Well, now you can buy pre-owned certified Rolex watches at 20% higher price than gray market. Meaning, yes you can look at the brand new Rolex watches which they won't sell you. But you can buy this pre-owned certified Rolex right now...
Agreed. Went to a Canadian boutique, that my son in law frequents, last week to buy an Explorer 40, nada! Their Rolex watch displays were empty. The boutique owner has made a sizable investment creating a dedicated Rolex experience with no inventory. If the lack of product continues I do not know how some boutiques will stay in business.
During the last few years, I sold three Rolex watches and keep only two. And the money I spent on Grand Seiko and intend to get more as I found it’s superiority in quality over Rolex.
Since Rolex is structured as a privately controlled charitable foundation, it is under no pressure from any public shareholders to grow in revenue or shareholder value (i.e. make acquisitions) . Hence, the Bucherer acquisition appears to be part of a long term strategy to more tightly control the retail/gray market.
I think this is Rolex going the AP Route, eventually everything will be Corporately owned. The most valuable asset is the real estate. This gives them a head start to eventually get rid of Rolex ADs
What impact on customers that haven’t been able to get a Rolex from an AD is over 2 years? Bucherer feeds more flippers than marine world (the big retailers always were the main source of flipped watches).
There is no availability issue with Rolex watches. You can find any model you want, at any given time. Except that all official stores are empty and the inventory is actually on the grey market - brand new! Why do these watches end up so quickly in the wrong hands? The long term effects of this non sense will hurt Rolex’s reputation, which is their biggest asset. That’s why Rolex fully integrating their distribution channel is a bold move to seriously adress the ADs’ BS.
@@chancewilson207 Why even bother then? Its not like you NEED a Rolex. There are ton of other very nice watches out there that don't treat you like shit when you want to give them literally tens of thousands of dollars/euros.
Bought my first Swiss watch in their Geneva store. It was a simple Tissot PRX, but the experience was outstanding. Got treated really well, and will forever cherish that moment. Good move by Rolex, in my Pov
My belief is that the Rolex execs and board made a strategic move to push their brand advantage using their balance sheet strength. They make roughly $9B in revenue with $1B profits a year from the last estimates I saw online. That’s a sizable amount of cash to sit on that grows every year. Why not reinvest in one of the most well known retail brands? Regardless of what you think about their scarcity tactics, their business strategy is impressive.
They make about 10 bn CHF in revenue, so more like 11 bn USD. And their profit margin is way higher than 10%. Its easily around 30%, so 3-4 bn USD. That profit margin number was already confirmed in 2014 by Bertrand Gros (Rolex Chairman). I mean look at the watch prices and compare it with the real costs of making that watch. Retail price 8.000 USD and the cost of producing is maybe 700 USD. Yes there are additional costs after that like marketing. But the margin is still huge and gets even bigger with the more expensive models.
Some more considerations: even as a charity, Rolex is looking for increased margins, which the acquisition of Bucherer will provide. Maybe this move should also be seen in relation to the Rolex production increase and move into secondary market. i.e. to untangle the mix of new and used timepieces in their flagship stores. Finally, Bucherer is producing their own watches, not only acting as retailer for other brands. So their own brand could be pushed to become the new entry line, below Tudor.
I sincerely hope that doesn't happen - they might not be well known to the outside world, but Bucherer make some very innovative and top quality movements. IMO, they're better quality than Tudor, especially their peripheral rotor movements, and they deserve more love and attention. If Rolex repositions Bucherer below Tudor, this quality and innovation is going to suffer simply because the costs won't allow it.
bro, living in Geneva, I can tell you that they are very charitable, any student, artist or municipality can tell you that. I honestly don't know many people who didn't get money from them@@Soul_of_a_Robot
Not to pop anyone’s bubble, (and I’m sure that eventually all the ideas that is being thrown around will eventually come true) but as of right now it seems the main motivation of the acquisition was a succession crisis at the privately held Bucherer. The company watches of Switzerland released a statement today that was reviewed and confirmed by Rolex senior management that rolex will not be invoked operationally, and the comment continues by saying there will be no change in the distribution or allocation of Rolex’s. Excited to see what comes from this!
Will be interesting to see what happens to all those brands that are sold by Bucherer. As others pointed out, I don’t imagine they will be too pleased to give Rolex a cut of their business.
I’m thinking they spin off that side of the business maybe under the Tourneau brand. Keep Rolex, Tudor and maybe the jewelry under Bucherer. I don’t see Rolex wanting to sell and support those other brands.
@@patrickmonkman8151Yup. Carl F Bucherer is a part of the larger Bucherer brand and will be absorbed along with it. It's going to be interesting to see what this means for CFB going forward, since that brand has a lot of history and quite a bit of cachet these days owing to its close association with the John Wick franchise.
I agree on the majority of points, but I think we should add the impact to other brands when they focus on those other retailers. A lot of people in search of a luxury watch attend to Rolex first - once they’re in the shop, they might go for other brand. So if Omega pulls out of Bucherer, they’ll probably see much fewer eyes on them
I wonder how this will affect other ADs and their access or allocation of Rolex and the point on how other manufacturers will react especially Omega, although Rolex is a different breed in the watch market, will be interesting to see the changes if any
This is interesting. There are only 2 AD’s in Austin for Rolex and Tudor. They both do not participate in the CPO program for some reason. And … I’m still waiting on the call for my Starbucks. It’s been years.
For us in the UK it sounds like good news for two reasons: people might finally be able to get a watch at retail and Watches of Switzerland got shafted in the back end.
Not so much my friend. By having more control over retail outlets, Rolex could reduce the amount of independent retailers where you could at least register for a high demand model. Now this way, if you want to buy your Rolex Submariner or GMT, you may have to buy into the brand first by buying a Date-Just or OP just to get on the waiting list! Less competition in most cases is not a good thing.
I bought an IWC Pilot's Watch Chronograph from one of the WOS group stores last year. When it got delivered it was definitely an ex display piece. The strap was all creased and the protective sticker on the rear was peeling off. I complained as I had paid full price and there was no contact from them to see if I was happy to accept a watch like that. I would have rather they contacted me and I would ahve waited for them to get more stock if that was an issue. They offered a new strap as a resolution. When I accepted they then came back and said I would have to send the whole watch back for them to inspect it before giving me a strap. Overall a pretty crap customer experience. Not to mention alot of their in store staff will basically laugh you out the door when enquiring about a Rolex. So I would be happy to see them get squeezed by the Bucherer aquisition.
Curious how this would impact the customer experience. Rolex ADs sell directly to gray market sellers at least here in Singapore. All these shop space won’t matter to Rolex unless they can fill up their inventory and sell directly to customers vs the gray market.
Im so pissed at the practices of ADs in SG. The stores in Somerset literally have every single brand new model at a 50% premium but the ADs don’t even have them on display 😂. But i heard that grey market shops in SG source their watches from overseas AD.
In the US, if a dealer sells directly to the gray market, they will loose their account. They do everything they can to try to ascertain if a client may try to "flip" the watch.
It sounds like a perfect time for a rival retailer with a ton of cash to create a direct competitor to Bucherer, giving *every* other brand a home and leaving Rolex looking at bare showcases in the major retailer they just paid a fortune for. The Swatch group itself could probably pull it off, but it would be a lot easier if they had a full slate of brands to make their retail arm an amenable outlet for "everything else" other than Rolex.
The problem is that Rolex is, when considering revenue (from watches), much bigger than Swatch or LVMH or Richemont. Can a high profile watch store chain afford not to sell Rolex?
The other revenue stream not being discussed much is that Bucherer is the the main Rolex Certified Pre-Owned reseller. That is a multiple stream of reselling revenue stream for a single time piece multiplied by all of the Rolexes ever sold. Example below: - A buyer purchases a Rolex Certified Pre-Owned piece from Bucherer. - He later sells this piece back to Bucherer at below resell market value to purchase another Rolex or any other brands within Bucherer (This is standard practice for all grey market dealers). - Bucherer services this timepiece and resells it at a higher margin. - Multiply this by the lifetime of this timepiece, multiply this over all of the Rolexes in circulation.
