The move didn't come form Rolex, it came from Jörg Gerold Bucherer. He is 87 years old and he has no heirs he can hand the business over to. So it was always a matter of time until he would sell the business to someone he could trust would protect the name and continue the business well. There is a long, close relationship between Bucherer and Rolex. If I was him I would have also sold it to Rolex. And Rolex kinda had to buy it in order to prevent future profit margins (Bucherers biggest profit IS from Rolex watches) going to the competition - namely LMVH or Richemont (there are only a handful of groups/people who can handle such a large business). It's a no brainer!
Considering the slimeball experience of dealing with Rolex ADs, I cannot see how it is going to be worse for the consumer. As far as "building a relationship with an AD", seriously, f# that. I bring money, they provide goods. The end. And in what universe did a "mom and pop" Rolex AD gave you a deal on a submariner because they needed a sale? Fed, did you have any suspicious mushroom with your omelette?
I'd rather not have to build a relationship with an AD. Building a relationship means I have to spend thousands of dollars on items I don't really want just to get a decent chance to buy the item I actually do want.
Build a relationship with a particular sales associate AT the AD. Totally different. To the broader AD, you're a number on a screen. To a knowledgeable sales associate, you're a passionate watch collector. I've bought 3 steel sport watches from 2 different AD's in my city in the past 2 years. I can talk watches for hours, so I clearly I'm an actual watch guy. Find the person in the AD who is the most passionate about watches (if they exist, they are tough to find, most are just sales people), then strike up a conversation.
Such an SA unfortunately doesn't exist in a less-developed country like mine, most likely due to the SA's income level that's probably closer to the price of a Tissot than a Sub, and thats before taking food and groceries into account. Kinda hard to be passionate about something so out of reach really.
I expect retail availability to improve and Grey market availability to decline. You could see things like SS Daytonas increase in price while more common models like the sub fall to levels in line with msrp.
@@akincomer Sir, may I ask how I can get 15-20% off from MSRP? Can I just shamelessly ask the salesperson at Breitling boutique, or AD? The reason why I’m asking is that I would actually buy if I can get 15-20% off from an AD (not grey market). I’d much appreciate if you could tell me how to get that much discount.
I appreciate Frederico. His first take is on how it affects the consumer not how it affects ADs or the gray market. In addition, he took time to make content and not rush it. Well thought out. Awesome content as usual.
Mom and Pop shops did not let you buy a Submariner (or any model really). To buy a Sub you would have to first either buy some jewelry or a watch from another brand. I think Rolex does not like their ADs making customers buy from Omega or Grand Seiko first before they have to wait a year or two to buy a Sub. A few of my colleagues couldn't buy a Rolex, so they bought Omega and have not turned back. I think this will make it easier to buy Rolex watches; supply will not be tightening, especially since they are increasing production. And Rolex will keep their ADs. Is the whole world is supposed to only shop at 100 stores? Are people in the mid-west and south supposed to travel to New York, Miami, Chicago or LA just to stop by a Bucherer store to buy a Rolex? Come on. Ask yourself why would Rolex build a factory to increase production and acquirer a retailer only to keep supply restricted? That makes no sense.
Perhaps if they loose their Rolex agreement a load of small town independent ADs won't be viable, then a certain Geneva based company with billions in the bank will then cherry pick the ones they want for Bucherer, probably the ones with bigger square footage to act as destination store to give the customers more of a immersive experience, along the lines of the Mercedes-Benz World site in the UK, and the new WoS 3 storey high Rolex flagship store in the UK. Or another strategy would be to make a move on FTSE 250 listed WoS Group who has 150 stores in the UK, 47 in the US and only 6 in Europe. Bucherer has only 6 store in the UK - all in London, 36 in total in Europe and 32 in the US. So the two would compliment each other, the Swiss authorities wouldn't care about WoS and the British authorities (because WoS is a British company) wouldn't care about Bucherer.
My opinion is the same as Rolex strategy is to eventually owned their own boutique stores much like AP. Question is whether such stores will be allowed to sell other brands not own by Rolex and my opinion is no hence, this will also leave their competitors in huge dilemma and swing the market even more towards Rolex and Tudor brands
Factory is not entirely for production increase. If you read their statement it’s also a lot to do with marketing, admin and service. I actually think the opposite, this move will tighten supply. Why would rolex flood the market and damage their brand. This past 3 years have put the rolex persona on level never seen in their history. Also part of why people buy a rolex (admit it not) that it’s got great retention/investment value. Kill that part and I’m sure their watches will not be half as desirable. Also one of the main reasons why someone would buy something like the DSC is exactly because 99% of people won’t be able to get it at retail…
@@SK-ej5lg So Rolex is acquiring a retailer to NOT increase supply? Genius. (They are going to keep their ADs by the way.) Rolex will increase supply because people can't get their watches, so they end up going down the Omega or Cartier path. I assume Rolex does not like losing market share (a/k/a revenue) because of this--in part due to ADs' behavior. I hate to break it to you but most people do not nerd out on watches. (Most people actually just want their Apple Watch.) Furthermore, there is more to the watch world than just the secondary market and "value retention/investment potential". Most people just want a nice watch that they can actually buy, wear, and pass down. Rolex has been widely regarded throughout their entire history as the best in the business in this regard. Thus, Rolex has always been, and will always be, desirable. They are solid, well built watches that can be passed down, which is what mot people care about. Oh, and they have always had great value retention, even excluding the "past 3 years".
Bucherer AD was the only place were I ever was able to buy a Rolex watch. If this makes more difficult for flippers than I am all for it. Wondering if something like this would pass the competition watchdogs
Yeah so I would think controlling distribution would help rolex get watches into the hands of consumers instead of the grey market. I'm no business type so I don't know if that would be or should be a goal, but I am a watch fan and if it's my business, I want my watches into the hands of fans instead of the grey market. And regarding competition, I could see that angle but there are so many watch dealers I don't think it would be considered an issue.
Rolex doesn’t want to make it easier to buy a watch. They want to make it harder and more expensive - this feeds the exclusivity and pretentiousness of the market they serve. And it allows them to make more money without having to actually make and sell more watches. Quite a scheme that they have mastered! I hope that as manufacturing technology gets better and cheaper the Chinese can make better knockoffs and flood the market with Rolex’s that are indistinguishable from the genuine item. Then maybe they will be sold for reasonable prices instead of inflated sums based on artificial scarcity.
