Rolex Dumping their AD's?

[Laszlo]

Originally Posted by WatchGuy1966

This is where I abandon reading your post and toss it all out as hyperbole

They’re strong arm tactics, ‘If you buy this or two of those we’ll give you that.’

It’s just sleazy.

That stuff turns a lot of people off.

Imagine if Chanel did this? Or LV?

Anyway, this is just my opinion and it just rubs me the wrong way.

These are old school tactics and not welcome in modern business.

[teck21]

Originally Posted by Laszlo

They’re strong arm tactics, ‘If you buy this or two of those we’ll give you that.’

It’s just sleazy.

That stuff turns a lot of people off.

Imagine if Chanel did this? Or LV?

Anyway, this is just my opinion and it just rubs me the wrong way.

These are old school tactics and not welcome in modern business.

Do you have any suggestions to ADs on how to maximise profit without doing this since they are not able to sell at above msrp?

Or perhaps you think they should not be allowed to make more money?


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[Laszlo]

Originally Posted by teck21

Do you have any suggestions to ADs on how to maximise profit without doing this since they are not able to sell at above msrp?

Or perhaps you think they should not be allowed to make more money?


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This way of business by ADs has been going on for decades and has nothing to do with the current climate.

If an AD needs to resort to these tactics to stay in business then it’s a broken business model.

I would think that’s a sensible thing to say.

[grimps]

Originally Posted by SDR581

Rolex is definitely trimming down and consolidating ADs to have a more streamlined logistics due to the high demand. However, I think some of the rumors are due to some YouTube channels pushing this theory (Paul Thorpe).

Nothing he has said has ever come to term.

Paul Thorpe is no lover of AD's , he's just trying to stir the pot a little as his mates aren't able to get their usual supply like the old days

[Zack1978]

A local (NJ) AD just lost their Rolex account after 50 plus years.......

[TheVTCGuy]

What I heard from my AD, take it for what it’s worth, is that Rolex IS reducing the number of ADs, and increasing the number of Rolex Boutiques. I am not sure of the strategy or if this is a good thing or a bad thing, but in my area it seems to be true. One AD lost Rolex and a new boutique is being built in a mall near me.

[Wine4Golf]

Originally Posted by Laszlo

I am ignorant to the insides of how the watch world functions, but as an outsider, or an outside-in perspective, other major luxury brands changed their business strategy and models many years ago and sell exclusively online and through their own stores. 80% of luxury customers prefer online discovery, purchase, and/or drivers to the brand store. Who really wants to go to a jewelry store (AD) anymore and beg for a watch or have to establish a relationship? Really? That's crazy old school and borderline mafia tactics. It might work for customers who've been conditioned to this over the past 20-years, but the young money won't buy into that at all. It's a turn off for them. This Rolex model doesn't cut it in today's luxury good commerce. The current Rolex model is dated and old fashioned. It's time to evolve like everyone else has and I believe they're very much engaged in this strategy and change now.

Definitely agree with what you’re saying. This beg for a watch nonsense is not sustainable. Young people want no part of this.

[Fleetlord]

Rolex won't sell direct to the public when they have great partnerships with AD chains who will build out MONOBRAND "boutiques" on their dime and manage all the overhead. They will consolidate their way OUT of dealing with Mom and Pop stores in weaker markets in order to make the most of their precious inventory and incur less hassle having to manage multiple, independent accounts.

Monobranding is the choice that AP and FPJ have made as well, but AP still has some corp partners, they just have to build out a separate store to keep the riff-raff out....

Some brands will have no choice in the matter and will HAVE to focus entirely on e-commerce and maybe company owned sales channels

As weaker brands have their market position weaken into possible irrelevance, it will be VERY difficult to convince "dealers" to buy into their brand, place the usual GROSS stocking orders and tie up $$$$$ on slow dogs. So they will have to go to market on their own.

So expect more consolidation, focusing on mono branding in the coming years, but for different reasons and with different entities footing the bill...

[Sandpit]

Has anything Paul Thorpe has ever said come true?

[Cauhauna]

Never happening. Why bother?

[eddiemonster]

Yes. This is exactly what my local DC Metro watch maker told me. He's does subcontract work for the local Rolex AD (Lenkersdorfer, Lilinquist & Becksted) and this is the inside info. he's been told as well. Rolex wants to open it's own stores, like Omega.

[Laszlo]

Bingo.

[Cavester]

Certainly lots of debate and different view points.

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[Jack T]

Originally Posted by Zack1978

A local (NJ) AD just lost their Rolex account after 50 plus years.......

Which one?

[Mr.GL]

In my humble opinion, I don't think it is going to happen. I believe having AD is right business model .
Rolex is known to produce reliable watches. The company manufactures a million watches every year. It's different from AP and PP, which manufacture alot less. It's insane to take over AD role ( marketing , boutique etc ) and potentially compromise their core strength, which is to design and manufacture. I will be very worried if they decide to dump all the ADs. Btw, my first luxury watch is an explorer and it's still going strong after 14 years.

I believe Rolex has its reason to terminate some of the ADs.