It seems a lot of folks believe, including myself, that this is an attempt by Rolex to squeeze the Grey Market retailers out. And while it probably will limit the number of retail channels, these Grey Market retailers have only themselves to blame. Greed, corruption, fakes, criminal activity have not only ruined their own reputation, but the reputation of the watch industry as a whole. Yes, there are honest and respectable retailers out there, but as a whole, they have not done nearly enough to counter and call out their dishonest competition.
My guess would be this acquisition is more to do with the economic downturn, and may have been a planned exit strategy for Bucherer who feared their financial future? This could be considered very risky for Rolex as they now have taken on 'fixed' retail costs in a declining market.
@@samuelburton5576 your statement mirrors what is believed within the watch world, but how do we really know? The way the Rolex business is structured is almost unique. We all assume they have money to burn but how do we really know? when there are no quarterly/annual financial earnings/statements or shareholding reports?
Rolex is literally trying to control not only their own market but swiss watch market as a whole... this is just going to get a rolex from an AD even more difficult.. in comparison, this is a great move for Tudor watches
Rolex is a cancer - a cancer that doesn't even pay taxes. The government needs to step in and end the 50+ year fraud of the fake charity that is the Hans Wilsdorf greenwashing foundation. But the govt won't because... follow the money... the Swiss politicians are on the Rolex drip.
Honestly, if this means the high-end customer service that we as consumers rightly deserve to be implemented, as well as flushing away of a lot of the scummy Rolex AD's, I am all for it. It's absurd to be treated with such malice and contempt by what are essentially the faces of the brand when we try to support them with tens of thousands of dollars a pop.
these "Scummy" AD's are the thing keeping rolex as popular as it is, only 1 watch company on planet earth can sell over 1 million watches a year for 8k upwards starting price, and ots not because they make such a "high quality" product,
By far the worst Rolex AD I've visited was Bucherer. It was the only AD that directly told me I have no chacne with ANY Rolex unless I buy other brands first.
Teddy, you were the first to upload! Luckily here in Vienna, Austria we have Bucherer, Wempe and other ADs. In Fall I think I will need to tour these stores again.
Ngl, my first thought about this acquisition was that the other brands under the Bucherer roof will not be happy with Rolex running the show. This also raises the question: could this conflict of interest put a halt to the acquisition? Surely lots of these brands won't just sit silently and let Bucherer be taken over by a major competitor. And I'm asking this question in jest because I'm actually curious if thta can happen or not
I wonder if they are doing it to give their recently launched certified pre-owned Rolex's initiative more of a footprint and visibility in these stores ... now that they own them?
Could also see them reviving Bucherer's in-house watch brand, which has a deep history and would be a good brand to bring back as a smaller, dressier alternative to Tudor with a prestigious label.
The Rolex trajectory is clear with the launch of the CPO program and now this acquisition: Rolex are looking for greater market control, market share and an even larger slice of profits. Lots of comments calling out the fact that Rolex are effectively a "charitable foundation" and not interested in pure profit. And while the former is true, the latter couldn't be further from the truth. It must feel very weird for brands like Omega and Watches of Switzerland this morning.
Feels icky... like when big movie studios owned movie theaters and basically imposed their movies over other releases, so if I'm X watch brand that wants to sell in a Bucherer store now I not only have to contest that Rolex is more popular already, but the store is also owned by them so I'm at a bigger disadvantage in what I can negotiate for space and promotion in that store.
My big question is ? if Rolex is the owner they will impose their selling practices, that means if you had the opportunity of getting any kind of discount, for other brands at these stores now its going to be imposible. Imagine going to one of this stores and seen a Breitling and having to ask to be added to a waiting list just to get it. Any comments will be appreciated. Keep the good work.
I think it could also be the opposite. If I have to be on a waitlist at Bucherer for a Breitling I can just order on their own site, they are not so in demand and this would envolve anti trust Investigations in a heartbeat. I think that this deal enables Rolex to distribute their watches more customer friendly. Why distribute one watch to a small AD ten times when you can have ten watches at Bucherer and earn the profit directly and also ensure clients are at least able to see a popular model and not go to the grey market.
I’ve seen people commenting that this will reduce the AD games. Maybe that’s the case, but how different is it getting a Rolex from a boutique? I’m still on a waitlist at a Tourneau Rolex boutique and it feels no different from the waitlist I’m on at an AD that sells other brands. I’m still waiting…
I think Rolex was sick of hearing about how the secondary market was damaging the brand image. I wouldn’t be surprised if Rolex/Bucherer stores are able to give customers whatever watch they want on the spot; no waitlist at their stores. That will force ADs to stop the back-door deals with secondary dealers and “preferred” customers that have a spend history. Those neglected customers will just go to Rolex/Bucherer. It's ridiculous that a new customer can't even get an OP or a Datejust without having to buy a watch from another brand or some jewelry first. Rolex can't be happy with ADs making customers buy competing brands just to get an allocation. ADs got high on their own supply and are about to come back down to reality. I cannot be more excited.
Definitely. I also think Rolex is afraid of ADs with Backdoor deals driving new potential customers away. Rolex is where they are now because they customers that now get allocations were once treated well at the ADs when they were just starting buying watches. Nowadays potential customers are treated badly and might not end up buying a rolex when they make a good living.
@@MrFreddy112 Yep. It's ridiculous that a new customer can't even get an OP or a Datejust without having to buy a watch from another brand or some jewelry first. ADs got high on their own supply and are about to come back down to reality. I cannot wait to see it unfold.
@kilbourn Exactly. Rolex can't be happy with them making you buy the competition just to get an allocation. The AD in my city won't even have one to show to you. If I wanted to buy a nice watch right now I would go across the street from said AD and buy an Omega. Why? This dealer is friendly and lets you look at a Speedmaster and answers questions even if you only there to buy a less expensive Tissot. But this dealer has to be nice, because you can get thoose watches elsewhere or online. Now it will be the same with Rolex. Be nice to customers or they will just buy at Bucherer.
😂 you really think so? Dream on. Rolex don’t just sell their watches to anyone & at any time. Unfortunate as that is, it’s part of the strategy of such a brand. ‘Wait’ lists or ‘preferred customer lists’ will always exist. It drives up hype, interest & lust in a brand. Rolex will never turn into Omega in this regard.
@@KeepingWatchUK Waitlists and preferred customers is one thing, ADs pushing you to buy tons of their jewlery and a couple of Breitlings before thinking about selling you a Datejust is another thing. Other Brands like AP have mangaged to make a more centralised boutique distribution work pretty well. If one goes in an AP Boutique you can atleast see a couple watches, many Rolex ADs have nothing to show, because they already sold their allocations to longtime customers and people spending a fortune on unpopular merchandise. And the problem of only getting an allocation when you have a history with the brand can comeback and haunt all major brands in 20 years when they disgrunteled the buyers of tomorrow.
The owner of Bucherer is an old lad with no children, therefore he wanted to protect his assets from going into government control when he passes. A great way to keep the heritage of his alive!
Most intresting for is what will happen to some of the smaller authorized dealers. It might be a plan to streamline their distribution network. Also they could limit the sale to flippers by extending their blacklist across all potential buys at Bucherer. And they can build a relationship with younger generations by selling everything from a Tissot over Tudor to Rolex and beyond and making a profit on all of thoose sales in the meantime.
If other brands start pulling out stock of the stores and begin opening boutiques…..bucherer(Rolex will not be able to keep the shelves empty because they have to pay for the bills of the shop. Should be interesting to see if there will be more access….
I’m from Fresno California and we have an authorized Rolex dealer called Wickersham….I’ve been on the waiting list to get a Rolex for over 1.5 yr…what’s it going to take to get one? I won’t settle for a pre-own. Please advise.
Bucherer always had and have special Bucherer editions from Omega, Longines etc. etc. If Bucherer is now a Rolex brand I dont think that Omega is willing to do this things anymore. Not a good thing in my opinion.
Except the politicians are on the Rolex drip feed. If they weren't, then the fake charity that is the Hans Wilsdorf foundation would have been wound up decades ago.