I bought both my Rolexes from Bucherer. Have nothing but good things to say about them. Rolex has every right to control the distribution and increase its revenue by cutting off the middleman. In a long run would be better for consumers. Also would be bad for the flippers I hope. And lastly the consumers might finally look at other fantastic brands for their purchases.
Rolex can’t afford to completely cut off its extensive AD network. The Rolex AD network developed over decades is far deeper and more numerous then Bucherer.
Ho hum. I have the two Rolex’s I ever wanted - both retail , one at a Rolex boutique and the other at an authorised dealer. Fortunately I bought both before the days of flippers and the insane and inflationary secondary market. The concept of having to buy numerous watches (that you probably don’t even want) just to curry enough favour with a dealer to buy the one you really desire repulses me and I would never participate in such extortion. I wonder if it is even legal. I’m never going to groom a relationship with a shop just so they can make even more money out of me. The idea of watches as legitimate investments is a nonsense and probably most often practiced by people trying to hide ill gotten gains and/or tax.
The mic placement, and your facial expression in the thumbnails 😂 I always love watching your videos. Your channel is very informative, and down to earth. It shows how honest you are!
Rolex is vertically integrating. Eventually the only authorized dealers will be those owned by Rolex. It doesn't mean much to real customers, but it does mean that the AD-to-gray market pipeline will close. Don't really agree with your take at all on prices or the gray market.
Agree with you. If anything, by shutting down the gray market ADs, people may have more chance of getting a watch at MSRP. In theory, with better margins, Rolex can afford to keep prices steady for future v/s other manufacturer.
The UK has 4 Bucherer stores, all in London. There is a much bigger network of nationwide ADs so unless they buy WoS etc as well or open more Bucherer/boutique stores and starve the ADs, this news will have very little impact here.
From an economic standpoint, the notion that vertical integration is "never good for the consumer" is untrue. Think about it like that: instead of Rolex charging a premium to bucherer and bucherer charging a premium to the consumer, you now directly buy from Rolex as a consumer. Although there is still a premium, there is no longer a double markup which can mean lower prices.
Other watch brands are probably not thrilled. Rolex now owns the largest retailer who for many brands is probably an important relationship. Now a competitor owns it.
Good point, do you think other brands phase Bucherer out of their distribution network because a sale there only makes the big guy bigger? Really shakes things up.
@@stupidocanerosaWatches of Switzerland trying hard. Plenty of indies too. I don't worry too much about the health of the overall market with this move. I wonder if it forces Rolex ADs to open up a bit too in terms of who they sell to?
@@mackledee Rolex is already astronomically bigger than most other brands though so if your a brand like say Breguet, Blancpain, or Glashutte Original, which are all available at the Bucherer flagship store in NY, I'd guess you don't even care if Rolex gets bigger as thats not a brand those other brands are eying to pass, they are probably more concerned about passing their piers, like say JLC for example. Omega and Cartier, and maybe AP and Patek, are really the only brands that are close enough where they might concern themselves with Rolex getting too big.
I was going to say, I think it depends on the industry. In the car market, the majority of dealers are marking up high sought after cars well past MSRP pissing off consumers. I think as long as the availability and retail price is reasonable and not monopolized, then I'm for it.
I hope my local AD loses Rolex. They are BEYOND ANY DOUBT EXCLUSIVELY selling Rolex' to flippers. I have spent a pretty penny in there. NO! Not even a 31mm ladies model. I warned them about someone selling a brand new GMT for 60% above retail. They told me they know, but that guy a had some money problems so they wanted to help out. I checked him up on the forums. The only problem he had was that he made TOO MUCH MONEY off of brand new Rolex watches being thrown his way. SO LET THE FRIGGIN AD'S BURN!!!
Rolex operates in probably one of the only industries where soup to nuts integration makes sense, with margin control all the way through. Nice job, Rolex
I really don’t understand by which logic this move will lead to higher retail prices, please explain. I think is that this has the potential to stop the AD selling directly to the Grey Market Dealers / Flippers and splitting the profits difference between themselves. This should be excellent for Joe Public as the full stickers will disappear from the Grey Market Dealers given these will be sold directly to Joe Public.
His theory is: Since Rolex can control distribution they control the direct price without any AD competition. He argues that certain ADs can't give discounts on them once/if Rolex has full control of distribution. Rolex would have full monopoly of selling their watches and can price whatever they want and people have no choice. The counter-argument, Federico doesn't seem exposed to the reality that such discounts on Rolex never happens and "building a relationship with an AD" is something we all hate not love like he thinks. I also feel a full monopoly at this point is impossible Federico might be thinking decades ahead. Rolex would still need to distribute to ADs to get their watches in places their Bucherer stores can't reach for now.
Perhaps I am dumb but when you have product with limited supply why not just build up your own Rolex AD's? It is like Apple buying a computer store when they can just open their own. I assume they bought the know how of how to setup a retail chain and they will roll it out world wide eventually cutting out all the AD's.
Can someone confirm this: "As of 2022 there are 1816 Rolex authorized retailers around the world.". Do you think that buying out one chain with 100+ locations (around 7%) marks the beginning of the end of how Rolex had been doing business for the last maybe 100 years. It would be more than 7% in sales but still...
Hi Federico, I don’t agree. I don’t think this will drive up retail prices. I think this can be seen as a move to change the chaos around AD sales which are often vague and they get an chance to cut out the middle man in the process. So more clarity by attacking the grey market, not necessary more availability though, and eventually better service because of more influence on the customer journey. This will be good for customers. Don’t you agree?
If this turns out to mean you can go to a Bucherer store, get on a REAL list with a downpayment, and bypass the AD who sells all the watches to the same few people over and over, that would be a giant win for the Rolex brand and customer experience. I've been willing to pay more for a Rolex watch, but I'm not knowledgeable enough to buy from a grey dealer and know what I'm getting. Three years and four ADs, and still no watch. Maybe Rolex will change the "game" with this Retail Store chain......
Forget about all this BS!!! Rolex shortage, Rolex Flippers, Rolex AD’s waiting list, If you want any new, box and papers Rolex Pepsi, Panda, Sprite etc etc. fly to Japan and in any jewelry stores you will find them as candy!!!
I was just in LV and visited the new Bucherer store at Caesars Palace, formerly Tourneau. I was interested to see that they had lost the Patek relationship.
The only thing I don’t like about this is Bucherer is also selling used watches online. I hope Rolex won’t start putting their in demand models on there as “used” even though they are new just to get inflated prices. I would see more honesty in just increasing the list prices at that point and shutdown the secondary market site.
