CONFIRMED news regarding the professional line

[woodsworth]

I love Rolex like the rest of you, but if this is indeed their position then I will be looking at other brands -- whether that is above to the "Trinity" or otherwise, I don't see myself fighting to own an SS Rolex model. I am not going to fight to give away $10,000+ of my money lol

[dkmursalim]

thanks for your information

[tyler1980]

Originally Posted by woodsworth

I love Rolex like the rest of you, but if this is indeed their position then I will be looking at other brands -- whether that is above to the "Trinity" or otherwise, I don't see myself fighting to own an SS Rolex model. I am not going to fight to give away $10,000+ of my money lol

VC is the only brand for you then. Its far harder to get a hold of a popular Patek or AP than a popular SS rolex minus a daytona which is harder than the other Rolex's. But, a daytona is easier to get than a 5711 or 5712 by a lot.

Oddly enough VC prices their watches far above the market price and as a result you can find whatever your want in an AD whenever you want because of it. In that sense its nice. Their prices are the equivalent of a SS daytona having a retail price of $25k. Seems as though that is what Patek is trying to do too.

If you buy a VC you have to really like it. Its about love of the watch. You can buy a Rolex or Patek because you can make money off of it. With VC its like buying a new car. You are guaranteed to lose money when you sell but if you like the car then its fine as you enjoy it. The other brands are becoming alternative investment options which is bad for those who actually want watches to wear and enjoy.

[BristolCavendish]

Originally Posted by jrs146

Haha this seems like old news by now it just leaves the question of WHY???

Originally Posted by brandrea

Assuming it’s true, what is the reasoning behind this ?

To increase customer demand and justify another price increase.

[Fleetlord]

Originally Posted by GerardoG

We had suspected or heard about it, now, it is oficial and in writing from factory. I sort of understand the SS product, but ALL???

On the surface, I would agree that it would make sense to limit SS production to steer the masses to 2T and Gold....higher margins, etc.

BUT..there is more at stake here than just margins.

There has been speculation for years that Rolex turns a blind eye to the grey market as it is just another sales channel for them to sell their products through...thus generating re-orders from the AD's that are jobber friendly...

It appears that this has stopped.

The grey channel is now completely out of control. It is hurting the brand and the dealer network. There are Rolexes all over the place...except AD's.

Simply raising prices is not enough...that would just create a discounting scenario.

The product must be controlled in order to maintain the integrity of the Brand.

It's what Patek is doing now. It's great for their image.

It's what Panerai USED to do. I remember going on hunts for 000 and 005 Panerai as they were never in stores. You would basically take any luminor you could get as they were very limited...

Now? Panerai produces more watches references and MORE of each, so it's not a big deal finding anything anymore....and because of this the brand is pillowy soft...

So Rolex is making a preemptive strike on protecting their brand.

Is it the right move? I think so. Up until recently ROLEX was just too available. It will be interesting to see how this pans out.....so even after the MVMT switch, this production limitation will still be in effect.

[Jocke]

I use to say the same about myself when I'm out on dance.

[woodsworth]

Originally Posted by tyler1980

VC is the only brand for you then. Its far harder to get a hold of a popular Patek or AP than a popular SS rolex minus a daytona which is harder than the other Rolex's. But, a daytona is easier to get than a 5711 or 5712 by a lot.

Oddly enough VC prices their watches far above the market price and as a result you can find whatever your want in an AD whenever you want because of it. In that sense its nice. Their prices are the equivalent of a SS daytona having a retail price of $25k. Seems as though that is what Patek is trying to do too.

I see what you're saying, but I bet you I could get ahold of any AP model (sans something like a 15407) before I could get ahold of an LVc, or d500.

I am more interested in being able to go into an AD/boutique to grab something like a 15202/ 44ti / 44 ceramic / etc. than having to wait 4 or 5 years for a simple green submariner lol...

A 15202 may take a little more time, but even then, I could get one for closer to MSRP than a ceramic Datyona on the grey market (or most sport models if this is how the new Rolex sales model is for 2018/19).

