Rolex boutique vs AD

[SFBAY]

Are the boutiques owned and operated by Rolex?

[jonnyz1245]

Originally Posted by SFBAY

Are the boutiques owned and operated by Rolex?

No. Rolex partners with an AD to create a boutique location. At least this is how its done in the US. For example the Houston Rolex Boutique is operated by Deutsch and Deutsch. Great people by the way. D&D is the best

[tbonesteak]

5th Ave store in NYC is O&O by Wempe.

[klenboy]

SF Boutique is operated by Tourneau.

[sager]

Same goes for the stores I know in the Middle East and South America.

[RJRJRJ]

I believe they only own the one in Switzerland.

[SFBAY]

So they are just isolated Rolex stores operated by an AD?

[brucethemanlee]

Originally Posted by SFBAY

So they are just isolated Rolex stores operated by an AD?

Yes


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[jonnyz1245]

Originally Posted by SFBAY

So they are just isolated Rolex stores operated by an AD?

Yes but they are also chosen by Rolex so obviously the relationship is strong.

[Rolex Essex]

Most UK Rolex boutiques are owned/operated by the Aurum Holdings.
The flagship store opposite Harrods is owned by Bucherer UK.

[Bigblu10]

Rolex boutique is nothing more than an AD that only sells Rolex timepieces, nothing else. They are supposed to have every reference watch in stock and displayed but with the current situation, that is simply not happening.

[Spence4]

Originally Posted by RJRJRJ

I believe they only own the one in Switzerland.

Which one in Switzerland? I have never seen a Rolex-owned place here aside from their HQ which does not sell anything but is staffed by extremely pleasant people.

[214270Explorer]

One of our local AD's has been a Rolex dealer (exclusive, no other watch brands) since 1953! Multi-generational family owned.

And they are a GREAT AD. No gray market games, no deposits, no phone sales, no dealing other than with walk-in buyers. They do get a lot of travelers/visitor traffic, but these vacationing looky-loo's from other countries never buy anything.

[RJRJRJ]

Originally Posted by Spence4

Which one in Switzerland? I have never seen a Rolex-owned place here aside from their HQ which does not sell anything but is staffed by extremely pleasant people.

Chrono-time.

[ROLMARINER]

Originally Posted by Bigblu10

Rolex boutique is nothing more than an AD that only sells Rolex timepieces, nothing else.

Another way to say it is that the vast majority of Rolex AD's are really small town mom-and-pop jewelry stores whose real business is selling earrings, necklaces, and charm bracelets.

Having the Rolex license gives their jewelry store credibility over other neighboring jewelry stores so they use that to their advantage and have higher prices on the cuff-links and engagement rings that pay the bills each month.

So when we have the passionate conversations about AD's selling desirable sport models out the back door to grey dealers, it needs to be put in context. That incremental $5K made from a grey may sound like chump-change on the scale of almighty international Rolex but to a small family-owned business it is significant money and that's why they do it.

[SS Oyster]

Gearys owns the Rolex Boutique on Rodeo Drive in Beverly Hills. Also the adjoining Patek Boutique.

[AbqRolexFan]

Originally Posted by SS Oyster

Gearys owns the Rolex Boutique on Rodeo Drive in Beverly Hills. Also the adjoining Patek Boutique.

I think they also own the Rolex Boutique in Century City.

[Norbert]

The newish Rolex Boutique in Houston is also operated by a long time AD, but Rolex helped them by not allowing other AD's to sell Rolex near the Boutique, namely Tourneau and Ben Bridges.

[2nastie]

Rolex also tend to consolidate a couple ADs to a single Boutique. Allows the Boutique to operate with a few more watches and "better" selection and also eliminates a bit of the competition as a reward for their investment and "stricter" policy.

[Sothy]

Do the boutiques also sell jewelry or just Rolex watches (and maybe Rolex branded accessories)?

[Glidelock]

Originally Posted by ROLMARINER

Another way to say it is that the vast majority of Rolex AD's are really small town mom-and-pop jewelry stores whose real business is selling earrings, necklaces, and charm bracelets.