Rolex production output will go up. Margins will go through the roof. Waitlist time will go down. Prices will stay more stable for longer periods of time before they increase the price again..
Harsh, and stupid to assume. Perhaps a more reasoned person would think "Rolex make over 1 million watches per year, maybe they should improve the consumer image of the brand rather than by falsifying waiting times for a watch". Just saying, but you have a nice evening.@@nomansland120
If they owned every AD, all back door sales to the gray market would make Rolex available again. I don’t believe in the shortage as the gray market has tons of watches.
i wonder what the antitrust regulations are like over there. im a competition economist and working on this merger would be awesome. a lot of interesting foreclosure issues and efficiencies to consider!
From an antitrust perspective, this is a little bit like Apple buying Best Buy. Never mind the Rolex consumer, what about all the other watch brands that Bucherer carries?
4 locations in the UK, all in London, so if your like me and live up north, you're screwed. AP did the same thing when they went boutique only, 3 locations, all in London.
Lmao! Rolex never ceases to find new ways to crap on its customers and those customers keep finding new ways to lap it up and bark like seals. This is pretty awesome, lol.
I suspect Rolex did this because their certified pre-owned program didn't gain any traction. Since this may be anti-consumer, US and EU regulators may look closely at this kind of vertical monopoly.
I wonder if Rolex will use any of the movements Carl f Bucherer has in their inventory. This now gives them access to complications like flyback chronographs and tourbillions. Really gives them the ability to increase the complications of their own watches without much effort
interesting, I haven't heard anyone else discussing the idea that Rolex now owns another watch brand, well, besides Tudor. I wonder if CFB is a part of the retail deal or was kept separate. .
From what I’ve read so far they only refer to the “retailer” side and nothing from the watch making side. I doubt Rolex is interested in those movements or anything from the watchmaking side.
I wondered about the manufacturing side of things as well, I looked it up after the news broke, they only make about 25k units a year, but I thought another strategy for Rolex was they are get another factory quickly on stream ready for expansion, but it's tiny... remember 25k units... I would assume that they are taking over the manufacturing side because if the current owner doesn't have heirs to leave the retail side to, who's he going to leave the manufacturing to? plus in terms of volume they are so small they could die off and I don't think both those parties will be happy if LMVH or Richemont made a move in the future and scooped up the brand. But if they do keep the brand going this does give Rolex the chance of getting into high horology... interesting times...
When Rolex drew up the blue print for this acquisition the last thing on there mind was the end consumer, there watches are so sought after all they have to do is make them because they sell themselves they just want 100% control.
Rolex should have bought Bucherer, (watch WOS stock plummet), press release considering pulling relationship from WOS (stock now in freefall) and THEN.... buy Watches of Switzerland for $.05 on the dollar. Thats the move:)
Econ theory suggests that vertical integration reduces margins and increases consumer welfare. This result hold even with monopoly pricing. So I expect good things to happen.
I believe that other brands will begin to phase out Bucherer as a retailer. They may come together and open their own distributor, or may back up a smaller player and build them up.
One way to increase prices is to control supply and if Rolex chose to limit supply to less outlets then prices will inevitably increase but given the new Rolex factory is going to increase supply in a few years, Rolex has this planned ahead to ensure their supply will be channeled to their own outlets in order to control prices. I can see Rolex will continue to acquire more stores in the near future to cover the globe’s demand and this does not augur well for the competitors if Rolex choose to dumb other brands in these stores
Prices will be higher from Rolex most likely but the ADs will have to charge even higher for some margin. But if supply is enough people will just ignore ADs lol
Seems like Rolex and other brands were already moving into the direct to consumer direction anyway by opening boutiques over the past couple decades. Not to mention being able to purchase from the website which I know Omega offers. I agree with you that it's likely not great news for customers which is part of the brilliance of Rolex, being able to make decisions counter to the end customer's buying experience and satisfaction, and getting away with it! We'll see how it turns out in time. Great video as always!
Good points - we’ll see if this “piss in the face of the consumer” continues to work out for Rolex. As for me - I wouldn’t be caught dead wearing Rolex because I hate how they treat consumers - especially doing everything they can to limit assess to products and artificially drive up prices.
Exactly. Controlling distribution will only allow a better control of who gets the goods thus supplies to Grey Market Dealers may dry out in favour of Joe Public…
I think with Rolex taking full control of the retail side of things the AD sales to Grey Market Dealers will dry out and should be replaced by sales directly to Joe Public hence I believe that more will be available to buy rather than less.
This is definitely a good take. The ADs also located where Bucherer/Tourneau locations are at right now should definitely be worried near term. The only problem in the U.S. is Bucherer has no presence to 39% of the population in the 30 biggest metro areas, including 2 of the top 5 (including the one I'm in). I'm sure eventually they'll build out in some of those locations, but that will take some time for sure. They obviously have the money to do so. The funny thing is they just authorized Watches of Switzerland to carry their CPO watches in the last few months, and now they'll be competing with them. Crazy stuff!
"That mom & pop won't be able to give you a deal on that Submariner" may be the most unironically hilarious thing I've heard in at least six months. Apparently Federico thinks its 2003.
Yet to see how this will affect watch prices. This move is all about extending market control, and thus market share. The missing part of the price equation is supply on Rolex's side. I thought I heard they were heavily investing in new manufacturing capacity? Interesting times ahead, wait & see.
Bad for Watches of Switzerland. Couldn’t happen to nicer guys. They would’ve loved to eat Bucherer to further screw consumers. Remains to be seen this translates into boutiques that sell to normal consumers. The CPO farce wasn’t consumer friendly, that’s for sure.
Great video, and love the honest take. I don’t quite follow however, the logic “why this will drive prices up”. Rolex have cut out the middle man in much of their distribution which increases their profits, they’re also increasing supply. Why should this lead to prices rising beyond natural year on year increases ? Maybe I’m being naive / missing something. I also think, by controlling distribution, they control some of the stories of the most highly sought after watches being sold by some ADs to the grey market. I’m not saying this was done by Bucherrer, but bringing Rolex closer to their genuine end customers who aren’t flipping should be a good thing, right? I agree what is a pity though, is if other genuine ADs, that people (incl myself) have built relationships with no longer get supplied by Rolex, as they’re incentivised to supply their own stores. In particular for the more high demand watches. This would be a real pity and impact to these end consumers (incl myself). Do we now need to reestablish new relationships with Bucherer ?