This was my first thought too but I guess companies both owning stores and tightly controlling which external stores they work with isn't too uncommon? Apple being the obvious example. Although of course they did build the stores themselves and not buy their way in.
@@jefvermelen4171 that's exactly the key difference - creating your own vertical distribution receives far less scrutiny than acquisition, especially because it was always exclusive to you. The potential anti-trust here is how they can use the ownership to disadvantage competitors and advantage themselves in stores, and whether they do so unfairly. But I also have no idea what jurisdiction this will be under, and will all depend on their local laws
I'm with you on the anti-trust violations. But I don't think the government cares. There are numerous times over the years where it looks the other way. Ex: Ticketmaster. I did like another comment that suggested that all the competitors leave and go to another distributor, thus making this store basically a Rolex only store.
Understand 1 very important truth: Rolex is European and their laws aren't the same as American laws. I doubt there will be the same kind of restrictions we would see in America. I think the best solution is to not buy Rolex/Tudor/any other expensive brand.......the buyer will just be restricted in their choices of brands besides Rolex.
Given Rolex can't supply enough product now, its hard to see how this helps the Rolex brand, other than its somewhere to stuff their cash and make more money. On the other hand, there are rumours they're building new factories to increase supply, in which case they could really stick it to the other brands by dominating the outlets.
@@mrstraiban there's a difference between a mild shortage which is good, and a crazy shortage which creates a black market which damages the brand. What the fuck is the point of nice Rolex outlets with fancy back walls and displays if you have to order on Chrono24? Back in 2000 you might have to wait a few weeks or a month to get what you want , but that was all. And if you saw what you liked in the window you grabbed it. That's good for the brand, just enough shortage that you'll grab it when you see it instead of procrastination.
Lol there is no such thing as demand outstripping supply. It is an artificically curated demand by Rolex. Same as what happens in the diamond industry.
@@danc5677 Well Rolex sell everything they produce - completely unlike the diamond market, where De Beers hordes diamonds. What Rolex do though is deliberately restrict production of Daytona and some other high end models to make them super scarce, which has flow on demand effects for other models. So demand does outstrip supply because the supply of Daytona is limited, and the demand for almost all Rolexes also outstrips supply.
Most of the "shortage" is fueled by ads selling to grey market dealers. Just look at any grey market site, there are plenty of steel sports models readily available.
I wonder how this will impact Carl F. Bucherer watches. Has Rolex added another watch brand ( Carl F. Bucherer) to sit alongside Tudor & Rolex, how will it be positioned?
The brand is tied together. It's all family owned. Bucherer started as a jewelry store. Their earliest watches were branded as "Bucherer" and then later in the 90s they were branded Carl F. Bucherer, but the Bucherer jewelry store has always been their gateway to the customer.
I shop at Bucherer Time Machine on 57th in NY very often. In fact, bought my Santos de Cartier there about 8 months ago. They have a wide variety of premium brands there and I hope they don’t start getting rid of them. They also have great watch events.
It's a great move by Rolex. If I was a Rolex competitor though, I'd be pulling my line-up from their stores immediately and finding a new source for getting my watches to the buyers.
@@cnccigars748 They buy something else to get their purchase history up in the hope that Saint Rolex will anoint them with some mass-produced Rolex at inflated prices with ridiculous profit margins, some time in the future. What a circus. Alpha males have unplugged from this already. It's only desperate beta males still playing that game.
Take a drink every time Teddy says “Scale” 😅 All jokes aside, I’m a huge fan of the channel and this is Big news for the Watch world as a whole. As always Teddy, Excellent content!
Still remember way back in 2015 after spending the whole day walking around visiting several watch shops in Zurich without success … finally found the Deepsea D Blue at Bucherer outlet which they just received 3hours ago from Interlaken
Could regulators stop this acquisition due to anti-competitive behavior? If a manufacturer now owns one of the the biggest retailers in an industry, that could be a cause of concern.
Teddy, could this mean they’re preparing for their new pre-owned program for prime time? I think this could hint they think they’ll need far more points of sale for a larger AD used market.
It will be interesting to see. So far the preowned program appears more to me as a market value stabilization play but it is early and there is no question a lot of business to be had in the preowned market for the brand. Preowned is also tricky as you are dealing with one unique product that can’t be pushed down the assembly line like a new piece. I think the new watch sales are the primary driver in this move.
Bucherer looks like they already have a Rolex pre-owned program. I think Rolex is trying to cut out the reduced margin for sales to an AD and keep it. Also they can control the sale of "competitive" watches through Bucherer.
Their CPO program will be dead on arrival. They will only be accepting watches 3 years or older from date sold (fine, makes sense) from the ORIGINAL purchaser. I don't think many first hand owners of Rolexes are looking to sell them after 3 years.
I still don’t understand their CPO model. Sell subs at almost 2x the price of the grey market only on “our own” CPO page? Are people actually falling for this?
Time for US and EU regulators to crack down on Rolex for antitrust violations, like they've done on Microsoft, Amazon, Google, etc. Wasn't the entire reason regulators cracked down on Microsoft buying Activision is that MS would block "Call of Duty" on other platforms, just as you say Rolex can reduce allocations of Rolex to other retailers?
Agreed. This should definitely come under antitrust violations. Rolex basically wants to crush the watch market. That's what this is completely. Make no mistake.
Are there specific limitations in place by Rolex limited ADs that sell both Tudor and Rolex? In the case of bucherer it is an either or. My AD does not sell tudor however i know of a number of AD that sell both. I do not think this sale with affect the other brands sold in bucherer because the watches that are made get sold. They may receive a larger distribution of Rolex however. I suspect this will elevate Tudor which has been making moves and there will be greater emphasis on tudor space in the AD. Would not be suprised if you have to have a tudor or two before allocated a Rolex.
A company with a brand strategy of artificial scarcity creates more AD locations. Now 10x as many places I can go to hear they have nothing to sell me :-)
I see brands pulling their inventory out of Bucherer stores and forging partnerships with Watches of Switzerland and others. They'll try to cut Rolex off at their knees.
LOL You are adorable.....Watches of Switzerland will answer to Rolex before forging and partnerships with any little brands that come along....Rolex is the King..All hail the King!
I'm no economologist, but I have a feeling this will raise prices. Definitely for Rolex, but potentially for the rest of the industry indirectly. I better make sure I have all the watches I'll want for a while, and maybe sell some of them if their value goes up.
This transaction likely is subject to premerger review in a number of jurisdictions. Given Rolex's market share for Swiss luxury watches, it is reasonably to anticipate that this transaction will attract scrutiny from antitrust regulators. Other watch manufacturers could try to kill the deal by convincing regulators that this deal will have substantial anticompetitive effects.
I don’t know whether this would be a sexy industry for US antitrust regulators. On the other hand, I think this would be a sexy industry for the Swiss or EU antitrust regulators. I would think a clever economist could at least make an argument that Rolex could leverage ownership of a large retail outlet to increase market share by optimizing Rolex sales at such points of sale and reducing rivals sales or potentially not stocking them. Swatch Group has had extensive dealings with the Swiss antitrust authorizes in connection with the extent to which ETA can refuse to supply large rivals with movements so there is precedent for European antitrust regulators taking an interest in the watch business.
So now Rolex controls their manufacturing, distribution and sales outlet, as well as the distribution for many "COMPETITIVE" brands. This allows them to manipulate the market and to some point the competitors markets. It will be interesting to see how the larger manufacturers respond. Do they start their own Bucherer type outlets? One thing for sure, this will not make Rolex watches more available, and in turn will drive up their prices.
Interesting indeed but let's not forget, the consumer is responsible for controlling the market. If Rolex benefits from it, that's the consumers fault. 100%.
@@samuelburton5576 Think about what you just said. The price of a good or service is a reflection of what someone is willing to pay for it. MSRP is exactly that, a suggested retail price. If the consumer is unwilling to pay what is asked, a business must adapt or risk going out of business. It is entirely possible for a brand to reduce prices on their products if necessary.
