well as the local watch retailers. So overall I think Rolex's strategy is better than Omega's.

[Juantxo]

Originally Posted by jon_jon

Rolex's strategy is to have "boutiques" in partnership with local watch retailers in major cities. This is in contrast to Omega's strategy to have boutiques owned by Omega, alienating the local watch retailers. By having company-owned boutiques, you have more control over sales, inventory, profits, etc. But no one knows the local customers as well as the local watch retailers. So overall I think Rolex's strategy is better than Omega's.

I wonder if Swatch's strategy of owning the retail outlets is working for them. The Omega gray market is so strong and the prices so low, I wonder who would buy from a boutique. The same applies to many of their other brands. Of course, their margins now are greater but they also have more expenses in keeping the stores open.

[locutus49]

Yes.

[Speed]

Originally Posted by RGAmos

When the term "AD" is used in this forum, is it understood to include Rolex Boutiques.

There are still Authorized Dealers who carry many brands - in addition to Rolex. They are simply authorized to carry Rolex...but they are NOT Boutiques who sell exclusively Rolex.

< EDIT >

Sorry... Missed the word "include"

Answer is YES!

[Juantxo]

Of course. At least in NYC the Rolex boutiques are owned by large authorized retailers, such as Wempe and Tourneau. In any case, a Rolex boutique of course is an authorized dealer.

[japenney]

Short answer is don't buy from a boutique because it will cost you more.

[DG123]

I believe the Rolex Corporation distribution strategy, at least within the USA market, is to eventually have all retail sales be done by Rolex Boutique store fronts.
In theory , this strategy will help Rolex corporate maintain retail price control, accomplish exclusive in-store brand display presentation, improve retail store sales personnel skill levels, distinguish the Rolex brand from competing watch brands etc...
The reality is that the above strategy is effective within high population, volume consumer traffic locations. But in relatively low population areas, there is not enough sales dollar volume to adequately support the operation of a Rolex Boutique.

[AboutTime]

Originally Posted by DG123

I believe the Rolex Corporation distribution strategy, at least within the USA market, is to eventually have all retail sales be done by Rolex Boutique store fronts.

I agree this is likely Rolex's corporate strategy ... but I don't like it.