Rolex $100 Million Fine Update: New Evidence Shows It's Worse Than We Thought!
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- Опубликовано: 27 дек 2023
- 🕒 Welcome back to our watch collecting community! Today's video dives into the unprecedented $100 million fine levied against Rolex by the French trade authority, analyzing its far-reaching implications for Rolex and the entire watch industry. 🕒
👁️🗨️ Quick Overview:
We start with a succinct summary of the events leading to this hefty penalty, focusing on the legal nuances and the contentious clause in the Rolex Authorized Dealer (AD) agreement that sparked this controversy.
🔍 Q&A Segment:
Your questions answered! We tackle the confusions and queries from our last video, shedding light on the legalities of Rolex's sales policies.
💡 New Revelations:
Why is this ruling a significant blow to Rolex? We dissect the new information and discuss its potential impacts on Rolex’s future strategies, especially concerning online sales and AD agreements.
🇫🇷 French Trade Authority's Stance:
Understanding France's role in enforcing competition laws and protecting ADs' rights. Is Rolex overstepping its bounds with its strict sales policies?
🌐 Rolex’s Global Dilemma:
Exploring the potential global repercussions of this ruling, including the possibility of broader implications across the EU and the challenging road ahead for Rolex in the legal arena.
📈 Strategic Implications for Rolex:
Analyzing Rolex's potential responses, from restructuring its sales network to the implications of further legal battles in the EU.
🔔 Stay Informed:
Don't miss out on the latest in the watch collecting world. Subscribe and hit the bell icon to stay updated on all things watches!
📌 Watch the Previous Video:
For an in-depth understanding, watch our previous video where we break down the initial stages of this legal saga.
📢 Join the Discussion:
What are your thoughts on this ruling and its implications for Rolex and the watch industry? Share your views in the comments below! 
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A lot of comments here seem to be missing the bigger picture. The size of the $100 million fine is not the issue. The issue is that the French competition authority are applying rules dereived from the EU treaties (specifically Article 101 TFEU), and have found the blanket ban on online sales in the AD agreement to breach that treaty. In competition law terms, this is a ban on "passive sales". ADs in other EU countries subject to the same online sales ban may challenge Rolex on the same grounds, and may reasonably expect the same result because it is governed by the same treaty. The matter may also be escalated to the European courts. If they agree with the French competition authority, all blanket online sales bans contained in Rolex's AD agreements throughout the EU could be declared unlawful.
Thank you. That was a valuable contribution to the discussion. Very clarifying.
We understand...
ROLEX doesn’t need AD’s anymore. What for?! They can start selling online themselves, direct to the public worldwide. They have their Bucherer stores now, perhaps that’s enough for a brick and mortar presence, the rest can be done online.
Rolex already sells online through the CPO program. That's what got them into hot water. Why can't the ADs do the same?
@@mywatchjourney6579 cause AD’s sell all their stock back door to grey dealers. They don’t have any stock to sell online anyway.
@@mywatchjourney6579 Why would an AD want to sell online? What advantage do they think this would give them? They have to keep operating those fancy stores as part of the agreement I would assume. They already can sell all their stock.
Great assessment! Very informative and well put together. Definitely appreciate you following this! I'll be tuned in.
Yeah, fascinating situation. If there are new developments, I'll definitely follow up. Thanks.
I was expecting this for a long time and I foresee many more vertical market restriction cases to pop up!
Thank you for the update and analysis.
Excellent insights. Thanks 👌
Good to have found your channel. It is a breath of fresh air!
Glad you enjoy it!
Interesting discussion. Thanks.
Glad you enjoyed it!
Some interesting points. Im very excited to see what the future holds!
I guess Ferrari is next, they and other companies play the same games
I'm planning on watching the new movie next week. Hope it's good!
Rolex is. So crazy it doesn’t even allow the dials to be kept. They want those dials to be kept at the ad. Crazy.
Love the analysis.
Thank you!
This is very common. I am an audio/video dealer and the brands that I am authorized to sell forbid me from selling their products online. Same thing. To be an authorized dealer for a brand there are rules they ask you to follow and if you don’t, they take you out of the pool of authorized sellers. France is stupid, they have a long list of companies from many different industries to sue besides Rolex, then.
Exactly!!! But apparently, this channel and 99.99% of viewers do not understand both of these points!!!
Thank you. That was the best explanation of this issue I've heard.
You're welcome! Glad you found it useful
if the french ADs are now allowed to sell online......rolex should only allocate the french ADs with ladies datejusts, airkings, and 1908s
Haha .. restricting supply will likely cost them during the appeal. More anti competitive behavior. I bet the Rolex lawyers are working overtime on this!
Everyone seems to be missing the point that selling online would be very harmful for the ADs. I can't believe any of them would do it after this ruling.
Sometimes, I wonder if Rolex is secretly controlled by the mob
They operate as a quasi-monopoly. Almost as bad.
Interesting dilemma for Rolex. Also, a straight forward presentation. Nevertheless, I dont have much empathy for Rolex or Rolex consumers.
Stop hating others success
@@samuelburton5576 Buying a watch makes you successful? LOL
@@samuelburton5576 A friend of mine has a stay-home wife and new baby and can barely pay the rent. But hey he has 3 Rolexes so well done on him and his obvious success. LOL!
Thank you. And I do understand your feelings regarding Rolex. Many people share that feeling.
I am no big fan of Rolex by any means but I do like the look of some of their least expensive watches.
Why I don't really lust after a Rolex (actually I don't lust over anything), is because many years ago when I started seeing those monstrosities that are "iced out" with garish diamonds, i was completely turned off. There is no horology that requires such debasing of a watch.
I am disgusted by them and not too complimentary of those who buy such things either in a classless attempt to buy credibility as a success.