[XZACM102]

Originally Posted by tyler1980

Rolex boutiques are still just independent AD's unlike most other brands who own and operate their mono brand stores. These AD's just don't sell other brands. Or are you suggesting Rolex get into the retail business?

I'm just saying that Rolex is investing where it makes sense for the brand. Boutiques are great strategy and from that perspective lot of ADs will feel more pain.

[Amileon]

AD in Greenbelt Makati has no SS professional watches since last November. Only a very few pm and usual DJ. Shop was renovated lately and today was empty. It looks rather depressing and I feel sorry for the sales personnel. Next door is Omega, PP, JL, Chopard, Breitling, Panerai. All have decent number of watches on display. Omega was packed with customers others had a few. Wonder how long AD can survive. What ever reason behind what looks more like a shortage than a commercial strategy is for sure hitting the business hard.

[tyler1980]

Originally Posted by XZACM1001

I'm just saying that Rolex is investing where it makes sense for the brand. Boutiques are great strategy and from that perspective lot of ADs will feel more pain.

AFAIK they are not investing in boutiques now or in the past. They have no stake in them.

Our boutiques in London for example are owned by watches of switzerland and Bucherer (formerly the Watch Gallery). Both companies operate both mono brand Rolex boutiques and multi brand AD's. There is no difference between a boutique and an AD. You are still buying the watch from WoS or Bucherer, not Rolex regardless of which store you choose to buy, their multi brand AD or their mono brand boutique.

If you buy from an AP boutique for example you are buying from AP directly. No so with Rolex.

[Nav01L]

I think the greys have proven over the last months where the real market price of these watches can be if you limit supply, so Rolex is limiting supply now and will move towards adapting the retail price to what the market price is, logical move for any item that's undervalued, explore what the real price is and then ask for it.

[johnnyjazz]

Sounds like they are forcing the independent AD,s to take back their Rolex occupied store square footage, the ad,s are paying a lot of coin each month for fresh air and empty window displays, forcing them to close contracts which would allow Rolex to supply only to Rolex Boutiques. Is this letter being sent to the Rolex Boutiques as well as independent ad,s?

[2Redbulls]

Aside from better control of inventory and pricing to squeeze the grey market they will be helping Tudor sales as a alternative.

[omx5o]

Perhaps Tudor will take over the sports side of Rolex.

[Sandpit]

Originally Posted by Ruud Van Driver

Buyers in the UK won't notice any difference in stock levels at ADs.

I’d say you’re right. They are probably wanting to create a world wide waiting list. If you’re willing to wait (as I currently am) it’s a non issue really. If you’re not then the only alternative is to pay a premium through grey.

[jezza17]

Originally Posted by Spartacus

Must be be a bunch of new watches debuting at Basel.

This is what I’m thinking (hoping).

[es-teh]

I heard the same story from AD in Singapore, Indonesia and Australia.

According to them, it is a result of the recent economy downturn and wanting to bring back the exclusivity once again.

[Exploradori]

This is just not true. I talked with two close ADs and they don't know anything about this letter. Which makes no sense anyway...

We're being trolled.


Sent from my iPad using Tapatalk

[BBL]

Originally Posted by Amiroo

I don't care if I have to be late for every meeting for the rest of my life. I am not wearing an Omega...

[Analysing You]

Originally Posted by GerardoG

As some of you have read in the Open Forum, I spent all day planning for our upcoming Vegas gathering, as well as talking watches with one of the largest accounts for Rolex in the United States.

I do not share ‘I heard’ or ‘someone said’; I only share confirmed information with you, my virtual family.

Rolex is letting all Authorized Dealers IN WRITING that, effective immediately, they will CUT BACK the production of ALL professional line watches. Not only SS, but 2T and precious metal.

Therefore, we, as customers, will see LESS of these units at our AD’s. Hold on to your subs, GMTs, Daytonas...steel, rolesor or gold/platinum. They will be harder to get.

Worldwide?

