Was the "SS Shortage" was manufactured by Rolex?

[djgallo]

Originally Posted by dcash0615

I agree with this. In addition, I think that the grey market added to the shortage issue. As prices continued to rise, less stock went to end users and more stock went to dealers at higher margins. The average Joe trying to buy 1 or 2 watches a year from their AD had little chance of getting allocation.

Funny....really don’t think “the average Joe” is trying to buy 1 or 2 watches a year from AD’s.

The “average Joe” might buy a watch for a couple hundred and they wear it for years.....

If you are looking to buy a couple of watches per year from a Rolex AD then you are in the upper income brackets...or have a lot of extra discretionary income and are one of the lucky ones...

[123Blueface]

Repeat, please.............

THERE........IS.......NO........SHORTAGE.

THERE........IS.......NO........SHORTAGE.

THERE........IS.......NO........SHORTAGE.

THERE........IS.......NO........SHORTAGE.

THERE........IS.......NO........SHORTAGE.

When done, repeat again.

[Chewbacca]

Originally Posted by sillo38

I'm not really a business person, but I know Rolex isn't set up like a typical luxury brand so I don't think they really care.

I think the current Rolex environment shows they're successful. Most other watch brands are struggling. The only thing Rolex is doing is struggling to keep up with demand.

Fair enough.

But if you're a 100yr old business representing 50% of all luxe watch sales WW, it's your business to manage, or not manage.

[Seibei]

Yes, I think Rolex manufactured this shortage. This was done by injecting vast amounts of currency into the economies of China, Southeast Asia and India, thereby placing Rolex watches within the reach of millions of people who until recently had no hope of buying such an item.

Seriously, Rolex can control supply but has little if any control over demand. The recent increase in the standard of living and buying power of hundreds of millions of people is not manufactured by Rolex. The consequence of this is a shortage of Rolex watches and some other popular luxury goods.

[dane75]

Originally Posted by Robtayham

For a luxury good, you never fix the problem by increasing supply.

Oy. If your problem is lack of supply, I respectfully disagree that increasing supply doesn't fix the problem. Can saturating the market (or exceeding demand with respect to a luxury good) have negative consequences? Yes. Does Rolex have valid business reasons to avoid that consequence? Sure. Does Rolex have ways to alleviate (I won't say shortages... let's go with...) waiting lists for certain buyers by means other than price increases if they weren't concerned with that consequence? I believe they do.

[mountainjogger]

Originally Posted by Tools

Not in my opinion.

Rolex has continued to make the same number of watches as they always have and so supply has been similar.

Demand for high-end mechanical watches has spiked world-wide, using up the immediately available supply.

x2!

[djyolky]

No. Rolex sells all of their watches before you can even sniff them. They make the same amount of watches every year and sell them all to the ADs before they get bundled to a whale or sold to a grey dealer.

Sent from my SM-G925V using Tapatalk

[djyolky]

Deleted.. For another time/discussion.

[Nikrnic]

Rolex has always had strict quality control and also evolved the product slowly over their history. I dont see them changing which is a good thing and keeps people coming back for generations. I say its more simple in being the demand nowadays for many reasons has out stripped the supply.

Sent from my SM-G970U using Tapatalk

[904VT]

Originally Posted by jsausley

Most Tudor components are outsourced. Very little in your Tudor is built in the same factory that builds Rolex.

You call this a business fail but I call this a business success. The hype economy has given Rolex billions of dollars of free marketing.

Originally Posted by Chewbacca

This is not exactly correct imop.

And, why would you need free marketing when your brand is #1 based on brand awareness and values worldwide, and why are they still paying for media buys and partnerships?
That's negligence and a business fail.

If you can't sell any more due to not having supply, how do you make more money?
That's also a business fail.

How does one define success in business if you're Rolex?

I believe the bracelets on all Tudors are made by Breguet. I'm not sure the cases, but you can see a small color difference between the metals of the cases and bracelets on some reference examples. Supposedly different tooling is needed for the steel Rolex is using vs Tudor.

[djgallo]

Many here complain they can’t buy the Rolex they want for MSRP....and think Rolex Is the problem....and want Rolex to fix the problem.

Rolex sells all of their inventory every year, and is Very Successful....

Who really has the problem here?