Rolex will become directly accountable for the way they sell their products which is great. They should also boost their profits by the retailer margins, which is a fabulous move. I mean why give these profits to others if you can keep these in house ? 35% is not really negligible. Again by which logic there will be less watches to sell and therefore by which logic their prices will increase ? This could be true if Rolex decided to reduce their production but it seems they are building some manufacturing facilities to produce more. Now, yes, I expect prices to increase with inflation…
Don't simple economics say less middlemen less markup? It's not all about relationship with ADs right? It's a matter of skew AD policies in the first place. Now Rolex will own responsibility for any stock display manipulation. I don't see this to transpire massive or direct retail increase Federico, unless you know Rolex is the devil.
Your opinion assumes demand always matching or exceding the supply... alot of ppl that bought watches the past 3 years won't be able in the near future.
Well articulated Fed. I played the AD game once - maybe I was played - but after ancillary purchases (all warranted) - I got my Datejust. There’s no new Rolex I desire nor realistically think I’ll obtain (no celebrity status, pockets not deep) and those I do like are in supply pre-owned. So, nothing changes for this fella. And plenty of compelling independents and micro are surely capturing my interest.
IMO, this won't make much a difference for us common folk. Honestly, just means another Brick and Mortar AD that will be filled with "exhibition only" watches. There will still be waitlists, AD games, etc...Only way things will change if Rolex ups their supply and output. We shall see.
Indeed but they’ve just taken on a lot more cost - buildings to pay for , staff to pay for , training recruitment costs , energy costs and so on . As for WOS - what a shame the stock took a dip - hate the way WOS trade
How will the other manufacturers will respond to this? For example IWC and Chopard. They are sold at Bucherer....but they might dislike the idea of a portion of their sales going to support Rolex. But if they don't like it, they have a problem trying to find new locations to replace the god-knows-how- many Bucherer locations they use right now.
The move didn't come form Rolex, it came from Jörg Gerold Bucherer. He is 87 years old and he has no heirs he can hand the business over to. So it was always a matter of time until he would sell the business to someone he could trust would protect the name and continue the business well. There is a long, close relationship between Bucherer and Rolex. If I was him I would have also sold it to Rolex. And Rolex kinda had to buy it in order to prevent future profit margins (Bucherers biggest profit IS from Rolex watches) going to the competition - namely LMVH or Richemont (there are only a handful of groups/people who can handle such a large business). It's a no brainer!
This is CRITICAL information - thank you
Interesting! Thanks
Still doesn’t make me move from OMEGA to buy one. With the way they have treated just average joe,disgusting behaviour
Ah, Rolex was just doing him a favor then 😂
@@carlosned2564OMEGA is crap anyway 😂
Considering the slimeball experience of dealing with Rolex ADs, I cannot see how it is going to be worse for the consumer. As far as "building a relationship with an AD", seriously, f# that. I bring money, they provide goods. The end. And in what universe did a "mom and pop" Rolex AD gave you a deal on a submariner because they needed a sale? Fed, did you have any suspicious mushroom with your omelette?
I'd rather not have to build a relationship with an AD. Building a relationship means I have to spend thousands of dollars on items I don't really want just to get a decent chance to buy the item I actually do want.
Build a relationship with a particular sales associate AT the AD. Totally different. To the broader AD, you're a number on a screen. To a knowledgeable sales associate, you're a passionate watch collector. I've bought 3 steel sport watches from 2 different AD's in my city in the past 2 years. I can talk watches for hours, so I clearly I'm an actual watch guy. Find the person in the AD who is the most passionate about watches (if they exist, they are tough to find, most are just sales people), then strike up a conversation.
Such an SA unfortunately doesn't exist in a less-developed country like mine, most likely due to the SA's income level that's probably closer to the price of a Tissot than a Sub, and thats before taking food and groceries into account.
Kinda hard to be passionate about something so out of reach really.
love the Breguet
You beat me to the punch...I totally agree, this Breguet is classic and handsome.
I expect retail availability to improve and Grey market availability to decline. You could see things like SS Daytonas increase in price while more common models like the sub fall to levels in line with msrp.
This could only mean one thing, more Rolex stores where you cannot buy a Rolex.
If you got a girlie wrist you could always buy a ladies Rolex 😂
@@jfdomega7938 I have a 7 inch wrist so you can have all the ladies watch for yourself lol
Makes me even more pleased being in the Breitling camp. Breitling just sells you the watch without letting you jump through hoops
Not to mention you easily can get 15-20% off MSRP
Yes. The downside? After purchase, you’re wearing a Breitling. Ouch!
Of course they just sell you the watch when you lose 50% of your money instantly.
@@giorgios7785
I am buying a gadget. If I want to do investing it won’t be in things I put in my wrist.
@@akincomer Sir, may I ask how I can get 15-20% off from MSRP? Can I just shamelessly ask the salesperson at Breitling boutique, or AD? The reason why I’m asking is that I would actually buy if I can get 15-20% off from an AD (not grey market). I’d much appreciate if you could tell me how to get that much discount.
I appreciate Frederico. His first take is on how it affects the consumer not how it affects ADs or the gray market. In addition, he took time to make content and not rush it. Well thought out. Awesome content as usual.
oh please
He took time to “make content” because he gets paid off of making content.
@@petrolo72 no its a charity !
@@summerforever6736 yes you’re right, and the money he makes from his watches is donated to the saving of lab rats for make up testing
@@petrolo72 also he hardly said anything in the video..
4:13 lol I had to check if that notification was mine
Since Bucherer AG owns Tourneau, you can add those 30 or so locations to the list.
Perhaps a Bucherer Rolex waiting list will be faithful and trustworthy for anyone who is willing to wait.
Mom and Pop shops did not let you buy a Submariner (or any model really). To buy a Sub you would have to first either buy some jewelry or a watch from another brand. I think Rolex does not like their ADs making customers buy from Omega or Grand Seiko first before they have to wait a year or two to buy a Sub. A few of my colleagues couldn't buy a Rolex, so they bought Omega and have not turned back.
I think this will make it easier to buy Rolex watches; supply will not be tightening, especially since they are increasing production. And Rolex will keep their ADs. Is the whole world is supposed to only shop at 100 stores? Are people in the mid-west and south supposed to travel to New York, Miami, Chicago or LA just to stop by a Bucherer store to buy a Rolex? Come on. Ask yourself why would Rolex build a factory to increase production and acquirer a retailer only to keep supply restricted? That makes no sense.