I wonder if this is really a done deal or one that has to be approved by regulators in the EU. It seems that there might be antitrust issues surrounding Rolex’s ability to freeze out its competition
@@joeskeptical4762 Because those competitors have to pay them to do it, or lose access to a huge retail outlet. Selling Richemont, Swatch, and LVMH products doesn't cost Rolex anything. It's pure profit.
Not sure what you mean considering Rolex is about half century older then Apple and have been the most sought after watch brand for better part of a century. It's more like Apple is trying to be Rolex
@@bdegrds I will explain what I mean by that. I'm not trying to hate on Rolex, but I'm not stupid. Apple is worth almost 350 times more than Rolex and most notable thing about Apple accomplishing that is amazing vertical integration. Vertical integration means company controls everything from manufacturing to distribution which is Rolex obviously trying to do here. So seems you're a little lost here, company age has nothing to do with that.
Rolex has a platform to sell their pre-owned stuff and maybe control back door grey market operations. Other brands and current employees will be affected since they will hire people that could be more loyal to the new business model.
Bottom line for Rolex wants to protect their brand & prices. They want to better control the used market with the new pre-owned selections by having direct access to the consumer. More retail outlets worldwide the grey market dealers for Rolex may not be needed as much. Big brands love to dictate retail price points.
Ahh yes, a company who will put a customer on a wait list for 20 years and buying another company, as apposed to allocating resources to allow their product to reach more people… this aside thanks for the great video as always Teddy :)
You will see more watch group authorized dealers pop up for Richemont, Swatch Group, Kering and the others. As an independent Bucherer just sold watches. Now it is in the Rolex vertical to enhance the Rolex business as its core focus.
This does not mean that Rolex is going to "reel in" the gray market. I just looked at Bucherer's "pre-owned" selection, and they are trying to sell a non-lumed 214270 for $12k when it's offered all day long on Chrono24 for $8,500. The 116900 Air King is listed for $11.6k when it is on Chrono24 for just over $8k. I realize that these are two models that, frankly, weren't very good then subsequently improved. But it appears that Bucherer is going to give the gray market plenty of space to flip watches without adding value.
Rolex must be acutely aware that the retail experience is alienating customers. No stock, building a “profile” to qualify for purchases, shady dealings with flippers etc. Customers have come to hate ADs and by extension, Rolex. I think a lot of damage to the Rolex brand has been done over the past few years, and I don’t think it’s sustainable. As prices return to normal levels (flipper premiums are crashing), and Rolex increases production, Rolex knows they need to sort themselves out. The retail experience is super important for any luxury brand, and having company stores allows the brand the control that experience. Owning Bucherer will allow Rolex to control supply, improve the retail experience, and impose some discipline among ADs. If customers know they can acquire watches in a straightforward way, and have a good experience at Rolex owned stores, AD shenanigans will diminish because customers won’t have to put up with it. The key thing will be product supply and good, honest customer experience at the company owned (Bucherer) stores. This could even be a shot across the bow to threaten ADs with eventual termination, since Rolex can credibly threaten to eliminate individual ADs or the AD channel as a whole in favor of company owned stores. It’s very common for luxury brands to terminate dealers/agents and build company stores in places where they want to improve performance and brand equity. In general, luxury brands owning their own stores is the more dominant model of retail versus agents/dealers, because the retail experience is the defining tough point of a luxury experience, in a world where retail purchases continue to move online. Another reason: any brand, especially a luxury brand, needs to control pricing. Right now you might think Rolex is happy about grey market premiums, but it’s not good for a brand when pricing is out of control. Similarly, uncontrolled discounting also damages a brand’s image. The whole purpose of creating and managing a brand is to control pricing and maintain pricing power. Today, Rolex has lost control of pricing due to the grey market, and controlling retail will help regain control of pricing. Having Bucherer creates a threat that will make ADs fall into line in terms of behaving better. Rolex will also have access to much better end customer data, which is valuable for sales and customer insights. These are just a few of the reasons this purchase makes sense.
I really liked Tourneau, the I still liked Bucherer when them bought Tourneau. I’m curious what stores will be like. Will they still have JLC, IWC, Panerai, Tudor, Blancpain, etc. ??
It’s a shocker for me. I am a loyal Bucherer/Tourneau customer. I purchased my first luxury mechanical watch there and my first two Rolex time pieces from them. They are my go to AD. I wish Omega would follow more of the Rolex model. Will this give Bucherer more access to Rolex inventory?
It means only one thing! The amount of stores where you COULDN'T buy Rolex just increased.
Well, now you can buy pre-owned certified Rolex watches at 20% higher price than gray market. Meaning, yes you can look at the brand new Rolex watches which they won't sell you. But you can buy this pre-owned certified Rolex right now...
@@RHeleniusonly if you have 10 years of purchase history, and are willing to pay higher prices than retail 😊
Agreed. Went to a Canadian boutique, that my son in law frequents, last week to buy an Explorer 40, nada! Their Rolex watch displays were empty. The boutique owner has made a sizable investment creating a dedicated Rolex experience with no inventory. If the lack of product continues I do not know how some boutiques will stay in business.
During the last few years, I sold three Rolex watches and keep only two. And the money I spent on Grand Seiko and intend to get more as I found it’s superiority in quality over Rolex.
@@chinkang3566 Time to ditch the Rolexes!
Since Rolex is structured as a privately controlled charitable foundation, it is under no pressure from any public shareholders to grow in revenue or shareholder value (i.e. make acquisitions) . Hence, the Bucherer acquisition appears to be part of a long term strategy to more tightly control the retail/gray market.
People get paid and paid more if business grows, regardless of how they are organized.
I think this is Rolex going the AP Route, eventually everything will be Corporately owned. The most valuable asset is the real estate. This gives them a head start to eventually get rid of Rolex ADs
boost not control
I prefer the gray market and their markups over the Rolex AD poor customer service. Nothing like being disrespected by a sales associate.
It must mean Rolex introduced a new brand or line of watches or products
What impact on customers that haven’t been able to get a Rolex from an AD is over 2 years? Bucherer feeds more flippers than marine world (the big retailers always were the main source of flipped watches).
Maybe that's exactly why they purchased bucherer in the first place. Now they have won back huge control over the secondary market.
You say fuck rolex and buy omega
There is no availability issue with Rolex watches. You can find any model you want, at any given time. Except that all official stores are empty and the inventory is actually on the grey market - brand new! Why do these watches end up so quickly in the wrong hands? The long term effects of this non sense will hurt Rolex’s reputation, which is their biggest asset. That’s why Rolex fully integrating their distribution channel is a bold move to seriously adress the ADs’ BS.
This is 100% correct. Having to kiss a Rolex dealer’s ass just for the right to pay $20k (minimum) for a desirable model is killing the brand.
@@chancewilson207 Why even bother then? Its not like you NEED a Rolex. There are ton of other very nice watches out there that don't treat you like shit when you want to give them literally tens of thousands of dollars/euros.
@@radonsmith4386nice is not e sufficient in todays world. hype is key
Bought my first Swiss watch in their Geneva store. It was a simple Tissot PRX, but the experience was outstanding. Got treated really well, and will forever cherish that moment.
Good move by Rolex, in my Pov
Same here and me and my friend got offered a vegan ice cream. It was 3 weeks ago
Is it cheaper to buy in store in geneva or is it just what people do in geneva?
@@andyq9433It’s part of the experience 😂😂😂😂
@@andyq9433 retail price… but when in Geneva, why not buy a Swiss watch from the best possible place?
This is the first step for Rolex to eventually have all corporately owned stores and no more ADs
My belief is that the Rolex execs and board made a strategic move to push their brand advantage using their balance sheet strength. They make roughly $9B in revenue with $1B profits a year from the last estimates I saw online. That’s a sizable amount of cash to sit on that grows every year. Why not reinvest in one of the most well known retail brands?
Regardless of what you think about their scarcity tactics, their business strategy is impressive.
Do you have a reliable source for that information? Can you post a link?
