Rolex bought Boucherer to consolidate liquid assets at a time when all the conventional markets for investments at in trouble as we enter a huge recession. Buying solid assets is a good idea for anyone who as lots of cash right now. Dangerous times ahead over the next 2 years
If you have that much money sitting in your bank account, that means that you are not investing your money properly. Money sitting in the bank doesn't really do anything for you because interest rates are so slow. It's better to have $1 million in a place where it can make you 5% on returns rather than having that $1 million sitting in your bank account making you 0.5% returns.
No doubt being financially free and not having to worry much about health care and other expenses cannot be overemphasized, making smart plans and setting up diversified investment portfolios is quite essential.
from a personal angle I'm aware continuing to invest in periods of higher volatility is a Smart way to build wealth, but investing in not as easy as it looks, I've incurred losses trying to invest in the past two years
If Rolex swallows up ADs, that’s less grey market watches at stupid inflated rates and more at MSRP for the general purchaser. This is good for the end consumer.
If Rolex try to kills grey market, for sure Rolex also kills itself too , or at least get injured ! Don’t think you can get listed price nice models from Rolex ! It doesn’t work that way
If a can of Coke went Upto to $10 and stayed that price you would buy a different branded drink. Rolex are flexing and taking control back from the grey market! These guys are squirming
The video discusses AD’s getting into trouble selling watches ‘under the table’ to flippers who only want to buy to immediately sell on at a profit. I assume The Luxury Watch Company also gets its stock from AD’s so how is that different, how is that not flipping? Or is it that the under the table deals are the most desirable Rolexes being sold to people who haven’t already spent £300,000 on other models to reach the desirables the thing that upsets Rolex about those AD’s?
First of all it is not pronounced „Busherer“, but instead „Boo-her-rer“. And second, the main point is that both Bucherer and Rolex are non publicly traded companies: Rolex is owned by a family foundation where most of the profits are kept within the organization, with no shareholders exercising pressure on any executive board. Similarly, Bucherer did not want to be purchased by a publicly traded company such as Kering, Richemont, Moncler, LVMH, Hermes. They wanted to keep things private, with no shareholder interference, no SEC restrictions related to the publication of quarterly results, no market distortions and shareprice volatility provoked by the analysts forecasts on their results, and so on. Best regards from Switzerland.
Wen juckts wie ihr das ausspricht?! Im englischen sagt man das eben so ! An deiner Stelle würde ihr eher die deutsche Sprache anständig lernen! Deutsch mag ich ja nicht besonders aber Schweizerdeutsch kotzt mich ja an!
First of all your spelling of the pronunciation is wrong and secondly your information is nothing new. (Maybe focus more on the great content this presenter is giving us and take you head out your … )
I don’t buy secondhand watches over MSRP. So Rolex should be making more watches available to the public. Of course Rolex wants to purchase Buckerer and build more factories because they want to sell fewer watches. You nailed it. 😂😂😂
Not really. Just sit back and watch. I bet you also never thought Rolex would acquire Bucherer, did you. NO. Rolex will gain more control of their market, from manufacturing to retail, IMO.
in the scheme of things bucherer is a blip on the screen. there are close to 1900 authorized rolex dealers worldwide. bucherer has a total of 36 locations worldwide. @@samuelburton5576
Rolex actually makes 1200000 watches pa and by 2029 a new big site should be built ….likely production will increase by a bit. Secondary prices falling …..Rolex will have to think it over how they allocate watches in the future …..back door selling AD’s don’t help as watches go mostly to flippers … interesting times ahead. AD’s margins are 30%, grey dealers 10% … give or take …. How about Rolex changing the whole game and selling directly to consumers via their stores ….. consumers pre-paying for their watch ….. leaving old style AD’s and grey dealers in the rain ….. time will tell ….
@@christophregli2160 no one knows exactly how many watches Rolex produces except the management of Rolex. Also no one knows how many watches Rolex will make additionally with the new factory. All speculation and guessing
@@samuelburton5576 Rolex movements are COSC certified, therefore counted. The 1.2 Mio number is also confirmed by Morgan Stanley’s yearly watch report. You are right so, no official number is given by Rolex itself and the new factory is also an unknown quantity. My guess is will be up to 1.4 to 1.5 Mio by 2029 onwards.
Totally agree. Rolex need only five UK stores. London, Birmingham, Manchester, Leeds and Edinburgh. Each store stocks every watch in every permutation. None are for sale. You travel to your nearest store. Try on the watch. Agree to purchase. Pay a 10% deposit or even full price AND MOST IMPORTANTLY get a set delivery date of Rolex. Job done. Now wouldn't we all love that.
If I have to jump through hoops for something I pass. Whatever that thing is becomes less attractive to me. We are coming off of the biggest economic expansion in history. Cars that had waiting list are now starting to show up at dealers because the person who ordered the car backed out....allocations are now becoming available for hard to get models..sign of the times to come.
you guys are extrapolating things out of thin air. bucherer has 36 locations WORLDWIDE! by contrast there are close to 1800 authorized rolex dealers around the world. the capital needed to acquire all those locations would likely be greater than all the cash reserves of the company x 10.
Good insight. Rolex wants to protect their brand. It's as simple as that. Love your channel. Flying to the UK in a few weeks. Might book an appt and drop by.
