An in-depth investigation of watch industry experts and anonymous sources within Rolex reveals surprising answers to this thorny question. Delve behind the scenes of the crown brandโs strategy and discover the ins and outs of this much-discussed shortage.
The Rolex shortage: myth or reality?
The difficulty of acquiring a new Rolex has become legendary. From the legendary Daytona to more classic models, getting a new Rolex is often a real challenge. This raises a legitimate question: is the brand intentionally limiting its production to support its new Certified Pre-Owned program?
To try to answer this question, we interviewed several industry experts, including two people with direct experience in Rolex authorized points of sale. The latter wished to remain anonymous. Rolex, true to its reputation for discretion, declined to comment.
The Daytona: a special case
The Rolex Daytona occupies a special place in this issue. William Massena, expert and veteran of the watch industry, is categorical: “The production of the Daytona is artificially reduced. Rolex wants to have this watch that is difficult to obtain, and it has done so since 1988.” This strategy aims to maintain the exceptional aura of this iconic model.
Rolex Daytona Features:
A general shortage?
While the Daytona is an extreme case, the difficulty of obtaining any new Rolex model is a reality. This situation creates a rather peculiar customer experience in the brandโs boutiques. One of our informants describes the atmosphere as โtense and tense,โ with frustrated customers and uncomfortable salespeople.
Factors contributing to the shortage:
Experts are clear: no voluntary shortage
Despite appearances, experts interviewed agree that Rolex is not intentionally limiting its production to promote its certified pre-owned watch program. William Massena says: “It's bullshit, just rumors. If you talk to a [le PDG de Rolex] Jean-Frรฉdรฉric Dufour, you will understand that he is not happy, and neither are his resellers.
Paul Altieri, founder of Bob's Watches, a site specializing in the resale of used Rolexes, agrees: “My gut tells me no, because the global demand is so high that they can barely keep up.”
Rolex's production challenges
Several factors explain Rolex's difficulties in meeting demand:
Jean-Frรฉdรฉric Dufour, CEO of Rolex, stressed in a rare interview: “We produce everything here at Swiss costs. So the Swiss franc is a challenge.”
The Certified Pre-Owned Watch Program: A Long-Term Strategy
The launch of the Rolex Certified Pre-Owned watch program in May 2023 raises questions about the brand's intentions. According to our sources, this program is the result of more than ten years of reflection and is part of a long-term strategy.
Objectives of the Certified Pre-Owned Watch Program:
An insider tells us: “The CPO (Certified Pre-Owned) program is about control. Rolex doesn't care about money. It cares about control… of its brand, of its service centers.”
Rolex: a classic luxury strategy?
Limiting supply is a common strategy in the luxury industry. Paul Altieri notes: โLouis Vuitton and Hermรจs always produce 20% less than demand, because exclusion fuels luxury. Itโs good to be rare.โ
Advantages of rarity for a luxury brand:
Rolex's opacity: an asset or a handicap?
Rolex's lack of transparency fuels speculation and contributes to its mystery. The brand communicates little, offers almost no factory tours and operates like a Swiss non-profit foundation.
This opacity has consequences:
One collector expressed frustration: “I feel disgusted. It's not a big amount in my wallet, and they put it on a pedestal like it's out of my reach. They're not even that expensive.”
Rolexโs current situation raises many questions about the brandโs strategies and the future of the luxury watch market. Between real shortages and marketing strategies, the truth remains difficult to pin down. What is certain is that the mystery surrounding Rolex continues to fascinate and fuel passions, thus helping to maintain its status as the most desirable watch brand in the world.
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