Rolex inventory at Local AD Horrible!!

[Bigblu10]

Originally Posted by JacksonStone

That's a fair point, but if Rolex is going for scarcity, they should opt for smaller displays so they don't look like a ghost town. To borrow a political term, the optics are bad. The current setup doesn't make Rolex look prestigious so much as like a company that doesn't have its act together.

Agree 100%.

[WEST HAM ROLEX]

Originally Posted by Swiss Mad!

..."I have more than them.." !!! Lol

Made me laugh..

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Yes, most readers on this forum have more sports models that their AD

Pic - you would think they would put all the watches in one case...?
Looks a bit sad in pic,,,

[WEST HAM ROLEX]

Originally Posted by sgwatch

Just went to a store with many branches the other day. Their cases were almost full. No subs or Sea Dweller, but lots of watches. They had SS YM, Milgaus, and a GMT, if I remember correctly. I got to see a black Sky Dweller that had just come in. Watches seemed like they were starting to come in.

Wow - they had a GMT
In London a GMT LN hasn't been seen in AD window this year

[JM0127]

Wait! There's a shortage? News to me.

[Chaching]

say it ain't so

[WEST HAM ROLEX]

Originally Posted by JacksonStone

That's a fair point, but if Rolex is going for scarcity, they should opt for smaller displays so they don't look like a ghost town. To borrow a political term, the optics are bad. The current setup doesn't make Rolex look prestigious so much as like a company that doesn't have its act together.

Yes agree
Just have a smaller case with 10 pieces
A big empty case looks horrible

[busytimmy]

Originally Posted by BobDyl

Agreed. And the irony here is that the greys are now the only place to reliably get a SS sports Rolex at, of course, a massive premium.

100% accurate.

I had a chat with my local ad about this situation yesterday. It’s not just Rolex who are cutting back production and limiting supply. It’s a sad state of affairs to be sure, and like others it’s really putting me off the brand.


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[sensui]

Originally Posted by Dusko.Popov

I usually agree with you but not on this one. Im glad their inventories look barren and dry. I like the scarcity. I thought the crown was way too accessible before.

And a majority of the forum members here agree with that sentiment (preferring the scarcity) despite the protests from the occasional few around unavailability. There is a poll supporting that.

https://www.rolexforums.com/showthread.php?t=590497

So a respectful disagreement lodged.

I get that perspective...I own my fair share of Rolex...and it's great for value retention and all that....but when you produce a million watches a year...and you have ADs with stock that looks like the pictures shared..there's not much else to describe those scenarios other than embarrassing...forcefully embarrassed by inventory for the AD and drives potential customers away from the embarrassed brand.

Sure it's fine to perhaps be hard to buy a Daytona...a new novelty etc for the first year or two...but you can't even ensure ADs stocking a Submariner (your entry professional stainless) that's been in production for more than seven years? Brands like Patek have display cases with a pedestal holding two watches because they produce around 50k watches a year......you try to pull a similar move with Rolex just makes them look disingenuous.....it's going to hit a breaking point with this strategy and hurt their customer base if this continues IMO.

[dkg1616]

Whatever my AD has out in the display has about double in the safe that are desirable models lol

[oldman2005]

Wonder how can Rolex ADs make money when they have basically nothing to sell, amazing!

[Loevhagen]

Originally Posted by JacksonStone

That's a fair point, but if Rolex is going for scarcity, they should opt for smaller displays so they don't look like a ghost town. To borrow a political term, the optics are bad. The current setup doesn't make Rolex look prestigious so much as like a company that doesn't have its act together.

Well put!

[skkali168]

Maybe Rolex isn’t doing so hot as well all think and business is going down? Why else are they not able to make more watches? I can’t imagine going to a bmw dealership and them having no cars unless bmw can’t afford to make anymore cars


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[mrs_LA]

Originally Posted by JacksonStone

That's a fair point, but if Rolex is going for scarcity, they should opt for smaller displays so they don't look like a ghost town. To borrow a political term, the optics are bad. The current setup doesn't make Rolex look prestigious so much as like a company that doesn't have its act together.