A nice steel Submariner or a demure Datejust are nice watches but to me the brand is cheapened by the willingness to produce over the top bejeweled "flex" watches.
To me it says the opposite of classy. That is my problem with Rolex and while can afford one, I don't want one.
Your opinion may differ.
I love my $400 Rolex replica. Still keeps perfect time after 7 years and looks 100% authentic. Good luck Rolex.
Lol! Yes, those super clones are getting very good. Even copying the movement now. And I understand how you feel, lot's of karma to go around.
Same mine is a gold submariner ❤
Since Rolex just acquired Bucherer, they could simply stop selling through ADs and just sell through Bucherer, since Bucherer is theirs, they are selling their own watches and can sell them how ever they see fit.
They only have one location in France. And that doesn't solve the problem of the legal contract.
@mywatchjourney6579 For now but they have a path to full control. It starts with France then others follow suit, Rolex can let AD contracts expire and not re-award them and simply use existing Bucherer or open new ones. They now control everything, from manufacturing to sales.
Always remember: Rolex is a charity.
"charity"
I agree. It's a thin veil to shield themselves from taxes.
@@mywatchjourney6579exactly
The Holy Trinity even blacklist watch owners to sell their watches within 1-2 years.
Yes, I've heard horror stories about Patek.
Haven't heard of VC doing that. Any horror stories about them?
Where on the rolex website is this posted? Id love to see that lol
It might be programmed to only display in France haha.
Disagree here. The ADs are responsible for the exploitation of the consumer. Not to mention the damage to the brand in the eyes of the consumers. The French should be protecting the consumer not the ADs. 100M to a Trillion dollar company is laughable. Rolex can stand up their own distribution this afternoon if it wanted to. Bucherer acquisition is just the beginning.
I actually agree with you. See my 'visits to the Rolex AD' videos. I've roasted them plenty. And yes, they have been very shady with the 'purchase history' BS! But this case may help the consumer if it increases competition between ADs.
I agree with you about the shady elitist AD practices.
The purchase history part of it is particularly distasteful but I must add that it only works on those people who are willing to fall for it so badly that they will submit themselves to groveling to salespeople who might otherwise be selling used cars. No thank you.
How about France starts at home with their Hermes brand which sells the same way?
Home team advantage I guess.
Yup. I agree. Online Birkin flash sale!
Rolex prices about to plummet 😂
Glad i just bought an Omega 💪🏼
In terms of specs, my Omegas compete very well with Rolex. My CK859 is getting tons of wrist time.
@@mywatchjourney6579Interesting watch, never seen that one before actually.
I got the 2017 Aqua Terra 38mm with black dial 👍🏻
Rolex could argue that their philosophy on building the biggest luxury watch brand is the reason why Rolex is so successful. They will walk away from the French market to protect the image of the brand, or the might hold back supply if have to. The AD’s agreed to the conditions of selling and marketing the brand. I agree with Rolex, it a luxury watch brand , they are not interested in shifting quantities, if it will damage the image of the brand. An AD from Enniskillen, Northern Ireland was discounting Rolex Watches, when Rolex found out about it, he lost his Rolex AD status overnight.
At around 8m00 the EU effect. As FR is referring to EU law if this FR thing if upheld it WILL have an immediate effect in the whole of EU. Technically IMHO it already has.
How important is the "not available online" aspect to the allure of Rolex? Is the psychology of not allowing online sales a cornerstone of rolex marketing, or is there more to it?
I think, that Rolex think it's crucial. You know, "only the select few are chosen to be on our customer list", instead of, "anyone with a credit card can order online while munching on a McDonalds meal".
But that's a very old fashioned way to be and that business approach is pretty much dead. There are many manufacturers who do retain their brand cachet but sell online, so we know it can be done.
On the basis that the ADs have no stock anyway, Rolex can just set up their own website. ADs still have a role, but other than changing the strap and receiving services, what does an AD actuakly do?
Good point, what do they do?
Yeah, I was trying to buy one of the higher end Moonwatches last year and Omega website was 'out of stock, please go to a Boutique', and Omega lined me up with the nearest one etc. It was actually 50 miles away so I couldn't be bothered in the end, but the sale would have been made that way if I chose to make the journey.
So maybe it really will be that simple for 'Rolex Online'.
ADs are required to spend major $$$ on the build up of the boutique. It's moves the cost of keeping up appearances from Rolex to the ADs. That's part of the sales model for Rolex. Rolex is basically running a franchise business.
Love it how Governments are cracking down on big companies shady practices 😂😂😂😂😂
It's about time. Rolex has been getting away with this restriction for too long. All their competitors are doing online sales. Get with the times!
Amusing to see all these comments by folks who don't have a clue on contract law nor the implications / consequences of this French court ruling!!!
@@LWRC jajajajajajajajajaa implications and consecuencies for Rolex of course. No one is above the law, not even Rolex. I LOVE IT HOW THIS IS PLAYING OUT.
@@agprime The destruction of contract law is not good for the retailer, the manufacturer and certainly not good for the consumer! How low does your intelligence have to get so as not to recognize that?!! This is far reaching and is not just about Rolex!
Read the comment by another poster for the industry he is in and he stated they have the same rules not being able to sell their products on line!
@@LWRC Your comment is outright stupid, you think cracking down on unlawful practices hurt the consumers and the government just how stupid can you be? I am amazed by your level of stupidity. How can cracking down on Rolex breaking the laws is bad for consumers? Really WTF is wrong with your peanut brain? Whatever you say cannot stop this from happening. It is done go cry somewhere else. The only people will be affected is Rolex and the people who buy Rolex watches as an "investement".
No matter how we look at this, I have lost all interest in buying or owning a Rolex. There is by far better options available.
Omega is a great alternative for me! Love their watches.
