BREAKING NEWS: Rolex buys Bucherer

[djnick]

Cutting production is the most ridiculous thing I’ve ever heard. They are having capacity issues on a mass produced vertically integrated watches due to unprecedented demand. They are in the business of selling more watches not less. There is nothing special about Rolex that requires higher levels of finishing they do the same thing they’ve been doing since inception

[omar-rye]

Originally Posted by djnick

Cutting production is the most ridiculous thing I’ve ever heard. They are having capacity issues on a mass produced vertically integrated watches due to unprecedented demand. They are in the business of selling more watches not less. There is nothing special about Rolex that requires higher levels of finishing they do the same thing they’ve been doing since inception

Especially since Rolex is building another 95,000 sq/f production facility to produce MORE watches

[Auric Goldfinger]

Originally Posted by Mystro

One more move by Rolex to control the market and move their brand upwards and more exclusive.

One of the ripple effects will be the consumer seeing less chance of getting a watch at a AD and grey market supply will somewhat be cut driving prices upwards again.

Weren't you one of the biggest proponents on here the past few years saying Rolex themselves would never enter the AD space?

[GradyPhilpott]

Originally Posted by omar-rye

Especially since Rolex is building another 95,000 sq/f production facility to produce MORE watches

[Pablito]

Originally Posted by omar-rye

Especially since Rolex is building another 95,000 sq/f production facility to produce MORE watches

Totally agree. What 100% of true believers of the "Rolex will never produce more than 1M watches a year" team don't want to see. Seems so logical than any investments, mostly in the industry and lands department is linked to some returns on it.

[amh]

Originally Posted by ltmgeller

Crazy. I wonder how this will play out.

Prediction: it will be even harder or the average schmoe to buy a Rolex.

[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.

[Osmin]

In every transaction of that size you need approval here in Europe. Nothing special.

[codecow]

This is an outrage!!!

If there is any justice I will still be able to acquire my OP 41 and LeMans.

[Colorado_kid]

Hopeful this proves to be a bad financial move for Rolex and in desperation they need to clearance sale back stock inventory. Use code “TRF50” for 50% off at Rolex dot com.



In realty, this is a very smart move for Rolex.


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[Mystro]

Originally Posted by Auric Goldfinger

Weren't you one of the biggest proponents on here the past few years saying Rolex themselves would never enter the AD space?

No, I was saying Rolex would never want to sell directly via web sites or direct internet sales.

[JC316]

Originally Posted by Fleetlord

I agree with this.



IMHO, Rolex will NEVER allow it's brand to look like it did 10yrs ago ever again.



Cases FULL of multiples of the same reference, Grey market sellers moving fully stickered product @ 20% off straight from the AD to the consumer



Pre-owned Watches (yes, including the SS Daytona) selling far below retail.



PM and TT watches getting substantial DISCOUNTS from the AD to sell them.



Pre owned PM models being offered for 40% off retail?



That simply won't be the case again. That kind of brand erosion is for Omega and the other guys to present to the market. NOT Rolex.

Never say never.

[dubins930]

Originally Posted by malba2366

As long as they have independent ADs it will happen again if there is an economic downturn or watches fall out of fashion.

No…. The demand for Rolex is going to stay at this level for the rest of eternity…

[tedo]

So much for other ADs. Maybe they get assigned the preowned programs only now.

[GW44]

Since this was announced I’ve been doing a bit of research on Bucherer and Tourneau.

The articles released today suggest that the retail group is over 100 outlets worldwide but I make it 36 Bucherer sites in Europe and then 34 Tourneau sites in the USA. Do they have shops elsewhere (East?) in the world?

I suspect that what will happen is that Rolex will turn all those retail sites into company owned Boutiques just for their Tudor and Rolex brands……all the other brands they currently retail will leave, by choice, or at the behest of Rolex.

And then those 70 (??) outlets will become the business model for retailing the 2 brands and every AD in the world will a) have to mimic that by having a stand alone boutique for Rolex/Tudor and/or b) will face losing their franchise for the brands irrespective of what any retailer has invested over the years to keep their Rolex franchise.

I think you’ll also see groups like Watches of Switzerland having far less outlets with Rolex in store. For example in the Uk there are roughly around 110 WoS Group store that sell Rolex and I’d expect that to at least halve so that the stores that keep the franchise solely sell Rolex and Tudor in a boutique environment.

I worry that the big losers here could be the smaller, independent AD’s with a small number of shops or single sites…..unless the lifeline from Rolex is that they need to add a boutique site to their business to retain the brand.

And the implications for the customers of both brands is, I suspect, that new watches will become even harder to buy due to a narrower retail landscape.

Will be a very interesting situation to watch develop over the next few weeks and months.

[RyanJ]

I am curious how this plays out. I assume that Bucherer/Tourneau has contracts in place with other brands to sell those products. Does Rolex have to honor those contracts?

I can't see Rolex allowing this new entity to sell other brands but who knows. Will be interesting to see how this plays out.

[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?

[deuxani]

Originally Posted by GW44

I suspect that what will happen is that Rolex will turn all those retail sites into company owned Boutiques just for their Tudor and Rolex brands……all the other brands they currently retail will leave, by choice, or at the behest of Rolex.

