Hello jennielle, you said something about watchgroups beeing in arms.....do you look at watchuseek, uhrforum, or also maybe youre dutch forum friends on horlogeforum?
I have never had the pleasure of buying a Rolex, but I do have my Omega Speedmaster. I can not express how much I enjoyed the experience of simply buying a watch! The staff at the Omega store here in San Francisco was outstanding!
What I think Rolex are doing is starting the process of having complete control over point of sale, as at long last they have “Become aware” of the shenanigans going on within their AD network, and the current feeling amongst what are often long term Rolex fans, regarding their treatment. This is affecting the brand image, and by placing the point of sale under their direct control they can halt this decline. I think this will be the first of many acquisitions.
You guys are fantastic. This is a great way to get news like this. When you take time to break it down for us. History, current condition, and projections for the future. Pluse a touch of industry gossip. Keep it coming.
I agree. Rolex doesn't produce enough to satisfy demand, so why not make a profit on other brands? Unless the long term goal is to ramp up (Massively) production to squash 'lesser' brands. I'm not sure Patek needs to worry, completely different market.
@@Cohen.the.Worrier Gently nudge you towards a Daytona or Submariner at retail? (I would love that) This only works if you have models to nudge people towards. Someone looking for a Seamaster will not be nudged towards a Cellini (Or whatever they are calling it now) or a 31mm pearl dial datejust. The ADs have always been a thorn in the side of Rolex, this is a start to take back control. Everyone laughed at CPO....no one is laughing now. Hats off to you Rolex, you played a blinder!
Rolex are basically De Beers now. Controlling supply and spending a fortune on marketing to hype demand for a product that actually isn't that special.
+1. For a brand selling, arguably not very often special watches, pimped by social media NVAs and celebs with no watch passion, to be that arrogant always confounded me. To have such clear contempt for your ADs and end customers is hard to understand. There are plenty of amazing watch brands you could be supporting rather accepting the controlling and coercive behaviour from Rolex. And I know It's not just Rolex but this is the subject of the video.
Look, I would agree that Rolex is not be-all, end-all of the watch world: there are many, many excellent watches out there for us to buy, cheaper than Rolex, and more expensive than Rolex. I own many, including Rolex, Omega, Tudor, Seiko, Grand Seiko, Citizen, Weiss, Vaer, Casio, etc. However, there is nothing like a Rolex for quality, fit, finish, value retention, time keeping, etc.; at least not in the below $20,000 range. Hate if you want, but once you’ve had a properly Rolex on your wrist that fits both your personality and your life, it’s hard to forget that feeling of quality and assurance.
Its been over a month since your last upload, so it is nice to have such a long form discussion to make up for that. Please do more of these. Thank you Jenni and Kai!
For me, it doesn't affect me as Bucherer has no stores in my country. Of course, that can change down the road. Bucherer will in time become a boutique focusing only on their brand. I think it could be a good sign as many ADs are dirty and sell the most sought after models to the grey market dealers.
Great chat. I think it's a savvy move by Rolex. Taking greater control over their retail supply chain is a huge positive. Agree that some AD's are dreadfully unwelcoming and this has hurt the brand.
I also had a terrible experience at the AD recently, looking at a Rolex. The salesperson was quite arrogant and snobby, and spoke down to me. She made me feel like a second class citizen. I was ready to buy until she treated me like crap. I’ve heard countless stories similar to mine.
I recently visited a couple of dealers in my area and I was completely surprised by the experience I had. It feels like a racket. At one dealer, they had a freakin line outside. I just don't get it. Plus all the stupid rules that don't fit the 21st century like, you can't pre order, you can only create a wish list, we cannot tell you when we can get it to you. Please..it is a freaking watch. It all feels like complete marketing bullshit to me in the name of maintaining exclusivity. I am glad these guys do not make life saving medication.
@@skolappacaguy it is all marketing , EVERY AD got watches in stock . Only they get to decide you might buy 1 or not .By doing this they try to keep "exclusivity" and it is working ( hence the line in front of the AD) . What people do not realize is that there are other watchbrands around and while Rolex does make good watches , the others do also . Not to mention , that Rolex are very likeable by persons with "less visits to the AD" if you know what i mean . They do not recognize a Omega , AP , VC, IWC when it bit them in their nose .
I didn’t know what to expect from this video. I am very pleasantly surprised by how informed it is and how enjoyable it was. Waaay better, apparently, than a visit to Rolex A.D. #1.
Interesting to hear your experience at AD's. Ive had the same experiences and told the manager at a Goldsmiths branch in the UK, I would never buy from them or their affiliates ever again. He was arrogantly ambivalent. I understood I was on the 'list' for a GMT even though they said it could be a 5-7 year wait, 2 years in I asked at the same store where I was on the list, to be told I wasn't and that they had no record of me ever being. This sort of behaviour is disgusting, the AD's, their staff and Rolex themselves are only viable due to us the customer. I bought a 2nd hand GMT from a grey market jeweller, I was able to try on the watch I might buy and was treated as a valued customer in their shop. I like Rolex watches but the current situation of wait lists and supposedly having to create a portfolio of purchases to be considered worthy is ridiculous, stupid and extremely insulting. Thank you for making this video!
I've had similar experiences with Goldsmiths. Despite being a customer with purchase history, including a Datejust, plus other non Rolex pieces, I've been continuously messed around. After nearly 4 years of waiting for a GMT I finally got told that there was no possibility of getting a GMT so please stop asking. They did however grant me an interview (how very generous of them) to see if I would be suitable for a Sea Dweller or a 41mm Datejust, both of which they assured me had short lead times... That was nearly a year ago. I'd be less annoyed if they at least occasionally responded to my emails. Of course whenever I called to discuss the money I was trying to give them, the agent was always with another customer, despite it being at the very start or end of the day. I'm just fed up and frustrated with the whole thing. Fortunately the grey market prices for certain models, including the Sea Dweller are getting pretty close to retail so I'll soon be able to cut them out of the equation... mind you I'm sure that the day I do put some money into a grey option will be the day I finally do get the call from GS.
4 years is beyond ridiculous, I was baffled when the concept of courting AD’s became a thing. Just take your name and give you a number on the list. To have to prove you may or may not be worthy to a high street retailer is pathetic & demeaning. I spent 18 months hating Rolex but I think it really is the AD’s that have ruined the whole experience. Now hopefully they’ll start to be judged correctly. In my business the customer is always right, occasionally you may have to gentle push alternate scenarios but always with their acquiescence.
I think perhaps Rolex might have been between a rock and a hard place. They also wouldn’t want to add more power to the other Luxury houses like Richmont or LVMH so taking on Bucherer after many years of loyal service (99 years) protecting that business and staff etc. may be better for everyone even if others fear for the future of ADs. It maintains or increases Rolex’s power and control but cant see them taking on the world and ditching ADs. I would imagine they prefer normally to hide behind resellers…
I've seen 5 announcements from other cc's and I appreciate the deep dive. Sadly, AD's are very often snobbish and turn folks off of the brand. Gray market boutiques are excited to see you, are knowledgeable and passionate about the brand (unlike a majority of the AD's), and go to great lengths to build a relationship with you leading to a purchase. This just makes you want to come back when you want to upgrade or trade up. You just can't compare the experiences and I see that gap as more of a chasm regardless of what Rolex is trying to do. Great coverage. Thank you both.
