Scarcity of Rolex leading to a possible brand crisis.

[Mendota]

Originally Posted by RolexBHR

There are some videos talking about Rolex factory expansion, would be interesting if someone over there can confirm, there should be some construction going on. I won't be surprised if its true, Rolex can't have empty boutiques, its a missed opportunity to have people walking out with nothing. Keep select stuff like the SS sport line and some other watches scarce but the regular stuff needs to be available for walk in non-die-hard watch guys.

Originally Posted by RolexguyinSF

For what it's worth, an AD I spoke to recently said that Rolex was raising production by approx 5% to fill demand for professional watches (Sub,GMT,EXP). I doubt they're building a new building just for that purpose, since planning something like that must have started years ago before this latest surge in demand, but it may show that they do want to increase production or make watch production more efficient in some way.

They are indeed expanding at their movement manufacturing facility in Biel/Bienne. I am on some other watch forums and one of the members who lives there posted pics earlier this summer of the construction project. I'll post a couple of pics from my phone in a minute, but you can see the big cranes. It is scheduled to be completed by the end of 2022, it goes online at the beginning of 2023, and they are expecting to produce ~25% more movements by the end of 2023. Now as we all know, demand is absolutely insatiable right now so in reality that is only going to be a drop in the bucket worldwide, but it's better than nothing.

[Mendota]

From earlier this summer.

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[AK797]

Originally Posted by dmash

Agree

The vast majority of people actually laughed at owning a luxury timepiece prior to about 2017.

Fast forward to 2021 and it’s nothing to drop $10k on a watch anymore, actually it’s almost expected with a lot of circles. Crazy times.

Have to agree, when shortages were first causing anger and resentment with core customers in the UK in 2017 we thought this would hurt their core market and brand image and indeed it did with many switching to other less condescending showroom brands, but alas those punters were quickly replaced by gluts of ever more willing suckers all too willing to dance to AD and Grey tunes to get a coveted Rolex. And the more the price rose and the ruder they got, the more they wanted it.

[RolexBHR]

Originally Posted by Mendota

They are indeed expanding at their movement manufacturing facility in Biel/Bienne. I am on some other watch forums and one of the members who lives there posted pics earlier this summer of the construction project. I'll post a couple of pics from my phone in a minute, but you can see the big cranes. It is scheduled to be completed by the end of 2022, it goes online at the beginning of 2023, and they are expecting to produce ~25% more movements by the end of 2023. Now as we all know, demand is absolutely insatiable right now so in reality that is only going to be a drop in the bucket worldwide, but it's better than nothing.

Originally Posted by Mendota

From earlier this summer.

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Very interesting, glad it turned out to be true. Some extra production is better than nothing.