Rolex Market Crash: How the Market is Changing Forever!
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- Опубликовано: 25 май 2024
- In this video, we dive deep into the shifting dynamics of the Rolex market and the luxury watch industry. As an economist and watch enthusiast, I share unique insights on how changing consumer preferences, economic factors, and Rolex's supply plans are reshaping the landscape of luxury timepieces.
We explore key concepts like indifference curves and the Laspeyres Model to understand how consumer behavior is evolving in the post-pandemic world. Using data from Watch Charts and the U.S. Bureau of Labor Statistics, we analyze the impact of the pandemic on Rolex and Holy Trinity prices, as well as the ongoing housing price squeeze on consumer spending.
Looking ahead, we discuss the implications of Rolex's planned production increase and what it means for the future of the Swiss luxury watch industry. Will the market find a new equilibrium, or will the increased supply dilute Rolex's brand prestige?
Whether you're a seasoned Rolex collector, a watch enthusiast, or simply curious about the economics behind luxury goods, this video offers valuable insights and predictions for the future of the Rolex market.
Join the conversation in the comments below and share your thoughts on how the experiential luxury trend is changing the way we perceive and consume high-end watches.
Keywords: Rolex market, luxury watches, Swiss watch industry, watch market analysis, Rolex prices, consumer preferences, indifference curves, Laspeyres Model, Watch Charts, housing prices, Rolex supply, Rolex production, experiential luxury, luxury goods economics
Hashtags: #RolexMarket #LuxuryWatches #WatchMarketAnalysis #SwissWatchIndustry #RolexPrices #ExperientialLuxury #WatchCollecting #EconomicsOfLuxury
Luckily prices dropping just means more watches for true enthusiasts & less money for opportunists.
The recent crash in the Rolex market is a wake-up call for investors
Buy Rolex at half price
I would buy rolex, but I'm kind of sick of them. Over hyped and not worth the money. Just assembly line watches that want you to believe that they are hand-made. The ADs also hurt them. So I'm 100% out. I just jumped to what I like more. Vacheron, grand seiko, zenith
I have not seen one price drop from any reputable seller, and the AD's have nothing for sale.
I’m 51. I have a lot of young people in my family and friendship circle. I’ve noticed that the younger generation are extremely materialistic and I can never understand how/why they spend the money they do on clothes, nights out, holidays, cars. I’m not convinced that luxury experiences are a preference to tangible luxury goods. The watch market blew up too quickly and now that demand has receded, so will prices. If you look at the market over a long term view, prices are still way too high.
This reinforces my conviction NOT to buy a luxury watch at grey market prices.
Even if Rolex increase production to 3,000,000 watches per year, they will sell every one of them. You didn’t bring up the crucial pony in history, about 2006 when a Submariner costs $5,900 and Panerai Luminor $9,000. Many other watch brands were also Hyperpriced. This allowed Rolex to easily charge more for their watches. Here we are today, because of pure greed. Real men wear Panerai!
Rolex was rising prices to the point where people wanted to pay for a watch from gray market. Now people pay for new from Rolex and gray market dealers are screwed
Great explanation! Only a matter of time until we can walk into any AD a have whatever watch we want, the way it should be. No watch is worth more than msrp!! 😂😂
With the sad passing of several older close family members in the last five years (COVID) my wife and I have realised we value experiences to create memories with family and friends.
Spot on observations of changes in consumer behavior. For decades, I, too, was a watch enthusiast. In terms of dressing for going out, I felt incomplete without wearing a luxury wrist watch. That pride of showcasing a timeless luxury watch is no longer present. Instead, I find it more comforting to be “stealth” wealth, focusing on traveling, dining in ordinary appearances - the ability to blend in is priceless, not showcasing prices. In summary, your explanation about behavioral consumption trend is very thoughtful, informative, and intuitive to understand.
Absolutely. Been traveling non stop and muuuuuuch less thinking about watches. Still love them. Still wear them. But not like in COVID years where even back then I was laughing at people paying premium for watches.
Very good points. Thank you. I would like to add that geopolitical instability with China and Iran will apply additional pressure as already happened with Russia when all luxury watch brands exited the market in 2022!
Interesting take on the current market dynamics. Also need to consider the effect of the size of the generational components in the analysis. The baby boomer generation is leaving the active market for all luxury goods as they retire. The subsequent generations are smaller in absolute numbers and therefore the overall demand will decrease. Combine this with Rolex potentially being able to flood the markets when the new facilities come online and this will stabilize prices and effectively kill the gray market as used watches will not be able to command a premium over msrp.
I agree absolutely Sir! I am personally shifting to vintage omegas and recently discovered the beauty of Cartier´s tanks. Moreover since I am DISSAPOINTED my extra liquidity will go towards to a trip to Japan since I´d always wanted to go and secondly... for a watch vintage search. Cheers and please continue with your excellent analysis.
Very educational! Love this kind of content!
Very insightful! Thanks a lot!
Thanks for sharing
I love the addition of the economics that differentiates this channel, so please continue to do so. The point you made at the end of this video about the number of Swiss watches shipped declining by unit volume is by design. The brands with market share are increasing profits and top line revenue by lowering availability because these are Veblen goods. Plus the big boys are shifting production from steel to precious metals. Unfortunately, many middle class collectors are being pushed aside.