as a marketing person myself, i really enjoy your on-point analysis and clear comnunication. one marketing tool i would add to your list in this video, is 'mimetic desire'. rolex consumers want to wear the watch their peers wear. volume actually generates volume (up to a point). it's closely related to the 'availability heuristic' you talk about but not quite the same, imo.
Rolex makes good watches and great marketing. You as a consumer have to decide how much you want to pay for marketing and hype, because that's a big part of what you're paying for when you buy a Rolex
Yup, most of the margin is paying for a vast marketing and branding campaign. Some of us collectors appreciate it for their core watches; but other are wiling to pay the freight for a Rolex to show off.
They make good watches, but make no mistake their cost price is a fraction of the retail price. But as a Rolex owner they do exude a certain amount of sureness and feel crisp and reliable. Is it worth the money? Probably not, but sometimes it wins the heart and as long as you can afford one comfortably, then why not? It makes me feel great when I’m wearing it.
They are made higher quality than the Holy Trinity. That's according to my local watchmaker, who hates working on Patek, VC, etc. You are right to proudly wear your watches, I do the same.
The strength of Rolex’s marketing can convince rational buyers to pay over list for a CPO watch that can be bought for less than a brand new one! Now that is testament to Rolex marketing!
@@mywatchjourney6579 My sources tell me that the CPO program is not achieving the sales volume Rolex expected. Do you see CPO prices moving downward as more AD’s offer it?
just yesterday a hawaii dude channel posted part 2 of his working in rolex feedback recently ( maybe this week, i saw it yesterday) - and amongst other things that clicked, he said, "main rolex buyers were middle class families who wanted to look good infront of their friends" ... that kind of stuck for some reason.....
Brilliant! Sums up the famous book 'Popular delusions and the Madness of Crowds' and then some! Or as Gordon Gekko was quoted in the movie 'Wallstreet' "The illusion has become real and the more real it becomes, the more desperate they want it! Capitalism at it's finest" !
Classic branding. High mental and physical availability. These principles are common for all branding. Given we are all cognitive misers, our brain uses these short cuts to make decisions. When you shop in a supermarket, you put 80 items in your basket in 20 minutes. You achieve this by using mental short cuts, influenced by marketing. Soap was doing this before Rolex, but in fairness to Rolex, they have been consistent in their approach.
Yeah, funny thing about the supermarket. When I think about it, I do the same. Rolex should be admired for their discipline in marketing. They do it better than anyone else in the watch industry.
I've heard this from other Rolex collectors too. I guess there's something about the 5 digit reference that's regarded as more 'true Rolex'. I'm new to collecting Rolex so don't have the same feeling. I actually like the ceramic stuff.
Great video. Originally they were good looking rugged quality watches that the man on the street could save up for and afford, perhaps with a few sacrifices. In addition to being army issue, they were also sold for retail prices in army camps in the 1960's. The modern soldier and the modern man on the street could not afford a new Rolex .
Yup, those days are long gone. Any notion of a 'tool watch' is a marketing tactic. A call out to a nostalgic past long gone. A diamond studded gold Daytona is a tool watch? Get out of here!
All of Rolex's current brand cachet as a fashion brand is built on what's effectively just 20-30 years of being at the right place at the right time in the mid and late 20th century. That said, it's impossible for any other watch brand to recreate that same run now, because it's a different time, consumers are different, and the status of wristwatches as goods is different, so there will never be "a new Rolex".
Undoubtedly they are are a fashion brand, once they turned to the precious metals and diamonds you could see where they were heading, and they of course restrict access to the product through price and availability. If Joe public could aspire to a rolex then the cognoscenti would shy away from them in droves. Very astute organisation but for me omega is more true to there core values and is where I would spend my money, leave rolex to the rappers and the elites, great video cheers.
I think that in so far as possible, it's Omega that's trying to create innovation in mechanical watches more than Rolex. My fav are the 90's Seamaster. Tho vintage is also getting me interested.
Rolex lost its way long ago. In 1953, the Explorer was $110, which is about $1,200 today after adjusting for inflation. Nowadays, these watches cost between $6,600 and $8,000 or more! That's thousands of dollars added just for the brand's pretentious allure. They used to be solid, reliable watches, but now they're nothing more than lifestyle cosplay props, designed to make you feel like a cool adventurer. Cosplaying a 1960s National Geographic photographer doesn't come cheap.