@@vincent67239 I reckon after the Anthony Farrer nonsense , and the way things are going , these dodgy characters have had their day and the Grey market won't be around much longer . There will be some survive like Roman Sharf and Nico , but on the whole I think they will die out .
The other revenue stream not being discussed much is that Bucherer is the the main Rolex Certified Pre-Owned reseller. That is a multiple stream of reselling revenue for a single time piece multiplied by all of the Rolexes ever sold. Example below: - A buyer purchases a Rolex Certified Pre-Owned piece from Bucherer. - He later sells this piece back to Bucherer at below resell market value to purchase another Rolex or any other brands within Bucherer (This is standard practice for all grey market dealers). - Bucherer services this timepiece and resells it at a higher margin. - Multiply this by the lifetime of this timepiece, multiply this over all of the Rolexes that come into Bucherer's supply chain.
I’ve bought Rolexes at both The Hour Glass and Langfords here in Australia and both places we amazing throughout the entire process, very friendly staff and my wife and I were made to feel very special on the actual day of purchase. I’m surprised to hear other Rolex ADs offer a substandard experience.
Maybe Rolex checked with those other brands, and they didn't have a problem with it. ? That would be a hell of a risk in buying a business and then losing a bunch of brands that it sells.
Watches of Switzerland stock fell 30% following news of the acquisition, but then recovered after Rolex confirmed it won’t interfere in the normal daily operations of Bucherer. The Swiss regulator made a ruling and the deal looks like it has gone through. So it seems Rolex and Bucherer will be independently managed. As for the future of ADs, nothing is likely to change as it produces 1 million watches a year and it will need the global distribution network. Bucherer has only 53 stores with Rolex counters and it doesn’t have any outlets in Asia. Whereas Rolex currently has over 1,000 ADs globally. AP produces less than 50,000 watches a year so it can go boutique only. You shouldn’t compare Rolex with AP as the scale is completely different. As for allocating more Rolex watches to Bucherer stores, I think Rolex can’t do this as it’s bound by the Swiss fair competition laws that it has agreed to in order to get the acquisition approved by Swiss regulators.
I heard the AD's that were sold to flippers/grey market dealers lost their accounts with Rolex. The AD's that remain are long term Rolex AD's (small family businesses). I think this merger will give Rolex more direct control of their products. Unfortunately Bucherer stores are not located in the United States (only Las Vegas). So this will not effect the US market.
Firstly, loving the new format guys, really enjoyable to watch you discussing this topic together. Also his kudos for presenting so clearly and fluently in your second language, I don't suppose most viewers realise just how special this gift is. My two cents on the subject of Rolex's latest power play... I wouldn't be at all surprised if Rolex are eyeing ways to generate ongoing revenue through services and subscriptions as Apple and others do. Can you imagine for example a Rolex Platinum club, with a monthly subscription fee of €30 which gets you access to exclusive Rolex content and events, and guess what... people in the Platinum Club seem to be able to buy more watches and quicker than those not in the club.
Kinda wild that a competition regulator would allow this. Now what if Patek or Omega buy Watches of Switzerland? Maybe all big brands go boutique only? that has been talked about for years tbf.
We are in the western US and had good AD experiences - bought two Rolexes in the past year from two ADs with no spend history. The staff were great. I follow a lot of watch content on YT so I know many people have bad experiences. From what I see, 95% of Rolex-related complaints are dealer-related. As obsessed as Rolex is with horizontal and vertical integration, they have to be deeply concerned that the last link in the chain has been hard-broke and out of their control. They’re taking control. Good.
Amazing content. Too bad about the treatment from the boutiques because we love the crown. At the same time, you're hardly the typical customer and not to put too fine a point on this, you know much more than the salespeople do. Just thinking about this, some salespeople want to be at the level of their customers creating enmity, frustration, and a possible sense of entitlement since they represent the crown. So I think you are so right about proper training and guidance. God save us so we can move on from dealing with all this when we just want to buy ourselves a great watch...Just ranting at this point so I'll stop. Love your channel and learning so much about fine timepieces and the business.
WOW! What a fantastic discussion - all very logically laid out and persuasive. This is by far the most informed and informative presentation on Rolex's acquisition of Bucherer that I've seen. Thanks for dedicating so much time to it (the thing that really sets you video apart imo) and really laying it out so expertly.
Rolex will now be profiting off the sale of every Patek, AP, Omega, Cartier, JLC, TAG-Heuer, etc. sold by Bucherer...so it behooves them to sell the other brands' watches enthusiastically, especially if Rolex continues to have limited production/supply. If they can't sell their own sports models due to them not being available for sale, they might as well profit off the competition.
Acid watch content and consumer but haven’t really checked out @Jennie yet. Impressed with the more in-depth discussion on this topic than other stuff out there on social media and the Web. Nicely done.
I appreciate this video for two reasons: 1. It contains some great insight into the watch market, from two very knowledgeable people. 2. I love hearing the German accent. It makes everything sound so sophisticated.
Great video, very well informed, love the double act. Got to think, Rolex owning Bucherer incentivises 1/ encouraging new customers to establish buying history first with Tudor, then Rolex. 2/ ultra high demand watches going only through Bucherer where they control the distribution
Good discussion. I've always liked Bucherer. I have several watches that we bought in my youth in Switzerland. Everyone in my family had one. I am sad to hear they are being acquired by Rolex but that is business. Unfortunate that Mr. Bucherer has no one to leave the company tol.
I’m sure Rolex/ Bucherer would be delighted to sell ( and make a profit and learn about their marketing strategies) of their competitors . The question is will their competitors want to sell through a Rolex subsidiary.
Great content you two! I am fortunate to have a great AD and two very personable contacts there. I've had access to a lot of desirable Rolex sports models and would be very sad to see our local AD shut down. There isn't a Bucherer near us, so at least here in Pennsylvania in the USA, it would hopefully be a long time till they'd pull their product from our local AD. I can see Rolex shifting most of the AD inventory to their Bucherer locations, though.
I generally pick up 1 or 2 pieces a year, so I'm hardly making a dent in Rolex availability to others. If you don't live close to a major city here in the USA, you're not likely to find a Bucherer location unless you're making a special trip for it. I don't think bringing things in house (as AP did) without other authorized dealers is really good for the consumer.
@@petewatchcollector I've had my name on an imaginary list for 3 years for a no date sub. I'm sure they will be more selective on AD's and not get rid of all. Most have sold out the back door or use a sports rolex to get sales in other lines. A general sense of resentment has been built up unless you can pick up what you want. You don't see top end brand available in many locations, if they want to move up then you'll have to travel to get it.
Very interesting video, great to have Kai‘s insights along side yours, both of which are considerable! My experience with Bucherer in Vienna has been offputting. I was actively in the market for a watch (JLC) that they sold but was not even invited to sit down to try it on, in contrast to the JLC boutique, where I visited multiple times and they talked to me for over an hour.