Having the Rolex license gives their jewelry store credibility over other neighboring jewelry stores so they use that to their advantage and have higher prices on the cuff-links and engagement rings that pay the bills each month.

So when we have the passionate conversations about AD's selling desirable sport models out the back door to grey dealers, it needs to be put in context. That incremental $5K made from a grey may sound like chump-change on the scale of almighty international Rolex but to a small family-owned business it is significant money and that's why they do it.

I think your describing the traditional AD here, not a modern Rolex "Boutique"! In a Rolex Boutique, they sell no Jewelry whatsoever, only Rolex watches! In fact, over the last several years, Rolex has been on a tear...taking AD status away from traditional jewelry stores (even many Ben Bridge locations) and opening up Pure Boutique's in their place!

[ROLMARINER]

Originally Posted by Glidelock

I think your describing the traditional AD here, not a modern Rolex "Boutique"! In a Rolex Boutique, they sell no Jewelry whatsoever, only Rolex watches! In fact, over the last several years, Rolex has been on a tear...taking AD status away from traditional jewelry stores (even many Ben Bridge locations) and opening up Pure Boutique's in their place!

I believe, and I will have to check, that all of these so-called boutiques are just extensions of the company's larger business which is a wide assortment of gold and diamond jewelry.

Ben Bridge is a good example. Tourneau another. Geary's of California runs several 'boutiques' but their business also includes engagement rings and dinnerwear, they've just chosen to put up a shop with only Rolex product.

The bigger point here is that Rolex is not Apple. They are not interested in managing the process all the way from product concept to retail store operations. They conceive, design, engineer, manufacture, and ship some of the greatest watches in the world. But their responsibility and interest ends there. Once it's put on a truck and shipped out their work is done, they have plausible deniability on all the drama thereafter.

[Glidelock]

Originally Posted by ROLMARINER

I believe, and I will have to check, that all of these so-called boutiques are just extensions of the company's larger business which is a wide assortment of gold and diamond jewelry.

Ben Bridge is a good example. Tourneau another. Geary's of California runs several 'boutiques' but their business also includes engagement rings and dinnerwear, they've just chosen to put up a shop with only Rolex product.

The bigger point here is that Rolex is not Apple. They are not interested in managing the process all the way from product concept to retail store operations. They conceive, design, engineer, manufacture, and ship some of the greatest watches in the world. But their responsibility and interest ends there. Once it's put on a truck and shipped out their work is done, they have plausible deniability on all the drama thereafter.

Yes, these companies as a whole are Traditional Jewelry Stores, but actual Rolex Boutiques are 100% Rolex and nothing more...regardless of what the parent company may sell elsewhere! Over the last several years Rolex has approached many AD's and given them the option of opening a stand alone at several hundred thousand dollars expense to the store, or losing AD Status! In many other cases, they never even even give them the opportunity, they simply revoke status and inform them they no longer fit into direction Rolex would like to go!

[bronzeband00]

Boutiques operate with a few more watches and nicer selection. Also eliminates a bit of the competition as a reward for their investment and stricter policy. Watches only!!

[ROLMARINER]

Originally Posted by Glidelock

Yes, these companies as a whole are Traditional Jewelry Stores, but actual Rolex Boutiques are 100% Rolex and nothing more...regardless of what the parent company may sell elsewhere! Over the last several years Rolex has approached many AD's and given them the option of opening a stand alone at several hundred thousand dollars expense to the store, or losing AD Status! In many other cases, they never even even give them the opportunity, they simply revoke status and inform them they no longer fit into direction Rolex would like to go!

I'm well aware of the strategy. It doesn't change anything.

Whether the Rolex watches are displayed adjacent to the charm bracelets or displayed in a standalone store, the motivation of the management isn't to think like Rolex and do what's best for the Rolex brand. It's to think like a small jewelry business and do whatever is best for their own P&L, which is why they use the Rolex logo on the storefront as a lure to cross-sell customers on higher margin diamond trinkets and silently move so many watches to the grey market.