They make about 10 bn CHF in revenue, so more like 11 bn USD. And their profit margin is way higher than 10%. Its easily around 30%, so 3-4 bn USD. That profit margin number was already confirmed in 2014 by Bertrand Gros (Rolex Chairman). I mean look at the watch prices and compare it with the real costs of making that watch. Retail price 8.000 USD and the cost of producing is maybe 700 USD. Yes there are additional costs after that like marketing. But the margin is still huge and gets even bigger with the more expensive models.
@@LiquidIExdon't tell em all this...
This is how you KILL the secondary watch market. Increase production, control distribution, resale pre owned and triple your POS. CHECKMATE!
Some more considerations: even as a charity, Rolex is looking for increased margins, which the acquisition of Bucherer will provide. Maybe this move should also be seen in relation to the Rolex production increase and move into secondary market. i.e. to untangle the mix of new and used timepieces in their flagship stores. Finally, Bucherer is producing their own watches, not only acting as retailer for other brands. So their own brand could be pushed to become the new entry line, below Tudor.
I sincerely hope that doesn't happen - they might not be well known to the outside world, but Bucherer make some very innovative and top quality movements. IMO, they're better quality than Tudor, especially their peripheral rotor movements, and they deserve more love and attention. If Rolex repositions Bucherer below Tudor, this quality and innovation is going to suffer simply because the costs won't allow it.
They aren't a charity though. They just have charity status for nefarious reasons. It's an absolute con
Wow you smart are. Me smart no not.
Rolex is a foundation but not a charity.
bro, living in Geneva, I can tell you that they are very charitable, any student, artist or municipality can tell you that. I honestly don't know many people who didn't get money from them@@Soul_of_a_Robot
Not to pop anyone’s bubble, (and I’m sure that eventually all the ideas that is being thrown around will eventually come true) but as of right now it seems the main motivation of the acquisition was a succession crisis at the privately held Bucherer. The company watches of Switzerland released a statement today that was reviewed and confirmed by Rolex senior management that rolex will not be invoked operationally, and the comment continues by saying there will be no change in the distribution or allocation of Rolex’s. Excited to see what comes from this!
You know it’s going down when Teddy uploads at this time! 👌🏻
It’s actually not
Will be interesting to see what happens to all those brands that are sold by Bucherer. As others pointed out, I don’t imagine they will be too pleased to give Rolex a cut of their business.
I’m thinking they spin off that side of the business maybe under the Tourneau brand. Keep Rolex, Tudor and maybe the jewelry under Bucherer. I don’t see Rolex wanting to sell and support those other brands.
Are they any way related to Carl F Bucherer?
@@patrickmonkman8151 Yes
@@patrickmonkman8151Yup. Carl F Bucherer is a part of the larger Bucherer brand and will be absorbed along with it. It's going to be interesting to see what this means for CFB going forward, since that brand has a lot of history and quite a bit of cachet these days owing to its close association with the John Wick franchise.
They'd solidify under Watches of Switzerland. They won't sell any Rolex if Rolex won't sell them.
I agree on the majority of points, but I think we should add the impact to other brands when they focus on those other retailers. A lot of people in search of a luxury watch attend to Rolex first - once they’re in the shop, they might go for other brand. So if Omega pulls out of Bucherer, they’ll probably see much fewer eyes on them
I wonder how this will affect other ADs and their access or allocation of Rolex and the point on how other manufacturers will react especially Omega, although Rolex is a different breed in the watch market, will be interesting to see the changes if any
That's exactly what I was thinking.
I hope they will work together instead of creating an unfair competition...
Rolex just felt left out of being able to tell customers directly that they`re on a wait list lol
This is interesting. There are only 2 AD’s in Austin for Rolex and Tudor. They both do not participate in the CPO program for some reason.
And … I’m still waiting on the call for my Starbucks. It’s been years.
For us in the UK it sounds like good news for two reasons: people might finally be able to get a watch at retail and Watches of Switzerland got shafted in the back end.
Not so much my friend.
By having more control over retail outlets, Rolex could reduce the amount of independent retailers where you could at least register for a high demand model.
Now this way, if you want to buy your Rolex Submariner or GMT, you may have to buy into the brand first by buying a Date-Just or OP just to get on the waiting list!
Less competition in most cases is not a good thing.
Happy Watches of Switzerland are getting shafted.
@@skay3723 Mate, that's practically how it already works with Watches of Switzerland
I bought an IWC Pilot's Watch Chronograph from one of the WOS group stores last year. When it got delivered it was definitely an ex display piece. The strap was all creased and the protective sticker on the rear was peeling off. I complained as I had paid full price and there was no contact from them to see if I was happy to accept a watch like that. I would have rather they contacted me and I would ahve waited for them to get more stock if that was an issue. They offered a new strap as a resolution. When I accepted they then came back and said I would have to send the whole watch back for them to inspect it before giving me a strap. Overall a pretty crap customer experience. Not to mention alot of their in store staff will basically laugh you out the door when enquiring about a Rolex. So I would be happy to see them get squeezed by the Bucherer aquisition.
Curious how this would impact the customer experience. Rolex ADs sell directly to gray market sellers at least here in Singapore. All these shop space won’t matter to Rolex unless they can fill up their inventory and sell directly to customers vs the gray market.
wow its a terrible system that allow this
Im so pissed at the practices of ADs in SG. The stores in Somerset literally have every single brand new model at a 50% premium but the ADs don’t even have them on display 😂. But i heard that grey market shops in SG source their watches from overseas AD.
Most likely they will fill the space with certified used Rolexes, probably as a way to start a "relationship", if you really want a new one 😮.
In the US, if a dealer sells directly to the gray market, they will loose their account. They do everything they can to try to ascertain if a client may try to "flip" the watch.
It sounds like a perfect time for a rival retailer with a ton of cash to create a direct competitor to Bucherer, giving *every* other brand a home and leaving Rolex looking at bare showcases in the major retailer they just paid a fortune for. The Swatch group itself could probably pull it off, but it would be a lot easier if they had a full slate of brands to make their retail arm an amenable outlet for "everything else" other than Rolex.
I think one strong contender to create a counter balance is LVMH group, which is already bolstering their watch division
Never happen my friend. Rolex is taking over the whole watch space now.
"Yeah so I'd fix the problem"
The problem is that Rolex is, when considering revenue (from watches), much bigger than Swatch or LVMH or Richemont.
Can a high profile watch store chain afford not to sell Rolex?
not going to happen, people go into shops hoping to back a Rolex and end up buying a LVNH watch. LVMH are not going to like losing that footfall
The other revenue stream not being discussed much is that Bucherer is the the main Rolex Certified Pre-Owned reseller. That is a multiple stream of reselling revenue stream for a single time piece multiplied by all of the Rolexes ever sold. Example below:
- A buyer purchases a Rolex Certified Pre-Owned piece from Bucherer.
- He later sells this piece back to Bucherer at below resell market value to purchase another Rolex or any other brands within Bucherer (This is standard practice for all grey market dealers).
- Bucherer services this timepiece and resells it at a higher margin.
- Multiply this by the lifetime of this timepiece, multiply this over all of the Rolexes in circulation.
It seems a lot of folks believe, including myself, that this is an attempt by Rolex to squeeze the Grey Market retailers out. And while it probably will limit the number of retail channels, these Grey Market retailers have only themselves to blame. Greed, corruption, fakes, criminal activity have not only ruined their own reputation, but the reputation of the watch industry as a whole. Yes, there are honest and respectable retailers out there, but as a whole, they have not done nearly enough to counter and call out their dishonest competition.
So, it is safe to assume that allocation time will increase in other boutiques such as Ben Bridge, Deutsh & Deutsh, etc ?
My guess would be this acquisition is more to do with the economic downturn, and may have been a planned exit strategy for Bucherer who feared their financial future?
This could be considered very risky for Rolex as they now have taken on 'fixed' retail costs in a declining market.
Plus Rolex is a behemoth. They have resources others don't have.
@@samuelburton5576 your statement mirrors what is believed within the watch world, but how do we really know?
The way the Rolex business is structured is almost unique. We all assume they have money to burn but how do we really know? when there are no quarterly/annual financial earnings/statements or shareholding reports?