I knew what a Rolex was long before I’d ever seen an actual Rolex. As someone with this unique perspective, I can tell you that as soon as I became a watch enthusiast, Rolex’s watch designs and technical features immediately struck me as class-leading. All offerings from Rolex and Tudor seem so well-crafted and aesthetically appropriate for different sorts of lifestyles. From a technical standpoint, Rolex and MT movements blend functionality, accuracy and robustness better than any other brand’s. I don’t know how they managed it, but I honestly believe that Rolex and Tudor just offer the best watches overall, and at very reasonable price points. However, I do believe that some steel Rolex models are a bit inflated in terms of retail cost.
Patek Phillip has a reputation for high communication with collectors. Obviously, their small volume is a key factor. Also Audemars Piguet is known for customer service. Also smaller volume. And both brands are focused on collectors. Average Joe's don't buy their watches.
What about Rolex's use of scarcity marketing? The Rolex ADs in my city have had no watches in stock since 2017. The ADs commit tax fraud by selling to grey market dealers, with the ADs paying no business tax on the kickback income. In a way, Rolex sells their ADs a license to commit tax fraud. Another benefit is that the unavailability of watches creates a mystique and a feeling of accomplishment when you buy off the grey market. The only downside is that a growing number of consumers are disgusted by Rolex. It is like a foul stink follows the watches. But for now, scarcity marketing works. Rolex is king.
Yeah, most of the scarcity is real. I do fault Rolex for ignoring the surge in demand and not raising production fast enough. But now that they see what's possible, they are actually doubling down on their night club tactics as we can see from their latest release.
Wow since 2017? Are you sure all models? Yeah Rolex authorized dealers are not going to sell models that trade well above Msrp on the secondary market to customers that don’t have any relationship with them and purchase history however they will sell watches that trade around Msrp or below Msrp before offering a for example Sky Dweller or stainless steel Daytona or GMT’s. Does it make sense? They will satisfy loyal customers with extensive purchase history after all those customers have shown their support by buying watches where they will take a massive loss if they ever sell the said models!!!!😢😢😢
Rolex is not a fashion watch. Rolex is a beautiful well made watch. +2 -2 seconds per day is very precise for a mechanical movement it’s highly engineered and to accomplish that it doesn’t come cheap. I own 2 Rolex DJ 41mm and when I put them side by side to compare to watches that are in the $500 range there’s just no comparison the Rolex watches look and feel like they belong to a rich wealthy person I can’t believe I own them and the cherry on top is that they hold their value yes they seem overpriced but when compared to other watches at around the same price NO they are properly priced at Msrp!!!!
Of course next to a 500 dollar watch they look far better, but as you move further up the chain, there is less of an obvious difference outside of the name/branding.
Rolex lost its way long ago. In 1953, the Explorer was $110, which is about $1,200 today after adjusting for inflation. Nowadays, these watches cost between $6,600 and $8,000 or more! That's thousands of dollars added just for the brand's pretentious allure. They used to be solid, reliable watches, but now they're lifestyle cosplay props first and watches second, designed to make you feel like a cool adventurer. Casplaying a glamorous 1960s National Geographic photographer doesn't come cheap. 😐 I don't like their current image, I prefer Omega or Longines. And with Omega, it can't be their space cosplay watch either. Just a nice Deville is perfect.
i never cared for overrated rolex. they have no history and zero innovation. they got big and well known for the same reason that mcdonalds did. the name
as a marketing person myself, i really enjoy your on-point analysis and clear comnunication. one marketing tool i would add to your list in this video, is 'mimetic desire'. rolex consumers want to wear the watch their peers wear. volume actually generates volume (up to a point). it's closely related to the 'availability heuristic' you talk about but not quite the same, imo.
Thanks, very interesting point. I suppose it's somewhat akin to tribal markers. "We're on the same team."
Rolex makes good watches and great marketing. You as a consumer have to decide how much you want to pay for marketing and hype, because that's a big part of what you're paying for when you buy a Rolex
Yup, most of the margin is paying for a vast marketing and branding campaign. Some of us collectors appreciate it for their core watches; but other are wiling to pay the freight for a Rolex to show off.