Apple releases their newest iPhone into all of their self-owned stores simultaneously, has a first-come-first-served edict, doesn't require bundling, doesn't require some special 'relationship', has a non-commissioned sales staff, and has a highly regulated reservation system. Great, right? Ain't happening.

[jonnyz1245]

Originally Posted by ROLMARINER

I'm well aware of the strategy. It doesn't change anything.

Whether the Rolex watches are displayed adjacent to the charm bracelets or displayed in a standalone store, the motivation of the management isn't to think like Rolex and do what's best for the Rolex brand. It's to think like a small jewelry business and do whatever is best for their own P&L, which is why they use the Rolex logo on the storefront as a lure to cross-sell customers on higher margin diamond trinkets and silently move so many watches to the grey market.

Apple releases their newest iPhone into all of their self-owned stores simultaneously, has a first-come-first-served edict, doesn't require bundling, doesn't require some special 'relationship', has a non-commissioned sales staff, and has a highly regulated reservation system. Great, right? Ain't happening.

In the stand alone Rolex Boutiques, there is nothing to cross sell. It is Rolex watches and thats it. There is no store branding that even lets the customer know that this stand alone boutique is part of a larger chain with a store in another city. If you're at the Rolex boutique in Las Vegas run by Hyde Park Jewelers, their next nearest store in Scottsdale and Denver. They aren't saying to Joe Consumer, hey next time you're in Denver, stop by our store and buy your wife a trinket. I was in the Vegas boutique probably 10 times over the years before I even knew they were owned by someone besides Rolex. Boutiques sign much stricter agreements re: discounting etc than Rolex AD's. So while small chains may be thinking like mom and pop jewelers with small town P&L and some are no doubt selling out the back door, the Boutiques I know of are owned mostly by huge very entrenched jewelry stores that have sold Rolex for 30-40-50 years and have the relationship to stand on and get the gig.

[GFONG]

In Hong Kong and Singapore, Rolex boutique = AD

[ROLMARINER]

Originally Posted by jonnyz1245

In the stand alone Rolex Boutiques, there is nothing to cross sell. It is Rolex watches and thats it. There is no store branding that even lets the customer know that this stand alone boutique is part of a larger chain with a store in another city. If you're at the Rolex boutique in Las Vegas run by Hyde Park Jewelers, their next nearest store in Scottsdale and Denver. They aren't saying to Joe Consumer, hey next time you're in Denver, stop by our store and buy your wife a trinket. I was in the Vegas boutique probably 10 times over the years before I even knew they were owned by someone besides Rolex. Boutiques sign much stricter agreements re: discounting etc than Rolex AD's. So while small chains may be thinking like mom and pop jewelers with small town P&L and some are no doubt selling out the back door, the Boutiques I know of are owned mostly by huge very entrenched jewelry stores that have sold Rolex for 30-40-50 years and have the relationship to stand on and get the gig.

Again, I understand the model. What I am saying is that no matter what the boutiques look like from the outside on the inside they are managed and operated by jewelry store people who have motives that are different than that of Rolex. They aren't Apple stores so the expectations many posters have of similar levels of fairness, leniency, and customer service don't apply. That's my point.

[jlovda]

Originally Posted by RJRJRJ

I believe they only own the one in Switzerland.

Where in Switzerland? Geneva? On the Bahnhofstrasse in Zürich?

[jonnyz1245]

Originally Posted by ROLMARINER

Again, I understand the model. What I am saying is that no matter what the boutiques look like from the outside on the inside they are managed and operated by jewelry store people who have motives that are different than that of Rolex. They aren't Apple stores so the expectations many posters have of similar levels of fairness, leniency, and customer service don't apply. That's my point.

Got it! I missed the folks expecting fairness, leniency, and customer service. Agreed that their motives may be different than Rolex.

That said, there is nothing to say that they can't all have the same goal, Rolex and the AD owners. That is to sell watches. Right now times are vastly different than even 14 months ago. Every month seems to bring new challenges. I don't envy a Rolex boutique owner or any Rolex AD. My local gets 25 -50 calls per day from all over the world seeking SS spots models. It's crazy.