BREAKING NEWS: Rolex buys Bucherer

[dpj17]

If true......Huge News:

https://usa.watchpro.com/breaking-ne...buys-bucherer/

[ikincooper]

Following in AP’s footsteps. Makes sense to me


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[Socalwatchguy]

Wow…. What will this mean for Bucherer AD’s? Preferred treatment? Will Rolex use Bucherer to control all AD distribution moving forward?

Very interesting…


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[Rolexken]

Originally Posted by Socalwatchguy

Wow…. What will this mean for Bucherer AD’s? Preferred treatment? Will Rolex use Bucherer to control all AD distribution moving forward?

Very interesting…


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Yes, two tier ADs. All of the UK Bucherer stores are in London and I wonder how the other London ADs will be feeling.

[norcalgt3]

But there’s no US location save for one?

[APWorldTour]

Originally Posted by norcalgt3

But there’s no US location save for one?

All Tourneaus are now Bucherer.


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[Socalwatchguy]

Originally Posted by APWorldTour

All Tourneaus are now Bucherer.


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Correct.


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[2loaded]

Originally Posted by APWorldTour

All Tourneaus are now Bucherer.


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Yep,
How is this going to work ?

[ct79]

...so no more selling to greys directly and splitting the profits? At least not for Rolex and Tudor models?

[Avs Fan]

So many comments have been made about Rolex not wanting to be in the retail business.
They sell everything they make to retailers and take none of the retail sales risk.
Well, if this is true, they are now in it in a big way.

[RKunz]

Originally Posted by Avs Fan

So many comments have been made about Rolex not wanting to be in the retail business.
They sell everything they make to retailers and take none of the retail sales risk.
Well, if this is true, they are now in it in a big way.

That’s the truth! They’ve been preparing to sell from factory to the end user.

[Carguy87]

Wow that’s crazy big industry news! I wonder what the regulators in different countries will decide with regards to this being declared a potential monopoly. If it all goes through, it could be good for us actual enthusiasts though because then there might be tighter oversight on how watches get allocated, less “out the back door” etc.

[watchtabs]

Originally Posted by Carguy87

Wow that’s crazy big industry news! I wonder what the regulators in different countries will decide with regards to this being declared a potential monopoly. If it all goes through, it could be good for us actual enthusiasts though because then there might be tighter oversight on how watches get allocated, less “out the back door” etc.

A potential monopoly? Lol. What on “rolex products “?


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[wfitch]

Originally Posted by watchtabs

A potential monopoly? Lol. What on “rolex products “?


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I have to agree with this. What's the monopoly? It's their watch and now their distribution stream / point of sale.
It's like saying Tesla cars and dealerships have a monopoly on cars.
There are plenty of other watches and cars.

[MrMikee]

Originally Posted by Carguy87

Wow that’s crazy big industry news! I wonder what the regulators in different countries will decide with regards to this being declared a potential monopoly. If it all goes through, it could be good for us actual enthusiasts though because then there might be tighter oversight on how watches get allocated, less “out the back door” etc.

I don’t see the monopoly point… that doesn’t make any sense. Agree with everything else though!


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[Carguy87]

Originally Posted by watchtabs

A potential monopoly? Lol. What on “rolex products “?


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Originally Posted by MrMikee

I don’t see the monopoly point… that doesn’t make any sense. Agree with everything else though!


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“Bucherer’s management will remain unchanged, but the company will be integrated into the Rolex group operation once competition authorities have approved the takeover.”

Was quoting the point made in the original article. Clearly there are some hurdles in this arena to get over or they wouldn’t have mentioned it.

[drrd]

Originally Posted by Carguy87

“Bucherer’s management will remain unchanged, but the company will be integrated into the Rolex group operation once competition authorities have approved the takeover.”

Was quoting the point made in the original article. Clearly there are some hurdles in this arena to get over or they wouldn’t have mentioned it.

Yes, that line about competition stood out ;)

I have no idea how they’ll negotiate fair competition with other ADs like WOSG over the next few years. Surely though, the long term goal is clear now?