What this means for the consumer remains unclear at least until Rolex either complies or goes to appeal, which could make any outcome drag on. And after compliance what then? Would buying a Rolex online become easier than obtaining one now in an AD store? Rolex ADs are not standing in shop doorways touting for custom but demand is down. 2024 promises the best chance for some years to buy that Rolex you want at retail. That's where my efforts will go at least until I see an online order form on my Rolex AD's website.
Yes, I' guessing this will drag on in appeals. But Rolex's silence is telling. They will need to tread very carefully. A further loss in appeals courts will really hurt them. Good luck in your hunt for a Rolex!
Just asking: hasn’t this dealer issue similarities with car dealerships especially in EU. In EU car manuf. seem yo have a very strong grip on their dealers too (opposite US).
Yes, I agree. Others have commented on this too.
Truly loving the format of your videos. Great information, you did a great job of explaining this confusing situation. Keep up the videos.
Thanks, will do!
Rolex is going to get rid of AD's
That would be a drastic step, but sure would make for interesting content ;-)!
Rolex can with a snapshot be forced to sell all their watches online in Europe with the worlds most forceful consumer protection laws the same way entry level watches like Seiko, Timex, Swatch etc. do😅!
“How did you get invited by the AD to buy your Rolex?”
“I didn’t, I just bought online during my lunch break at the garage”.
😂😂😂
Haha the CEO of Rolex had a nightmare last night thinking about that!
Omega, Longines do sell online!!
Rolex AD's are notoriously rude, favour preferred customers and artificially restrict supply. Online ftw
Would love that honestly. Even if on a waitlist, as long as I can check my place in the queue.
@mywatchjourney6579 There is no waitlist, but only a preferred customers' list.
@@jamess8175 Yes, their 'purchase history' list. It's really aggravating.
Why would Rolex not just strike a new agreement where they keep ownership of the watch and the dealer gets a commission. Like in real estate sales... if protection of ownership is the issue at hand?
As far as I am concerned, sellers should be allowed to do whatever they want if they buy at market price. Otherwise I can see why Rolex poses those restrictions...
That's exactly it. Rolex wanted to have it both ways. No responsibility of ownership but still control distribution.
@@mywatchjourney6579 so perhaps that's why they bought Bucherer. Can't imagine that fine came as a massive surprise. Bucherer is a first hand view of the market and demand. If they stop selling the watches to ADs but keep ownership they will take more of the risk as far as not being able to sell them is concerned. Better insight into the market, better prediction of demand, better planning of production etc... crazier things have happened, no?
If Rolex did away with the AD's, they would have to open their own shops and pay staff. It doesn't make for a good business model when they could simply pay the fine and allow AD's to sell watches anyway they see fit.
It's a difficult question. Because they still need to resolve the issue with an illegal clause.
and that's the bigger issue, for sure. As you said, what will the EU do once France is done? @@mywatchjourney6579
Or they could redo their agreement and keep ownership of the watches until the AD sells the watches to the consumer. Basically turn the ADs into consignors.
Cartier sell watches online, but it’s not quite the same experience. It’s a luxury product, not something you buy on Amazon, so typically you’d want the boutique experience. If it is a product that is highly sought after however (on a lower level we have experience with the seconde/seconde collabs or the Bamford G-Shocks that were sold out in minutes), then you just get flippers buying them all up. The customer is actually put at a disadvantage if online sales were allowed.
It is only an advantage if the situation changes to one that is similar to the 90s where one could just walk in and buy a Submariner, ie demand is lower than supply. Doubtful that will materialise.
I should do a video about the economic and psychological effects of online marketing.
Ролекс давно превратился в коммунистическую помойку, создавая искусственный дефицит своих часов, продажу по каким-то спискам и создание на этом всём искусственного ажиотажа. Развалится от собственной гнилости - потеря будет небольшой. Японские часы ничуть не хуже часов этих европейских манипуляторов.
Can you pls translate?
@@mywatchjourney6579 RUclips has a translator from foreign languages.
Communists don't create artificial scarcity to inflate prices, only profit-driven capitalists do that.
@@mywatchjourney6579He's calling Rolex Communist.
Following
That's not bad news it's good
News.
For consumers, yes! This will eventually mean more competition between ADs.
I agree, appealing to the EU is a trap, a HUGE risk. But even if they don't appeal and comply w/ France's ruling, other EU states will look at this and take similar action. That snowball will go downhill and grow and grow.
Yes! Either way, it's a huge risk for them.
@@mywatchjourney6579it’s the same in the us
The EU is not Rolex's biggest market! The US is! This same practice is already here in the US and NO US ADs have filed law suits against Rolex on this matter because it it nonsense!
@@LWRC china is Rolex’s biggest market. It’s twice the size of the US
@@anonymoushuman8962I did not know the size of the Chinese demand for Rolex but if that is true I would expect a lot of used Rolex watches to get dumped onto the market due to the economic issues in China right now. A lot of wealth has been destroyed lately and it looks as though it might continue. It's the luxuries that have to go first.
Of course I am not informed about this, I am just wondering and speculating.
I am interested to see if this is going to have an effect on pre-owned availability.
as i understand, the French ADs did not file this case against rolex, it was the French government's axe to grind with rolex. The clause in the rolex AD contract that product must be purchased in the store helps the AD sell other goods. purchasing online would reduce foot traffic and hurt the AD
But empowers the consumer, which is what trade is all about. Trade is about empowering consumers to make good choices, which generally lifts trade, rather than protecting a few butt hurt businesses who have not updated their business models.
It was a French AD that initiated the action.
@robertsanchez9972that AD is going to have to close down.
@@squicker In what way would this empower the consumer? Why would an AD even *want* to sell online? It would hurt their foot traffic.
@brandywine Generally, more consumer choice is empowering. e.g., my local dealer is WoS, who are not well regarded. Also, for me, I prefer to shop online, as am disabled so don't relish going into town just to buy a watch.