What about the APAC region..they buy the most and have no Bucherer ADs in that region. I think Rolex would be fools to discontinue their ADs (local) unless they offered online sales globally.
A few thoughts: Is Rolex tired of hearing about bad experiences and watches not being available? Perhaps this will be a way to rectify that to a degree, and keep fewer watches off the grey market, out of the hands of flippers, and make more profit per watch. Will it be easier to get a Rolex now? That remains to be seen but it would go a long way in bringing people back into the Rolex fold if wait lists are more democratic. and reasonable with regards to wait times. I don't know how it works with AD's, but if Bucherer becames the place to buy a Rolex, then it will be easier for Rolex to know which watches they should make more of, and which ones just aren't moving. Of course they will never get to a point where supply is greater than demand.
Honestly just by distribution and sales of ADs should give this data.. they can easily find information about this. But now maybe they can be more involved? I don’t know. I can’t get a Rolex nor afford one. I’ll just use my budget on a omega or just be happy with a Tissot for now
Great Video Guys! I love the fact that Kai has to check back with Jenni for some translations 😜 so relatable! Also (is it just me) or has Kai’s mic been disconnected right before the first ad for your watch roles? His sound is a bit off for the rest of the conversation (but still good enough) 😅!
I always thought that Kai didn’t speak English as he makes the German language videos and Jenni does the English ones. very impressed. Puts native monoglot English speakers to shame.
Rolex AD's have been behaving poorly these last few years and have done irreparable harm to the Rolex brand with their fake wait list, and their back door sales. It was only a matter of time before they were eliminated. And we're all better off for it.
Just my 2 cents from a North American POV, when a company does not work to gain my business nor treats me like a valued customer and furthermore imposes high brow pre-requisites to obtaining their product they can kiss my gluteus maximus and I'll keep my money! There are thousands of watch manufacturers and billions of timepieces to choose from out there people, don't be fooled by the illusions of Tulip mania which is just what Rolex is at the moment!
Of course Rolex will have an interest in selling other brands. Think about this, for every Omega sold in Bucherer, Rolex now makes 25% of the sale. Rolex already sells 100% of its annual inventory (or close to it). Now Rolex gets a slice of every other brand they retail out of Bucherer. It's a win/win for Rolex regardless ($$$).
I would counter and say, why would Rolex want to make 25% on a sale (Omega or other brands) when they could make 60% + on a sale? Why would they give valuable window space or salesperson’s time to a move a product which will give them lower margins? I would think Rolex will have less incentive to sell other products.
@@POSUENbecause Rolex already offload 100% of their annual inventory with relative ease, and also to assert control/influence over the watch market in general...as they say, keep your enemies closer 😉 By selling their competitors products they will have a much greater insight into what, when, where and how their competitors operate. How this isn't seen as anti-competitive I have no idea 😅. I guess Rolex have very deep pockets
I would think that Rolex will start reducing the number of ADs and use Bucherer as the sole distributor. I mean, why give away 35% profits to someone else when you now have your own distribution network. The other brands would probably not want to give their competition the kind of inside insight as you say and pull their brands out of Bucherer. I also think that there is a bit of conflict of interest here and not sure how this is not seen as anti-competition.
@@POSUENI agree to a certain extent, the caveat being: Bucherer is a huge player in luxury watch retail, alongside (but not as large as), Watches of Switzerland and its brands. So the question for many brands is: if we do decide to pull products from Bucherer, where do they go? There is a certain degree of luxury prestige and cache from having your products retailed in Bucherer that other luxury retailers cannot begin to match. So not having your product in Bucherer is potentially damaging to a brand's luxury credentials. Brands like Omega and Cartier may have more wiggle in this regard, but there is no doubt that not being able to retail through Bucherer will be a huge dent to their revenue, marketing and brand presence.
Brilliant video. I live on on an island where there is only 1 Rolex AD and unless you are willing to spend thousands with them you will never get your name on any list.
In Canada I had never heard of Bucherer until this news broke but it'll be interesting to see if all those brands want to keep selling through Rolex and if Rolex wants to keep selling those brands.
there are close to almost 1900 ADs worldwide. I think even if Rolex leveraged their entire net worth, they'd be hard pressed to be capable of owning and operative all those locations.
Great summary of the situation. Your video was much more informative than any other I’ve seen about this development. Also great interaction, it was fun to see you together working on the video!
I was in the Omega boutique in Vancouver recently, and it was a very nice experience. The staff was friendly and helpful and the atmosphere was great. Better than the one in New York which tends to be kind of cold feeling and the security.make it less friendly. Of course, with Omega, unless you want one of the hot limited edition models (like a Silver Snoopy) you can always go grey market and save between 15% and 25%.
This can be a win-win for Rolex. They can now buy other brands at wholesale and sell them at retail because they own the dealership. This brings in more profits to Rolex.
Good discussion. I think availability will be increased at the dealers for most watches at the lower price point. With the CPO the prices/value will be stable and almost predictable. I think the high end Rolex watches will remain aspirational items.
Bucherer isn't present in some of the major markets for Rolex like Asia (Singapore, China, HK) and Middle East. So I don't think that Bucherer will pull out of other retailers entirely. But hard to predict anything at this point.
I have insider news for you straight from my AD - Bucherer (at least here in Boston!) I’ve bought a couple of watches from them 👍 Patek has pulled out all of their models (it all makes sense now! When my AD told me I was like wtf???) as they state they want to go full “boutique” I was told this by my sales rep at Bucherer a month back!
There are currently seven Rolex AD's in my country, including in the smaller cities. I just can't see the economics permitting that number of Rolex-only boutiques, or even putting in new Bucherer outlets as the equivalent of that. If Rolex pull the licences from the small/local ADs, they will reduce their geographic spread. Maybe Rolex have enough customers in the bigger cities and are too big to care about smaller towns.
Bucherer bought out Tourneau, high end watch stores. They are big Rolex dealers in the New York area. I imagine Rolex will start buying up other high end watch stores.
Reposting here a comment I made on Luxury Bazaar earlier, because I believe it makes even more sense here regarding your discussion... . Rolex now having their own distributor, so they can reduce drastically the number of their A.Ds. Rolex had a serious problem with the back door transactions pumping up the grey market, because less Rolex watches were sold directly to the customers, giving a bad reputation to the brand, long term speaking. I've personally been seriously maltreated several times by Rolex A.Ds and it simply led me to buy Cartier, JLC, Tudor and Omega watches; I have the money, I am a regular watch buyer, I own a decent collection, I don't care about peudo "investment" and I own ZERO Rolex simply because I can't get one at retail price...And I WON'T never accept to pay a Rolex over retail price or to pay for a used Rolex over retail price, as many of my friends and colleagues who are not owning any Rolex either for the exact same reasons 🤷♂️
This is what I wonder - when I hear people say Rolex was tired of hearing about horrible customer service at AD’s - the mistreatment, mirth in saying “wait for 5 years then maybe” - did this on any level move them towards this decision? I question that. A lot of the cache of the brand is the snob effect and the grovel factor, no?
I found it funny that the ad for this video was watches of Switzerland. Rolex hasn’t purchased Bucherer yet it still has to pass the competition boards of several countries.
