Rolex SS Shortage

[Fleetlord]

This is the best move for Rolex..

Brands with references in limited distribution protocols are
RED HOT and are selling MORE watches because of it..

Rolex is supplying the right mix of DJ and PM for the common shopper...so that base is covered. In fact, this distribution limitation steers the common customer into TT and PM and that is also a goal of Rolex. Move it upmarket.

They are selling more SS sports due to FOMO. If the sub was in stock, the potential buyer will be more prone to "i'll think about it"..."let me ask the wife". Now, with the limitations...you BETTER get on that list....and you BETTER buy it because these are HARD to come by..

A local AD told me that they have sold 5X as many Hulks since they became limited than before.

Of course this helps to limit the FLOOD of SS watches that were hitting the grey market too cheaply. It was hurting the brand to have a new Sub available for $1200 off retail. Actually it was ridiculous, so Rolex put a FULL STOP to that....Now the watches on the grey market are trading @ or above retail. Much, much better for the brand.

Now the brands that are not following a limited distribution model (which is mostly everyone else..except Patek and AP)...are in BIG trouble....sales are slumping. Look @ Breitling, Hublot, IWC, Panerai....who cares about them? Panerai and IWC have a few models that are kind warm...guess what? They are limited. The others? Nobody talks about them. Nobody cares. Nobody buys.

Rumor has it that Rolex is supplying case merchandisers with less slots for watches, so that proves that is a strategy rather than an accident.

Rolex is effectively managing the brand and increasing sales in a slumping market. Adios Hublot!

[NCD1979]

Thanks for all the thoughts and feedback, guys. I tend to think along the same lines as those who say nothing Rolex does or doesn’t do is by accident. Whether or not our speculation is correct, Rolex likely has a plan which is well into the implementation phase.

[Craigdwh]

Originally Posted by AK797

You serious? I've written more posts just on this subject than you have posts!

Yeah the poster is looking for factual info rather then your many opinions.


Sent from my iPhone using Tapatalk

[Quamby]

I don't know, Jean-Frederic Dufour (the Rolex CEO) has a strong background in production and I think his appointment at the time may have something to do with Rolex wanting to improve the production side (production capacity, efficiency, new models, new movements, etc) of their business.

Maybe Rolex took time out in 2017 to work on their production lines for new models we are seeing now and production capacity for SS & Professional models were perhaps temporarily reduced as a result.

[JaceCox47]

Restricting the supply makes them more valuable. This is a key strategy used by luxury brands for many different goods. It keeps prices high. Also makes it more exclusive and thus more desirable.

[phraxos5]

For instance I just randomly called a dealer in corpus Christie Texas they have GmtII, SDDS, sub no date . He mentioned lists but if I want to come in and buy one I could now he would make it happen for me. I’m in la so I passed. There are no subs or gmt sd in Los Angeles/Vegas available at all off long waiting lists.

[oldman2005]

Originally Posted by phraxos5

For instance I just randomly called a dealer in corpus Christie Texas they have BLNR, SDDS, sub no date . He mentioned lists but if I want to come in and buy one I could now he would make it happen for me. I’m in la so I passed. There are no subs or gmt sd in Los Angeles/Vegas available at all off long waiting lists.

If you ever come to a SD43 you don't want, pls let me know. Thx

[bruinmd]

Originally Posted by Fleetlord

This is the best move for Rolex..

Brands with references in limited distribution protocols are
RED HOT and are selling MORE watches because of it..

Rolex is supplying the right mix of DJ and PM for the common shopper...so that base is covered. In fact, this distribution limitation steers the common customer into TT and PM and that is also a goal of Rolex. Move it upmarket.

They are selling more SS sports due to FOMO. If the sub was in stock, the potential buyer will be more prone to "i'll think about it"..."let me ask the wife". Now, with the limitations...you BETTER get on that list....and you BETTER buy it because these are HARD to come by..

A local AD told me that they have sold 5X as many Hulks since they became limited than before.

Of course this helps to limit the FLOOD of SS watches that were hitting the grey market too cheaply. It was hurting the brand to have a new Sub available for $1200 off retail. Actually it was ridiculous, so Rolex put a FULL STOP to that....Now the watches on the grey market are trading @ or above retail. Much, much better for the brand.

Now the brands that are not following a limited distribution model (which is mostly everyone else..except Patek and AP)...are in BIG trouble....sales are slumping. Look @ Breitling, Hublot, IWC, Panerai....who cares about them? Panerai and IWC have a few models that are kind warm...guess what? They are limited. The others? Nobody talks about them. Nobody cares. Nobody buys.

Rumor has it that Rolex is supplying case merchandisers with less slots for watches, so that proves that is a strategy rather than an accident.

Rolex is effectively managing the brand and increasing sales in a slumping market. Adios Hublot!

Good points all the way around. I bet IWC follows suit soon.

[superstarmar]

Manufactured crisis ... point blank !!!
Nothing else