Perhaps if they loose their Rolex agreement a load of small town independent ADs won't be viable, then a certain Geneva based company with billions in the bank will then cherry pick the ones they want for Bucherer, probably the ones with bigger square footage to act as destination store to give the customers more of a immersive experience, along the lines of the Mercedes-Benz World site in the UK, and the new WoS 3 storey high Rolex flagship store in the UK.
Or another strategy would be to make a move on FTSE 250 listed WoS Group who has 150 stores in the UK, 47 in the US and only 6 in Europe. Bucherer has only 6 store in the UK - all in London, 36 in total in Europe and 32 in the US. So the two would compliment each other, the Swiss authorities wouldn't care about WoS and the British authorities (because WoS is a British company) wouldn't care about Bucherer.
My opinion is the same as Rolex strategy is to eventually owned their own boutique stores much like AP. Question is whether such stores will be allowed to sell other brands not own by Rolex and my opinion is no hence, this will also leave their competitors in huge dilemma and swing the market even more towards Rolex and Tudor brands
Factory is not entirely for production increase. If you read their statement it’s also a lot to do with marketing, admin and service. I actually think the opposite, this move will tighten supply. Why would rolex flood the market and damage their brand. This past 3 years have put the rolex persona on level never seen in their history. Also part of why people buy a rolex (admit it not) that it’s got great retention/investment value. Kill that part and I’m sure their watches will not be half as desirable. Also one of the main reasons why someone would buy something like the DSC is exactly because 99% of people won’t be able to get it at retail…
@@SK-ej5lg So Rolex is acquiring a retailer to NOT increase supply? Genius. (They are going to keep their ADs by the way.)
Rolex will increase supply because people can't get their watches, so they end up going down the Omega or Cartier path. I assume Rolex does not like losing market share (a/k/a revenue) because of this--in part due to ADs' behavior.
I hate to break it to you but most people do not nerd out on watches. (Most people actually just want their Apple Watch.) Furthermore, there is more to the watch world than just the secondary market and "value retention/investment potential". Most people just want a nice watch that they can actually buy, wear, and pass down. Rolex has been widely regarded throughout their entire history as the best in the business in this regard. Thus, Rolex has always been, and will always be, desirable. They are solid, well built watches that can be passed down, which is what mot people care about. Oh, and they have always had great value retention, even excluding the "past 3 years".
@@kilbourn you say ‘most people’, is that your own opinion?
What does this mean to the serious Invicta collector?
Prices going up. Sorry fam 😅
They will have to build up a new spend history with the a new AD, spending 10's of bucks buying cubic zirconia 9kt gold plated jewellery 😂
Bucherer AD was the only place were I ever was able to buy a Rolex watch. If this makes more difficult for flippers than I am all for it. Wondering if something like this would pass the competition watchdogs
Yeah so I would think controlling distribution would help rolex get watches into the hands of consumers instead of the grey market. I'm no business type so I don't know if that would be or should be a goal, but I am a watch fan and if it's my business, I want my watches into the hands of fans instead of the grey market. And regarding competition, I could see that angle but there are so many watch dealers I don't think it would be considered an issue.
It’s a watch brand. There aren’t cornering the watch market. Why would a regulator care?
Me as well, Bucherer sold me Rolex watches with no games or BS.
@@mr.l3785 I was only ever able to buy one in like 2019 since than no chance
Rolex doesn’t want to make it easier to buy a watch. They want to make it harder and more expensive - this feeds the exclusivity and pretentiousness of the market they serve. And it allows them to make more money without having to actually make and sell more watches. Quite a scheme that they have mastered! I hope that as manufacturing technology gets better and cheaper the Chinese can make better knockoffs and flood the market with Rolex’s that are indistinguishable from the genuine item. Then maybe they will be sold for reasonable prices instead of inflated sums based on artificial scarcity.
I bought both my Rolexes from Bucherer. Have nothing but good things to say about them. Rolex has every right to control the distribution and increase its revenue by cutting off the middleman. In a long run would be better for consumers. Also would be bad for the flippers I hope. And lastly the consumers might finally look at other fantastic brands for their purchases.
Rolex can’t afford to completely cut off its extensive AD network. The Rolex AD network developed over decades is far deeper and more numerous then Bucherer.
Agree about flippers, no back door sales from Bucherer.
Maybe normal market mechanics don't work the same with Rolex but more consumer choice/competing shops = better price generally.
Ho hum. I have the two Rolex’s I ever wanted - both retail , one at a Rolex boutique and the other at an authorised dealer. Fortunately I bought both before the days of flippers and the insane and inflationary secondary market. The concept of having to buy numerous watches (that you probably don’t even want) just to curry enough favour with a dealer to buy the one you really desire repulses me and I would never participate in such extortion. I wonder if it is even legal. I’m never going to groom a relationship with a shop just so they can make even more money out of me. The idea of watches as legitimate investments is a nonsense and probably most often practiced by people trying to hide ill gotten gains and/or tax.
The mic placement, and your facial expression in the thumbnails 😂 I always love watching your videos. Your channel is very informative, and down to earth. It shows how honest you are!
Rolex is vertically integrating. Eventually the only authorized dealers will be those owned by Rolex. It doesn't mean much to real customers, but it does mean that the AD-to-gray market pipeline will close. Don't really agree with your take at all on prices or the gray market.
exactly. well said.
Agree with you. If anything, by shutting down the gray market ADs, people may have more chance of getting a watch at MSRP. In theory, with better margins, Rolex can afford to keep prices steady for future v/s other manufacturer.
The UK has 4 Bucherer stores, all in London. There is a much bigger network of nationwide ADs so unless they buy WoS etc as well or open more Bucherer/boutique stores and starve the ADs, this news will have very little impact here.
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…
From an economic standpoint, the notion that vertical integration is "never good for the consumer" is untrue. Think about it like that: instead of Rolex charging a premium to bucherer and bucherer charging a premium to the consumer, you now directly buy from Rolex as a consumer. Although there is still a premium, there is no longer a double markup which can mean lower prices.
How sweet, you are so naive if you think that. It just means more money for Rolex.
Actually Fed if you’re going to dinner, out in the water in Miami you need more of a douche bag watch for that. Maybe a solid gold SkyDweller. 😂😂
I would take the Breguet Marine you are wearing Fed over a Rolex at the same price. Beautiful Watch 👌
It's all good homey, until you try to sell it 😂😂😂
@@Guitars-Watches If I had one it wouldn’t be getting sold so no worries there! 😎
Other watch brands are probably not thrilled. Rolex now owns the largest retailer who for many brands is probably an important relationship. Now a competitor owns it.
