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

[Ouro9999]

Omega started selling online in USA, how long will take for Rolex to go live?

This boutique experience cuts a lot of sales, as there is no boutiques everywhere.

Was this a right move from Omega? O think it nailed.

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[MonBK]

Nothing

[Giangos]

Rolex are on a different level to Omega. They will do nothing and still end up on top.


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[superstarmar]

Originally Posted by Giangos

Rolex are on a different level to Omega. They will do nothing and still end up on top.


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Agreed... Rolex could’ve gone e-commerce a long time ago
if they really wanted to ...

[Etschell]

Originally Posted by MonBK

Nothing

x2

[beshannon]

Lots of brands already do this.

There is no reason at all for Rolex to follow.

[Chadridv]

Originally Posted by beshannon

Lots of brands already do this.

There is no reason at all for Rolex to follow.

I don’t think they will, but there is a reason and it’s simple, to make more money.

There are definitely people out there who aren’t looking for the best deal and they’re not looking to mix it up with sales reps at ADs. People who’d prefer to click a button and have something show up at the door the next day like a magic show lol.

If rolex has a 40% mark up at ADs (I don’t know what the mark up is exactly), but they sell directly from a website instead of selling watches through their authorized dealers they keep that 40% mark up.

It’s pretty simple, no?

Again, I’m not saying Rolex will get on board with this, but there’s certainly a very good reason they’d consider it, just as anyone in the business of making money would/should.

[Etschell]

Originally Posted by Chadridv

I don’t think they will, but there is a reason and it’s simple, to make more money.

There are definitely people out there who aren’t looking for the best deal and they’re not looking to mix it up with sales reps at ADs. People who’d prefer to click a button and have something show up at the door the next day like a magic show lol.

If rolex has a 40% mark up at ADs (I don’t know what the mark up is exactly), but they sell directly from a website instead of selling watches through their authorized dealers they keep that 40% mark up.

It’s pretty simple, no?

Again, I’m not saying Rolex will get on board with this, but there’s certainly a very good reason they’d consider it, just as anyone in the business of making money would/should.

rolex would make a lot more money cutting out the middle man. but perhaps they dont want to.

[Dirt]

Originally Posted by Chadridv

I don’t think they will, but there is a reason and it’s simple, to make more money.

There are definitely people out there who aren’t looking for the best deal and they’re not looking to mix it up with sales reps at ADs. People who’d prefer to click a button and have something show up at the door the next day like a magic show lol.

If rolex has a 40% mark up at ADs (I don’t know what the mark up is exactly), but they sell directly from a website instead of selling watches through their authorized dealers they keep that 40% mark up.

It’s pretty simple, no?

Again, I’m not saying Rolex will get on board with this, but there’s certainly a very good reason they’d consider it, just as anyone in the business of making money would/should.

Rolex can't and won't do anything in response.
Though I don't doubt there would be discussions around it in theory at the mothership.

Firstly, Rolex can't supply the bread and butter watch models.
It would require larger production capacity and stock holdings.
Unless they restrict the offerings to the harder to move models that typically languish in display cases and leave the cream for the ADs and Boutiques.
Perhaps they could do a deal with Amazon where delivery could be guaranteed within a few days to the door

Secondly, the sale of the product is heavily reliant on the dealer experience what ever that may entail.
That also includes fitting the watch and sizing the bracelet.

Thirdly, it would herald the entrance of Rolex into the race to the bottom and all that's symptomatic about it.

Fourthly, there would be some unacceptable risk involved regarding the product actually getting to where and who it's supposed to.

[Dirt]

Originally Posted by Etschell

rolex would make a lot more money cutting out the middle man. but perhaps they dont want to.

it would damage the brand and there would be no coming back from the place where they end up.

[brandrea]

Originally Posted by Chadridv

I don’t think they will, but there is a reason and it’s simple, to make more money.

There are definitely people out there who aren’t looking for the best deal and they’re not looking to mix it up with sales reps at ADs. People who’d prefer to click a button and have something show up at the door the next day like a magic show lol.

If rolex has a 40% mark up at ADs (I don’t know what the mark up is exactly), but they sell directly from a website instead of selling watches through their authorized dealers they keep that 40% mark up.

It’s pretty simple, no?

Again, I’m not saying Rolex will get on board with this, but there’s certainly a very good reason they’d consider it, just as anyone in the business of making money would/should.

I tend to agree. One day they'll have to shift gears. My kids or my kids kids won't be going to the mall to shop. You'd think Rolex and all the other brands will eventually shift gears.

Like anything Rolex does it won't happen fast, but they can't keep doing business the same old way forever. Just my

[ras47]

I think Rolex will watch Omega’s results over the next couple years and reevaluate then. Rolex isn’t stupid so online sales are surely in the conversation. But that doesn’t mean it will ever happen.

I think Omega is missing the boat. Watches only with their e-commerce initiative. No accessories. I’m not buying a new watch without trying it on. I would, however, buy a strap or other accessory.

[JManuel]

Maybe they will one day.

Blockbuster never thought they would get wiped out by not having online rentals.
Major stores are going down on sales and closing due to online market, something unimaginable 15 years ago.
There is a reason Amazon is the king of e-commerce.