[jb335]

Originally Posted by drrd

Yes, that line about competition stood out ;)

I have no idea how they’ll negotiate fair competition with other ADs like WOSG over the next few years. Surely though, the long term goal is clear now?

Why does that line stand out? Any deal of this size would go through a regulatory check. Standard practice .


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[MrMikee]

Originally Posted by drrd

Yes, that line about competition stood out ;)

I have no idea how they’ll negotiate fair competition with other ADs like WOSG over the next few years. Surely though, the long term goal is clear now?

Should be absolutely fine.. so many businesses have a direct channel and a distributor channel. Plenty examples of this outside of the watch industry. Standard practice really..


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[DTNSS]

Not completely surprising since Rolex ADs will have a certified pre-owned program next year.


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[Carguy87]

Also going to be interesting how other brands handle allocation to Bucherer AD’s going forward. Is Patek or any other brand going to want to essentially hand Rolex money by continuing to allocate to Bucherer AD’s as they have, or will this be the catalyst for all the bigger brands to go to a factory owned boutique only model? Interesting stuff for sure.

[JRell]

Other than buying it for the property, prime locations, I don’t know why they would want to go into retail with online options and the security risks. Will it help their volume of sales? Otherwise are they not just losing profit margin %? I realize they will make more per watch without having to cut the AD check, but unless the plan is to go global I can’t imagine this is a large percentage of their overall sales.

[Devildog]

Originally Posted by JRell

Other than buying it for the property, prime locations, I don’t know why they would want to go into retail with online options and the security risks. Will it help their volume of sales? Otherwise are they not just losing profit margin %? I realize they will make more per watch without having to cut the AD check, but unless the plan is to go global I can’t imagine this is a large percentage of their overall sales.

That's unlikely to be how it will work.

Bucherer AG will still exist as a legal entity. Rolex SA will most likely simply acquire the shareholding in Bucherer that's currently owned by Jörg Bucherer and Bucherer AG will become a subsidiary of Rolex SA.

Its not like Rolex are going into retail directly. They're simply taking ownership of a retail operation that they happen to supply.

[JRell]

Originally Posted by Devildog

That's unlikely to be how it will work.

Bucherer AG will still exist as a legal entity. Rolex SA will most likely simply acquire the shareholding in Bucherer that's currently owned by Jörg Bucherer and Bucherer AG will become a subsidiary of Rolex SA.

Its not like Rolex are going into retail directly. They're simply taking ownership of a retail operation that they happen to supply.

Ahhh that makes sense. Thanks!

[Danny83]

It’s definitely true. I have a friend that works there and they were informed yesterday.

[Ferrari308]

Wow - big move!


PDG

[TBC123]

They now retain the significant Retail margin they were donating to others.

[RollingInTheDeep]

Originally Posted by TBC123

They now retain the significant Retail margin they were donating to others.

Further to the above, THIS. Now since they own the largest pre-owned AD, those revenues resulting from secondary premium flow back into Rolex proper.

[wm82]

Originally Posted by RollingInTheDeep

Further to the above, THIS. Now since they own the largest pre-owned AD, those revenues resulting from secondary premium flow back into Rolex proper.

Well that margin has to pay for staff, premises, new goods etc so its not like its 100% profit but yea, they'll become even richer lol.

Hope this puts an end to the AD corruption and nepotism, and all the family owned ADs get nose bleeds from reading this... So much corruption in this industry its insane.

[RollingInTheDeep]

Originally Posted by wm82

Well that margin has to pay for staff, premises, new goods etc so its not like its 100% profit but yea, they'll become even richer lol.

Hope this puts an end to the AD corruption and nepotism, and all the family owned ADs get nose bleeds from reading this... So much corruption in this industry its insane.

Yes - they essentially bought revenue, which would hold true even without the pre-owned business. I have to imagine adding pre-owed is only accretive as they likely don't need add much more (if any) headcount.

Agreed on the overall impact to ADs - if Rolex ultimately controls these ADs I presume there will be increased scrutiny around who they sell watches to.

Since we are already halfway down the rabbit hole, remember that while Rolex SA doesn't track ownership, the ADs do. And now, Rolex owns the AD...