In my humble opinion I think Rolex will still use the ads for datejusts and other classic range but you will only be able to get day dates, Daytonas and high end pieces at bucherer. Then the wil control the sought after pieces and be able to trace flippers easier.
Makes sense to me. Give inventory to WoS and make 62% profit. Give watches to in house Bucherer and make 100% and also control the customer experience.
Hi Charlie Since Bucherer only have a handful of stores in the UK and they are all in London do you really think supply to WOS etc will decrease over the next 6 to 12 months?? I can't understand how this could happen through just a handful of stores all in the same geographical area. If we see Rolex open their own boutiques (all current boutiques in UK are actually run by WOS) then we know that WOS are finished. Have a good week Harry
Thanks for watching Harry, It might do ever so slightly, will be interesting to see what happens! Yes if that happens then WOS will be in trouble for sure!
Rolex are not rare. They sold 1.2 million units last year, more than any other brand, more than the infamous moonswatch. Rolex is about as exclusive as a BMW. These “rare” watches are common, and the market is starting to unwind from the crazy hype of last year.
Great video. People have been acting like corporate planning isn’t happening. Wrong. This deal has been in the works for probably 2 years, and CPO was also part of that plan, which is probably part of a 10 year plan.
Yeah I just the opposite. Their repeat customers will get great access to watches at retail. Rolex will have full control of the relationship with the customer and pay a premium to get their watches back to resale again when they trade up.
I think we can all agree that Rolex's purchase of Bucherer will change the Rolex market over time. What I don't think we will see is a reduction of Rolex watches coming to the market. It may mean folk like WoS see less product but the market will see that product available to the market through other outlets and Bucherer is the obvious route. As Rolex increases it's distribution and retail control over the 'flipping' side of the market we will see a reduction of 'fresh unworn weeks old' watches appear in the grey market and if you really want an unworn mint example your only route will be a Rolex controlled outlet (well, mostly). You are right, the grey market will adapt and it will continue to exist but without it's supply of under counter product. Is that a good thing - dunno. It's certainly change.
I emailed Rolex a few weeks ago about possible underhand tactics going on at a specific AD. The very next day the manager of that AD phoned me and promised me that it doesn’t go on at their store and I am on their waiting list. (Been on it since April 2021) 😂. I wait the next call with my offer of a watch.
@@Coolguy24686 I emailed customer services but got a reply from a regional manager with all of his contact details but don’t feel it would be right for me to share them for privacy reasons. If you contact customer services with Your request or problem you may get the same great response.
@@thehonestwatchdealeri got a personal apologyzy from a ad manager, after a email to rolex support about me complainig that this same manager explained to me that i should buy gold jewelry or breitling,omega or hublot first before he could supply me with a rolex....i really think rolex is on the ball with punishing shady ad sellers last year, since these tactics are tarnishing their brand and they prob told this ad he was gonna get less stock for beeing cunts
If Rolex is going to cut production, then why invest billions of dollars to boost production by 2029? Why buy Bucherer to make 37% more revenue (not profit), and jeopardize it's vast AD networks around the world? I am not saying the predictions in this video are wrong, but a brand like AP can sell out of its own boutiques because they only make 50,000 watches/year. Ditto for Patek. Right now I think of Rolex as a sports/tool watch maker. So why does Rolex want to limit supply of tool watches? Time will tell...
They're coming for the AD hahaha 😂 The Rolex building looks cool. I like authentic and rural style instead of contemporary, luxury standard franchise. It gives a nice exotic touch 👍🏼
@@Laguna2013 in any market its called price manipulation and front running. Its illegal. Given its watches and unregulated, it shows lack of moral compass of grey market dealers. I mean how retarded are most of these lot literally making up stories to sell sh1t. The key attribute is to lie... The public is gullible, always have been. You have dealers on RUclips who have had 10mn quid of watches confiscated for money Laundering pretending like they care about us the public. NO. SCAMMERS. ALL OF THEM.
Not quite right as of your logic , sell less watches but having more profits? No matter Rolex buy Bucherer or not they have separate P&L ac, one is manufactory and one is retailer! Your point just doesn’t make sense…… they can only get more profits by either selling more watches , or selling less but increasing price significantly in order to cover lost of selling less , that’s all. But one thing agreed that they can have more flexibility in controlling watches supply and distribution. Having a retailer line giving Rolex another source of income.
the logic is right, by going into retailing and then expanding the number of their own stores and boutiques , Rolex cuts out the middle men and makes higher profit margin, if they have enough points of sales, they can eventually sell less watches with higher profit.
@@lettuce1305 thats not their own stores but under Rolex as a mother company, in law both company still running separately, your point actually has no different than mine, I already mentioned thats the another source of income for Rolex. Bucherer is a middle men or retailer like what I said they are not only selling Rolex. Rolex invested a big money on buying such retailer business and either profit or not it will only reflect in long term basic, there is no free lunch in this world.
Side note it'll be interesting because Rolex will now have the identity of the purchaser tied to a serial number. If they discover a flipped watch they will be able to black list individual people.
Excellent video. Also lets not forget the CPO side. CPO seem to be offering a higher rate to buy back a rolex. So not just they are making money from selling rival products, they would also be taking business away from the grey market and setting the baseline price for pre owned. Why would I sell my hulk to a grey dealer when rolex are offering me more and a potential to start of a long term relationship…
Enjoy your videos very much. I think you make a good point but I would argue that this acquisition isn't as profitable as we may think. Rolex has increased scale but also have increased costs with the acquisition price plus the operating expenses of 100 additional stores. I can see the perspective of Rolex wanting to simply increase scale/geo coverage but I'm not seeing how they increase profitability. Their top line gross sales will increase but I'm not sure their profitability will increase as they will have increased costs as well. Just my initial thoughts.