Good point, do you think other brands phase Bucherer out of their distribution network because a sale there only makes the big guy bigger? Really shakes things up.
I do believe that sooner or later another multibrand retailer will rise and take the place of Bucherer..
@@stupidocanerosaWatches of Switzerland trying hard. Plenty of indies too. I don't worry too much about the health of the overall market with this move. I wonder if it forces Rolex ADs to open up a bit too in terms of who they sell to?
@@mackledee The last one could be an option too. An AD with a safe full of Rolex would be more keen to sell them quickly before it gets harder...
@@mackledee Rolex is already astronomically bigger than most other brands though so if your a brand like say Breguet, Blancpain, or Glashutte Original, which are all available at the Bucherer flagship store in NY, I'd guess you don't even care if Rolex gets bigger as thats not a brand those other brands are eying to pass, they are probably more concerned about passing their piers, like say JLC for example. Omega and Cartier, and maybe AP and Patek, are really the only brands that are close enough where they might concern themselves with Rolex getting too big.
I was going to say, I think it depends on the industry. In the car market, the majority of dealers are marking up high sought after cars well past MSRP pissing off consumers. I think as long as the availability and retail price is reasonable and not monopolized, then I'm for it.
I hope my local AD loses Rolex. They are BEYOND ANY DOUBT EXCLUSIVELY selling Rolex' to flippers. I have spent a pretty penny in there. NO! Not even a 31mm ladies model. I warned them about someone selling a brand new GMT for 60% above retail. They told me they know, but that guy a had some money problems so they wanted to help out. I checked him up on the forums. The only problem he had was that he made TOO MUCH MONEY off of brand new Rolex watches being thrown his way. SO LET THE FRIGGIN AD'S BURN!!!
7:05 - what Mom and Pop stores were giving anyone a discount on Rolex do you know?!?
Especially when they "need a sale and LET you buy a Submariner..."🤣
The thumbnail is hilarious. First I read Huge and then I saw the microphone in a commanding position at the correct angle. Go Fed
I wonder what happens to bucherer watches.
Maybe it becomes like a Rolex sub-brand kind of like Tudor?
Rekt
Rolex operates in probably one of the only industries where soup to nuts integration makes sense, with margin control all the way through. Nice job, Rolex
Remember oil companies like Exxon have a fully integrated supply chain all the way through to the gas you pump.
So now rolex will own the empty display cases themselves?
😂😂😂😂
I really don’t understand by which logic this move will lead to higher retail prices, please explain.
I think is that this has the potential to stop the AD selling directly to the Grey Market Dealers / Flippers and splitting the profits difference between themselves. This should be excellent for Joe Public as the full stickers will disappear from the Grey Market Dealers given these will be sold directly to Joe Public.
His theory is: Since Rolex can control distribution they control the direct price without any AD competition. He argues that certain ADs can't give discounts on them once/if Rolex has full control of distribution. Rolex would have full monopoly of selling their watches and can price whatever they want and people have no choice.
The counter-argument, Federico doesn't seem exposed to the reality that such discounts on Rolex never happens and "building a relationship with an AD" is something we all hate not love like he thinks. I also feel a full monopoly at this point is impossible Federico might be thinking decades ahead. Rolex would still need to distribute to ADs to get their watches in places their Bucherer stores can't reach for now.
The Patravi is definitelt replacing the Sub.
cool, it's a much more interesting watch.
Wonder if that cool Bucherer peripheral rotor movement will eventually make its way into Rolex watches?
Christopher Ward been doing this for years and they've been successful. What's the difference in case of Rolex?
Perhaps I am dumb but when you have product with limited supply why not just build up your own Rolex AD's? It is like Apple buying a computer store when they can just open their own.
I assume they bought the know how of how to setup a retail chain and they will roll it out world wide eventually cutting out all the AD's.
Can someone confirm this: "As of 2022 there are 1816 Rolex authorized retailers around the world.".
Do you think that buying out one chain with 100+ locations (around 7%) marks the beginning of the end of how Rolex had been doing business for the last maybe 100 years. It would be more than 7% in sales but still...
Hopefully it means Rolex pricing goes back to MSRP. 15,000 for a submariner is ridiculous.
I actually went to my local ad. I don’t like submariners but he said there’s a 8 year waitlist. Small ad
@@LiquidSm0keI’ll be ded by then lol
@@-_-_-_-_-_-_-_-_-_-_-_-... lol me and the manger literally chuckled at each other
@@LiquidSm0keLOL an 8-year waitlist for a Sub.
@@eyeheartsushi2212 I couldn’t believe it. I only waited a few months for my explorer 2
Hi Federico, I don’t agree. I don’t think this will drive up retail prices. I think this can be seen as a move to change the chaos around AD sales which are often vague and they get an chance to cut out the middle man in the process.
So more clarity by attacking the grey market, not necessary more availability though, and eventually better service because of more influence on the customer journey.
This will be good for customers. Don’t you agree?
If this turns out to mean you can go to a Bucherer store, get on a REAL list with a downpayment, and bypass the AD who sells all the watches to the same few people over and over, that would be a giant win for the Rolex brand and customer experience. I've been willing to pay more for a Rolex watch, but I'm not knowledgeable enough to buy from a grey dealer and know what I'm getting. Three years and four ADs, and still no watch. Maybe Rolex will change the "game" with this Retail Store chain......
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…
Forget about all this BS!!! Rolex shortage, Rolex Flippers, Rolex AD’s waiting list, If you want any new, box and papers Rolex Pepsi, Panda, Sprite etc etc. fly to Japan and in any jewelry stores you will find them as candy!!!
Same in China and Macau
yup at prices above retail you forgot to add
@@rhoelg as a Rolex Flipper as in this video is obvious don’t you think?
I was just in LV and visited the new Bucherer store at Caesars Palace, formerly Tourneau. I was interested to see that they had lost the Patek relationship.
AD's wouldn't sell me a watch before and their new distribution most won't likely sell me a watch in the future.... Omega anybody!!
Good point about Rolex can no longer distance themselves from being complicit in waiting lists (specifically at Bucherer ADs).
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…
It's a natural progression of business. Make profit along the supply chain. This said it speaks volumes about the company.