Why would someone spend their time looking on all AD's for their one watch they are interested in or giving calls everywhere (current situation on SS sport models) when we can just buy it from our home with no hassle and probably even cut markups?

Even if they do not cut markups, selling full retail at their website so they don't kill their own AD's would be very appealing IMO. You avoid stupid over pricing but then again you cant ask for a discount to a webpage lol, so there is good and bad, we all look for different things.

They could take years, but its something Rolex should not ignore.

[Beowulf]

Originally Posted by Dirt

it would damage the brand and there would be no coming back from the place where they end up.

I don't see why this necessarily damages a brand.
You can even buy a $200K Tesla Roadster 2 online, why not a watch?

Omega had a smart move. I, for one, almost gave up getting my Rolex because I got truly fed up of the AD responses and games. If I could have ordered it online, it would have been a much better experience (Even with a production waiting list, which also happens in the car example I gave).

They might not go for it tho, perhaps because selling online requires a pretty well oiled supply chain/support/logistics.

[Robbyman]

SS = Sold Out Sold Out Sold Out

[DLRIDES]

Rolex will do the same eventually.

[Switch]

Don't think it will work well. The experience of buying a Rolex is similar to buying a car, you will want to touch and feel and test drive it on your wrist before buying.

[OcdRob]

I could see a hybrid type system working where the watch is ordered directly from Rolex but is delivered to you at the ad of your choice. I think this would work great for the hard to get pieces as you would be on Rolex’s list and when your turn came up you would get the watch and not someone the ad thought more important than you.

[Sarosh]

Omega has the abundance of inventory to sell online. Rolex? Doesn't. And even if it did they would be sold out of everything within a few months. Leaving us high and dry for the remainder of the year. As has been clearly pointed out in some other threads they have met their production for the year which was planned two years ago.......

[1William]

I believe that Rolex will be on-line in a significant way before the end of the decade. In the market of competitive commerce, each company must be constantly changing and evolving. While brand loyalty and image is great and Rolex holds the crown along with PP all of that can change. Maybe for the better and maybe for the worse. In the end it will come down to money. There is no shortage of Rolex watches being manufactured, only a shortage in what Rolex is willing to supply to the AD network and in turn try to choke out the Grey market. I think Rolex and PP are playing a dangerous corporate game with its customers but time will tell. People will only put up with so much before they move on to an alternative.

[dr35mm]

Continue to prove that Omega and Rolex are not playing in the same league... Absolutely nothing.

[Etschell]

Originally Posted by 1William

I believe that Rolex will be on-line in a significant way before the end of the decade. In the market of competitive commerce, each company must be constantly changing and evolving. While brand loyalty and image is great and Rolex holds the crown along with PP all of that can change. Maybe for the better and maybe for the worse. In the end it will come down to money. There is no shortage of Rolex watches being manufactured, only a shortage in what Rolex is willing to supply to the AD network and in turn try to choke out the Grey market. I think Rolex and PP are playing a dangerous corporate game with its customers but time will tell. People will only put up with so much before they move on to an alternative.

view, tudor watches will be sold online before rolex through their respective websites.

[the_natural]

Originally Posted by MonBK

Nothing

This.

I can see Tudor maybe going the online route, but not Rolex.

[AK797]

As I wrote on the other thread I think Omega and Breitling will have to do this and much more and probably slash prices or production to compete with the Rolex juggernaut that grows ever stronger, never has it been more dominant.

[Quailhunter]

I don’t think Rolex will offer discounted prices online although they might sell watches on line at full retail. Offering discounts, particularly by individual ADs, is a slippery slope that eventually drives a product into commodity status and can destroy retail outlets and even the manufacturer.

I would like to see an online watch availability listing of which AD has which watch in stock.

[Mystro]

Many luxury watch brands already sell this way. I don’t think it takes away from the brands. It’s the way of the world is going even with auto sales. People don’t have time or even want to talk to another person for a sale. I am getting this way. It just means the consumer has to do more of their own research pre sale.
Rolex will eventually do this but my gut feeling is they will be the last to hold out to this way of sales.

[Nikrnic]

Originally Posted by AK797

As I wrote on the other thread I think Omega and Breitling will have to do this and much more and probably slash prices or production to compete with the Rolex juggernaut that grows ever stronger, never has it been more dominant.

ras47 first comment was reminiscent of Enzo Ferrari, would watch the other co. spend on R&D and learn by their mistakes, saving millions and then improving his product to stay on top. Ok I'm a car guy that's how I relate sometime. Many good points were made in these threads, I believe Rolex is no.1 due to there R&D as well as marketing. I know all things change much faster these days but I can't see Rolex going on line so to speak anytime soon.

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[mahefa]

Rolex will not follow, there is absolutely no need. By not following is good marketing as well. Rolex is in a class of its own. Best decision of Mr Wilsdorf was to put all under foundation, it cut most of the useless pressure away from directors and board. They have 100 years strategies like Japanise companies. Nothing is tied to any person.

[GradyPhilpott]

Rolex doesn't seem to need online sales.

[TheRolexKingofLV]

I'd think Tudor would before Rolex.