Another excellent video Charlie It will be very interesting to see how this story develops over the immediate future As others have mentioned Bucherer doesn't have enough of a presence to replace all current AD's But I do think you are right that fewer watches will be made available to the likes of WoS Love the channel and keep up the good work
I really like your videos! However, I disagree on one key point. Rolex has no incentive to make less watches. They have every incentive to control the supply chain and retail experience. They can still charge whatever they want price wise. And then still control the buying experience in the profit line. I foresee them making even more watches. And.... drum roll. Buying another watch brand or rolling out yet another line in addition to Tudor.
So many people confuse pre-owned watch dealers with ‘flippers’ We all know why the prices for high end watches went through the roof and of course that opened the floodgates for opportunists. But calling every unauthorised watch dealer a ‘Grey Market Dealer’ is ignorant as it overlooks the business they’ve built, the risks they’ve taken, the struggle they go thru on a monthly basis and the service they provide. People will always buy used clothes, cars, household items and watches. And just for the Rolex haters out there, the sad news for you is that Rolex watches will, over the coming years, going up in price and becoming more desirable than the Holy Trinity. (Also, JLC is gonna become much more popular in the coming years).
Rolex bought bucherer as they didn't want someone else buying it that Rolex might not approve of. There are only 100 bucherer shops ( for UK all in London ) in the entire work not really enough to make much of a difference although it may be slightly worrying for the rarer Rolex models and for AD in the few cities bucherer operates in.
Rolex will increase production on their Models as thats where they make their profit . Secondary Market is not that important to them . I think they will still have hard to get rare Models to keep interest in their Brand . The Rolex Grey Market Dealers will have to sell other brands . Most Dealers are offering low price for most Rolex watches because they are afraid of being left with too much inventory . Also the biggest Problem will be servicing , Rolex watches bought from a Grey Market dealer will struggle getting that services by Rolex IMHO
Good comments. Obviously they are not stupid. But are they so smart? Buying into brick and mortar retail??? Agree they increase the profit on sales, but you did not include the incredible overhead costs they’ve added to the operation. Retail rents are ridiculous. One retailer after another is closing stores. Why would you buy them? If they moved to a direct internet platform with select boutiques, that could be “smart”. Buying a retail chain that sells other brands? Not genius
Very interesting! They must have something up their sleeve. You are right though, internet based would be very profitable for them. Will be interesting to see what happens 👌🏻
So is this a really good news for a person who doesn't have any history with any AD and been on the waitlist for 6 months?? Is that mean now I can get my Rolex sooner than I expect?
No. Why would it. They don't make enough. The Asian middle class hoovered up the surplus and it remains so. If people in the West start backing out then you may get an offer sooner or Rolex will just cut supply to keep it as is. It's what I'd do. They are aspirational pieces so why go down the Ford route? Think about it.
I agree with everything said except the reduction of supply. In the short term, until Bucherer shops are set up in countries currently with no presence, I agree supply maybe cut. Thereafter, should be full steam ahead. Why build a new factory and not make more watches? Rolex will have total control. The brand is a Veblen good - a good for which demand increases as the price increases; so Rolex could increase prices and reduce supply. However, this will annoy and infuriate customers, making the brand even more elite. The reason for buying Bucherer is control, but also control over accessibility. This will hopefully benefit the ‘real’ customer, and cut out the games currently being played by today’s ADs.
Hopefully it does cut out the current games the AD's play, and yes the set up of the new factory has got to be all linked - going to be interesting how the next year plays out. 🙌
I couldn't agree with you more--in spite of potentially higher production, Rolex will release fewer to the market. Also agree this deal was in place prior to the pro-owned roll-out. As I've watched your content the last 1-2 months, I think you have carefully curated content. Big fan of the channel mate.
Appreciate your videos!! You seem uncertain on how to pronounce Bucherer because you've given about three different pronunciations. 😂 It's pronounced Boo-her-er (guttural on the "h" ). Thanks!!
Over the next 12 mths it’s going to get really easy to buy from the AD as we enter a recession over the next 2-3 years. It’s going to get really bad for luxury goods with huge mortgage rises and company loans doubling. This means mass lay offs! Resulting in used Rolex selling for well below retail.
I welcome Rolex to completely take control of their brand no more ADs valuation of how many $10s of thousands a customer buys in jewelry where they make ridiculous mark ups. So much blackmailing and under hand dealings hopefully comes to screeching halt. Never liked CPO program. Grey market will not be affected whatever Rolex decide. ADs have to be very concerned with Rolex next move. I like your thoughts Charlie regarding this whole Bucherer purchase.
Looks like Rolex has decided to wipe out the grey market - you only have to look at the high prices of the certified used Rolex watches - makes the grey market prices look very reasonable. Looks like they can justify the price because of the warranty - which the grey market can’t offer.
Rolex has been damaged by the ADs, and Rolex became an investment commodity of trade. This will mean that genuine end customers will be able to buy a timepiece, not an investment piece.