I just visited my local AD here in LA as well, and this scarce Rolex display is awfully embarrassing inside such a big store. One display is stuffed plenty of Rolex ladies watches, and everything else was just bare.

The problem with the smaller display is that ADs have already allocated a square footage of their entire showroom to Rolex watches - most of these are also designed specifically to showcase Rolex. It isn’t uncommon for the Rolex section to be the biggest in jewelry stores. Back when the supply wasn’t as bad as it is today, I assume they wanted to dedicate all that space for Rolex watches on display and were able to fill it as such. Lately... not so much. I have no direct knowledge on this but I also assume the decision isn’t just as easy to simply to reduce the sq footage for Rolex watches on display... that would have implications on customer/b2b relations and perception


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[Fleetlord]

Originally Posted by G'ed

My local AD said Rolex supplied them new tray instead of watches. Cuz those empty trays are not a good impression to Rolex and AD so they supply new tray that accommodate less watch at same footprint.

I LOL'ed.

Did that really happen?

If it did, it means a lot and confirms the theory of scarcity marketing as there is now merchandising material to execute it.

[JacksonStone]

Originally Posted by mrs_LA

The problem with the smaller display is that ADs have already allocated a square footage of their entire showroom to Rolex watches - most of these are also designed specifically to showcase Rolex. It isn’t uncommon for the Rolex section to be the biggest in jewelry stores.

You hit on an interesting conundrum, and one that suggests this shortage possibly was not a purposeful move. If Rolex is going smaller with their supply, why go bigger with the displays? The empty cases look bad, while simultaneously undercutting ADs' ability to recoup the not insignificant costs of putting them in. If that was an intentional move, it was a bad one. If not intentional, then what's going on? The idea that Rolex got caught unawares last year by an unexpected demand surge ceases to make sense the further we get into the current year. We're already more than a quarter in. Is supply increasing?

[tyler1980]

Originally Posted by 2109magnolia

Was just at My local AD in suburb of Philadelphia and was amazed and confused that they barley had any Rolex in inventory! The cases were literally empty and women who waited on me said she heard Rolex is deliberately cutting back on production to stop grey market dealers from acquiring the watches! Anyone else hear this?? No steel sports at all except a few Milgauss models! Was looking for a day date 40 and she only had one in yellow gold with silver dial! Thought I'd share..

come to the UK... you will feel better about your own situation.


I was at an AD in central london last month and they had empty watch stands in the window. They didn't have enough watches to fill the diaplay and just left empty stands instead. They didnt want to put all the DJ in the window as there were already too many. So for those they have plenty, for most everything else, nothing,

[SeaDweller50]

Originally Posted by tyler1980

come to the UK... you will feel better about your own situation.


I was at an AD in central london last month and they had empty watch stands in the window. They didn't have enough watches to fill the diaplay and just left empty stands instead. They didnt want to put all the DJ in the window as there were already too many. So for those they have plenty, for most everything else, nothing,

Very true. I only ever visit the Greys in London now. Always plenty of stock, at stupid prices of course.

[Gaijin]

Originally Posted by mrs_LA

I just visited my local AD here in LA as well, and this scarce Rolex display is awfully embarrassing inside such a big store. One display is stuffed plenty of Rolex ladies watches, and everything else was just bare.

The problem with the smaller display is that ADs have already allocated a square footage of their entire showroom to Rolex watches - most of these are also designed specifically to showcase Rolex. It isn’t uncommon for the Rolex section to be the biggest in jewelry stores. Back when the supply wasn’t as bad as it is today, I assume they wanted to dedicate all that space for Rolex watches on display and were able to fill it as such. Lately... not so much. I have no direct knowledge on this but I also assume the decision isn’t just as easy to simply to reduce the sq footage for Rolex watches on display... that would have implications on customer/b2b relations and perception


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Rolex requires that if an AD carries other watch brands that theirs be the largest and most prominent.