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…………
The only thing I don’t like about this is Bucherer is also selling used watches online. I hope Rolex won’t start putting their in demand models on there as “used” even though they are new just to get inflated prices. I would see more honesty in just increasing the list prices at that point and shutdown the secondary market site.
Rolex production output will go up. Margins will go through the roof. Waitlist time
will go down. Prices will stay more stable for longer periods of time before they increase the price again..
5:34 What’s the difference between Pre-Owned vs . Grey Market dealers?
Used Vs unworn.
Let’s crush the ADs!!!!
Rolex do not care about customers; if they did, then would not have waiting lists and would actually sell watches to customers.
You understand nothing about supply and demand do you?
Harsh, and stupid to assume. Perhaps a more reasoned person would think "Rolex make over 1 million watches per year, maybe they should improve the consumer image of the brand rather than by falsifying waiting times for a watch". Just saying, but you have a nice evening.@@nomansland120
Fantastic news! Even more stores we can't buy a Rolex from
Soooo thru! Build factories instead of acquiring dealers that don’t have watch to sell! Dumb move!
Rolex is building a new factory to increase production.
Will this make it harder for flippers?
It should be.
So you’re telling me in the future I’m not gonna be able to just walk in and buy a Rolex at my local AD?!?😮😂
If they owned every AD, all back door sales to the gray market would make Rolex available again. I don’t believe in the shortage as the gray market has tons of watches.
I bought three Rolex's from Bucherer all recently so I'm happy about the news. If Rolex sells only thru its stores fine with me.
i wonder what the antitrust regulations are like over there. im a competition economist and working on this merger would be awesome. a lot of interesting foreclosure issues and efficiencies to consider!
From an antitrust perspective, this is a little bit like Apple buying Best Buy. Never mind the Rolex consumer, what about all the other watch brands that Bucherer carries?
4 locations in the UK, all in London, so if your like me and live up north, you're screwed. AP did the same thing when they went boutique only, 3 locations, all in London.
Lmao! Rolex never ceases to find new ways to crap on its customers and those customers keep finding new ways to lap it up and bark like seals. This is pretty awesome, lol.
I suspect Rolex did this because their certified pre-owned program didn't gain any traction. Since this may be anti-consumer, US and EU regulators may look closely at this kind of vertical monopoly.
An OEM selling their product direct isn’t monopoly, bud. Happens literally all the time.
I wonder if Rolex will use any of the movements Carl f Bucherer has in their inventory. This now gives them access to complications like flyback chronographs and tourbillions. Really gives them the ability to increase the complications of their own watches without much effort
interesting, I haven't heard anyone else discussing the idea that Rolex now owns another watch brand, well, besides Tudor. I wonder if CFB is a part of the retail deal or was kept separate. .
From what I’ve read so far they only refer to the “retailer” side and nothing from the watch making side. I doubt Rolex is interested in those movements or anything from the watchmaking side.
@@SlickRick135 Separate Watch Divisions all under the same (oyster) shell.....🤪
I wondered about the manufacturing side of things as well, I looked it up after the news broke, they only make about 25k units a year, but I thought another strategy for Rolex was they are get another factory quickly on stream ready for expansion, but it's tiny... remember 25k units... I would assume that they are taking over the manufacturing side because if the current owner doesn't have heirs to leave the retail side to, who's he going to leave the manufacturing to? plus in terms of volume they are so small they could die off and I don't think both those parties will be happy if LMVH or Richemont made a move in the future and scooped up the brand. But if they do keep the brand going this does give Rolex the chance of getting into high horology... interesting times...
I wonder if this will cause some of the other brands Bucherer sells to drop their AD status.
The question I have is will the other watch brands want to sell through a Rolex subsidiary?
When Rolex drew up the blue print for this acquisition the last thing on there mind was the end consumer, there watches are so sought after all they have to do is make them because they sell themselves they just want 100% control.
Rolex should have bought Bucherer, (watch WOS stock plummet), press release considering pulling relationship from WOS (stock now in freefall) and THEN.... buy Watches of Switzerland for $.05 on the dollar. Thats the move:)
That's also completely illegal as it's market manipulation in the finest, using initiate information. Go to jail don't get $$$
@@Andromahlius if it's done publicly it is not illegal. Just like Musk making tweets about crypto and then buying or selling.
I wondered on if they will make a move on WoS, there is good synergy with Bucherer, regarding the spread of doors.
Will they still be keeping and making the C F bucherer watches love some of their watches.
Now Rolex have bought a lot more windows to put there "Display Only" watches in!!
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎
Yes well, Tudor Omega Grand Seiko etc etc for me
This does not end the grey market. Bucheur only operate in a few select countries. Grey marlet can simply buy from countries where they dont operate
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…
The only opinion I care about tbh👍🏼I haven’t even heard it yet just wanted to start out with some love
Econ theory suggests that vertical integration reduces margins and increases consumer welfare. This result hold even with monopoly pricing. So I expect good things to happen.
I wonder what will happen to the ADs that just spent a fortune on upgrading their Rolex display sections and adding dedicated rooms.
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…………
I believe that other brands will begin to phase out Bucherer as a retailer. They may come together and open their own distributor, or may back up a smaller player and build them up.
One way to increase prices is to control supply and if Rolex chose to limit supply to less outlets then prices will inevitably increase but given the new Rolex factory is going to increase supply in a few years, Rolex has this planned ahead to ensure their supply will be channeled to their own outlets in order to control prices. I can see Rolex will continue to acquire more stores in the near future to cover the globe’s demand and this does not augur well for the competitors if Rolex choose to dumb other brands in these stores
Wonder if Omega boutiques will soon expand their inventories and start selling Blancpain, Longines, Breguet, and the rest?
But if Rolex is getting all ends of the deal shouldn’t prices go down or hold steady. They don’t have to add a margin on top of their own margin.
Prices will only start going down once all the d-bags who cream their panties over Rolex stop existing.
Prices will be higher from Rolex most likely but the ADs will have to charge even higher for some margin. But if supply is enough people will just ignore ADs lol
Seems like Rolex and other brands were already moving into the direct to consumer direction anyway by opening boutiques over the past couple decades. Not to mention being able to purchase from the website which I know Omega offers. I agree with you that it's likely not great news for customers which is part of the brilliance of Rolex, being able to make decisions counter to the end customer's buying experience and satisfaction, and getting away with it! We'll see how it turns out in time. Great video as always!