Another great video Charlie. What you have said makes a lot of sense. It will be very interesting to see how things pan out. Going forward the ADs must be very concerned.
Rolex controls the RRP of their product but not how it’s sold (only where). They have limited control of the secondary market with CPO, but they can’t control the whole market. Increasing supply will lead to more profit. I heard that for one AD it would take 60 years to meet the demand of just one model. Take out the flippers and there is still a strong market for the product. With Bucherer they have an outlet they have more control over, but they have to provide the products or it’s a waste of time.
I can see rival watch manufactures deciding to make their own retail stores. I buy my watches from WOS. This is going to get interesting. His smile when he said imagine what you’ve done to build your relationships. 😂
If Rolex doesn’t produce more watches then they’ll sell less watches. The grey market is dead. People aren’t buying watches like they did when Covid hit. The grey market seller is dead in the back yard pool floating face down.
It wont affect me, I love the Rolex brand, and only buy from AD’s I would never buy from the Grey market they will have your pants down every time I like your clips and watch them all the time but I will never buy from you, just buy them from Rolex in the future
![Chino Pacas - Modo Capone (with Drake & Fuerza Regida) [Video Oficial]](http://i.ytimg.com/vi/zjv8TQ0gBkg/mqdefault.jpg)
Shock horror, a grey market dealer trying to scare consumers and drive the grey market prices up 🤣
Rolex bought Boucherer to consolidate liquid assets at a time when all the conventional markets for investments at in trouble as we enter a huge recession.
Buying solid assets is a good idea for anyone who as lots of cash right now.
Dangerous times ahead over the next 2 years
Great insight!
Yes going to be a very interesting 2 years indeed 🙌
If you have that much money sitting in your bank account, that means that you are not investing your money properly. Money sitting in the bank doesn't really do anything for you because interest rates are so slow. It's better to have $1 million in a place where it can make you 5% on returns rather than having that $1 million sitting in your bank account making you 0.5% returns.
No doubt being financially free and not having to worry much about health care and other expenses cannot be overemphasized, making smart plans and setting up diversified investment portfolios is quite essential.
from a personal angle I'm aware continuing to invest in periods of higher volatility is a Smart way to build wealth, but investing in not as easy as it looks, I've incurred losses trying to invest in the past two years
The next two years will surely be more challenging,
If Rolex swallows up ADs, that’s less grey market watches at stupid inflated rates and more at MSRP for the general purchaser. This is good for the end consumer.
If Rolex try to kills grey market, for sure Rolex also kills itself too , or at least get injured ! Don’t think you can get listed price nice models from Rolex ! It doesn’t work that way
Not really means rolex are becoming a monopoly even in the second market. Prices will definitely go up…
If a can of Coke went Upto to $10 and stayed that price you would buy a different branded drink.
Rolex are flexing and taking control back from the grey market!
These guys are squirming
The video discusses AD’s getting into trouble selling watches ‘under the table’ to flippers who only want to buy to immediately sell on at a profit. I assume The Luxury Watch Company also gets its stock from AD’s so how is that different, how is that not flipping? Or is it that the under the table deals are the most desirable Rolexes being sold to people who haven’t already spent £300,000 on other models to reach the desirables the thing that upsets Rolex about those AD’s?
First of all it is not pronounced „Busherer“, but instead „Boo-her-rer“. And second, the main point is that both Bucherer and Rolex are non publicly traded companies: Rolex is owned by a family foundation where most of the profits are kept within the organization, with no shareholders exercising pressure on any executive board. Similarly, Bucherer did not want to be purchased by a publicly traded company such as Kering, Richemont, Moncler, LVMH, Hermes. They wanted to keep things private, with no shareholder interference, no SEC restrictions related to the publication of quarterly results, no market distortions and shareprice volatility provoked by the analysts forecasts on their results, and so on. Best regards from Switzerland.
Thank you mate very insightful! Appreciate it 🙏 Thanks for watching!
Wen juckts wie ihr das ausspricht?! Im englischen sagt man das eben so ! An deiner Stelle würde ihr eher die deutsche Sprache anständig lernen! Deutsch mag ich ja nicht besonders aber Schweizerdeutsch kotzt mich ja an!
Rolex is a non profit company
trying to make a salient point but doing quotes like ,,this" instead of the correct way like "this" lmao
First of all your spelling of the pronunciation is wrong and secondly your information is nothing new. (Maybe focus more on the great content this presenter is giving us and take you head out your … )
I don’t buy secondhand watches over MSRP. So Rolex should be making more watches available to the public. Of course Rolex wants to purchase Buckerer and build more factories because they want to sell fewer watches. You nailed it. 😂😂😂
AP makes 50,000 pieces a year. rolex sells more than 1,000,000! the idea that rolex is going to sell fewer watches and become like AP is preposterous.
Not really. Just sit back and watch. I bet you also never thought Rolex would acquire Bucherer, did you. NO. Rolex will gain more control of their market, from manufacturing to retail, IMO.
in the scheme of things bucherer is a blip on the screen. there are close to 1900 authorized rolex dealers worldwide. bucherer has a total of 36 locations worldwide. @@samuelburton5576
Rolex actually makes 1200000 watches pa and by 2029 a new big site should be built ….likely production will increase by a bit. Secondary prices falling …..Rolex will have to think it over how they allocate watches in the future …..back door selling AD’s don’t help as watches go mostly to flippers … interesting times ahead. AD’s margins are 30%, grey dealers 10% … give or take …. How about Rolex changing the whole game and selling directly to consumers via their stores ….. consumers pre-paying for their watch ….. leaving old style AD’s and grey dealers in the rain ….. time will tell ….