From the AD's perspective, it depends on their business strategy. But it's not uncommon - due to declining 'in person' shopping, for a chain to want to keep only a couple of marquee stalls in notable cities (where they do have footfall), then sell the rest of their inventory online. But that's the point, it's not for one private company to dictate the business strategy of another private company, that's against everything the capitalist free market thinking stands for. So removing Rolex' ability to dictate how other businesses sell inventory they have already bought, leaves all options on the table, depending on one's own business strategy. As you say, some might not adopt online sales, but at least it's now their choice.
A good informative video and very interesting, in my opinion this is a self inflicted wound by Rolex. I do find it frustrating that I can't buy a Rolex from an AD but can buy new through traders but pay twice the price. The other issue is celebrities get offered a new release yet the general public can't. Personally I wouldn't want to buy a Rolex or any other brand online, maybe order online and collect from the store. You can spec out a luxury car online but would have to go into the retailer to confirm the spec and place your order. Very informative video, please keep this information flowing.
Thanks. I think a lot of people share your feelings, including myself regarding availability. I'm waiting on a Sub.
I've tried three AD's and basically been told no, one of the AD's I've purchased several watches from including a Rolex and I've not been successful.
Incorrect, an AD can choose not to be an AD. This will push them to end all AD operations. They can then push through their stores only. The AD will be allowed to sell only RCPO. It's clear prices will soar. I suggest purchase NOW!
pffft don't make me laugh the world economy is about to go pop. I suggest you SAVE now.
@thegorn maybe poop for you, but some of us buy when shits goes bad.
Honestly, I expect further price drops in the luxury watch market for next year. Until the Fed cut's interest rates significantly.
I have been saying this for years. DeBeers has been banned in the US because of artificially manipulating the price of diamonds by purposefully limiting supply and eliminating competition. How is Rolex any different? Plus, Rolex practices discriminatory sales practices. They decide who gets to purchase one, who stays on a waiting list and how quickly those orders are filled. Depending on the customer, some stay on a waiting list for years, some never get the watch they want and others walk-in and quickly get what they want.
Yeah, it's surprising no one else had taken legal action sooner. But it's happening now. And I agree that Rolex needs to tread very carefully here.
I think it's amusing that Rolex doesn't want to sell its antique watches through a modern medium - the internet!
They are an old fashioned company; and they have been successful for so long, they feel no need to change. But times are catching up with them.
Demand down-?
I just came back from Vegas. Out of 5 ADs, none had anything they would sell.
Watch my other videos on Rolex pricing. The data is there.
@@mywatchjourney6579Not sure it matters if they won’t sell you one. I was offered a “pre-owned” Rootbeer for 27k. Again, the new one in the case was off limits. Obviously I declined
Rolex has all the money in the world and can litigate this ruling forever, get rid of all the ADs in France and sell thru Bouc. Rolex has never backed down to anyone.
Well, they already lost the trial in France. So unless they get this overturned, they are in trouble. And no business want to pay these fines.
Rolex, the Goliath, has always pushed their way thru the market. I believe makers like Invicta, Blancpain, Squale and others have been impacted by the force of Rolex by them having their branding on the side of the case. Sometimes the small guy, in this case a country, complaint will get the Goliath to sway a bit.
Yet I understand a luxury good is heavily impacted by presentation. The instore experience could mean everything in the long run because it's all about image. IMO, and likely to many others, $10K for a steel watch is ludicrous. Rolex's push to sell the precious metal variants makes a lot of sense. The watch has become jewellry.
Luxury watches are most definitely jewelry, especially for men. My phone keeps better time; but I still love to wear my Rolex.
You literally mention Invicta, and Squale in the same paragraph as Blancpain, and Rolex? Even Blancpain is insignificant to Rolex. Rolex makes and sells more watches than the next 10 manufacturers combined, and that’s with Omegas 500K annual production. Lions do not care about the thoughts, and feelings of sheep.
@@chipmacgillAnd that is the rub, isn't it. I am not impressed by a person's choice of watches. The person who thinks that they are a lion because they wear a Rolex as a status symbol, especially if they are a watch flasher, leave me with a totally different opinion of them than that which they imagine the watch buys them.
Your watch does not buy you respect from any other than those who who have been programed to believe it.
Watch "flashers for flex" provide me with important information about that person that might otherwise take a while to determine. It saves time.
Need to start selling watches at retail to proper customers, you know normal commerce!!
Where will the fine go? Who will benefit from this?
After watching this video, I now have a question as to how this decision would impact the U.S. ADs. Would U.S. consumers buy Rolexes online from France or other countries in Europe such that U.S. ADs start screaming about how their sales are lagging because they cannot sell online?
Don't worry about it, it's never going to happen! Rolex will pull out of France and stop selling watches there. They won't even notice! The demand is so high for their watches they'll just divert this inventory to other high demand countries and immediately sell the watches. France is a tiny little country. It would be like Rolex not being allowed to sell watches in Florida. Who cares, they'll survive.
I can promise you the US government would never do such a thing. Never never never. They don't try to regulate companies in nearly the same way as France! That's why the US has the number one economy in the world!!!
The USA would likely slap tariffs on the watches if there was significant concern about foreign sourcing. That said, the US luxury watch market is relatively trivial and they may not bother. I guess then ADs may start asking for equal treatment, especially if the AD was globally represented, i.e. in the USA as well as Europe.
@@sinjinadams2862 France's luxury watch market is worth $2bn, which is 25% of Rolex t/o. They won't pull out.
@@sinjinadams2862 I believe this will apply to all ADs in EU Countries, not just in France.
Silly - Rolex will just stop selling to ADs they don’t own in France if this ruling holds, as one of the questions points out. They are already going down that route, this court case has been running for a while, we are just seeing the reason for the AD purchases now.