Rolex boutiques carry no other brands.

[mrs_LA]

Originally Posted by Gaijin

Rolex requires that if an AD carries other watch brands that theirs be the largest and most prominent.

No certain knowledge on this on my part but not surprised if this were true. Hence the AD being at the mercy of Rolex

Rolex boutiques carry no other brands.

Well of course? Lol. I was referring to ADs and jewelers in the first place.


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[Canook]

makes me wonder where the boutiques stand with their contracts?

Im mean suley when they sign an agreement to sell only rolex watches in their store exclusively so you would assume that part of the contract ensures they are provided with ample stock so they can trade?

Im sure all macdonalds franchises have some form of recourse if they are not supplied with food by the supplier and are entitled to compensation?(bad example but you get my drift)

We all bash on the Ad's sometimes but how are they supposed to make money and survive if they cannot get stock? you would think Rolex have a contractual obligation to them or would be required to compensate them..... im sure the rent isnt cheap on most of the stores(as they are normally in key locations) as well as wages

just curious on that one....

[JacksonStone]

Originally Posted by Gaijin

Rolex requires that if an AD carries other watch brands that theirs be the largest and most prominent.

Which reinforces the idea that the supply shortage is not intentional: if you're going to have the biggest displays, don't you need supply to match? Big displays without matching inventory look disproportionately empty, which works against the whole point of having the largest and most prominent displays.

[Carry The Interest]

Originally Posted by harvey

I bet it wasn’t as bad as this...

This was last month in Chandigarh (India). Oh I forgot they had 1 more in the window. Total of 7 watches!

I have more than them!




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This is by far the saddest display case I've ever seen. I'm actually surprised they even had that many plastic covers to go over where the watch/cushions are supposed to be displayed. One of my local ADs recently told me that they actually ran out of those plastic covers after we shared a laugh about the lack of SS models in their display inventory.

[peterskinner]

Originally Posted by drmizzou

Yikes. I need that is bad. My AD spend over $1M in just doing the Rolex section plus whatever the minimum inventory Rolex requires them in DJ and other low selling models. .

You seem unaware that the Datejust is Rolexes best selling model.....'low selling'', hardly.

[Brownb2110]

Was reading online and came accross this post(from 3 days ago). I’m too new to this business but would like to hear all the experienced thoughts....
“I heard that Rolex is ramping up the production, and thus this supply problem is temporary (retooling etc). This comes from the inside.
Another thing coming is a global customer database, which would prevent buying more than one watch at a time by one customer. This to make grey market operation more difficult. This info comes from AD.”

[tyler1980]

Originally Posted by peterskinner

You seem unaware that the Datejust is Rolexes best selling model.....'low selling'', hardly.

it is indeed... however i would suspect broken down by model and dial variation they sell less than a black sub for example in an individual model head to head. There are just so many DJ configuration options.

DJ41 black dial, fluted, oyster bracelet sells less than black sub. I assume. But DJ's in total out sell subs in total.

[maximus1]

Originally Posted by Carry The Interest

One of my local ADs recently told me that they actually ran out of those plastic covers after we shared a laugh about the lack of SS models in their display inventory.

Wow! We now have a wait time for the plastic covers. What is next??

[AK797]

Originally Posted by JacksonStone

You hit on an interesting conundrum, and one that suggests this shortage possibly was not a purposeful move. If Rolex is going smaller with their supply, why go bigger with the displays? The empty cases look bad, while simultaneously undercutting ADs' ability to recoup the not insignificant costs of putting them in. If that was an intentional move, it was a bad one. If not intentional, then what's going on? The idea that Rolex got caught unawares last year by an unexpected demand surge ceases to make sense the further we get into the current year. We're already more than a quarter in. Is supply increasing?