[Rolex addict]

Originally Posted by 123Blueface

Repeat, please.............

THERE........IS.......NO........SHORTAGE.

THERE........IS.......NO........SHORTAGE.

THERE........IS.......NO........SHORTAGE.

THERE........IS.......NO........SHORTAGE.

THERE........IS.......NO........SHORTAGE.

When done, repeat again.

Agreed!! AD’s are playing games. A lot, not all, have “good” watches in back. I was looking at a platinum day date and was told they could make a SS BLRO appear to pair with the day date.

[Robtayham]

Originally Posted by dane75

Oy. If your problem is lack of supply, I respectfully disagree that increasing supply doesn't fix the problem. Can saturating the market (or exceeding demand with respect to a luxury good) have negative consequences? Yes. Does Rolex have valid business reasons to avoid that consequence? Sure. Does Rolex have ways to alleviate (I won't say shortages... let's go with...) waiting lists for certain buyers by means other than price increases if they weren't concerned with that consequence? I believe they do.

I 100% agree with your comments.

[dchernikoff]

Originally Posted by Rolex addict

Agreed!! AD’s are playing games. A lot, not all, have “good” watches in back. I was looking at a platinum day date and was told they could make a SS BLRO appear to pair with the day date.

I'm now convinced. There is no shortage. Thanks for that.

And now we have a new nemesis to blame -- the evil AD's!!!! Let's start a thread about that. Oh wait...

-Dan

[123Blueface]

Originally Posted by Rolex addict

Agreed!! AD’s are playing games. A lot, not all, have “good” watches in back. I was looking at a platinum day date and was told they could make a SS BLRO appear to pair with the day date.

Thank you!!!

It’s all about a new method of distribution, outside of Rolex’ control.

[Chewbacca]

Originally Posted by 904VT

I believe the bracelets on all Tudors are made by Breguet. I'm not sure the cases, but you can see a small color difference between the metals of the cases and bracelets on some reference examples. Supposedly different tooling is needed for the steel Rolex is using vs Tudor.

904L has a different 'look'.

Tudor are not 904L afaik.

The Breguet thing is quite interesting.

Asking because thats Swatch and I believe that's like Burger King selling meat to McDs.

[dtwer]

In before the anger squad who would tell you Rolex is the devil behind the horror that they no longer can play one AD against another to fish for discount.

By not chasing the “demand” Rolex may indeed be a part of the equation for the high demand in the market. The fact remains though this market has turned into a decidedly seller’s market and I see very little reason why Rolex would reminisce the old days. This is a company run by people with great wisdom.

[mfm22]

Supply is constant , Demand rising simple economics. As simple as it gets actually
Rolex is not , maybe can not , chase the demand . Why should they ?
To make more watches and more profit one year may in turn produce a lull in sales the following year

It is completely believable that ADs are getting their allocation, they just sell out faster.
Actually works out well for ADs & Rolex Rather passive aggressive but when you go in to buy a professional model and walk out with a TT DJ or some such thing it's a win for the home team
What may have been inadvertent can become deliberate , not at Rolex end but rather the AD side

This then will correct itself as the Demand dwindles and it will .

[replicator]

I don’t think they cut supply. I don’t think they increased production either. Either way we’d have no way of knowing, but Rolex doesn’t have the same financial pressures as Swatch Group or Richemont. Rolex bas a great business, and they aren’t reporting quarterly figures to shareholders. They have no stock price to keep afloat. They are in it for the long haul and that shows in their philosophy of design and business practices.

[123Blueface]

There........is.......no........shortage.

There.......are........just........more........spe culators...........who..........live........off... ......a.........”so-called shortage”.

VISIT..........A..........LOCAL.........GREY...... ...AND........SURPRISE!, there they are.

[JR16]

No


Sent from my iPhone using Tapatalk Pro

[Cesium137]

Originally Posted by bigfatpauli

No.

Can we move on please?

[AdmiralYamazaki]

Originally Posted by 123Blueface

There........is.......no........shortage.

There.......are........just........more........spe culators...........who..........live........off... ......a.........”so-called shortage”.

VISIT..........A..........LOCAL.........GREY...... ...AND........SURPRISE!, there they are.

100% agree.