Exactly! France is a tiny little country! Rolex will just pull out and stop selling watches there. It won't even phase them!
@@sinjinadams2862French luxury watch market is worth $2bn, which is 25% of Rolex annual turnover. Plus, France is a significant fashion capital, in terms of reputation and influence, France is significantly more important than the USA, for example. So they'd be very reluctant to lose access to that market and will not pull out; they will either restructure, or just suck it up.
And it's 'faze', not 'phase'.
The issue is that leaving won't change the court ruling. And that's the long term threat to Rolex. It set's a dangerous precedent.
@@sinjinadams2862France a tiny little country?
I hope that was sarcasm, otherwise it's back to geography class 😂
@@mywatchjourney6579 if there are no independent ADs left that want to sell online the court ruling is completely redundant.
Rolex can stop selling in France. Then people will have to travel somewhere else to buy a watch. Similar to Facebook. They are banned in some countries, so people are using VPNs. Consumer will always find their way to get what they want.
That would happen but Rolex won't stop selling in France as the French TAM is too large to let go.
@@squicker It takes one big player to make a move, the rest of them will follow. I think France should be careful in what they are wishing for.
@@cookingwithwatches lol, French luxury watch market is 25% of Rolex t/o, plus has far more prestige than the likes of USA, Emirates etc. Rolex ain't going anywhere, they can't afford to lose that addressable market nor take the reputational hit in losing a global luxury fashion leader.
It's true if Rolex leaves, the French can still buy through watch dealers. But they won't leave France. Like @squicker says, they can't.
Rolex could simply slow down supply to French AD’s ?
That would likely run into more anti competitive law suits. Rolex really needs to be careful here. But I'm sure their lawyers are telling them the same thing.
It's all going pear shaped for ROLEX!!
You’ve found a niche that appeals to enthusiasts weary of compromised narcissistic watch daddy content focused on telling collectors what to buy, what makers to avoid and most importantly what to think. Thanks for making content for those that can process complex concepts without it being dumb downed to crayon level. BTW I see you’re still rocking the Monta. Sweet!
Yup, love the Monta! And thanks so much for your kind words.
Love the vids. Keep it coming.
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Thanks, even if this is AI generated haha
@@mywatchjourney6579 posted by real human though :)
Why would Rolex need an AD to sell online or mail order? Rolex can just do it themselves with minimal costs. In addition, why would consumers buy from the ADs if the consumers can buy direct from Rolex. How would this benefit the consumers? The ADs are just as evil.
Good points. This guy has motives for bringing this bias video to you tube
Rolex could indeed restructure to develop their own direct sales channel. But that type of transformation takes time, and significant investment, both financial and in human capital. But it certainly can be done, the whole world of digital transformation is often driven by business desire to get closer to the consumer.
From a consumer perspective, it's generally preferable to deal direct with the manufacturer if possible, so this could happen in time.
@@squicker I suspect that Rolex could eliminate some ADs in areas without significant population numbers in the U.S. and sell online but send the purchased watches to ADs to hand-deliver to purchaser in-store. AD then gets foot traffic and can sell more watches or jewelry. That might be considered a win-win.
Yes, it will be interesting to see how Rolex respond. We know that:
They definitely do not want to lose France, its luxury market is too big to lose and France is too prestigious to take the reputational hit from losing.
They don't want to sell online, or Rolex *think* they become just another Seiko (which they are really, I love my Rolexes but they are just bits of metal, all said and done).
They may appeal, despite what the channel owner says, I imagine they are considering the merits of an appeal at the moment, although it could make things more messy.
The trick is in selling online and retaining some sort of perceived value. Which plenty of others have done, so I'm interested to see how Rolex approach this.
Rolex already does participates in online sales through the CPO program. But they won't allow the ADs to do the same.
I believe Rolex will just stop selling them in France. I’m sure the demand is strong enough that the watches would sell very fast. Maybe we would stop seeing the “for display only” not for sale sign.
Would they really do that? Lose so much money in sales?
Millions to create their network? Like… 100 mil Euros?
No, it would be much more. Likely over a billion. And the logistics is much more complex than selling to resellers. They would be fundamentally changing their business.
@@mywatchjourney6579 yeah. Couldn’t help myself from making that joke when I heard you said millions. Great analysis!
Building their own boutique network would take hundreds of millions and many years, Rolex is in deep shit if they cant win this court battle.
Also the massive issue of sourcing qualified staff required to man these stores will introduce a massive ongoing cost to Rolex significantly impacting their margins, something Rolex would do anything to avoid.
Yeah, some people are really underestimating how much money and time it would take.
Put it another way - if this law sticks in France, then every other clown in business with a manufacturer can make up some nonsense and say the manufacturer forced them into it and it makes them uncompetitive and they want those restrictions lifted!
Who in their right minds would want to do business in a country that does this nonsense??!!!
So this is much bigger than just Rolex!
Go ahead and fine Rolex - even if they pay the fine, they will continue to sell all their productions world wide!
I would say to Rolex - if the French government does not want your business in France, pull out of France completely and stop all after sales service as well for existing watches out there in France! I really hope Rolex does this as it would help the market in the US as I'm sure we can easily take up the slack!
This whole arguement of selling on line or otherwise is complete BS. The terms and conditions of the license agreement the ADs signed were very clear and if they didn't want to abide by the rules, they don't have to become ADs!!! No one is forcing the ADs to do business with Rolex.
Any contract that violates your rights is both illegal and invalid so your argument doesn't hold water.
It seems like you are not buying a Rolex today, you are allowed to adopt it 😂😂😂.
Haha with all my vids on Rolex, I was shocked when I got the call for my OP. Maybe they haven't seen it yet lol
Great deeper dive, very accurate.