Rolex is literally trying to control not only their own market but swiss watch market as a whole... this is just going to get a rolex from an AD even more difficult.. in comparison, this is a great move for Tudor watches
Rolex is a cancer - a cancer that doesn't even pay taxes. The government needs to step in and end the 50+ year fraud of the fake charity that is the Hans Wilsdorf greenwashing foundation. But the govt won't because... follow the money... the Swiss politicians are on the Rolex drip.
Yep, now it will likely be even more clear that one needs to buy a Tudor to "enter" into the brand before even asking for a Rolex.
Honestly, if this means the high-end customer service that we as consumers rightly deserve to be implemented, as well as flushing away of a lot of the scummy Rolex AD's, I am all for it. It's absurd to be treated with such malice and contempt by what are essentially the faces of the brand when we try to support them with tens of thousands of dollars a pop.
these "Scummy" AD's are the thing keeping rolex as popular as it is, only 1 watch company on planet earth can sell over 1 million watches a year for 8k upwards starting price, and ots not because they make such a "high quality" product,
Hi. What does “AD” mean?
@@acamposjr06authorized dealer (of the brand)
@@FalconAnno75 Copy and thank you.
By far the worst Rolex AD I've visited was Bucherer. It was the only AD that directly told me I have no chacne with ANY Rolex unless I buy other brands first.
I have a Carl f Manero flyback in all black and the Zurich limited and I love them both. I hope they don’t get rid of the Carl f line.
Great assessment of the new competitive landscape, Teddy.
Teddy, you were the first to upload! Luckily here in Vienna, Austria we have Bucherer, Wempe and other ADs. In Fall I think I will need to tour these stores again.
Ngl, my first thought about this acquisition was that the other brands under the Bucherer roof will not be happy with Rolex running the show. This also raises the question: could this conflict of interest put a halt to the acquisition? Surely lots of these brands won't just sit silently and let Bucherer be taken over by a major competitor. And I'm asking this question in jest because I'm actually curious if thta can happen or not
2:16 can someone tell me what watch this is, please?
Oyster Perpetual Blue Dial
@@latinlabelthank you
I wonder if they are doing it to give their recently launched certified pre-owned Rolex's initiative more of a footprint and visibility in these stores ... now that they own them?
Their plan is to force you to buy CPO if you want a new Rolex also. Your choice is the grey market for a watch or play Rolex games at the AD.
Could also see them reviving Bucherer's in-house watch brand, which has a deep history and would be a good brand to bring back as a smaller, dressier alternative to Tudor with a prestigious label.
carl f bucherer is still present no?
Is it the same company though?@@sir3612
The Rolex trajectory is clear with the launch of the CPO program and now this acquisition: Rolex are looking for greater market control, market share and an even larger slice of profits. Lots of comments calling out the fact that Rolex are effectively a "charitable foundation" and not interested in pure profit. And while the former is true, the latter couldn't be further from the truth.
It must feel very weird for brands like Omega and Watches of Switzerland this morning.
The deal would yet to be approved by antitrust regulators in the US and EU
Whatever nerd
Feels icky... like when big movie studios owned movie theaters and basically imposed their movies over other releases, so if I'm X watch brand that wants to sell in a Bucherer store now I not only have to contest that Rolex is more popular already, but the store is also owned by them so I'm at a bigger disadvantage in what I can negotiate for space and promotion in that store.
Does this mean Rolex might up their production? Or will they just spread out the supply and possibly drive up prices?
Rolex is about to build a greenfield factory in Bulle, two billion dollars and 2,000 employees, scheduled completion 2009.
Similar to the Luxottica Group acquisition of Sunglass Hut in the early 2000's.
My big question is ? if Rolex is the owner they will impose their selling practices, that means if you had the opportunity of getting any kind of discount, for other brands at these stores now its going to be imposible. Imagine going to one of this stores and seen a Breitling and having to ask to be added to a waiting list just to get it. Any comments will be appreciated.
Keep the good work.
I think it could also be the opposite. If I have to be on a waitlist at Bucherer for a Breitling I can just order on their own site, they are not so in demand and this would envolve anti trust Investigations in a heartbeat.
I think that this deal enables Rolex to distribute their watches more customer friendly. Why distribute one watch to a small AD ten times when you can have ten watches at Bucherer and earn the profit directly and also ensure clients are at least able to see a popular model and not go to the grey market.
Just go to Breitling boutique directly. That is what I did. I have four and they give a ton of swag
@@stevechin1866 yes I know because I have a SOH2
I’ve seen people commenting that this will reduce the AD games. Maybe that’s the case, but how different is it getting a Rolex from a boutique? I’m still on a waitlist at a Tourneau Rolex boutique and it feels no different from the waitlist I’m on at an AD that sells other brands. I’m still waiting…
I think Rolex was sick of hearing about how the secondary market was damaging the brand image. I wouldn’t be surprised if Rolex/Bucherer stores are able to give customers whatever watch they want on the spot; no waitlist at their stores. That will force ADs to stop the back-door deals with secondary dealers and “preferred” customers that have a spend history. Those neglected customers will just go to Rolex/Bucherer.
It's ridiculous that a new customer can't even get an OP or a Datejust without having to buy a watch from another brand or some jewelry first. Rolex can't be happy with ADs making customers buy competing brands just to get an allocation.
ADs got high on their own supply and are about to come back down to reality. I cannot be more excited.
Definitely. I also think Rolex is afraid of ADs with Backdoor deals driving new potential customers away.
Rolex is where they are now because they customers that now get allocations were once treated well at the ADs when they were just starting buying watches.
Nowadays potential customers are treated badly and might not end up buying a rolex when they make a good living.
@@MrFreddy112 Yep. It's ridiculous that a new customer can't even get an OP or a Datejust without having to buy a watch from another brand or some jewelry first.
ADs got high on their own supply and are about to come back down to reality. I cannot wait to see it unfold.
@kilbourn Exactly. Rolex can't be happy with them making you buy the competition just to get an allocation.
The AD in my city won't even have one to show to you.
If I wanted to buy a nice watch right now I would go across the street from said AD and buy an Omega. Why? This dealer is friendly and lets you look at a Speedmaster and answers questions even if you only there to buy a less expensive Tissot.
But this dealer has to be nice, because you can get thoose watches elsewhere or online.
Now it will be the same with Rolex. Be nice to customers or they will just buy at Bucherer.
😂 you really think so? Dream on. Rolex don’t just sell their watches to anyone & at any time. Unfortunate as that is, it’s part of the strategy of such a brand. ‘Wait’ lists or ‘preferred customer lists’ will always exist. It drives up hype, interest & lust in a brand. Rolex will never turn into Omega in this regard.
@@KeepingWatchUK Waitlists and preferred customers is one thing, ADs pushing you to buy tons of their jewlery and a couple of Breitlings before thinking about selling you a Datejust is another thing.
Other Brands like AP have mangaged to make a more centralised boutique distribution work pretty well.
If one goes in an AP Boutique you can atleast see a couple watches, many Rolex ADs have nothing to show, because they already sold their allocations to longtime customers and people spending a fortune on unpopular merchandise.
And the problem of only getting an allocation when you have a history with the brand can comeback and haunt all major brands in 20 years when they disgrunteled the buyers of tomorrow.
Spot on Teddy! No major change for customers but hugeee change for the industry and retailers
I've ordered a Pagani Design 1701 V3 (the speedy clone) and based on how that fairs up, I'll order a Submariner off them too. Stuff Rolex.
Pagani Design is absolute garbage. Grow up
The owner of Bucherer is an old lad with no children, therefore he wanted to protect his assets from going into government control when he passes. A great way to keep the heritage of his alive!
Most intresting for is what will happen to some of the smaller authorized dealers. It might be a plan to streamline their distribution network.
Also they could limit the sale to flippers by extending their blacklist across all potential buys at Bucherer.
And they can build a relationship with younger generations by selling everything from a Tissot over Tudor to Rolex and beyond and making a profit on all of thoose sales in the meantime.