This is the biggest question. Some of the Bucherer stores are huge with so many different brands being showcased over multiple floors. I can’t even imagine how Rolex would fill up that space. Maybe similar to the two floor Dubai store which is sort of a glorified Rolex museum. But even then, having so much floor space and exhibition only displays, I’m just really curious how this will pan out (also what the other brands will do: stay or go)

[77T]

Seems certain in another report. But no announcement by Rolex in their newsroom.

https://robbreport.com/style/watch-c...234887221/amp/


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[Laszlo]

When I can simply go to the Rolex website and cart a watch and get it in a few days then everything in my world will be perfect.

[Laszlo]

Originally Posted by deuxani

This is the biggest question. Some of the Bucherer stores are huge with so many different brands being showcased over multiple floors. I can’t even imagine how Rolex would fill up that space. Maybe similar to the two floor Dubai store which is sort of a glorified Rolex museum. But even then, having so much floor space and exhibition only displays, I’m just really curious how this will pan out (also what the other brands will do: stay or go)

I assume they’d cull the fat and close down those stores.

[raclaims]

I'm not convinced they will become boutiques...who knows but I don't see it...I see it more as a way to grab a huge piece of the CPO market and control resale. sure they will get good stuff first and more of it...why wouldn't they...but I just don't see branded boutiques.

That said, I'd be shocked if some big name brands didn't pull up stakes and leave.

[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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[the dark knight]

Originally Posted by djnick

Cutting production is the most ridiculous thing I’ve ever heard. They are having capacity issues on a mass produced vertically integrated watches due to unprecedented demand. They are in the business of selling more watches not less. There is nothing special about Rolex that requires higher levels of finishing they do the same thing they’ve been doing since inception

Agreed, it's odd how people keep parroting that line like Rolex didn't just announce plans to ADD production capability.

Having said that, Rolex will increasingly become more "exclusive" just by demand exceeding supply. I mentioned this before but India is going to be a HUGE market going forward like China was in the last 20 years. India alone will probably have enough people each year acquiring the ability and desire to consume most of Rolex's production.

[RTG]

Originally Posted by omar-rye

What about other brands, like Cartier, VC, and JLC, which are carried at Bucherer? Surely they'll pull their brands out, right?

My guess is that Patek and AP will pull out of Bucherer. For other brands, it could work out great. When Rolex says "maybe in 2-3 years", a lot of people will buy something else. Maybe you would be interested in this fine Carl Bucherer watch while you wait?

[Brazicano]

Rolex will now be making money retailing everyone else’s watch’s 😂

Baume & Mercier
Blancpain
Breguet
Breitling
B SWISS
Bulgari
Carl F. Bucherer
Cartier
Chopard
GARMIN
Girard-Perregaux
Glashütte Original
Grand Seiko
H. Moser & Cie.
Hautlence
Hermes
IWC Schaffhausen
Jacob&Co
Jaeger-LeCoultre
Longines
L’Epee
Mido
Montblanc
Norqain
Oris
Panerai
Piaget
Rado
Ressence
Roger Dubuis
TAG Heuer
Tissot
Tudor
Ulysse Nardin
Urwerk
Vacheron Constantin

[the dark knight]

Originally Posted by Fleetlord

I agree with this.

IMHO, Rolex will NEVER allow it's brand to look like it did 10yrs ago ever again.

Cases FULL of multiples of the same reference, Grey market sellers moving fully stickered product @ 20% off straight from the AD to the consumer

Pre-owned Watches (yes, including the SS Daytona) selling far below retail.

PM and TT watches getting substantial DISCOUNTS from the AD to sell them.

Pre owned PM models being offered for 40% off retail?

That simply won't be the case again. That kind of brand erosion is for Omega and the other guys to present to the market. NOT Rolex.

There's two issues with this line of thinking.

One is Rolex's customer is not the end user, it's the ADs they sell the watches to. They were still unloading their stock and making their money, after that it's the AD's problem. And even in the worst of times ADs weren't really in a position to be rejecting stock from Rolex, so Rolex kept making their money, so who cares? It's the ADs that had to offer discounts (cutting into their profits) or backdooring inventory to the grey market.

Second issue then is the purported "brand erosion" from such state of affairs. Does the current state of affairs look like Rolex brand erosion to anyone? Demand far outstripping supply, Rolex as popular as they ever have been? Doesn't seem like that brief state of affairs in the early to mid 2010s did any long lasting damage to the brand. So I doubt Rolex fears such things.

[77T]

Owning Bucherer is one thing.

Using all locations for a single purpose is stupid. But…
A healthy percentage of Rolex production will likely be marketed via a vertically integrated “Place” (as in the 4P’s model)

Rolex is non-Profit at the Foundation level - not un-Profit.


Long history - there is no TLDR here…
The families are beacons of best-in-class. Carl Bucherer & Hans Wilsdorf



OUR PARTNERSHIP WITH ROLEX SINCE 1924
The sons of Carl-Friedrich and Luise Bucherer joined the family business at the beginning of the 1920s. Thanks to their wealth of experience, Ernst and Carl Eduard Bucherer led the business to even greater success. Ernst Bucherer entered into a particularly fruitful partnership with Hans Wilsdorf, the founder of Rolex, in 1924, adding the watch brand – which at the time was barely established – to the Bucherer range. Today, Rolex is one of the most famous watch brands in the world and remains Bucherer’s most important partner.


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[hellofromthebay]

I predict Rolex will eventually sell it. They want to control who acquires them and leave in controls to ensure it stays that way.


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