I don't understand how anyone can be against this ruling. I'm a capitalist, I love money and I love making it. However, as a small business trading in the UK, USA, and EU, I observe that the UK and USA is full of 'crony capitalism'; the big boys with all the money are able to lobby their cronies in the UK and USA gov (USA is particular bad for this) and get laws written in a way that suits them, leaving small businesses with crumbs. The EU try to stamp this out when they see it, they are not perfect at this and there's still an awful lot of huge corporate lobbying going on, but generally speaking, the EU and its member states try to have a level playing field as befits capitalist markets.
So this ruling is a great thing for those of us who believe in capitalism and the dream that any of us can start a business and succeed, without being bullied by larger businesses who have more money and greater lobbying power. Rolex were bullying the ADs (small businesses) through a rule of fear, and this ruling acknowledges this.
How can anyone be unhappy about this in a world where it's well known that megacorps are walking all over us? And yes, I do own Rolex watches, nice watches, not such nice business practices...
To me as a consumer it's not really about me being happy or unhappy about this ruling. I'm looking at it from Rolex's perspective. If I were them, I would call their bluff and pull out of their country and then watch what happens. When people realize they can no longer buy a Rolex in their own country because of actions their own government took, well let's just say this demand will be rescinded.
@@sinjinadams2862They won't pull out of France. The French luxury watch market is worth $2b, which is 25% of Rolex t/o last year. Additionally, France is an important fashion capital with far more influence and cachet than the likes of the USA or Emirates. Rolex will not let that go, as it would be very harmful to their business in terms of reputation and addressable market.
The EU is the epitome of crony capitalism. They introduce reams of regulation which burden the little guys and make markets unprofitable for all but those companies with the biggest scale. It is usually the biggest companies that lobby for the regulation to make it as hard as possible and costly for small guys or companies outside the eu to compete...
Ever since Citizen United ruling by the Supreme Court, it's gotten very bad in the US about corporate lobbying. It's sad.
I guarantee you Rolex won't pull out of France.
Rolex should count how many watches the sell in France. Stop selling that watches in France. And reduce production by that much or 1 1/2 times that
That's a drastic step that Rolex will not take. It will open them up to law suits in the EU courts.
They don’t have to say there not selling them just provide the ADs with nothing maybe just the rubbish rolex watches nobody wants
Rolex sets rules to be an AD, I am assuming one of them is the AD is not allowed to sell online. If an AD does not want to abide by these rules, then they don’t sign the agreement. To me, it’s simple and this fine is a money grab by the French organization; ridiculous.
Every country has laws against monopoly practices and consumer protection. Any company wanting to do business there must comply with those laws.
Aww, a billion dollar company is getting fined and have to be more consumer friendly? How terrible. Why won't they think of the little guy like Rolex 😁
LMAO! It's time for Rolex to change.
Then the AD would sell all the lady datejust, PM datejust and daydates with boring dials online. All the god stuff will not be online
I imagine it would be similar to the CPO program. Whatever is in inventory would be displayed online. The point for me is that ADs could no longer play games about 'purchase history'.
Looks like rolex bought too big a SHRIMP PO BOY..😂
They really screwed themselves with the CPO program. I'm wondering how that will go. I have some theories haha.
This ruling is complete nonsense! Rolex is a private brand and company and they should be able to dictate how their dealers sell their poducts!
Rolex can pay the fine and just pull out of Frace all together! French consumers can then go to other couintries and buy the watches there!
Rolex can stop all future sales and support of the French market as the world wide demand outstrips their production anyway so it would just mean more watches for us here in the US!!! Great job France - another bone headed move that will benefit the US consumers!!!🤣🤣🤣👍👍👍👍
But isn’t it true that Rolex has $billions in cash,enabling them to break ground on the 3 additional factories?
Anyway send those watches over here, at retail every single one will be spoken for, but dump the ADs, they took advantage of customers.
During Covid I visited 3 of the largest ADs in NYC, none had any Rolex watches in display, yet salesmen were at the ready, waiting for you to beg them for a watch with a ridiculous markup. When I was a salesman at Tourneau you could, at that time, walk in and buy whatever you wanted at retail, and on a precious metal watch even get a 5% discount. Then the stainless steel Daytona came out and young overpaid spoiled brats caused a shortage. And thus began the craziness and the grey market.
Agreed, the luxury watch market has gone through major upheavals in the last 2-3 years. Interesting to hear of your experience as a sales associate at Tourneau. I do hope we get back to the days when you could walk into a boutique and buy the watch there. My own Rolex AD told me he misses those days because he really felt like he was helping the customer choose the right watch.
Don’t send my watch through the mail!
Have you had a bad experience? I've bought high end watches through the mail, and it worked out fine.
@@mywatchjourney6579 ive purchased high valued items and it almost got lost. Imagine waiting years for a Daytona and it gets lost or stolen in the mail. You probably would have to wait years again to get it replaced from an AD.
Nottingham England Goldsmiths are a well known Rolex AD that does have some very unclear Rolex purchasing. I was asked to purchase other non Rolex items.
These ADs are evils and disingenuous. It’s unfortunate but true.
The AD sells the second ss hand sports watches online but at multiples of the msrp…. Similar the watchfinder or chrono24.
Rolex ADS time will come. It’s here.
Rolex dug their own grave.
I went to Hyde Park Jewelers to put my name down for an OP. The sales lady was never serious, very impatient. I knew they had no intention of helping me because she didn't even bothered to ask me what size I wanted. Now things are opening up, but I'll never go back to them for a Rolex. I only visit them to try on watches and then order online lol.
@@mywatchjourney6579
Yes I wouldn’t go back either!