Without a waiting list, the demand will collapse. The flippers will disapear and some people will understand Rolex are overpriced in comparision with Omega.
Best discussion on this topic I've seen so far! I also agree that I think it would be beneficial for them , instead of going with the full boutique model, to go with the Owned AD model (via Bucherer) and reap the profits of the secondary market that the sky high resale value of their models affords.
American… watching this in the lounge in Bremen! More videos together! And you have to do a part 2. What happens to the other brands at Bucherers? Does Rolex raise prices to hurt the grey market and keep even more of the revenue. They could easily chg $2kUSD more and still sell all the sport watches. I know I’d rather buy new at a higher price than used at an even higher price.
Congrats on your blessed event! This video was very enjoyable. The energy between you and Kai was fun to see. Recently, I started making watch videos as an economist, so I have a lot of say about this. It should be fun!
My customer experience at Bucherer in New York has been outstanding last june. The profesional treat from the guy forced me to go to the from desk and make my remark. Many brands were shown to me with as never before! Customer experience A1.
I live 15 min drive from the nearest Rolex AD, but over 2 hour drive to the nearest Bucherer shop. Do you expect me to drive 2 hours, to _build a relationship_ with them then drive 2 hours back? At least you're looking at this from all perspective and not just shout GENIUS MOVE ! ! ! like some.
I think the key is execution. In buying Bucherer, the way that I view this is that Rolex is buying B2C "know how" also they will own Tourneau. Assuming this deal is approved I would expect that 5 years from now there is a gradual build out of Bucherer / Tourneau and a reduction of the "out of network" ADs. The long term goal is the Apple Store model. Even AP has pivoted to "AP House" to greatly improve their customer experience. Business School 101 = "Customer Lifetime value" and under the current model watch Manufacturers have no visibility into their Customer data, purchase history, habits, spend which is why the AP model over the long term is basically mandatory.
Re AP situation: AP decided to add a whole new line of business to its family owned watchmaking company. That line of business is retail sales. It is in and by itself a major business. So naturally there will be some learning curve before they graduate to the white glove service experience .
I wonder if Rolex did this to get access to every Bucherer sales outlet, then close the Bucherer brand after a few years, eliminate a rival name, and possibly rebrand some Bucherer watches as Rolex? Because Rolex had various sister brands in the past, but Wilsdorf closed all of them except Tudor. It doesn't sound sensible but companies do it, reminded of the English bicycle brand, Raleigh, they bought nearly every other brand in the country then closed them after a few years, so it was almost Raleigh or nothing.
Rolex should take this opportunity to take over the retail distribution, just like Apple through Apple stores. Their AD network is a bunch of slime balls, and their practices hurt the brand perception.
There is no Bucherer where I live and there are only a couple of ADs here and they have no wait lists. so they just put non popular models on display for sale (no steel models of course). and they say thats the only watches for sale but obviously they reserve other models for specific clients. its such a stupid game and I hope that the acquisition will disrupt their business
If I were Omega, JLC, Patek and so on, I would pull my watches from Bucherer. Go with WoS, indpendents and their own boutiques. I would not put a penny in Rolex's pockets because of their poor customer practices. Omega and co do not need Bucherer.
@@ScoobieDoo-zy1rhLol, that made me laugh out loud. Rolex is the Toyota of watches. Nice and Reliable but luxurious, you're having a laugh. It's very much mid tier.
@@garyboyle695 Rolex is the Toyota and also the Lexus. It’s the face of watches , essentially the standard by which all luxury watches are compared to. It’s annual revenue is north of 9 billion in 2022 whereas the Ferrari of watches patek has an annual revenue of 1-2 billion per year. The 2 are simply not comparable. Even second place Cartier only made 2-3 billion in 2022.
What you didn’t touch upon was the potential increased supply of Rolex as production increases with new factory facilities being developed. It is an important element of the Rolex strategy (as is Tudor). Meanwhile squeeze out the brands Bucherer currently sells, thus providing competitors like Omega with logistical and potential market share issues in the future. Rolex should and probably are keeping a careful eye on actual demand itself which will reach a peak. Plus there are environmental concerns in the future such as where gold comes from and increasing awareness of the impact on the environment extracting gold has. At some point too public perception will change as to the desirability of super luxury products themselves; it’s a global dynamic.
I remember the numerous ADs in the 1990s and the prices never increased much, in those days there werent many grey dealers. It all depends on existing rolex values,
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Great discussion format, please, keep on doing such videos guys!
The damage has already been done with Rolex AD's treating their customers poorly and unprofessionally. It's kind of a "once bitten, twice shy" thing. I will continue to buy Omega and Breitling but will never purchase them from a Rolex AD.
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Are you wearing a Black Bay 54? Looks great on you!
Hello jennielle, you said something about watchgroups beeing in arms.....do you look at watchuseek, uhrforum, or also maybe youre dutch forum friends on horlogeforum?
Would love a deeper explanation of what makes your watch rolls good! What kind of leather, what details, etc.
Woolex woolex
🤣🤣🤣🤣🤣
The answer is simple stop buying rolex
Im up for adoption if Mr Bucherer is ready for a son and heir
😂 . Can I be the butler?
same
Second that
We’re all just sad and hopeful aren’t we
I have first dibs on yard maintenance supervisor.
I have never had the pleasure of buying a Rolex, but I do have my Omega Speedmaster. I can not express how much I enjoyed the experience of simply buying a watch! The staff at the Omega store here in San Francisco was outstanding!
Exactly. Now everyone has to deal with the same issues customers deal with when buying a Rolex.
What I think Rolex are doing is starting the process of having complete control over point of sale, as at long last they have “Become aware” of the shenanigans going on within their AD network, and the current feeling amongst what are often long term Rolex fans, regarding their treatment.
This is affecting the brand image, and by placing the point of sale under their direct control they can halt this decline.
I think this will be the first of many acquisitions.
You guys are fantastic. This is a great way to get news like this. When you take time to break it down for us. History, current condition, and projections for the future. Pluse a touch of industry gossip. Keep it coming.
Whenever Bucherer sells an Omega, Rolex will make money. I think Rolex will love that.
I agree. Rolex doesn't produce enough to satisfy demand, so why not make a profit on other brands? Unless the long term goal is to ramp up (Massively) production to squash 'lesser' brands. I'm not sure Patek needs to worry, completely different market.
But will Omega love that?
And if you enter the shop for an Omega but they gently nudge you towards their Rolex models, will you like that?
@@Cohen.the.Worrierwhat the display only selection 😮
@@Cohen.the.Worrier Gently nudge you towards a Daytona or Submariner at retail? (I would love that) This only works if you have models to nudge people towards. Someone looking for a Seamaster will not be nudged towards a Cellini (Or whatever they are calling it now) or a 31mm pearl dial datejust. The ADs have always been a thorn in the side of Rolex, this is a start to take back control. Everyone laughed at CPO....no one is laughing now. Hats off to you Rolex, you played a blinder!
@@nickgalla-barth6336They definitely produce enough to satisfy demand. They just don't make enough accessible to satisfy demand.