Great content. Subscribed!
If other brands start pulling out stock of the stores and begin opening boutiques…..bucherer(Rolex will not be able to keep the shelves empty because they have to pay for the bills of the shop. Should be interesting to see if there will be more access….
I’m from Fresno California and we have an authorized Rolex dealer called Wickersham….I’ve been on the waiting list to get a Rolex for over 1.5 yr…what’s it going to take to get one? I won’t settle for a pre-own. Please advise.
Bucherer always had and have special Bucherer editions from Omega, Longines etc. etc. If Bucherer is now a Rolex brand I dont think that Omega is willing to do this things anymore. Not a good thing in my opinion.
Omega will bow to the King and except the scraps....Come on son..learn the game
Special Seamaster yachtmaster edition...
Thanks for update!
I'm pretty sure this could face some anti-trust litigation or at least need approval in some markets before it goes through
Except the politicians are on the Rolex drip feed. If they weren't, then the fake charity that is the Hans Wilsdorf foundation would have been wound up decades ago.
This was my first thought too but I guess companies both owning stores and tightly controlling which external stores they work with isn't too uncommon? Apple being the obvious example. Although of course they did build the stores themselves and not buy their way in.
@@jefvermelen4171 that's exactly the key difference - creating your own vertical distribution receives far less scrutiny than acquisition, especially because it was always exclusive to you. The potential anti-trust here is how they can use the ownership to disadvantage competitors and advantage themselves in stores, and whether they do so unfairly. But I also have no idea what jurisdiction this will be under, and will all depend on their local laws
I'm with you on the anti-trust violations. But I don't think the government cares. There are numerous times over the years where it looks the other way. Ex: Ticketmaster. I did like another comment that suggested that all the competitors leave and go to another distributor, thus making this store basically a Rolex only store.
Understand 1 very important truth: Rolex is European and their laws aren't the same as American laws. I doubt there will be the same kind of restrictions we would see in America. I think the best solution is to not buy Rolex/Tudor/any other expensive brand.......the buyer will just be restricted in their choices of brands besides Rolex.
The shop front looks like Brompton Road, London, England.
Given Rolex can't supply enough product now, its hard to see how this helps the Rolex brand, other than its somewhere to stuff their cash and make more money. On the other hand, there are rumours they're building new factories to increase supply, in which case they could really stick it to the other brands by dominating the outlets.
One of the very basic rules of high-end luxury products: Never produce enough product to meet demand.
@@mrstraiban there's a difference between a mild shortage which is good, and a crazy shortage which creates a black market which damages the brand. What the fuck is the point of nice Rolex outlets with fancy back walls and displays if you have to order on Chrono24? Back in 2000 you might have to wait a few weeks or a month to get what you want , but that was all. And if you saw what you liked in the window you grabbed it. That's good for the brand, just enough shortage that you'll grab it when you see it instead of procrastination.
Lol there is no such thing as demand outstripping supply. It is an artificically curated demand by Rolex. Same as what happens in the diamond industry.
@@danc5677 Well Rolex sell everything they produce - completely unlike the diamond market, where De Beers hordes diamonds. What Rolex do though is deliberately restrict production of Daytona and some other high end models to make them super scarce, which has flow on demand effects for other models. So demand does outstrip supply because the supply of Daytona is limited, and the demand for almost all Rolexes also outstrips supply.
Most of the "shortage" is fueled by ads selling to grey market dealers. Just look at any grey market site, there are plenty of steel sports models readily available.
Why the gray backdrop? The cityscape was superb!
I wonder how this will impact Carl F. Bucherer watches. Has Rolex added another watch brand ( Carl F. Bucherer) to sit alongside Tudor & Rolex, how will it be positioned?
They are separate entities with no ties to each other if I am not mistaken. So there should not be any conflict of interest
No
The brand is tied together. It's all family owned. Bucherer started as a jewelry store. Their earliest watches were branded as "Bucherer" and then later in the 90s they were branded Carl F. Bucherer, but the Bucherer jewelry store has always been their gateway to the customer.
This is great news as my favorite Rolex dealer is Bucherer in Zurich, Switzerland 50 Bahnhofstrasse where I bought many of my watches and Rolex from.
I shop at Bucherer Time Machine on 57th in NY very often. In fact, bought my Santos de Cartier there about 8 months ago. They have a wide variety of premium brands there and I hope they don’t start getting rid of them. They also have great watch events.
It's a great move by Rolex. If I was a Rolex competitor though, I'd be pulling my line-up from their stores immediately and finding a new source for getting my watches to the buyers.
cut off their nose to spite their face? people will come in looking for rolex and discover something else
No. Because when people can’t get a Rolex they buy something else.
@@cnccigars748 They buy something else to get their purchase history up in the hope that Saint Rolex will anoint them with some mass-produced Rolex at inflated prices with ridiculous profit margins, some time in the future. What a circus. Alpha males have unplugged from this already. It's only desperate beta males still playing that game.
Rolex has no competitors...Learn the game son.
Will this make them more accessible for the normal buyer for a special occasion and bring the prices down
Take a drink every time Teddy says “Scale” 😅
All jokes aside, I’m a huge fan of the channel and this is Big news for the Watch world as a whole.
As always Teddy, Excellent content!
You’ll get drunk faster if you take a drink at every “points of sale”. Yikes!
Still remember way back in 2015 after spending the whole day walking around visiting several watch shops in Zurich without success … finally found the Deepsea D Blue at Bucherer outlet which they just received 3hours ago from Interlaken
Could regulators stop this acquisition due to anti-competitive behavior?
If a manufacturer now owns one of the the biggest retailers in an industry, that could be a cause of concern.
yes
Great video, Teddy thank you👍
Teddy, could this mean they’re preparing for their new pre-owned program for prime time?
I think this could hint they think they’ll need far more points of sale for a larger AD used market.
It will be interesting to see. So far the preowned program appears more to me as a market value stabilization play but it is early and there is no question a lot of business to be had in the preowned market for the brand. Preowned is also tricky as you are dealing with one unique product that can’t be pushed down the assembly line like a new piece. I think the new watch sales are the primary driver in this move.
@@TeddyBaldassarrethanks for your thoughts! Great job.
Bucherer looks like they already have a Rolex pre-owned program. I think Rolex is trying to cut out the reduced margin for sales to an AD and keep it. Also they can control the sale of "competitive" watches through Bucherer.
Their CPO program will be dead on arrival. They will only be accepting watches 3 years or older from date sold (fine, makes sense) from the ORIGINAL purchaser. I don't think many first hand owners of Rolexes are looking to sell them after 3 years.
I still don’t understand their CPO model. Sell subs at almost 2x the price of the grey market only on “our own” CPO page? Are people actually falling for this?
How much square footage do they need to not sell anything?
Time for US and EU regulators to crack down on Rolex for antitrust violations, like they've done on Microsoft, Amazon, Google, etc. Wasn't the entire reason regulators cracked down on Microsoft buying Activision is that MS would block "Call of Duty" on other platforms, just as you say Rolex can reduce allocations of Rolex to other retailers?
Agreed. This should definitely come under antitrust violations. Rolex basically wants to crush the watch market. That's what this is completely. Make no mistake.
Start with making them and Tudor pay taxes
Would love to see you reviewing their watches as well
Now even more Rolex watches won't be available for purchase.
Buy super clones
Are there specific limitations in place by Rolex limited ADs that sell both Tudor and Rolex? In the case of bucherer it is an either or. My AD does not sell tudor however i know of a number of AD that sell both. I do not think this sale with affect the other brands sold in bucherer because the watches that are made get sold. They may receive a larger distribution of Rolex however. I suspect this will elevate Tudor which has been making moves and there will be greater emphasis on tudor space in the AD. Would not be suprised if you have to have a tudor or two before allocated a Rolex.
A company with a brand strategy of artificial scarcity creates more AD locations. Now 10x as many places I can go to hear they have nothing to sell me :-)
Tourneau-Bucherer is already an authorized AD.
Will the prices come down any ?
