Does anyone understand Rolex's supply strategy?

[tyler1980]

Originally Posted by AK797

Demand up and then that attracted flippers so supply came down, the ole S/D double whammy, and here we unprecedentedly are.

i agree. True demand isnt hugely above normal, but being able to buy a luxury watch with no risk and the possibility of selling it for a profit brings all kinds of buyers off the sidelines who wouldn't buy a watch otherwise. Its a feedback loop.

[Oscarpapa]

Originally Posted by watchmavan

Why wait for an overpriced Tudor when you can have the real thing.



Sent from my iPhone using Tapatalk Pro

The more I see the 58 the more I appreciate its look and styling.

[Etschell]

let me show you

rolex production --------------------


|
|
|
|
|
|
demand and trf complaints (straight line up)

[lenfried29]

Originally Posted by richard371

No one ever will but here is an interesting read that may have some relevance.

https://www.bloomberg.com/news/artic...itter-business

good finding. explain a lot. worth of all speculations on this forum.
this is what this forum all about - sharing info and find the best of it.
Thanks for sharing!

[VicLeChic]

Yes. Serve Asia first and the rest of the world after.

[Sal_UKSheffield]

They are at max capacity - its real simple
Demand has overtaken supply
They are at cross roads now - invest in a new site
Or jack prices up to - or both

[1William]

As always in these threads, what is occurring is probably covered to some extent. The best speculation based on limited knowledge has led us to draw the above stated conclusions. I believe that Rolex and PP are manipulating the market through the supply of watches and the subsequent demand in the Gray Market. Neither Company has commented on why this is occurring and what they are doing to resolve the supply issues. I also think that the Swiss watch industry is in turmoil in a way that I would not have thought possible with such well established and financed companies. Between an overall arrogant attitude that appears to be company focused and not customer focused the industry is headed for a adjustment and the brands are headed for a correction. I have never owned a PP but admire the watches from afar and Rolex is where I got started with watches and it will be close to my heart for ever but I will not play games nor be played. If I want an item, non LE, I should be able to purchase that item through the dealer network at msrp without any issues. What this ongoing situation has done to me is to take the luster off both Rolex and PP and has given me the chance to explore other brands. I have bought two IWC watches and a Panerai within the last few months and could not be more pleased. There is not a Rolex that I am interested in and I will get rid of a few of my remaining Rolex watches in the next few months if I continue to feel the same. I doubt I will ever come back to the band in a major way.

[Eric-London]

Originally Posted by HogwldFLTR

The company is part of a non-profit foundation.

Wasn't the so called non profit foundation or registered charity set up in order to pay less tax?

Asking for tax paying businesses

[tyler1980]

Originally Posted by Eric-London

Wasn't the so called non profit foundation or registered charity set up in order to pay less tax?

Asking for tax paying businesses

it was set up as a trust to ensure the brand continues in perpetuity. Otherwise it might be part of swatch group by now if greedy shareholders wanted to cash out.

Yes there are tax advantages but IMO thats not the intent. Making sure Rolex stays Rolex was the goal and a trust is necessary for that.

[beshannon]

Originally Posted by Eric-London

Wasn't the so called non profit foundation or registered charity set up in order to pay less tax?

Asking for tax paying businesses

https://top.quora.com/Is-Rolex-a-nonprofit-organization

[Eric-London]

Originally Posted by tyler1980

it was set up as a trust to ensure the brand continues in perpetuity. Otherwise it might be part of swatch group by now if greedy shareholders wanted to cash out.

Yes there are tax advantages but IMO thats not the intent. Making sure Rolex stays Rolex was the goal and a trust is necessary for that.

Makes good sense. Thanks for the info.

[al.gmt]

They read the article about Louis Vuitton about creating a false demand for their product to keep the prices high.

Also, I were to guess they are having labor issues and contract issues with ADs and want to increase prices.

My 2 cents is in the US we will see a retail bump of 30% in the next 2-3 years, more ADs will go out of business and we will super ADs or more Rolex owned stores.

For example at the Rolex store in San Antonio, they go on a very long description about how they are not a dealer but are actually owned by Rolex.

I'm not sure to what extent it is true, but they have more watches in stock than any AD I have ever visited.