Rolex are basically De Beers now. Controlling supply and spending a fortune on marketing to hype demand for a product that actually isn't that special.
Hard agree.
+1. For a brand selling, arguably not very often special watches, pimped by social media NVAs and celebs with no watch passion, to be that arrogant always confounded me. To have such clear contempt for your ADs and end customers is hard to understand. There are plenty of amazing watch brands you could be supporting rather accepting the controlling and coercive behaviour from Rolex. And I know It's not just Rolex but this is the subject of the video.
Your’s the best description of what Rolex is I’ve ever read.👍👍👍
Look, I would agree that Rolex is not be-all, end-all of the watch world: there are many, many excellent watches out there for us to buy, cheaper than Rolex, and more expensive than Rolex. I own many, including Rolex, Omega, Tudor, Seiko, Grand Seiko, Citizen, Weiss, Vaer, Casio, etc. However, there is nothing like a Rolex for quality, fit, finish, value retention, time keeping, etc.; at least not in the below $20,000 range. Hate if you want, but once you’ve had a properly Rolex on your wrist that fits both your personality and your life, it’s hard to forget that feeling of quality and assurance.
Nailed it @@simonpchambers
Its been over a month since your last upload, so it is nice to have such a long form discussion to make up for that. Please do more of these. Thank you Jenni and Kai!
For me, it doesn't affect me as Bucherer has no stores in my country. Of course, that can change down the road. Bucherer will in time become a boutique focusing only on their brand. I think it could be a good sign as many ADs are dirty and sell the most sought after models to the grey market dealers.
We need more Kai on this channel please. He's so knowledgeable about the AD model
He has is own channel and you can head over there for his content. But I think more of both of them having discussions is gonna be good.
Great chat. I think it's a savvy move by Rolex. Taking greater control over their retail supply chain is a huge positive. Agree that some AD's are dreadfully unwelcoming and this has hurt the brand.
I also had a terrible experience at the AD recently, looking at a Rolex. The salesperson was quite arrogant and snobby, and spoke down to me. She made me feel like a second class citizen. I was ready to buy until she treated me like crap. I’ve heard countless stories similar to mine.
Yes majority are scumbags who think they own the brand. Kinda like a corrupt cop
Go to different brand , Rolex thinks they own the watch world . Omega , IWC , Breitling ... all very happy to help you out .
@@sergesmets5685 Definitely. I'm a big fan of Omega. They have amazing quality and designs, and you can actually buy them.
I recently visited a couple of dealers in my area and I was completely surprised by the experience I had. It feels like a racket. At one dealer, they had a freakin line outside. I just don't get it. Plus all the stupid rules that don't fit the 21st century like, you can't pre order, you can only create a wish list, we cannot tell you when we can get it to you. Please..it is a freaking watch. It all feels like complete marketing bullshit to me in the name of maintaining exclusivity. I am glad these guys do not make life saving medication.
@@skolappacaguy it is all marketing , EVERY AD got watches in stock . Only they get to decide you might buy 1 or not .By doing this they try to keep "exclusivity" and it is working ( hence the line in front of the AD) . What people do not realize is that there are other watchbrands around and while Rolex does make good watches , the others do also . Not to mention , that Rolex are very likeable by persons with "less visits to the AD" if you know what i mean . They do not recognize a Omega , AP , VC, IWC when it bit them in their nose .
I didn’t know what to expect from this video. I am very pleasantly surprised by how informed it is and how enjoyable it was. Waaay better, apparently, than a visit to Rolex A.D. #1.
Interesting to hear your experience at AD's. Ive had the same experiences and told the manager at a Goldsmiths branch in the UK, I would never buy from them or their affiliates ever again. He was arrogantly ambivalent.
I understood I was on the 'list' for a GMT even though they said it could be a 5-7 year wait, 2 years in I asked at the same store where I was on the list, to be told I wasn't and that they had no record of me ever being.
This sort of behaviour is disgusting, the AD's, their staff and Rolex themselves are only viable due to us the customer.
I bought a 2nd hand GMT from a grey market jeweller, I was able to try on the watch I might buy and was treated as a valued customer in their shop. I like Rolex watches but the current situation of wait lists and supposedly having to create a portfolio of purchases to be considered worthy is ridiculous, stupid and extremely insulting.
Thank you for making this video!
I've had similar experiences with Goldsmiths. Despite being a customer with purchase history, including a Datejust, plus other non Rolex pieces, I've been continuously messed around. After nearly 4 years of waiting for a GMT I finally got told that there was no possibility of getting a GMT so please stop asking. They did however grant me an interview (how very generous of them) to see if I would be suitable for a Sea Dweller or a 41mm Datejust, both of which they assured me had short lead times... That was nearly a year ago. I'd be less annoyed if they at least occasionally responded to my emails. Of course whenever I called to discuss the money I was trying to give them, the agent was always with another customer, despite it being at the very start or end of the day. I'm just fed up and frustrated with the whole thing. Fortunately the grey market prices for certain models, including the Sea Dweller are getting pretty close to retail so I'll soon be able to cut them out of the equation... mind you I'm sure that the day I do put some money into a grey option will be the day I finally do get the call from GS.
4 years is beyond ridiculous, I was baffled when the concept of courting AD’s became a thing. Just take your name and give you a number on the list. To have to prove you may or may not be worthy to a high street retailer is pathetic & demeaning. I spent 18 months hating Rolex but I think it really is the AD’s that have ruined the whole experience. Now hopefully they’ll start to be judged correctly. In my business the customer is always right, occasionally you may have to gentle push alternate scenarios but always with their acquiescence.
I think perhaps Rolex might have been between a rock and a hard place. They also wouldn’t want to add more power to the other Luxury houses like Richmont or LVMH so taking on Bucherer after many years of loyal service (99 years) protecting that business and staff etc. may be better for everyone even if others fear for the future of ADs. It maintains or increases Rolex’s power and control but cant see them taking on the world and ditching ADs. I would imagine they prefer normally to hide behind resellers…
I've seen 5 announcements from other cc's and I appreciate the deep dive. Sadly, AD's are very often snobbish and turn folks off of the brand. Gray market boutiques are excited to see you, are knowledgeable and passionate about the brand (unlike a majority of the AD's), and go to great lengths to build a relationship with you leading to a purchase. This just makes you want to come back when you want to upgrade or trade up. You just can't compare the experiences and I see that gap as more of a chasm regardless of what Rolex is trying to do. Great coverage. Thank you both.
So many Grey Market con men out there . I'd rather just buy something else from an AD . Breitling or Longines or Omega , Hamilton, Seiko etc...
@@TheSavagederekThat’s right. Never pay above retail!
@@vincent67239 I reckon after the Anthony Farrer nonsense , and the way things are going , these dodgy characters have had their day and the Grey market won't be around much longer . There will be some survive like Roman Sharf and Nico , but on the whole I think they will die out .
The other revenue stream not being discussed much is that Bucherer is the the main Rolex Certified Pre-Owned reseller. That is a multiple stream of reselling revenue for a single time piece multiplied by all of the Rolexes ever sold. Example below:
- A buyer purchases a Rolex Certified Pre-Owned piece from Bucherer.