Supply could be increasing by now, and God knows a year ago in the UK, but that is not Rolex's chosen policy, they have chosen to restrict supply, or rather allocation not production, to starve the flippers and greys. So things will get a lot worse before they get better. It's a bit of a scorched earth policy, esp when raising prices and supply would make more sense and have better optics for sure.

[AK797]

Originally Posted by tyler1980

it is indeed... however i would suspect broken down by model and dial variation they sell less than a black sub for example in an individual model head to head. There are just so many DJ configuration options.

DJ41 black dial, fluted, oyster bracelet sells less than black sub. I assume. But DJ's in total out sell subs in total.

We know this is empirically true now as we see so many rows upon rows of DJs and yet not even one Millie or Exp2 in many windows now. Even Rolex will have to rethink their production allocation as the weight of DJs is as overbalanced as the under to sports.

[tyler1980]

Originally Posted by JacksonStone

You hit on an interesting conundrum, and one that suggests this shortage possibly was not a purposeful move. If Rolex is going smaller with their supply, why go bigger with the displays? The empty cases look bad, while simultaneously undercutting ADs' ability to recoup the not insignificant costs of putting them in. If that was an intentional move, it was a bad one. If not intentional, then what's going on? The idea that Rolex got caught unawares last year by an unexpected demand surge ceases to make sense the further we get into the current year. We're already more than a quarter in. Is supply increasing?

the strategy is called " panic buying, the hurricane is coming"



Very successful for grocery stores.

[Dusko.Popov]

Originally Posted by sensui

I get that perspective...I own my fair share of Rolex...and it's great for value retention and all that....but when you produce a million watches a year...and you have ADs with stock that looks like the pictures shared..there's not much else to describe those scenarios other than embarrassing...forcefully embarrassed by inventory for the AD and drives potential customers away from the embarrassed brand.

Sure it's fine to perhaps be hard to buy a Daytona...a new novelty etc for the first year or two...but you can't even ensure ADs stocking a Submariner (your entry professional stainless) that's been in production for more than seven years? Brands like Patek have display cases with a pedestal holding two watches because they produce around 50k watches a year......you try to pull a similar move with Rolex just makes them look disingenuous.....it's going to hit a breaking point with this strategy and hurt their customer base if this continues IMO.

Good points as usual.

My retort is that if I’m going for a look of exclusivity and small output, I make a small case, that accommodates few watches, and perhaps includes a pedestal (like Patek).

If I’m going for the look of “we make plenty of watches but they’re so hot that we can’t keep them in stock,” I do exactly what Rolex is doing - keeping a large display that is infrequently filled.

Filled = items are sitting.

Empty = we can’t keep up with demand.

I’m not an advertiser but I know that there is a psychology to brand marketing that starts at a field level.

Jackson Stone, I see your point about “optics.” But I also don’t know a better way for Rolex to convey the impression of incredible product demand to a degree that can best be expressed exponentially.

When you think Patek, you don’t think “hot.” You think “exclusive.” When you think Rolex, they are creating an image of incredible product demand despite an overwhelmingly soft Swiss watch market. If you go into your ad, Breitling, and Panerai, and Omega, and even Ap are easily accessible. Like there are more Breitlings in a local ad case than I’ve seen of Rolex all last year.

Everyone is trying something. Omega tried the strategy of increasing their prices considerably and not discussing discounts on the phone or at all at boutiques. That was their effort at creating an impression of “demand.”

That didn’t work. Or at least, it hasn’t yet and to my knowledge they’ve been going with that approach for the last two years.

Rolex is doing something right. And their “shortage” has been going on for a year. There doesn’t appear to be any statistically meaningful consumer bolting to other brands. In fact, the wait is causing greater and more pronounced desire to get even pedestrian steel pieces.

Rolex is protecting the crown well, me thinks. Fewer will ask for discounts and the second-hand market remains robust. Rolex has to separate themselves from the softening to mid/top tier (as distinguished from exquisite) luxury brands and this is their salvo.