@@christophregli2160 no one knows exactly how many watches Rolex produces except the management of Rolex. Also no one knows how many watches Rolex will make additionally with the new factory. All speculation and guessing
@@samuelburton5576 Rolex movements are COSC certified, therefore counted. The 1.2 Mio number is also confirmed by Morgan Stanley’s yearly watch report. You are right so, no official number is given by Rolex itself and the new factory is also an unknown quantity. My guess is will be up to 1.4 to 1.5 Mio by 2029 onwards.
Another great vid Charlie i watch every Sunday great to see what is going on in the watch market
Thank you for tuning in every week mate! Really appreciate that 👌🏻
I agree. You are spot on. I’ve been saying this myself. Excellent Charlie!
Appreciate that Matt, and thanks for watching! 🙏
Totally agree. Rolex need only five UK stores. London, Birmingham, Manchester, Leeds and Edinburgh. Each store stocks every watch in every permutation. None are for sale. You travel to your nearest store. Try on the watch. Agree to purchase. Pay a 10% deposit or even full price AND MOST IMPORTANTLY get a set delivery date of Rolex. Job done. Now wouldn't we all love that.
That would be ideal! We will see if this rolls out 👌
Well said Charlie, thank you mate.
Thank you mate appreciate that 🙏
If I have to jump through hoops for something I pass. Whatever that thing is becomes less attractive to me. We are coming off of the biggest economic expansion in history. Cars that had waiting list are now starting to show up at dealers because the person who ordered the car backed out....allocations are now becoming available for hard to get models..sign of the times to come.
Maybe watches will starts to become more available as well, will be interesting to see what happens 👌🏻
Time will tell. Love the channel@@thehonestwatchdealer
you guys are extrapolating things out of thin air. bucherer has 36 locations WORLDWIDE! by contrast there are close to 1800 authorized rolex dealers around the world. the capital needed to acquire all those locations would likely be greater than all the cash reserves of the company x 10.
Great insights Charlie - thanks for sharing.
Not a problem mate, thank you for watching! 🙏
Bucherer ch like cheetah sound.
Not BuKerer.
Cheers from Geneva.
PS: I must say you did say it right a few times much better than some others.
Haha thank you mate! appreciate the explanation 👌
Good insight. Rolex wants to protect their brand. It's as simple as that. Love your channel. Flying to the UK in a few weeks. Might book an appt and drop by.
Thanks Jeff appreciate it!
I look forward to having you in if you decide to do so! 🙏
Brilliant video explained perfectly cheers mate 👍🏻
Thank you Matthew, appreciate it! 👌 Glad you liked it
In my humble opinion I think Rolex will still use the ads for datejusts and other classic range but you will only be able to get day dates, Daytonas and high end pieces at bucherer. Then the wil control the sought after pieces and be able to trace flippers easier.
Ah that’s an interesting theory! Makes sense, let’s see what happens 👍
Makes sense to me. Give inventory to WoS and make 62% profit. Give watches to in house Bucherer and make 100% and also control the customer experience.
Absolutely, might end up being a more pleasant experience for the clients too, Hopefully this is the case! 🙏
Hi Charlie
Since Bucherer only have a handful of stores in the UK and they are all in London do you really think supply to WOS etc will decrease over the next 6 to 12 months??
I can't understand how this could happen through just a handful of stores all in the same geographical area.
If we see Rolex open their own boutiques (all current boutiques in UK are actually run by WOS) then we know that WOS are finished.
Have a good week
Harry
Thanks for watching Harry,
It might do ever so slightly, will be interesting to see what happens!
Yes if that happens then WOS will be in trouble for sure!
Rolex are not rare. They sold 1.2 million units last year, more than any other brand, more than the infamous moonswatch. Rolex is about as exclusive as a BMW. These “rare” watches are common, and the market is starting to unwind from the crazy hype of last year.
Charlie, what kind of shirt you rocking?
It deffo needs a nice gold medallion to be rocked with it 👍
Ah the famous Honest Watch Dealer white shirt, what brand it is unfortunately I cannot divulge that information 🤣
🤣
Great video. People have been acting like corporate planning isn’t happening. Wrong. This deal has been in the works for probably 2 years, and CPO was also part of that plan, which is probably part of a 10 year plan.
Thank you mate really appreciate it! Quite right, this is probably just the beginning of what is going to unfold. Thanks for watching! 🙏
It's absurd to me that you think Rolex will build a new manufacturing plant to lessen their production. That's completely backwards.
Omega has already been removed from the Busherer website.
That was quick 😮
The new factory’s will be built to service their watches. If they increase production massively in quantity, who will service them ?
Yeah I just the opposite. Their repeat customers will get great access to watches at retail. Rolex will have full control of the relationship with the customer and pay a premium to get their watches back to resale again when they trade up.
I think we can all agree that Rolex's purchase of Bucherer will change the Rolex market over time. What I don't think we will see is a reduction of Rolex watches coming to the market. It may mean folk like WoS see less product but the market will see that product available to the market through other outlets and Bucherer is the obvious route.