I see brands pulling their inventory out of Bucherer stores and forging partnerships with Watches of Switzerland and others. They'll try to cut Rolex off at their knees.
LOL You are adorable.....Watches of Switzerland will answer to Rolex before forging and partnerships with any little brands that come along....Rolex is the King..All hail the King!
How about the certified pre-owned business model? is this a way for Rolex to scale up the pre-owned market as well?
I'm no economologist, but I have a feeling this will raise prices. Definitely for Rolex, but potentially for the rest of the industry indirectly. I better make sure I have all the watches I'll want for a while, and maybe sell some of them if their value goes up.
*economist
They're joking.@@paceyombex
*economonologist
@teddy where did you purchase this shirt?
This transaction likely is subject to premerger review in a number of jurisdictions. Given Rolex's market share for Swiss luxury watches, it is reasonably to anticipate that this transaction will attract scrutiny from antitrust regulators. Other watch manufacturers could try to kill the deal by convincing regulators that this deal will have substantial anticompetitive effects.
In the U.S., at least, this is typically only done with publicly traded companies. Neither Bucherer nor Rolex are publicly traded.
I don’t know whether this would be a sexy industry for US antitrust regulators.
On the other hand, I think this would be a sexy industry for the Swiss or EU antitrust regulators. I would think a clever economist could at least make an argument that Rolex could leverage ownership of a large retail outlet to increase market share by optimizing Rolex sales at such points of sale and reducing rivals sales or potentially not stocking them.
Swatch Group has had extensive dealings with the Swiss antitrust authorizes in connection with the extent to which ETA can refuse to supply large rivals with movements so there is precedent for European antitrust regulators taking an interest in the watch business.
The other big watch brands won't give Rolex the data of the costumer so I think Omega, IWC so they will terminate the dealership agreement - imo
I've literally never heard of Bucherer.
You pagan
Heard of Tourneau?
@@capmidnite Yes. The Tourneau near me is horrible.
Heard of John Wick?
Herd of cows?
Looking good on your new studio Ted
So now Rolex controls their manufacturing, distribution and sales outlet, as well as the distribution for many "COMPETITIVE" brands. This allows them to manipulate the market and to some point the competitors markets. It will be interesting to see how the larger manufacturers respond. Do they start their own Bucherer type outlets? One thing for sure, this will not make Rolex watches more available, and in turn will drive up their prices.
Interesting indeed but let's not forget, the consumer is responsible for controlling the market. If Rolex benefits from it, that's the consumers fault. 100%.
@@NeoWahNahif consumers controlled the market as you say, Rolex prices would be much cheaper and totally unstable.
@@samuelburton5576 Think about what you just said. The price of a good or service is a reflection of what someone is willing to pay for it. MSRP is exactly that, a suggested retail price.
If the consumer is unwilling to pay what is asked, a business must adapt or risk going out of business. It is entirely possible for a brand to reduce prices on their products if necessary.
If you could walk into a AD for Rolex and actually buy a Rolex this would make sense.
I wonder if this is really a done deal or one that has to be approved by regulators in the EU. It seems that there might be antitrust issues surrounding Rolex’s ability to freeze out its competition
*_Why does Rolex want to sell competitor products?_*
@@joeskeptical4762 Because those competitors have to pay them to do it, or lose access to a huge retail outlet. Selling Richemont, Swatch, and LVMH products doesn't cost Rolex anything. It's pure profit.
Great overview teddy mate!! Cheers
Rolex is literally Apple of watches now
Not sure what you mean considering Rolex is about half century older then Apple and have been the most sought after watch brand for better part of a century. It's more like Apple is trying to be Rolex
@@bdegrds I will explain what I mean by that. I'm not trying to hate on Rolex, but I'm not stupid. Apple is worth almost 350 times more than Rolex and most notable thing about Apple accomplishing that is amazing vertical integration. Vertical integration means company controls everything from manufacturing to distribution which is Rolex obviously trying to do here. So seems you're a little lost here, company age has nothing to do with that.
Hasn’t Rolex controlled everything from manufacturing to distribution for many years already?
Tissot, Edox or Doxa for seastar like model? Quarz
Shock! This is huge - What will Swatch do? 😮
They will submit to the King
Didnt watchfinder host call this one out few months ago?
Rolex has a platform to sell their pre-owned stuff and maybe control back door grey market operations. Other brands and current employees will be affected since they will hire people that could be more loyal to the new business model.
Bottom line for Rolex wants to protect their brand & prices. They want to better control the used market with the new pre-owned selections by having direct access to the consumer. More retail outlets worldwide the grey market dealers for Rolex may not be needed as much. Big brands love to dictate retail price points.
Ahh yes, a company who will put a customer on a wait list for 20 years and buying another company, as apposed to allocating resources to allow their product to reach more people… this aside thanks for the great video as always Teddy :)
Learn the game son....
Is that the white birch on a leather strap??
Does this mean Rolex will become slightly more affordable
No
No probably more expensive lol
@@danielainger terrible, lol
You will see more watch group authorized dealers pop up for Richemont, Swatch Group, Kering and the others. As an independent Bucherer just sold watches. Now it is in the Rolex vertical to enhance the Rolex business as its core focus.
All that tells me is that their ADs have been treating customers so horribly that Rolex had to do this.
This does not mean that Rolex is going to "reel in" the gray market. I just looked at Bucherer's "pre-owned" selection, and they are trying to sell a non-lumed 214270 for $12k when it's offered all day long on Chrono24 for $8,500. The 116900 Air King is listed for $11.6k when it is on Chrono24 for just over $8k. I realize that these are two models that, frankly, weren't very good then subsequently improved. But it appears that Bucherer is going to give the gray market plenty of space to flip watches without adding value.
This was more shocking than the time England won the world cup in 1966
Rolex must be acutely aware that the retail experience is alienating customers. No stock, building a “profile” to qualify for purchases, shady dealings with flippers etc. Customers have come to hate ADs and by extension, Rolex. I think a lot of damage to the Rolex brand has been done over the past few years, and I don’t think it’s sustainable. As prices return to normal levels (flipper premiums are crashing), and Rolex increases production, Rolex knows they need to sort themselves out.
The retail experience is super important for any luxury brand, and having company stores allows the brand the control that experience. Owning Bucherer will allow Rolex to control supply, improve the retail experience, and impose some discipline among ADs. If customers know they can acquire watches in a straightforward way, and have a good experience at Rolex owned stores, AD shenanigans will diminish because customers won’t have to put up with it. The key thing will be product supply and good, honest customer experience at the company owned (Bucherer) stores. This could even be a shot across the bow to threaten ADs with eventual termination, since Rolex can credibly threaten to eliminate individual ADs or the AD channel as a whole in favor of company owned stores.
It’s very common for luxury brands to terminate dealers/agents and build company stores in places where they want to improve performance and brand equity. In general, luxury brands owning their own stores is the more dominant model of retail versus agents/dealers, because the retail experience is the defining tough point of a luxury experience, in a world where retail purchases continue to move online.
Another reason: any brand, especially a luxury brand, needs to control pricing. Right now you might think Rolex is happy about grey market premiums, but it’s not good for a brand when pricing is out of control. Similarly, uncontrolled discounting also damages a brand’s image. The whole purpose of creating and managing a brand is to control pricing and maintain pricing power. Today, Rolex has lost control of pricing due to the grey market, and controlling retail will help regain control of pricing.
Having Bucherer creates a threat that will make ADs fall into line in terms of behaving better. Rolex will also have access to much better end customer data, which is valuable for sales and customer insights. These are just a few of the reasons this purchase makes sense.
Already got an email notification for Bucherer hiring "Rolex Sales Professional"
I really liked Tourneau, the I still liked Bucherer when them bought Tourneau. I’m curious what stores will be like. Will they still have JLC, IWC, Panerai, Tudor, Blancpain, etc. ??
It’s a shocker for me. I am a loyal Bucherer/Tourneau customer. I purchased my first luxury mechanical watch there and my first two Rolex time pieces from them. They are my go to AD. I wish Omega would follow more of the Rolex model. Will this give Bucherer more access to Rolex inventory?