They make good watches, but make no mistake their cost price is a fraction of the retail price. But as a Rolex owner they do exude a certain amount of sureness and feel crisp and reliable. Is it worth the money? Probably not, but sometimes it wins the heart and as long as you can afford one comfortably, then why not? It makes me feel great when I’m wearing it.
They are made higher quality than the Holy Trinity. That's according to my local watchmaker, who hates working on Patek, VC, etc. You are right to proudly wear your watches, I do the same.
The strength of Rolex’s marketing can convince rational buyers to pay over list for a CPO watch that can be bought for less than a brand new one! Now that is testament to Rolex marketing!
Oh yeah, the CPO program is a whole other thing. I should do a video on that haha.
@@mywatchjourney6579 My sources tell me that the CPO program is not achieving the sales volume Rolex expected. Do you see CPO prices moving downward as more AD’s offer it?
A 10 minute market course! Nicely done.
Thanks, glad you like it!
just yesterday a hawaii dude channel posted part 2 of his working in rolex feedback recently ( maybe this week, i saw it yesterday) - and amongst other things that clicked, he said, "main rolex buyers were middle class families who wanted to look good infront of their friends" ... that kind of stuck for some reason.....
That's exactly it! Rolex knows their customer.
Enjoyable & interesting commentary. Thanks!
Glad you enjoyed it!
I enjoy this channel, I’m sure it’s not popular but keep pushing them out. Did you get a speedy? I saw the video but not sure the conclusion? Thanks
No, my point was about decision fatigue. I decided against it. There is no more mystique about with all the brand dilution.
Brilliant! Sums up the famous book 'Popular delusions and the Madness of Crowds' and then some! Or as Gordon Gekko was quoted in the movie 'Wallstreet' "The illusion has become real and the more real it becomes, the more desperate they want it! Capitalism at it's finest" !
Great reference! And we have same taste in movies ;-). Michael Douglas was great in that!
When I was kid I knew I wanted a Rolex. No other brand has done this.
They win the heart. That's their secret. Yup.
Classic branding. High mental and physical availability. These principles are common for all branding. Given we are all cognitive misers, our brain uses these short cuts to make decisions. When you shop in a supermarket, you put 80 items in your basket in 20 minutes. You achieve this by using mental short cuts, influenced by marketing. Soap was doing this before Rolex, but in fairness to Rolex, they have been consistent in their approach.
Yeah, funny thing about the supermarket. When I think about it, I do the same. Rolex should be admired for their discipline in marketing. They do it better than anyone else in the watch industry.
Rolex: The only things "tooly" about a Rolex are the marketing tools used to keep their prices high.
I only stick with acquiring pre-owned 5 digit pieces as authenticated by eBay.
I've heard this from other Rolex collectors too. I guess there's something about the 5 digit reference that's regarded as more 'true Rolex'. I'm new to collecting Rolex so don't have the same feeling. I actually like the ceramic stuff.
Great video. Originally they were good looking rugged quality watches that the man on the street could save up for and afford, perhaps with a few sacrifices. In addition to being army issue, they were also sold for retail prices in army camps in the 1960's. The modern soldier and the modern man on the street could not afford a new Rolex .
Yup, those days are long gone. Any notion of a 'tool watch' is a marketing tactic. A call out to a nostalgic past long gone. A diamond studded gold Daytona is a tool watch? Get out of here!
All of Rolex's current brand cachet as a fashion brand is built on what's effectively just 20-30 years of being at the right place at the right time in the mid and late 20th century. That said, it's impossible for any other watch brand to recreate that same run now, because it's a different time, consumers are different, and the status of wristwatches as goods is different, so there will never be "a new Rolex".
Yes, agreed. Technology has moved on. And it takes massive R&D teams to create innovation. Those early days are gone.
Undoubtedly they are are a fashion brand, once they turned to the precious metals and diamonds you could see where they were heading, and they of course restrict access to the product through price and availability. If Joe public could aspire to a rolex then the cognoscenti would shy away from them in droves. Very astute organisation but for me omega is more true to there core values and is where I would spend my money, leave rolex to the rappers and the elites, great video cheers.
I think that in so far as possible, it's Omega that's trying to create innovation in mechanical watches more than Rolex. My fav are the 90's Seamaster. Tho vintage is also getting me interested.