[Terrakot]

The poor supply in US and Europe and crazy popularity in asian countries can make Rolex uncool in western culture, escpecially among younger generations

[seadweller43]

then rolex is risking to lose their market shares in
luxury watch by just doing that.

[MonBK]

Ever since Heiniger occupied Rolex after the war with suspect money they have been doing alright so chances are they have a plan.

[stevedssd]

Originally Posted by Nav01L

I think the greys have proven over the last months where the real market price of these watches can be if you limit supply, so Rolex is limiting supply now and will move towards adapting the retail price to what the market price is, logical move for any item that's undervalued, explore what the real price is and then ask for it.

I agree and position Tudor to take up some of the SS market

[stevedssd]

Originally Posted by Ruud Van Driver

Buyers in the UK won't notice any difference in stock levels at ADs.

Indeed they won't, I don't even bother looking in the AD's window anymore, just a sideways glance at the Milgauss and Explorer as I walk on by

[polaris72]

I will start looking at AP and IWC. Thanks for the info.

[Smarties]

Originally Posted by Fleetlord

On the surface, I would agree that it would make sense to limit SS production to steer the masses to 2T and Gold....higher margins, etc.

BUT..there is more at stake here than just margins.

There has been speculation for years that Rolex turns a blind eye to the grey market as it is just another sales channel for them to sell their products through...thus generating re-orders from the AD's that are jobber friendly...

It appears that this has stopped.

The grey channel is now completely out of control. It is hurting the brand and the dealer network. There are Rolexes all over the place...except AD's.

Simply raising prices is not enough...that would just create a discounting scenario.

The product must be controlled in order to maintain the integrity of the Brand.

It's what Patek is doing now. It's great for their image.

It's what Panerai USED to do. I remember going on hunts for 000 and 005 Panerai as they were never in stores. You would basically take any luminor you could get as they were very limited...

Now? Panerai produces more watches references and MORE of each, so it's not a big deal finding anything anymore....and because of this the brand is pillowy soft...

So Rolex is making a preemptive strike on protecting their brand.

Is it the right move? I think so. Up until recently ROLEX was just too available. It will be interesting to see how this pans out.....so even after the MVMT switch, this production limitation will still be in effect.

IMO, by limiting the supply of SS model, the grey market dealers are more than willing to pay an even higher premium to source from AD since they can always raise the selling price higher due to ever-higher demand created by scarcity in supply.

Ultimately, those grey market dealers are the people who benefit from Rolex's "austerity measures".

[Rolexsd4000]

Maybe the new movement is in short supply?
Sub will get a 21mm oyster bracelet remains at 40mm
Deepsea will get the 22mm bracelet as the SD43
All SS Pepsi GMT 2 with non polish center links with the 21 mm oyster bracelet

And for the Grey market? Rolex increases their prices way up . The Grey dealer will still buy the watch from an AD turn around and sell it and people will be more than happy to pay for it.

Just speculation but then again what ever will be will be.

[brandrea]

I’d be curious to know what happened during other movement upgrades. Did this limit supply until production could catch up

Seems the sentiment here is that the move is more sales/marketing driven

Whatever the reasoning, I feel sorry for the ADs who’ve dropped substantial amounts of money into their retail and have nothing to sell.

[aquatimerfla]

Originally Posted by Rolexsd4000

Maybe the new movement is in short supply?
Sub will get a 21mm oyster bracelet remains at 40mm
Deepsea will get the 22mm bracelet as the SD43
All SS Pepsi GMT 2 with non polish center links with the 21 mm oyster bracelet

And for the Grey market? Rolex increases their prices way up . The Grey dealer will still buy the watch from an AD turn around and sell it and people will be more than happy to pay for it.

Just speculation but then again what ever will be will be.

Rolex isnt going to ‘replace’ bracelets on current models. Thats not how they do things. Rest assures if their are not any cosmetic changes to models and only movement swaps than all current models will continue to use current bracelets. The DSSD will not be outfitted with an SD43 bracelet. What could happen however is Rolex offer their ‘oyster flex’ as an option to be purchased seperately.

Only way a current model gets a new bracelet is if its a complete revamp.