As Rolex increases it's distribution and retail control over the 'flipping' side of the market we will see a reduction of 'fresh unworn weeks old' watches appear in the grey market and if you really want an unworn mint example your only route will be a Rolex controlled outlet (well, mostly).
You are right, the grey market will adapt and it will continue to exist but without it's supply of under counter product.
Is that a good thing - dunno. It's certainly change.
Oh absolutely will affect the market, how it does remains to be seen yet!
Interesting times ahead as it all unfolds 👍
I emailed Rolex a few weeks ago about possible underhand tactics going on at a specific AD. The very next day the manager of that AD phoned me and promised me that it doesn’t go on at their store and I am on their waiting list. (Been on it since April 2021) 😂. I wait the next call with my offer of a watch.
Interesting. Which email did you use to contact them?
@@Coolguy24686 I emailed customer services but got a reply from a regional manager with all of his contact details but don’t feel it would be right for me to share them for privacy reasons. If you contact customer services with Your request or problem you may get the same great response.
😮 well hopefully the next call is soon and about your watch!
@@thehonestwatchdealer he did say that chances that I could get a Rootbeer quicker than a Batman
@@thehonestwatchdealeri got a personal apologyzy from a ad manager, after a email to rolex support about me complainig that this same manager explained to me that i should buy gold jewelry or breitling,omega or hublot first before he could supply me with a rolex....i really think rolex is on the ball with punishing shady ad sellers last year, since these tactics are tarnishing their brand and they prob told this ad he was gonna get less stock for beeing cunts
Sir you WA channel isn't valid in india, how do I get in touch with you
You can email us! You can find it on our website.
Www.theluxurywatchcompany.com
If Rolex is going to cut production, then why invest billions of dollars to boost production by 2029? Why buy Bucherer to make 37% more revenue (not profit), and jeopardize it's vast AD networks around the world? I am not saying the predictions in this video are wrong, but a brand like AP can sell out of its own boutiques because they only make 50,000 watches/year. Ditto for Patek. Right now I think of Rolex as a sports/tool watch maker. So why does Rolex want to limit supply of tool watches? Time will tell...
Just a theory at the moment if they want to go down that route!
Like you say, will be interesting to see what happens - thanks for watching! 🙏
@@thehonestwatchdealer Out of curiosity have you seen the price of Oyster Perpetual 41MM green dial move into the 7,000 pound range yet?
They're coming for the AD hahaha 😂
The Rolex building looks cool. I like authentic and rural style instead of contemporary, luxury standard franchise.
It gives a nice exotic touch 👍🏼
You aren't wrong there! 🙌
The ADs deserve everything that’s coming to them.
They’ve been screwing people over for years.
It’s pay back, and serves them right.
Absolutely! 👌🏻💯
I hope grey market dealers get shut down too. They've caused most of the price distortions
If there was a fat arbitrage opportunity in front of you, you'd be silly not to take it. @@slapjuice
@@Laguna2013 in any market its called price manipulation and front running. Its illegal. Given its watches and unregulated, it shows lack of moral compass of grey market dealers. I mean how retarded are most of these lot literally making up stories to sell sh1t. The key attribute is to lie... The public is gullible, always have been.
You have dealers on RUclips who have had 10mn quid of watches confiscated for money Laundering pretending like they care about us the public. NO. SCAMMERS. ALL OF THEM.
@@thehonestwatchdealer HAHAHAHAHA. Learn how to pronounce these fancy European company names from your council flat first mate.
Col video as always sir !
Thanks for watching mate, appreciate it! 🙏
Not quite right as of your logic , sell less watches but having more profits? No matter Rolex buy Bucherer or not they have separate P&L ac, one is manufactory and one is retailer! Your point just doesn’t make sense…… they can only get more profits by either selling more watches , or selling less but increasing price significantly in order to cover lost of selling less , that’s all. But one thing agreed that they can have more flexibility in controlling watches supply and distribution. Having a retailer line giving Rolex another source of income.
the logic is right, by going into retailing and then expanding the number of their own stores and boutiques , Rolex cuts out the middle men and makes higher profit margin, if they have enough points of sales, they can eventually sell less watches with higher profit.
@@lettuce1305 thats not their own stores but under Rolex as a mother company, in law both company still running separately, your point actually has no different than mine, I already mentioned thats the another source of income for Rolex. Bucherer is a middle men or retailer like what I said they are not only selling Rolex. Rolex invested a big money on buying such retailer business and either profit or not it will only reflect in long term basic, there is no free lunch in this world.
Side note it'll be interesting because Rolex will now have the identity of the purchaser tied to a serial number. If they discover a flipped watch they will be able to black list individual people.
It will be interesting to see if this is what they end up doing! 🙌
I don’t see breitling, omega, pp on bucherer website
Very interesting, that was quick! 🙌
Excellent video. Also lets not forget the CPO side. CPO seem to be offering a higher rate to buy back a rolex. So not just they are making money from selling rival products, they would also be taking business away from the grey market and setting the baseline price for pre owned. Why would I sell my hulk to a grey dealer when rolex are offering me more and a potential to start of a long term relationship…
Thank you mate really appreciate that!
You are not wrong there, if it helps
Build the relationship more clients will go back to them for sure 👍
Trevor Bucherer did the right thing selling the legacy of his amazing brand to the best watch company in the world.