Luckily I have managed to accumulate 13 Rolex, 6 AP and two Cartiers over a period of time. All from my AD. Rolex were the tough though. I have had some positive experiences and own everything from the James Cameron deep sea, to a gmt master 2 Pepsi, a ss black dial Daytona., yachmaster 40 with a blue dial,yacht master 2 and anything and everything in between. The only Rolex I would not purchase is a submariner and is therefore not part of my collection.
I have my eyes on two more pieces but in this current environment I doubt I will get them. My experience with AP has been exceptional over the years where I have been offered and taken advantage of several beautiful pieces which includes 2 offshores and 4 Royal Oaks. I currently am waiting for a green dial Jumbo… I have been waiting about 6 months for that so far…. I like dealing with AP directly at their boutique. Very professional and able to make you feel comfortable with no silly purchasing games. They have always come good for me even with two relatively high demand Royal Oaks.
I guess I have been lucky so far. I love collecting watches. I cherish every single one of them even my 39mm blue dial OP.
So overall my best experiences have been with AP if I’m honest. This is how I expect to be treated when spending the amounts of money that these things cost and how in demand they are.
Are most people that buy a Rolex not into watches? Probably. Why cover almost entirely Rolex?
This channel got started with my quest to buy a Rolex, so it organically grew from that. And people really seemed to enjoy my market updates.
I guess I see now their connections didn't help them. They really were behaving poorly and got caught out. EU courts will most likely rule more harshly. As this is the worst possible route, this is mist likely what they'll do.
Yes, Rolex has been operating an outdated sales model enforced by reseller contracts. I do wonder how they will respond.
@@mywatchjourney6579I have a feeling the person with the power in the board room of rolex will escalate and pride/ego will win out.
Rolex will need to spend $2Billion in legal fees to wrap this up and at the end of the day they will still lose. Seems like the mafia got them by the b&lls. This is how the bully gets bullied.
This will no doubt cost them. Fascinating to see how this plays out.
Whst about other exclusive brands? AP, Richard Mille? If they single out just Rolex thst wtf. Also F the EU.
The EU is fantastic, especially when it comes to holding large companies to account.
The difference here, is that AP are wholly owned boutique outlets and can therefore determine what they do with their own business, whereas Rolex were controlling ADs - non-owned by Rolex - in terms of telling them how they could and could not sell their inventory, which they had procured upfront. From the EU's perspective as a trade bloc, this is against fair trade, and is a typical example of a large corporation trying to control smaller businesses through unfair trading terms. It's the sort of 'crony capitalism' we see in the USA all the time, but which the EU tries to eliminate as it is anti-competitive, anti-capitalist market, and ultimately will lead to less consumer choice and value.
I run my own business, so I'd be dismayed if a larger business tried to control me via its larger corporate muscle, and would be very glad to have EU trade protection that levels the playing field for small businesses.
I’m curious to see what happens in 2024 with certain watch brands.
It would take an injured party to file a complaint. But if this Rolex ruling holds, then they are also vulnerable.
Probably Rolex will accept the loss , and they'll do like Apple, and just do what the ruling tells them to do, as long as they are getting decent profit, if they disregard the ruling the EU will impose sanctions on Rolex, and I understand the children here thinking their favorite company can just stop doing business with the EU and still do fine, but in reality that's the kind of blow that can bankrupt companies if not played well, not because of the fine, but because making the biggest pull of wealthy people in the world your enemy it's not smart business.
Yes, even mighty Google and Microsoft had to comply in the end. The EU is simply too large a market to risk. And I agree that no way can Rolex simply vacate the French market. That's not how you run a global business. Thanks for your comments. Of course, the long term implications of opening up sales to online is something we'll have to discuss further later.
@4:30 Rolex not challenging the ruling....OK, I am not in France and do not know the legal system there. Rolex may have very sound reasons not to challenge it! That does NOT mean it is an admission of guilt!!!
I cannot believe you are broadbrushing all of this thinking this court ruling is legitimate and all those watches that would have been sold in France will now go down the toilet!!!
Get real !!! The US can easily take up every one of the watches that would have gone to France and then some!!!
I'm still waiting for my white gold GMT so perhaps this nonsense in France can result in me getting my watch a bit sooner😂😂😂👍👍👍
3:42 That's funny, because didn't you just try and correct me in your previous video and try to tell me that you meant to say that ROLEX THEMSELVES should have the option, NOT the ADs? You're contradicting your own statements 😂. Ill repost what i said in my original comment on your last video to refresh your memory:
"Not really because why would the authorized resellers (i.e. Rolex ADs) care to now sell Rolex online when it would be to their detriment. Their existing (shady) sales model of only selling in store is working perfectly for them while they use Rolex as reward pieces to incentivize their consumers to buy junk that they dont want or to influence gray dealers to buy from them at a premium. It would never be in their best interest to now sell online. So that's the problem; it wouldn't really change anything even if ADs now had the OPTION of selling Rolex online."
here was your response:
"If Rolex sells directly online (unlikely I think), then there would be no need for
ADs."
😂
so again, you keep switching from the ADs being able to sell online or Rolex being able to sell online. In EITHER scenario, it makes zero difference if either the ADs or Rolex themselves had the option of selling online as they never would as it's not in their best interest. Their existing in-store model is working too well for them and keeps their models desirable and all of their watches sold and coveted. Why would either the ADs or Rolex want to destroy that by selling Rolex online? 😂
ADs have already told me they would like to sell online. It's really not a question.
Again - this is not just about on line sales but what is in the terms and conditions of the contract!!! If youi start cherry picking the contract AFTER you sign it, then the entire legal frame work of the legal system is jeopardized and this would have significant implications!
This stupidity would never fly here in the US. I can't say what the EU community have for laws that govern this but this is very explicit contract law and US dealers, not just Rolex, have very specific terms that they have to follow!
So no, I don't believe the rest of the EU would follow and I know this would nevery fly here in the US, which is Rolex's largest market!!!