While this seems great for Rolex at the moment, I don't think it's sustainable. There's a growing number of customers being put off and at some point people stop begging to buy expensive SS dive watches, it's just humiliating.

[gunhose]

Rolex Ads playing games is what's going on ! Black mailing saying buy this and Ill give you that so hard to get model all the while their safes are full of the so called impossible to get SS sport models..

[Highlatitude]

The fact that these types of discussions are all over the watch forums is because there is a growing amount of ‘brand fatigue’ associated with Rolex.

Most people will not spend years with a high desire for a material item like this. The time comes and passes then interest moves to something else. In short the lack of availability becomes boring, the hype becomes old.

Also, over time the constant attention the brand receives means that many people become aware enough to realise that these are not the finest watches available to man, handmade by artisans. They are normal but very nice, mass produced factory watches but not the best of the best. They are watches for the masses not the super affluent few.

RRP prices can’t go up to current grey market levels in the long term because Rolex are the best at their current price level but would be fairly average for finish, detail and quality at the higher amount. This would be harmful to their status and is not the solution to the over demand problem. The solution is probably to create unstable grey market price fluctuations through successive surges in supply that would leave normal customers satisfied and harm greys who hold a lot of stock. This is difficult to achieve because they probably do not have the production capability to do it. Another solution might be direct supply to customers who have to register with a verified i.d. (including nationality) and can be blacklisted.

[beshannon]

Originally Posted by Pesto628

So do you think this lack of supply was really fabricated by Rolex and the ADs?

What lack of supply?

Originally Posted by Tools

Not in my opinion.

Rolex has continued to make the same number of watches as they always have and so supply has been similar.

Demand for high-end mechanical watches has spiked world-wide, using up the immediately available supply.

Exactly

[Devildog]

Originally Posted by Chewbacca

But they can launch new Rolex models and make Tudors?

They can easily tell Tudor to shift capacity to Rolex. It's higher margin and the Crown.

I don't buy this.

Its not that simple

Re tooling a Tudor factory would be a significant cost.

Plus - and this is the big one, Rolex SA doesn't need to increase production.

[Sunny Arizona]

I have a family member who is GM of an AD who has mentions just great sales as the issue. There is no nefarious intent.

Originally Posted by samuel019

Well I dont think it has to do with Rolex at the core. I have a friend that is not only an A D he owns the joint. Pretty big store in a very popular coastal town in the south. He states that it is purely demand and that Rolex hasnt reduced his allocation one bit.

In other words, it is what it is. Waaaaaay to much demand by a growing economy and popularity at a all time high. Which has been stated a gazillion times by other members here on TRF

I do believe that a lot of the reasoning behind the all time demand is people buying because getting a new Rolex as a status symbol versus in the past it was die hards being loyal to the brand. Just my 2 cents

[Chester01]

Originally Posted by Pesto628

Curious what everyone's thoughts are here as I see a lot of people get frustrated and accusatory with Rolex as if this lack of availability was part of a grand scheme.

From what I've heard, around 2 years ago give or take, you could walk into pretty much any AD and pick up almost any model at or below retail. Given the state of the economy, people started buying more luxury items (Rolex) which led to the current state of the market as supply could not keep up.

2 years really is not that long of a time in the scheme of things so Rolex would be pretty foolish to double or triple production because of one year of demand, which very well could be a fluke. Plus they have quality standards and can't just hire a bunch of minimum wage workers to pump out more watches.

From the short time I've been on this forum, it also seems that Rolex is very slowly improving their ability to fulfill demand.

So do you think this lack of supply was really fabricated by Rolex and the ADs?

Nope. See when I got my Rolex, it was between me and the AD. Now there are hundreds maybe thousands of gray market dealers. There are no hard to find watches. You and I can have any reference on our wrist by Monday. We just need to go to the gray dealers. That’s not a shortage, that’s a supply chain issue. I’m not sure why this is hard for folks to understand. Reason alone will tell you that if one can get exactly what we want, how can that be a shortage? There is a shortage of for example of a Rolex 4113, steel PP 1518. Right we can’t get these in 2 days. That’s a shortage my friends.

[Danny83]

Here is what I say, I know many may disagree I think Rolex just wants to short supply to jump back in with a big price increase. Now that they know what the market is they will just charge that and choke out they grey market. I hope that does not happen I just feel that way.