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…………
Good points - we’ll see if this “piss in the face of the consumer” continues to work out for Rolex. As for me - I wouldn’t be caught dead wearing Rolex because I hate how they treat consumers - especially doing everything they can to limit assess to products and artificially drive up prices.
Don't see how controlling distribution will automatically mean price increases. Rolex can hike prices whenever they want.
Exactly. Controlling distribution will only allow a better control of who gets the goods thus supplies to Grey Market Dealers may dry out in favour of Joe Public…
Yes one can only hope this slows down the flippers
What happens, if anything to Carl F Bucherer watches?
so, you mean they will actually control the AD's from selling to thier brother in law to put on chrono for $10k above msrp? shit, that really sucks.
As if it wasn't already difficult to walk into an AD to purchase a Rolex of your choice .......🙄
I think with Rolex taking full control of the retail side of things the AD sales to Grey Market Dealers will dry out and should be replaced by sales directly to Joe Public hence I believe that more will be available to buy rather than less.
@@patrickjean-philippe7679 Yeah, keep on "thinking" that.....!
This is definitely a good take. The ADs also located where Bucherer/Tourneau locations are at right now should definitely be worried near term. The only problem in the U.S. is Bucherer has no presence to 39% of the population in the 30 biggest metro areas, including 2 of the top 5 (including the one I'm in). I'm sure eventually they'll build out in some of those locations, but that will take some time for sure. They obviously have the money to do so. The funny thing is they just authorized Watches of Switzerland to carry their CPO watches in the last few months, and now they'll be competing with them. Crazy stuff!
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…………
"That mom & pop won't be able to give you a deal on that Submariner" may be the most unironically hilarious thing I've heard in at least six months. Apparently Federico thinks its 2003.
Yet to see how this will affect watch prices. This move is all about extending market control, and thus market share. The missing part of the price equation is supply on Rolex's side. I thought I heard they were heavily investing in new manufacturing capacity? Interesting times ahead, wait & see.
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…………
I can always count on you keeping me up on the watch world. Thanks
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…
Bad for Watches of Switzerland. Couldn’t happen to nicer guys. They would’ve loved to eat Bucherer to further screw consumers. Remains to be seen this translates into boutiques that sell to normal consumers. The CPO farce wasn’t consumer friendly, that’s for sure.
Gray market will see less stock because Bucherer won't sell out the back door the way the AD network does now.
I don’t care where I buy Rolex as long as I can actually buy one. Which I’m sure won’t change anytime soon.
Where are Bucherer stores in American? And how many are in America?
All over America. 36 locations and growing quick.
And 4 in the UK, fyi.
@@HellhoundX90 Plus 2 Rolex and 1 Tudor mono doors, all 7 are in London.
Great video, and love the honest take.
I don’t quite follow however, the logic “why this will drive prices up”. Rolex have cut out the middle man in much of their distribution which increases their profits, they’re also increasing supply. Why should this lead to prices rising beyond natural year on year increases ? Maybe I’m being naive / missing something.
I also think, by controlling distribution, they control some of the stories of the most highly sought after watches being sold by some ADs to the grey market. I’m not saying this was done by Bucherrer, but bringing Rolex closer to their genuine end customers who aren’t flipping should be a good thing, right?
I agree what is a pity though, is if other genuine ADs, that people (incl myself) have built relationships with no longer get supplied by Rolex, as they’re incentivised to supply their own stores. In particular for the more high demand watches. This would be a real pity and impact to these end consumers (incl myself). Do we now need to reestablish new relationships with Bucherer ?
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎
Rolex will become directly accountable for the way they sell their products which is great. They should also boost their profits by the retailer margins, which is a fabulous move. I mean why give these profits to others if you can keep these in house ? 35% is not really negligible.
Again by which logic there will be less watches to sell and therefore by which logic their prices will increase ? This could be true if Rolex decided to reduce their production but it seems they are building some manufacturing facilities to produce more. Now, yes, I expect prices to increase with inflation…
Selling directly to the consumer is always least expensive
Good video, thanks 👍 and that Breguet marine is a beaut 🔥
ADs brought this on themselves. All their games and garbage.
Don't simple economics say less middlemen less markup? It's not all about relationship with ADs right? It's a matter of skew AD policies in the first place. Now Rolex will own responsibility for any stock display manipulation. I don't see this to transpire massive or direct retail increase Federico, unless you know Rolex is the devil.
Your opinion assumes demand always matching or exceding the supply... alot of ppl that bought watches the past 3 years won't be able in the near future.
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…………
The thumbnail pic looks a bit wild. Had to do double take
Well articulated Fed. I played the AD game once - maybe I was played - but after ancillary purchases (all warranted) - I got my Datejust. There’s no new Rolex I desire nor realistically think I’ll obtain (no celebrity status, pockets not deep) and those I do like are in supply pre-owned. So, nothing changes for this fella. And plenty of compelling independents and micro are surely capturing my interest.
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…
Is the grey market basically AD overstock sold at a discount to preowned dealers and Jomashop?
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…………
IMO, this won't make much a difference for us common folk. Honestly, just means another Brick and Mortar AD that will be filled with "exhibition only" watches. There will still be waitlists, AD games, etc...Only way things will change if Rolex ups their supply and output. We shall see.
What about the Carl f bucherer watch brand?
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…………
Fed
The grey market is also the pre owned market they are the same.
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎…
Indeed but they’ve just taken on a lot more cost - buildings to pay for , staff to pay for , training recruitment costs , energy costs and so on . As for WOS - what a shame the stock took a dip - hate the way WOS trade
Y͙o͙u͙’͙v͙e͙ ͙b͙e͙e͙n͙ ͙s͙e͙l͙e͙c͙t͙e͙d͙ ͙f͙o͙r͙ ͙t͙h͙e͙ ͙o͙n͙g͙o͙i͙n͙g͙ ͙g͙i͙v͙e͙a͙w͙a͙y͙ ͙T͙e͙x͙t͙ ͙t͙e͙l͙e͙g͙r͙a͙m͙ ͙u͙s͙e͙r͙n͙a͙m͙e͙:͙ ͎M͎r͎F͎e͎d͎r͎i͎c͎o͎
Nice to see the AD’s getting screwed. They were complicit in making the watches hard to obtain. Now the AD’s won’t even be able to get them.🤣
How will the other manufacturers will respond to this? For example IWC and Chopard. They are sold at Bucherer....but they might dislike the idea of a portion of their sales going to support Rolex. But if they don't like it, they have a problem trying to find new locations to replace the god-knows-how- many Bucherer locations they use right now.