Richemont Woes

[Andyg]

It's quite interesting how they protect the brand and perhaps explains the limited numbers of some Rolex Models.

https://amp.theguardian.com/business...buyback-policy

[-Ally-]

Erm...

http://forum.tz-uk.com/showthread.ph...-recycled-quot

[Joe.d]

I don’t follow a connection to Rolex?

[mjgerrard]

I don’t follow a connection to Rolex?

Rolex decides at the start of the year to make a certain amount of watches, and then sticks to it. They certainly produce less than demand, so sales remain high and 2nd hand values also remain high. Scarcity adds to the exclusivity too (If there is such a thing with Rolex).

If you flood the market with watches, people can just walk into a shop and demand 50% off as the dealer needs to get rid, which cheapens your brand and lowers margins for the AD.

Rolex truly is king of distribution (Annoyingly).

[Omegamanic]

Rolex decides at the start of the year to make a certain amount of watches, and then sticks to it. They certainly produce less than demand, so sales remain high and 2nd hand values also remain high. Scarcity adds to the exclusivity too (If there is such a thing with Rolex).

If you flood the market with watches, people can just walk into a shop and demand 50% off as the dealer needs to get rid, which cheapens your brand and lowers margins for the AD.

Rolex truly is king of distribution (Annoyingly).

I don't think they do decide at the beginning of the year.

[mjgerrard]

I don't think they do decide at the beginning of the year.

It's my understanding that after speaking with an AD, this is the case (Tim from Govberg has also mentioned this). It's why we're seeing the drought from pre-December of Rolex sports because Rolex hit their predefined allocations and then stopped manufacturing.

[744ER]

It's my understanding that after speaking with an AD, this is the case (Tim from Govberg has also mentioned this). It's why we're seeing the drought from pre-December of Rolex sports because Rolex hit their predefined allocations and then stopped manufacturing.

They take all the orders at Baselworld so it's after that they plan production.

[mjgerrard]

They take all the orders at Baselworld so it's after that they plan production.

Sounds logical as I suppose it's easy to forget that its a trade show above all things.

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[Derivative]

It's quite interesting how they protect the brand and perhaps explains the limited numbers of some Rolex Models.

https://amp.theguardian.com/business...buyback-policy

I wonder what they mean by the watches are “recycled” - I imagine that means the movements and cases get used again? Or would that be a no - no for hyper luxury brands such as VC, and it simply means the materials such as the steel and precious metals are melted down and re-used.


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[Mystery Scott]

Rolex decides at the start of the year to make a certain amount of watches, and then sticks to it. They certainly produce less than demand, so sales remain high and 2nd hand values also remain high. Scarcity adds to the exclusivity too (If there is such a thing with Rolex).

If you flood the market with watches, people can just walk into a shop and demand 50% off as the dealer needs to get rid, which cheapens your brand and lowers margins for the AD.

Rolex truly is king of distribution (Annoyingly).

I thought this until I went to India last year and tried on hulk, subs and SD in the first AD I went into. I cant understand if demand there is lower, in which case you would anticipate that supply would be lower, or if waiting lists wouldn't be tolerated or if its just a matter of Rolex not having a handle on that market. It was very odd.

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[SockToy]

or fakes, to fill the gap.