- He later sells this piece back to Bucherer at below resell market value to purchase another Rolex or any other brands within Bucherer (This is standard practice for all grey market dealers).
- Bucherer services this timepiece and resells it at a higher margin.
- Multiply this by the lifetime of this timepiece, multiply this over all of the Rolexes that come into Bucherer's supply chain.
Excellent coverage. My two cents: Eventually Bucherer stores will all become Rolex owned Boutiques. No more Rolex ADs. Like Omega Boutiques.
My Paganni is very nice since you mentioned it!
I’ve bought Rolexes at both The Hour Glass and Langfords here in Australia and both places we amazing throughout the entire process, very friendly staff and my wife and I were made to feel very special on the actual day of purchase. I’m surprised to hear other Rolex ADs offer a substandard experience.
Maybe Rolex checked with those other brands, and they didn't have a problem with it. ? That would be a hell of a risk in buying a business and then losing a bunch of brands that it sells.
Watches of Switzerland stock fell 30% following news of the acquisition, but then recovered after Rolex confirmed it won’t interfere in the normal daily operations of Bucherer. The Swiss regulator made a ruling and the deal looks like it has gone through.
So it seems Rolex and Bucherer will be independently managed.
As for the future of ADs, nothing is likely to change as it produces 1 million watches a year and it will need the global distribution network. Bucherer has only 53 stores with Rolex counters and it doesn’t have any outlets in Asia. Whereas Rolex currently has over 1,000 ADs globally.
AP produces less than 50,000 watches a year so it can go boutique only. You shouldn’t compare Rolex with AP as the scale is completely different.
As for allocating more Rolex watches to Bucherer stores, I think Rolex can’t do this as it’s bound by the Swiss fair competition laws that it has agreed to in order to get the acquisition approved by Swiss regulators.
I heard the AD's that were sold to flippers/grey market dealers lost their accounts with Rolex. The AD's that remain are long term Rolex AD's (small family businesses). I think this merger will give Rolex more direct control of their products. Unfortunately Bucherer stores are not located in the United States (only Las Vegas). So this will not effect the US market.
Tourneau store ?
Bucherer is in New york city
And NYC. Bucherer purchased Tourneou
@@ScoobieDoo-zy1rh In Chicago yes but that store is empty and it was closed due to looting a few years ago.
Firstly, loving the new format guys, really enjoyable to watch you discussing this topic together. Also his kudos for presenting so clearly and fluently in your second language, I don't suppose most viewers realise just how special this gift is.
My two cents on the subject of Rolex's latest power play... I wouldn't be at all surprised if Rolex are eyeing ways to generate ongoing revenue through services and subscriptions as Apple and others do. Can you imagine for example a Rolex Platinum club, with a monthly subscription fee of €30 which gets you access to exclusive Rolex content and events, and guess what... people in the Platinum Club seem to be able to buy more watches and quicker than those not in the club.
Kinda wild that a competition regulator would allow this. Now what if Patek or Omega buy Watches of Switzerland? Maybe all big brands go boutique only? that has been talked about for years tbf.
You should of come to Lunn’s in Belfast. We do respect all customers.👍👍
We are in the western US and had good AD experiences - bought two Rolexes in the past year from two ADs with no spend history. The staff were great. I follow a lot of watch content on YT so I know many people have bad experiences. From what I see, 95% of Rolex-related complaints are dealer-related. As obsessed as Rolex is with horizontal and vertical integration, they have to be deeply concerned that the last link in the chain has been hard-broke and out of their control. They’re taking control. Good.
Rolex arrogance and “deeply concerned” go together like oil and water.
Amazing content. Too bad about the treatment from the boutiques because we love the crown. At the same time, you're hardly the typical customer and not to put too fine a point on this, you know much more than the salespeople do. Just thinking about this, some salespeople want to be at the level of their customers creating enmity, frustration, and a possible sense of entitlement since they represent the crown. So I think you are so right about proper training and guidance. God save us so we can move on from dealing with all this when we just want to buy ourselves a great watch...Just ranting at this point so I'll stop. Love your channel and learning so much about fine timepieces and the business.
WOW! What a fantastic discussion - all very logically laid out and persuasive. This is by far the most informed and informative presentation on Rolex's acquisition of Bucherer that I've seen. Thanks for dedicating so much time to it (the thing that really sets you video apart imo) and really laying it out so expertly.
Such an interesting conversation! I’m becoming a watch geek because of Jeni and Kai, Theo and Harris
Rolex will now be profiting off the sale of every Patek, AP, Omega, Cartier, JLC, TAG-Heuer, etc. sold by Bucherer...so it behooves them to sell the other brands' watches enthusiastically, especially if Rolex continues to have limited production/supply. If they can't sell their own sports models due to them not being available for sale, they might as well profit off the competition.
Acid watch content and consumer but haven’t really checked out @Jennie yet. Impressed with the more in-depth discussion on this topic than other stuff out there on social media and the Web.
Nicely done.
I appreciate this video for two reasons:
1. It contains some great insight into the watch market, from two very knowledgeable people.
2. I love hearing the German accent. It makes everything sound so sophisticated.
Great video, very well informed, love the double act.
Got to think, Rolex owning Bucherer incentivises
1/ encouraging new customers to establish buying history first with Tudor, then Rolex.
2/ ultra high demand watches going only through Bucherer where they control the distribution
I'm glad to see you back Jenni!
Good discussion. I've always liked Bucherer. I have several watches that we bought in my youth in Switzerland. Everyone in my family had one. I am sad to hear they are being acquired by Rolex but that is business. Unfortunate that Mr. Bucherer has no one to leave the company tol.
With that move they put a lot of pressure on ALL other watch brands! No idea where this is going in the future but it is very interesting!
I’m sure Rolex/ Bucherer would be delighted to sell ( and make a profit and learn about their marketing strategies) of their competitors . The question is will their competitors want to sell through a Rolex subsidiary.
My left ear appreciated this format.
Great content you two! I am fortunate to have a great AD and two very personable contacts there. I've had access to a lot of desirable Rolex sports models and would be very sad to see our local AD shut down. There isn't a Bucherer near us, so at least here in Pennsylvania in the USA, it would hopefully be a long time till they'd pull their product from our local AD. I can see Rolex shifting most of the AD inventory to their Bucherer locations, though.
Better then don't all go to a few special clients like you or the flippers. Perhaps people can be treated the same
I generally pick up 1 or 2 pieces a year, so I'm hardly making a dent in Rolex availability to others. If you don't live close to a major city here in the USA, you're not likely to find a Bucherer location unless you're making a special trip for it. I don't think bringing things in house (as AP did) without other authorized dealers is really good for the consumer.
@@petewatchcollector I've had my name on an imaginary list for 3 years for a no date sub.
I'm sure they will be more selective on AD's and not get rid of all. Most have sold out the back door or use a sports rolex to get sales in other lines. A general sense of resentment has been built up unless you can pick up what you want.
You don't see top end brand available in many locations, if they want to move up then you'll have to travel to get it.
Seeing Jenni and her husband in a video together is incredible. Been waiting for this collab for too long!