🙌
Enjoy your videos very much. I think you make a good point but I would argue that this acquisition isn't as profitable as we may think. Rolex has increased scale but also have increased costs with the acquisition price plus the operating expenses of 100 additional stores. I can see the perspective of Rolex wanting to simply increase scale/geo coverage but I'm not seeing how they increase profitability. Their top line gross sales will increase but I'm not sure their profitability will increase as they will have increased costs as well. Just my initial thoughts.
Very good insight! Yes will take a lot to make back this cost, will be very interesting times ahead!
Thank you for watching mate, appreciate it! 🙏
Another excellent video Charlie
It will be very interesting to see how this story develops over the immediate future
As others have mentioned Bucherer doesn't have enough of a presence to replace all current AD's
But I do think you are right that fewer watches will be made available to the likes of WoS
Love the channel and keep up the good work
Thank you mate appreciate you watching!
Yes going to be very interesting to see how it all plays out 👌🏻
I really like your videos! However, I disagree on one key point. Rolex has no incentive to make less watches. They have every incentive to control the supply chain and retail experience. They can still charge whatever they want price wise. And then still control the buying experience in the profit line. I foresee them making even more watches. And.... drum roll. Buying another watch brand or rolling out yet another line in addition to Tudor.
Charlie I miss when you say Pikachu and show us your amazing Daytona.
Haha apologies mate! I will see what I can do 👌
So many people confuse pre-owned watch dealers with ‘flippers’
We all know why the prices for high end watches went through the roof and of course that opened the floodgates for opportunists. But calling every unauthorised watch dealer a ‘Grey Market Dealer’ is ignorant as it overlooks the business they’ve built, the risks they’ve taken, the struggle they go thru on a monthly basis and the service they provide.
People will always buy used clothes, cars, household items and watches. And just for the Rolex haters out there, the sad news for you is that Rolex watches will, over the coming years, going up in price and becoming more desirable than the Holy Trinity. (Also, JLC is gonna become much more popular in the coming years).
Thank you mate appreciate that!
Excellent insight, thank you for watching 🙏
Rolex bought bucherer as they didn't want someone else buying it that Rolex might not approve of. There are only 100 bucherer shops ( for UK all in London ) in the entire work not really enough to make much of a difference although it may be slightly worrying for the rarer Rolex models and for AD in the few cities bucherer operates in.
Could be onto something there! Great insight 👌
It will be the starting Decline of Rolex if they are doing the AP way of higher end luxury marketing.
Will be interesting to see how it all plays out 🙌
‘Boosherer’
It’s ‘Bue-ker-er’ mate
Or perhaps the watches they will struggle to sell will be given to ADs first. Will other parts of the world be affected by this?
That's always a possibility! Very hard to say - we will see what happens! 👌
Rolex will increase production on their Models as thats where they make their profit . Secondary Market is not that important to them . I think they will still have hard to get rare Models to keep interest in their Brand . The Rolex Grey Market Dealers will have to sell other brands . Most Dealers are offering low price for most Rolex watches because they are afraid of being left with too much inventory . Also the biggest Problem will be servicing , Rolex watches bought from a Grey Market dealer will struggle getting that services by Rolex IMHO
My WOS branch stopped stocking RLX and moved me to another branch FFS... so done.
Oh no sorry to hear that mate! 👎
Good comments. Obviously they are not stupid. But are they so smart? Buying into brick and mortar retail??? Agree they increase the profit on sales, but you did not include the incredible overhead costs they’ve added to the operation. Retail rents are ridiculous. One retailer after another is closing stores. Why would you buy them? If they moved to a direct internet platform with select boutiques, that could be “smart”. Buying a retail chain that sells other brands? Not genius
Very interesting! They must have something up their sleeve.
You are right though, internet based would be very profitable for them.
Will be interesting to see what happens 👌🏻
So is this a really good news for a person who doesn't have any history with any AD and been on the waitlist for 6 months?? Is that mean now I can get my Rolex sooner than I expect?
No. Why would it. They don't make enough. The Asian middle class hoovered up the surplus and it remains so. If people in the West start backing out then you may get an offer sooner or Rolex will just cut supply to keep it as is. It's what I'd do. They are aspirational pieces so why go down the Ford route? Think about it.
Probably not at the moment, but maybe in the future things might get a bit easier we will see! 👌🏻
Should be: fewer watches, those watches and the North's.
I agree with everything said except the reduction of supply. In the short term, until Bucherer shops are set up in countries currently with no presence, I agree supply maybe cut. Thereafter, should be full steam ahead. Why build a new factory and not make more watches? Rolex will have total control. The brand is a Veblen good - a good for which demand increases as the price increases; so Rolex could increase prices and reduce supply. However, this will annoy and infuriate customers, making the brand even more elite. The reason for buying Bucherer is control, but also control over accessibility. This will hopefully benefit the ‘real’ customer, and cut out the games currently being played by today’s ADs.
Hopefully it does cut out the current games the AD's play, and yes the set up of the new factory has got to be all linked - going to be interesting how the next year plays out. 🙌
Only 100 stores in the world it won't make no difference at all. 1 million watches won't be sold in 100 stores.
I couldn't agree with you more--in spite of potentially higher production, Rolex will release fewer to the market. Also agree this deal was in place prior to the pro-owned roll-out.
As I've watched your content the last 1-2 months, I think you have carefully curated content. Big fan of the channel mate.