It seems you're rather upset. Are you working for Rolex haha?
@@mywatchjourney6579 No. I'm a consumer. And if you can't understand why this is nonsense, don't pretend to say you've got it figured out!
@@LWRC well you are clearly not a lawyer
@@mywatchjourney6579And you are?🤣🤣👍👍👍
@@mywatchjourney6579 This on line sales practice is NOT allowed here in the US by ADs! No authorized dealer is allowed to do that! You think the US do not have anti-trust laws?
I am just speculating, but I could see Rolex cutting shipments to the AD’s in France so the AD’s don’t have enough inventory to sell online. Or, Rolex can ship more inventory to AD’s who do not sell online. As an example in the US, Rolex is pressuring AD’s to build a separate boutique within the AD, and have a “Green Wall”. I was told by the AD that if they did not build a boutique for Rolex only, then their shipments would be limited. If I ran Rolex, I would allow me to try on watches at my AD, then order the watch I want to buy at the AD, then take delivery at my AD when the watch is built. This system would be a win for the customer, the AD, and Rolex.
If they had a transparent wait list, that could work. But we know they don't want this. Because they 'gift' the watches to only the most favored customers. The fact that Rolex is requiring all these terms is what's getting them into trouble. At some point, an AD was going to sue.
Rolex not available at AD vs Rolex out of stock on line. Meh, same silliness. They are much like the diamond providers. Market controled and artificially over priced.
Exactly! Some people in the comments are actually defending these practices.
You apparently do not have a clear understanding of contract law and in this case, the franchise license agreement! While the dealers technically did buy the watches from Rolex and do 'own' them, that does not preclude Rolex from putting in the terms and conditions into the contract that the dealers SIGNED. If they signed it, then they need to abide by it. The French couirt has no jurisdiction in making this so called 'anti-trust' ruling and fining Rolex! It is not antio-trust!
If you signed a legal contract, you had better follow it to the letter of the contract or you may be sued and or lose your license from the manufacturer! This is not just in France but is true WORLD WIDE!
So I don't know where you get off saying the ADs have every right to do what they want since they technically 'own' the watches they got from Rolex!!! They do not - after they signed the contract which stated very clearly what they are expected to do!!!
It won't phase them. This is a drop in the bucket. Look at the fines Toyota and Cummings just paid. They made way more from the actions...pay a small.fine and move on.
Having the AD clause declared illegal won't change from paying a fine. And there might be additional fines if they don't comply.
All the AD are bastard they are just bundling other watched and try to selling who real want to buy rolex .. Rolex all good model are selling 40 % higher prices . .
Bundling is a practice that has lead to lawsuits in other industries.
The time has come for all Rolex bullshit.
😮@2:41 "The ADs are the true owners of the watches from Rolex"
While technically true, the ADs are not independent private parties but have a signed license agreement with Rolex, the manufacturer! They cannot just make up their own rules which violate this signed agreement! Otherwise, they'd lose their license and dealership with Rolex!!!
Your statement is completely false and misleading!!!
This type of situation happens here in the uS all the time!!!
Take luxury autos as an example here in the US which sells at a much higher price than most Rolex watches! Rolls Royce, BMW, Mercedes, Audi, Lamborghini, Ferrari, Porsche and even Lexus to name a few - they all have franchise agreements with the manufacturer as to what they can or cannot do!!! And the manufacturer dictates what type of showroom these dealers must have! They can't just lease a warehouse and put the car out for sale to the public!!! Those terms and conditions are all dictated by the manufacturer and the authorized dealers MUST follow them!!!
See the pinned comment. It will explain.
@@mywatchjourney6579 Read my posts - these reasons are nonsense!
No big deal to Rolex.
If other countries join with France to stop Rolex from being anti competitive, it will hurt Rolex.
Exactly! Rolex will just pull out of France and sell their watches elsewhere. They won't even notice!
@sinjinadams2862 How many Bucherer stores in Francee AD'S? Rolex doesn't want to lose them or the AD'S. If Rolex screws France, other countries may decide to screw Rolex. The political elites have an agenda. Probably a shakedown and Rolex wouldn't pay.
I believe this ruling applies to all EU countries.
@@donnaskelcyI don't think it does, because member states have flexibility in how they apply their own laws, provided they adhere to the 'EU Directives', and I don't think this is a result of breaching a Directive-based law, it's more a domestic competition and fair trading ruling.
I believe what does happen though, is if Rolex appeal, then it gets raised to an EU court (because they arbitrate member states to ensure member states are acting fairly and harmoniously). And in that scenario, it is definitely the case that the ruling sets precedent at that level, which would then have broader effect.
Zuti, duvaj ga.
LOL, if the ruling goes in France’s direction it’s over for Rolex, selling watches online or by mail order via the internet will destroy the Weblen effect and exclusivity associated with watches like Rolex, Patek, Audemar Piquet etc. 😂😂😂
What is the Weblen Effect?
@@donnaskelcyThink he means the 'Veblen Effect'
As it should. What they are doing is somehow ridiculous anyway and overall a menace to society.
No it’s not! All they need to do is put up sales online and then put out of stock
Veblen goods are goods specifically engineered to generate desire and that desire is exacerbated by marketing and very much a high price tag. The higher the price tag the more unattainable the product seems which triggers extra desirability because it portrays exclusivity.
The ADs and Rolex should both be fined for their rigged system.
Now that's a good point!
Karma is a female dog, Rolex 😁😁
Government should keep its nose out of the economy.Because it doesn’t is why most Western countries on the verge of recession.
The U.S. is not on the verge of a recession. The Fed has somehow managed a soft landing.
Yeah because allowing ADs to sell Rolexes online is going to cause a recession lmfao!
I'm honestly shocked the Feds managed it. It's never happened (knock on wood) in my living memory.