Very interesting video, great to have Kai‘s insights along side yours, both of which are considerable! My experience with Bucherer in Vienna has been offputting. I was actively in the market for a watch (JLC) that they sold but was not even invited to sit down to try it on, in contrast to the JLC boutique, where I visited multiple times and they talked to me for over an hour.
Bucherer is replacing the Sub with the Patravi SubaTec.
Amazing podcast, also totally true on the fact that makes zero sense how bad is the Rolex buying experience is vs the brand
What about the APAC region..they buy the most and have no Bucherer ADs in that region. I think Rolex would be fools to discontinue their ADs (local) unless they offered online sales globally.
A few thoughts: Is Rolex tired of hearing about bad experiences and watches not being available? Perhaps this will be a way to rectify that to a degree, and keep fewer watches off the grey market, out of the hands of flippers, and make more profit per watch. Will it be easier to get a Rolex now? That remains to be seen but it would go a long way in bringing people back into the Rolex fold if wait lists are more democratic. and reasonable with regards to wait times. I don't know how it works with AD's, but if Bucherer becames the place to buy a Rolex, then it will be easier for Rolex to know which watches they should make more of, and which ones just aren't moving. Of course they will never get to a point where supply is greater than demand.
Honestly just by distribution and sales of ADs should give this data.. they can easily find information about this. But now maybe they can be more involved? I don’t know. I can’t get a Rolex nor afford one. I’ll just use my budget on a omega or just be happy with a Tissot for now
Great Video Guys!
I love the fact that Kai has to check back with Jenni for some translations 😜 so relatable!
Also (is it just me) or has Kai’s mic been disconnected right before the first ad for your watch roles? His sound is a bit off for the rest of the conversation (but still good enough) 😅!
I always thought that Kai didn’t speak English as he makes the German language videos and Jenni does the English ones. very impressed. Puts native monoglot English speakers to shame.
Rolex AD's have been behaving poorly these last few years and have done irreparable harm to the Rolex brand with their fake wait list, and their back door sales.
It was only a matter of time before they were eliminated. And we're all better off for it.
Just my 2 cents from a North American POV, when a company does not work to gain my business nor treats me like a valued customer and furthermore imposes high brow pre-requisites to obtaining their product they can kiss my gluteus maximus and I'll keep my money! There are thousands of watch manufacturers and billions of timepieces to choose from out there people, don't be fooled by the illusions of Tulip mania which is just what Rolex is at the moment!
Of course Rolex will have an interest in selling other brands. Think about this, for every Omega sold in Bucherer, Rolex now makes 25% of the sale. Rolex already sells 100% of its annual inventory (or close to it). Now Rolex gets a slice of every other brand they retail out of Bucherer. It's a win/win for Rolex regardless ($$$).
I would counter and say, why would Rolex want to make 25% on a sale (Omega or other brands) when they could make 60% + on a sale? Why would they give valuable window space or salesperson’s time to a move a product which will give them lower margins? I would think Rolex will have less incentive to sell other products.
@@POSUENbecause Rolex already offload 100% of their annual inventory with relative ease, and also to assert control/influence over the watch market in general...as they say, keep your enemies closer 😉
By selling their competitors products they will have a much greater insight into what, when, where and how their competitors operate. How this isn't seen as anti-competitive I have no idea 😅. I guess Rolex have very deep pockets
Swatch Group😅 will love that
I would think that Rolex will start reducing the number of ADs and use Bucherer as the sole distributor. I mean, why give away 35% profits to someone else when you now have your own distribution network.
The other brands would probably not want to give their competition the kind of inside insight as you say and pull their brands out of Bucherer. I also think that there is a bit of conflict of interest here and not sure how this is not seen as anti-competition.
@@POSUENI agree to a certain extent, the caveat being: Bucherer is a huge player in luxury watch retail, alongside (but not as large as), Watches of Switzerland and its brands. So the question for many brands is: if we do decide to pull products from Bucherer, where do they go? There is a certain degree of luxury prestige and cache from having your products retailed in Bucherer that other luxury retailers cannot begin to match. So not having your product in Bucherer is potentially damaging to a brand's luxury credentials.
Brands like Omega and Cartier may have more wiggle in this regard, but there is no doubt that not being able to retail through Bucherer will be a huge dent to their revenue, marketing and brand presence.
Brilliant video. I live on on an island where there is only 1 Rolex AD and unless you are willing to spend thousands with them you will never get your name on any list.
In Canada I had never heard of Bucherer until this news broke but it'll be interesting to see if all those brands want to keep selling through Rolex and if Rolex wants to keep selling those brands.
These long format videos are the best!!
there are close to almost 1900 ADs worldwide. I think even if Rolex leveraged their entire net worth, they'd be hard pressed to be capable of owning and operative all those locations.
Great summary of the situation. Your video was much more informative than any other I’ve seen about this development. Also great interaction, it was fun to see you together working on the video!
Omega is already not selling new watches through Bucherer anymore since a month. Now I know why😂
I was in the Omega boutique in Vancouver recently, and it was a very nice experience. The staff was friendly and helpful and the atmosphere was great. Better than the one in New York which tends to be kind of cold feeling and the security.make it less friendly.
Of course, with Omega, unless you want one of the hot limited edition models (like a Silver Snoopy) you can always go grey market and save between 15% and 25%.
You guys are so entertaining and good at what you do. Very impressive you can do it all in English, too.
This can be a win-win for Rolex. They can now buy other brands at wholesale and sell them at retail because they own the dealership. This brings in more profits to Rolex.
Good discussion. I think availability will be increased at the dealers for most watches at the lower price point. With the CPO the prices/value will be stable and almost predictable. I think the high end Rolex watches will remain aspirational items.
I know it’s kinda what everyone is doing nowadays, but I really like you two in this podcast format. I’d say do more!
Bucherer isn't present in some of the major markets for Rolex like Asia (Singapore, China, HK) and Middle East. So I don't think that Bucherer will pull out of other retailers entirely. But hard to predict anything at this point.
If Rolex can swallow Bucherer ...Rolex can swallow anything everything
I have insider news for you straight from my AD - Bucherer (at least here in Boston!) I’ve bought a couple of watches from them 👍
Patek has pulled out all of their models (it all makes sense now! When my AD told me I was like wtf???) as they state they want to go full “boutique”
I was told this by my sales rep at Bucherer a month back!
Amazing business work from the Swatch group. The pressure from the OMEGA brand makes the guys at ROLEX hustle and make a lot of effort.
😂😂😂
new format rocks. keep them coming!
There are currently seven Rolex AD's in my country, including in the smaller cities. I just can't see the economics permitting that number of Rolex-only boutiques, or even putting in new Bucherer outlets as the equivalent of that. If Rolex pull the licences from the small/local ADs, they will reduce their geographic spread. Maybe Rolex have enough customers in the bigger cities and are too big to care about smaller towns.
Bucherer bought out Tourneau, high end watch stores. They are big Rolex dealers in the New York area. I imagine Rolex will start buying up other high end watch stores.
Reposting here a comment I made on Luxury Bazaar earlier, because I believe it makes even more sense here regarding your discussion...
.