Thank you mate I really appreciate that and thank you for being a fan of the channel!
Absolutely, going to be an interesting year 👌
Appreciate your videos!!
You seem uncertain on how to pronounce Bucherer because you've given about three different pronunciations. 😂
It's pronounced Boo-her-er (guttural on the "h" ).
Thanks!!
Thanks for watching mate 🙏
And thanks for pronunciation!
👌🏻
Over the next 12 mths it’s going to get really easy to buy from the AD as we enter a recession over the next 2-3 years.
It’s going to get really bad for luxury goods with huge mortgage rises and company loans doubling.
This means mass lay offs! Resulting in used Rolex selling for well below retail.
Come back to my post in 12 mths and tell me I was wrong
This could very well be the case depending on how the economy plays out! 👌
Simple answer it doesn’t.
Thanks for the update and info mate, really interesting video , I wonder how it will all turn out ? Speak soon 👍🏻💥💥
Will be interesting to see what happens! Thanks for watching mate, speak soon 👌🏻
Rolex always winner on watch market.Who ever ask whats your favorite watch probably says rolex 90 % on street.
Yes you are probably right there! 🙏
Charlie is truly the best in the business. No frills, no drama, just solid objective assessments.
Thank you mate really appreciate that! Thanks for watching 🙏
@thehonestwatchdealer thank you, brother. I get more out your content than any other's.
100 percent. The best. Very objective
I welcome Rolex to completely take control of their brand no more ADs valuation of how many $10s of thousands a customer buys in jewelry where they make ridiculous mark ups. So much blackmailing and under hand dealings hopefully comes to screeching halt. Never liked CPO program. Grey market will not be affected whatever Rolex decide. ADs have to be very concerned with Rolex next move. I like your thoughts Charlie regarding this whole Bucherer purchase.
Absolutely spot on here! Will be very interesting to see what happens.
Thanks for watching mate glad you liked the video! 👌🏻
I disagree that it will not affect grey dealers. CPO will see to that. I agree with the rest
Looks like Rolex has decided to wipe out the grey market - you only have to look at the high prices of the certified used Rolex watches - makes the grey market prices look very reasonable. Looks like they can justify the price because of the warranty - which the grey market can’t offer.
Rolex has been damaged by the ADs, and Rolex became an investment commodity of trade.
This will mean that genuine end customers will be able to buy a timepiece, not an investment piece.
Be great to see if this is how it plays out! 👌
Lets be honest here. No one at all has any ideas why Rolex have bought Bucherer
Another great video Charlie. What you have said makes a lot of sense. It will be very interesting to see how things pan out. Going forward the ADs must be very concerned.
Thank you for watching mate, appreciate it! Will be very interesting to see how it all goes yes 👌
They had to buy Bucherer. Image LVMH would have acquired them. Catastrophy.
Very true 👌🏻
ADs are 100 times better to deal with than any grey market dealers.
Very interesting points raised, i think anything that helps people buy watchs at a fair price has to be good.
Good video Charlie.
Thank you Simon, really appreciate that 🙏
Rolex will also hv all the sales data of their competitors
Very valid point! Going to be a game changer for them 🙌
Interesting. There could be a world market meltdown in the near future.
Will be very interesting to see what happens 🙌
Rolex controls the RRP of their product but not how it’s sold (only where). They have limited control of the secondary market with CPO, but they can’t control the whole market. Increasing supply will lead to more profit. I heard that for one AD it would take 60 years to meet the demand of just one model. Take out the flippers and there is still a strong market for the product.
With Bucherer they have an outlet they have more control over, but they have to provide the products or it’s a waste of time.
Absolutely spot on here! Great insight 🙏
Fewer ffs. Fewer!
The other move is people will tire of the games even more and move on completely
👌🏻🙌
I can see rival watch manufactures deciding to make their own retail stores.
I buy my watches from WOS. This is going to get interesting.
His smile when he said imagine what you’ve done to build your relationships. 😂
I would imagine it is definitely on the radar for other brands! 👍
Apple does not let Joe Blow buy an Apple AD. Rolex is doing what we all would do, if we had the deep pockets.
👌🏻💯
If Rolex doesn’t produce more watches then they’ll sell less watches. The grey market is dead. People aren’t buying watches like they did when Covid hit. The grey market seller is dead in the back yard pool floating face down.
More wise words 👍🏾
Thank you mate! 🙏
It wont affect me, I love the Rolex brand, and only buy from AD’s I would never buy from the Grey market they will have your pants down every time I like your clips and watch them all the time but I will never buy from you, just buy them from Rolex in the future
Well I appreciate your honesty! 🙏 And thank you for watching the videos, glad you like them mate! 👍
personally i think omega, patek,ap,cartier etc will all leave these rolex owned stores
all they will have are just display only or tudor
no thanks
This could very well be the case, we will see what happens! 👍
Lol, try again.
I’ll be celebrating the day when my local ADs are out of business with Rolex 🎉
Painful to listen to a rant of totally incoherent arguments and lack of logic.
First :)
Congratulations! 🤣
wos are screwed
Will be interesting to see how it affects them long term 🙌
What did this guy do, just wait to hear other people's opinions then copy and release. Lol I won't trust this guy's at all.
Second?
Correct! 🥳
This purchase is a game changer for the watch market! 🕰️
👌🏻🙌
1 ooo ooo Rlxes made yearly