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[casadecamporolex]

By now it is obvious what is happening with Rolex and the ADs in the US marketplace.
Small market stores, mostly family owned are being closed. RolexUSA has a plan to cover the United States in major or affluent markets with large boutiques, featuring demo models in coveted references. 36mm and smaller, along with various other less desirable watches in the display cases.
These stores will be salons….separate Rolex entrance, maybe connected with the the AD jewelry showroom.
Onsite Rolex repair service seems also another aspect.
Bad for a guy like me who has dealt with family ADs for decades.
I’m now a newbie wherever I go.

[VegasBaby]

Originally Posted by TheVTCGuy

What I heard from my AD, take it for what it’s worth, is that Rolex IS reducing the number of ADs, and increasing the number of Rolex Boutiques. I am not sure of the strategy or if this is a good thing or a bad thing, but in my area it seems to be true. One AD lost Rolex and a new boutique is being built in a mall near me.

Rolex does not own the "Boutiques".........they are all owned by ADs. The only difference is the "Boutiques" are exclusively Rolex products.......no other products (jewelry, other watch brands, etc.) allowed.

[Kevin of Larchmont]

Originally Posted by Mr.GL

In my humble opinion, I don't think it is going to happen. I believe having AD is right business model .
Rolex is known to produce reliable watches. The company manufactures a million watches every year. It's different from AP and PP, which manufacture alot less. It's insane to take over AD role ( marketing , boutique etc ) and potentially compromise their core strength, which is to design and manufacture. I will be very worried if they decide to dump all the ADs. Btw, my first luxury watch is an explorer and it's still going strong after 14 years.

I believe Rolex has its reason to terminate some of the ADs.

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This.

[SubMillennial]

long term it's pretty clear the signs are pointing to Rolex owned boutiques, with allocations tracked centrally and the days of backdoor sales coming to an end, sorry flippers (who will be blacklisted)

[Mr.GL]

Originally Posted by SubMillennial

long term it's pretty clear the signs are pointing to Rolex owned boutiques, with allocations tracked centrally and the days of backdoor sales coming to an end, sorry flippers (who will be blacklisted)

Tracking a million plus watches every year? Trying to be Amazon or Alibaba of watches? Getting rid of ADs require huge investment in a sales and marketing. Is it wise and neccesary ??? Making of watches started in 16th century and it's still around . It's still a very tradition business and not the so called the "new economy".

I believe the majority of ADs are still in very align with Rolex system. Rolex wants the ADs to grow stronger , bigger and make good money . So the company has less hassle in distribution and focus on what they are doing best- designing and manufacturing good watches .

My country ADs are generally doing a good job, holding the distributorship for few decades. There's no reason to break this partnership when your company is doing a record sales. At the end of day, everyone is making money.

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[Puppysmasher]

Rolex boutiques are still privately owned, they just only sell exclusively Rolex. From what I've seen here in the Bay Area Rolex has culled some smaller time family ADs and switched others at more prime locations (major malls in cities) to Rolex exclusive boutiques. It looks like Rolex wants to upgrade to more upscale locations and floorplan for their ADs. I remember being shocked by how small time some of their previous ADs were when I first visited one a few years ago. It definitely was a stark contrast to the brands marketed prestige so I can see why Rolex is making the change now.

This shouldn't be confused with boutiques like Omega whom are owned and operated by Omega itself.

[TunaTuna]

Originally Posted by Cavester

There seems to be a consensus between some that Rolex are dumping their AD's to bring sales in house.

What are people's opinions on here of this, truth or slander?

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I watched Paul Thorpe's video too!

[telesquire]

This thread I think was in reference to the UK AD network and believe it is highly possible. Rolex has over the past five years culled some pretty hefty AD's like Fraser Hart. It wouldn't be beyonds the £ realms of possibility to roll out their own small network of in house dealers.....we are after all a SMALL country.....London, Bristol, Birmingham, Leeds, Manchester, Glasgow, Edinburgh....sorted. We'd all I'm sure be happy to travel to any of those cities safe in the knowledge that we could get watches at the proper prices without having to jump through hoops. It would also help end the the frankly ridiculous grey 'new' Rolex market that continues to spiral out of control on a daily basis...yes I've seen 2021 Explorer's for £10k and now SS Subs are hitting £15k. Its not healthy. Sure there would always be imported grey watches for sale, and a decent used market just like it used to be.
Change happens, nothing stays the same forever. If I were Rolex I wouldn't be happy either watching some bloke trading out of his bedroom selling Rolex on social media with more profit than they are getting. Why would you let it happen? Food for thought and might not happen just yet to overseas markets.

[random_name]

I don't know about the US, but in Europe I've encountered very bad experiences when visiting small and mid sized Rolex ADs. So much so, that I would be really happy to see them closed.

I understand that focusing on larger ADs and boutiques makes controlling the user experience much easier, so I applaud this trend.

[MFischer]

If Rolex reads all the endless complaining on social media, they would be nuts to want to deal with retail clients directly. It won’t happen. Rolex isn’t Swatch or Richemont.

[GW44]

Originally Posted by Cavester

Yes, I've heard of various people now commenting on this due to "leaks" coming out of Rolex.

Just trying to understand how much of a consensus people think this is.

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Remember what Winston Churchill once said…..”don’t believe everything you read on the internet…”

[RolexSimon]

Originally Posted by VegasBaby

Rolex does not own the "Boutiques".........they are all owned by ADs. The only difference is the "Boutiques" are exclusively Rolex products.......no other products (jewelry, other watch brands, etc.) allowed.

Correct!