Rolex now having their own distributor, so they can reduce drastically the number of their A.Ds.
Rolex had a serious problem with the back door transactions pumping up the grey market, because less Rolex watches were sold directly to the customers, giving a bad reputation to the brand, long term speaking.
I've personally been seriously maltreated several times by Rolex A.Ds and it simply led me to buy Cartier, JLC, Tudor and Omega watches; I have the money, I am a regular watch buyer, I own a decent collection, I don't care about peudo "investment" and I own ZERO Rolex simply because I can't get one at retail price...And I WON'T never accept to pay a Rolex over retail price or to pay for a used Rolex over retail price, as many of my friends and colleagues who are not owning any Rolex either for the exact same reasons 🤷♂️
This is what I wonder - when I hear people say Rolex was tired of hearing about horrible customer service at AD’s - the mistreatment, mirth in saying “wait for 5 years then maybe” - did this on any level move them towards this decision? I question that. A lot of the cache of the brand is the snob effect and the grovel factor, no?
I just came here to listen to Jenni and Kai pronounce "Rolex" and "Bucherer". JK, you guys rock!
The irony - the first advert that came up for me was Watches of Switzerland - advertising Breitling and Omega 😳
Some of the most insightful commentary I’ve heard on RUclips in a long time. Thank you!!
I found it funny that the ad for this video was watches of Switzerland. Rolex hasn’t purchased Bucherer yet it still has to pass the competition boards of several countries.
Without a waiting list, the demand will collapse. The flippers will disapear and some people will understand Rolex are overpriced in comparision with Omega.
Best discussion on this topic I've seen so far! I also agree that I think it would be beneficial for them , instead of going with the full boutique model, to go with the Owned AD model (via Bucherer) and reap the profits of the secondary market that the sky high resale value of their models affords.
If Omega popularizes the 9920 movement, it will be tough. Many Rolex models look dated and noncompetitive.
Rolex buyers don't care about movements
True. But, you won’t fix something that’s not broken. Rolex designs are timeless, and will never go out of style…
Why the uproar? Good. Legit ADs are needed…we’ll see the gray market correct a little (less ADs selling watches in the alley.)
SUPERB video. So well informed, so well debated and so nice to see you two together. More of the same please!
American… watching this in the lounge in Bremen!
More videos together! And you have to do a part 2. What happens to the other brands at Bucherers? Does Rolex raise prices to hurt the grey market and keep even more of the revenue. They could easily chg $2kUSD more and still sell all the sport watches. I know I’d rather buy new at a higher price than used at an even higher price.
Congrats on your blessed event! This video was very enjoyable. The energy between you and Kai was fun to see. Recently, I started making watch videos as an economist, so I have a lot of say about this. It should be fun!
I enjoyed very much!! more discussions pls! XP
Great discussion! Loved the longer format.
We need more watch conversation from these two.
So will I not be able to sign up for that class on how to buy from my AD anymore?
Best Jenni Elle video I've seen and the best youtube on this topic; well done!
Great format for this video! Loved the conversation!
My customer experience at Bucherer in New York has been outstanding last june. The profesional treat from the guy forced me to go to the from desk and make my remark. Many brands were shown to me with as never before! Customer experience A1.
I live 15 min drive from the nearest Rolex AD, but over 2 hour drive to the nearest Bucherer shop. Do you expect me to drive 2 hours, to _build a relationship_ with them then drive 2 hours back?
At least you're looking at this from all perspective and not just shout GENIUS MOVE ! ! ! like some.
Exactly… I’m sort of the in the same position. 😢
This changes nothing for the consumer. Empty watch displays are just that. Empty.
I think the key is execution. In buying Bucherer, the way that I view this is that Rolex is buying B2C "know how" also they will own Tourneau. Assuming this deal is approved I would expect that 5 years from now there is a gradual build out of Bucherer / Tourneau and a reduction of the "out of network" ADs. The long term goal is the Apple Store model. Even AP has pivoted to "AP House" to greatly improve their customer experience. Business School 101 = "Customer Lifetime value" and under the current model watch Manufacturers have no visibility into their Customer data, purchase history, habits, spend which is why the AP model over the long term is basically mandatory.
Re AP situation: AP decided to add a whole new line of business to its family owned watchmaking company. That line of business is retail sales. It is in and by itself a major business. So naturally there will be some learning curve before they graduate to the white glove service experience .
I wonder if Rolex did this to get access to every Bucherer sales outlet, then close the Bucherer brand after a few years, eliminate a rival name, and possibly rebrand some Bucherer watches as Rolex? Because Rolex had various sister brands in the past, but Wilsdorf closed all of them except Tudor. It doesn't sound sensible but companies do it, reminded of the English bicycle brand, Raleigh, they bought nearly every other brand in the country then closed them after a few years, so it was almost Raleigh or nothing.
Rolex should take this opportunity to take over the retail distribution, just like Apple through Apple stores. Their AD network is a bunch of slime balls, and their practices hurt the brand perception.
There is no Bucherer where I live and there are only a couple of ADs here and they have no wait lists. so they just put non popular models on display for sale (no steel models of course). and they say thats the only watches for sale but obviously they reserve other models for specific clients. its such a stupid game and I hope that the acquisition will disrupt their business
If I were Omega, JLC, Patek and so on, I would pull my watches from Bucherer. Go with WoS, indpendents and their own boutiques. I would not put a penny in Rolex's pockets because of their poor customer practices. Omega and co do not need Bucherer.
Rolex will make so much money, it will be incredible. Rolex defines luxury watches .
@@ScoobieDoo-zy1rhLol, that made me laugh out loud. Rolex is the Toyota of watches. Nice and Reliable but luxurious, you're having a laugh. It's very much mid tier.
@@garyboyle695 Rolex is the Toyota and also the Lexus. It’s the face of watches , essentially the standard by which all luxury watches are compared to. It’s annual revenue is north of 9 billion in 2022 whereas the Ferrari of watches patek has an annual revenue of 1-2 billion per year. The 2 are simply not comparable. Even second place Cartier only made 2-3 billion in 2022.
Having dealt with Rolex Ads, I support any attempt to screw them.
I decided Kai needs his own show the second he said rolex has the AD’s balls in their hand 😂😂
What you didn’t touch upon was the potential increased supply of Rolex as production increases with new factory facilities being developed. It is an important element of the Rolex strategy (as is Tudor). Meanwhile squeeze out the brands Bucherer currently sells, thus providing competitors like Omega with logistical and potential market share issues in the future. Rolex should and probably are keeping a careful eye on actual demand itself which will reach a peak. Plus there are environmental concerns in the future such as where gold comes from and increasing awareness of the impact on the environment extracting gold has. At some point too public perception will change as to the desirability of super luxury products themselves; it’s a global dynamic.
I remember the numerous ADs in the 1990s and the prices never increased much, in those days there werent many grey dealers. It all depends on existing rolex values,
Great discussion format, please, keep on doing such videos guys!
The damage has already been done with Rolex AD's treating their customers poorly and unprofessionally. It's kind of a "once bitten, twice shy" thing.
I will continue to buy Omega and Breitling but will never purchase them from a Rolex AD.