What would you do if you were Rolex?

[Time-After-Time]

1) increase production to meet global demand. Dealers
Would again have inventory.
2) keep production the same for existing models and create new facilities to manufacturer new models
3) increase prices dramatically that would reflect the grey market.
4) don’t change a thing which means dealers will be void of inventory.

I would guess Rolex has to make some changes to deal with the worldwide
shortage but I’m sure they also love the position they are in with unparalleled demand.

It will be curious to see how they act/react to these conditions projecting for the future.

[GradyPhilpott]

#4

[derekhayden]

#4

[Master_Grogu]

10% price increase each year. Won’t change a thing. People will
Keep buying and flipping. But Rolex will make more money, allowing them to increase production slightly.

[Time-After-Time]

You also have to think, while AD’s are making the same If not more cause they are selling all their Rolex’s without having to carry inventory, they are probably equally frustrated they can’t sell more considering demand and their cases are empty.

That retail space for empty cases isn’t cheap. And I’m sure they continually have to spend a lot to build or improve their Rolex shop in shop.

Simultaneously though Rolex is such a successful company, why tamper with something that appears to be working perfect?

[Time-After-Time]

Originally Posted by Master_Grogu

10% price increase each year. Won’t change a thing. People will
Keep buying and flipping. But Rolex will make more money, allowing them to increase production slightly.

Or, they could get rid of AD’s and sell their watches off the website and make full retail instead of wholesale.

[TswaneNguni]

Only thing I would do is increase MRSP.

I welcome price increases .

[enjoythemusic]

4 and yes a bit of 3 as currency is devaluating at a high rate so they need to maintain their income value to keep business 'equal' financially.

[turkeysub93]

Incrementally increasing production and prices is the recipe for success.

[garyk]

#3

[joli160]

Do nothing, everybody is happy.
AD’s sell every watch they get and never had made more money than in the current market.
Owners are happy for the value retention.
Flippers are happy for the quick buck.
Grey sellers are happy by pumping up their margins almost monthly.

[HHIslander]

Originally Posted by TswaneNguni

Only thing I would do is increase MRSP.

I welcome price increases .

X100

I'd rather put more money in the pocket of an AD/Rolex than pay grey market prices.

[SubMillennial]

Let ADs sell the watches for whatever they want. The shortage is over tomorrow.

If not that, at least send dummy watches with non-functional movements for dealers to put in their display cases so customers can try them on.

[brandrea]

Give a free Rolex to every member of TRF

[got369]

I would increase prices….and make less

[matt1524]

#4

Number 1 would wreck the entire brand IMO

[ndrs63]

Venture into high horology. Create decorated movements on the Cellini , see through caseback for new models. Show the world that I can do what the holy trinity does, and more. Perhaps create yet another brand. The “true luxury” one, called Cellini


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[Brew]

Make TBone king of TRF.

[Gab27]

I'd increase production if research suggested that this level of demand will be the same or increase in the future. I'd want a sound study if I was the one making the decision that considers how the market is predicted to evolve and how much money I am leaving on the table if I make no change at all.

Price raises for sure for both the buyer and the dealer. Likely raise the price/stakes to become an AD as well.

[nachopc]

Clearly 4


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[Sandpit]

I would hire an R&D team which didn’t just come up with “let’s put X watch on a different bracelet” for the new releases.

[Master_Grogu]

Originally Posted by Time-After-Time

Or, they could get rid of AD’s and sell their watches off the website and make full retail instead of wholesale.

Working in a fields where my company have a worldwide network of dealer, and is not selling to retail, I understand why they keep it.

Working with your dealers in a partnership (though very one sided with Rolex) has its advantages. Yes, e-com is viable for some compagnies, for exemple Cartier does it exceedingly well. However I don’t really see Rolex doing that. They want hard access.

Anybody can buy online. Coming to a boutique and passing the Cerberus of SA, is a baseline everybody must pass in order to get a Rolex. I can also imagine the nightmare of having a return policy with calibers and items being swapped out. Also, nobody would buy a Rolex that was returned.

[macrowatch]

Let the good times roll. In the mean time, continue to crush it with Tudor releases and unseat Omega in the league tables with the Tudor banner.

In the mean time, convince PP to sell too you and if that doesn't work, then buy out WOS in it's entirety, threaten to cut off PP sales, and then come back and buy PP.

[huncho]

#4

if rolex ever went with #1 they would become omega - displays full of inventory and grey dealers are buying them for 40% off brand new

[Robf52]

Originally Posted by ndrs63

Venture into high horology. Create decorated movements on the Cellini , see through caseback for new models. Show the world that I can do what the holy trinity does, and more. Perhaps create yet another brand. The “true luxury” one, called Cellini


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#4; and would also like to see Rolex venture up market taking advantage of their creativity, competence and reputation.

[BLNR Nairobi]

Originally Posted by Time-After-Time

1) increase production to meet global demand. Dealers
Would again have inventory.
2) keep production the same for existing models and create new facilities to manufacturer new models
3) increase prices dramatically that would reflect the grey market.
4) don’t change a thing which means dealers will be void of inventory.

I would guess Rolex has to make some changes to deal with the worldwide
shortage but I’m sure they also love the position they are in with unparalleled demand.

It will be curious to see how they act/react to these conditions projecting for the future.

#1 would kill Rolex in a decade and have it become like Omega/Breitling where most models are left gathering dust at ADs.
#2 would dilute the Rolex brand similar to what happened to Panerai.
#3 would also not be helpful (note - you said ‘dramatically’ increase prices) as it would make the brand seem less ‘attainable.’ A bit laughable I know since most people cannot get one at the AD, but it would still have a negative effect.

The only one is #4.

Do nothing.

Why?

Because that is the only way Rolex will survive in an industry that has already been obsolete for over 4 decades!

The Quartz Crisis almost killed the entire industry in the 70s.

Now the ‘Digital Crisis,’ where every Apple/Samsung/Other ‘watch’ is a veritable wrist computer, can finish what the Quartz Crisis failed to do decades ago.

Mechanical watches have to become objects of desire and yearning - they are no longer objects of utility. It is about the ‘want’ not the ‘need,’ and looking at ADs the only (major) manufacturers that are really winning are Rolex, Patek and Audemars.

And genuinely, only Rolex really. Patek is for certain references, as is the case as well for Audemars.

For Rolex virtually every model outside the Cellini range is now hard to get - not because they are ‘unavailable’ (Rolex sold more watches than Omega and the next 2 or 3 competitors COMBINED), but rather because demand is far greater than supply.

If Rolex decided to massively increase production, or massively release new lines, or massively increase prices - it would get short term profits but at the cost of making it an Omega or a Breitling.

And that would be a mistake!

So, the correct answer is number 4.

Do nothing.

Well, do nothing and let Tudor start to grow and smash Omega.

[envuks]

If I were Rolex, I would shift production from SS and TT to full PM. Same resources to produce, higher margins


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[gerry100]

4

[Playinwittime]

#1. However, much closer to, but still just under demand. It would continue to keep my brand "hyped," but continue the love and seriously increase my profit margin. I would consider #3, but not as high as grey.

[Playinwittime]

Originally Posted by envuks

If I were Rolex, I would shift production from SS and TT to full PM. Same resources to produce, higher margins


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That's what we hear is going to happen more and more.