The real reason Rolex is buying Bucherer
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- Опубликовано: 26 авг 2023
- Yes. I'm stating clearly that I think Rolex is buying Bucherer out of a teeny tiny bit of fear. Not a lot. Just a little. This is my take on what's going on with this deal.
Note that the deal hasn't gone through and has to be approved by Swiss competition authorities. My guess though is that this is a done deal.
Cheers.
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Scared of their shady AD network ruining their reputation by selling direct to the secondary market creating false scarcity maybe... and that would be a legit fear.
It just seems to be a sensible move since Rolex owns half of Geneva and has more money 💰 in their vault than Scrooge McDuck.
"No thanks. We don't need you as a customer. We will not sell you a watch." This is the Rolex experience. lol
So basically we have more shops where you can not buy a Rolex watch from
I think you are almost right Rolex aren’t scared but it’s a defensive move as they didn’t want anyone else buying Bucherer.
I understand your reasoning, but I don't agree. You're talking about a shift of power. But the customer doesn't care who is the AD. The product is wanted. So Rolex has all the power. They can take away dealership at any time and give it to other ADs. That is what some other brands do anyway. Other premium brands take away dealership rights and only have one shop. Reducing the number of dealers. Rolex doesn't need Bucherer as much as Bucherer needs Rolex....
Couldn't care less about Rolex.
Sorry, I do not want to sound dismissive, but every argument used for your conclusion is speculative. So, I am not really convinced. Rolex is already vertically integrated, perhaps (so speculation also from me) this is the last link. What is the ultimate goal? Only Rolex knows.
I don’t think Rolex are scared. Bucherer have 100 stores but Rolex sells through 2000 stores worldwide. So that’s 0.5% of their distribution. Buying Bucherer is a blip. I think this was an opportunistic purchase since Bucherer was for sale and Rolex has a massive cash pile. It was a sensible but not a significant acquisition.
The Rolex AD are literally museums, they literally has nothing to sell for years. Maybe i am not the privileged. Doubt this will change with Bucherer in place, perhaps
I don't think I'm right when I say this - but it's what I 'want' the purchase of Bucherer to mean. :) Rolex has incredible brand equity, but that equity has been damaged over the years. No one doubts that the watches are very special... but the experience of buying one is not. Wait lists aren't necessarily deal breakers (within reason), but Rolex has become damned by association. Association with ADs telling you to buy jewelry or additional models you don't want. Association with the grey market where everything is priced crazily because the ADs are playing idiotic games.
Great analysis as always. Buying Bucherer could also allow Rolex to make money when customers buy their competitor's watches. The unavailability of Rolex has certainly created hype around the brand. However, it has also created another common scenario: When a customer walks into a multi brand AD (like Bucherer) and wants a Rolex but eventually walks out wearing something else, that's lost revenue for Rolex. Personally, I'm very turned off by the AD experience of waitlists, point system and bootlicking. I bought my Rolexes before the hype and would have bought some newer models but the brand has lost a lot of their charm for me.
Mike, keep up your work! Really good and well arranged content. Gonna age like fine wine
The large Bucherer stores can't make enough money just selling Rolex watches . . . customer experience becomes too narrow, not enough Rolex watches available from the production line. An interesting dynamic might be . . . what happens if other major brands stop using Bucherer? Rolex is mainly considered a luxury brand because of marketing and volume - selling millions of watches a year. It has become a luxury Swatch. A far bigger fear at Rolex must be what happens when people realise Rolex is NOT a luxury brand.
Good video. I agree with your analysis. RUclipsrs are collectively saying it’s the end for ADs as Rolex wants to get into retailing. But Rolex already has a system that works well for it. Rolex doesn’t want to control 1,000-plus ADs around the world. It’s too costly. Rolex already has a network of ADs that it sells to. The reason Rolex purchased Bucherer is exactly as you said, they don’t want Bucherer to fall into the hands of another large conglomerate that could ultimately have leverage on Rolex. Rolex even said this in the press release, but RUclipsrs just want to create drama for clicks and views.
Really enjoyed that. Pleasant change to the chat about the secondary market all over RUclips!
Well I have been invited by a Bucherer store to come and discuss my Rolex watch requirement. They replied to my email with a telephone call and said that I could my desired watch and they would get it for me albeit with a small delay. I am going in two weeks time and look forward to their response and how they treat me.
I've seen a few videos about this, but you were the first that pointed out this strategy that makes sense to me as to why they did it.
This is one of the better "Rolex just bought Bucherer" videos I've seen. Really like the angle that you take with thinking this out.
Thanks for another interesting and informative video. I really enjoy the diversity in your subject choices. Keep up the great work 👍