Rolex lost its way long ago. In 1953, the Explorer was $110, which is about $1,200 today after adjusting for inflation. Nowadays, these watches cost between $6,600 and $8,000 or more! That's thousands of dollars added just for the brand's pretentious allure. They used to be solid, reliable watches, but now they're nothing more than lifestyle cosplay props, designed to make you feel like a cool adventurer. Cosplaying a 1960s National Geographic photographer doesn't come cheap.
What do you think about a brand like Porsche? And the 911 , any similarities to Rolex brand ?
They are having the same supply issues I've heard. And the same sales tactics. Sad but true. However, I feel the 911 is a forever classic!
I knew what a Rolex was long before I’d ever seen an actual Rolex. As someone with this unique perspective, I can tell you that as soon as I became a watch enthusiast, Rolex’s watch designs and technical features immediately struck me as class-leading. All offerings from Rolex and Tudor seem so well-crafted and aesthetically appropriate for different sorts of lifestyles. From a technical standpoint, Rolex and MT movements blend functionality, accuracy and robustness better than any other brand’s. I don’t know how they managed it, but I honestly believe that Rolex and Tudor just offer the best watches overall, and at very reasonable price points. However, I do believe that some steel Rolex models are a bit inflated in terms of retail cost.
They do make great solid watches. My local watchmaker says Rolex is built like a tank! So I appreciate their quality. Still waiting on my Sub!
its no big secret that rolex is a master of branding, but can you name a watch brand that listens to watch enthusiasts?
Patek Phillip has a reputation for high communication with collectors. Obviously, their small volume is a key factor. Also Audemars Piguet is known for customer service. Also smaller volume. And both brands are focused on collectors. Average Joe's don't buy their watches.
What about Rolex's use of scarcity marketing? The Rolex ADs in my city have had no watches in stock since 2017. The ADs commit tax fraud by selling to grey market dealers, with the ADs paying no business tax on the kickback income. In a way, Rolex sells their ADs a license to commit tax fraud. Another benefit is that the unavailability of watches creates a mystique and a feeling of accomplishment when you buy off the grey market. The only downside is that a growing number of consumers are disgusted by Rolex. It is like a foul stink follows the watches. But for now, scarcity marketing works. Rolex is king.
Yeah, most of the scarcity is real. I do fault Rolex for ignoring the surge in demand and not raising production fast enough. But now that they see what's possible, they are actually doubling down on their night club tactics as we can see from their latest release.
Wow since 2017? Are you sure all models? Yeah Rolex authorized dealers are not going to sell models that trade well above Msrp on the secondary market to customers that don’t have any relationship with them and purchase history however they will sell watches that trade around Msrp or below Msrp before offering a for example Sky Dweller or stainless steel Daytona or GMT’s. Does it make sense? They will satisfy loyal customers with extensive purchase history after all those customers have shown their support by buying watches where they will take a massive loss if they ever sell the said models!!!!😢😢😢
Rolex is not a fashion watch. Rolex is a beautiful well made watch. +2 -2 seconds per day is very precise for a mechanical movement it’s highly engineered and to accomplish that it doesn’t come cheap. I own 2 Rolex DJ 41mm and when I put them side by side to compare to watches that are in the $500 range there’s just no comparison the Rolex watches look and feel like they belong to a rich wealthy person I can’t believe I own them and the cherry on top is that they hold their value yes they seem overpriced but when compared to other watches at around the same price NO they are properly priced at Msrp!!!!
Congrats on your watches! I believe you are their target marketing profile ;-)
Of course next to a 500 dollar watch they look far better, but as you move further up the chain, there is less of an obvious difference outside of the name/branding.
Rolex lost its way long ago. In 1953, the Explorer was $110, which is about $1,200 today after adjusting for inflation. Nowadays, these watches cost between $6,600 and $8,000 or more! That's thousands of dollars added just for the brand's pretentious allure. They used to be solid, reliable watches, but now they're lifestyle cosplay props first and watches second, designed to make you feel like a cool adventurer.
Casplaying a glamorous 1960s National Geographic photographer doesn't come cheap.
😐 I don't like their current image, I prefer Omega or Longines. And with Omega, it can't be their space cosplay watch either. Just a nice Deville is perfect.
Yeah, mostly the margin goes to pay for their $100 million marketing campaign. Still, the allure is there for so many people haha.
Rolex Flippers: Putting the A$$ in Aspirational
Rolex 1,200,000 watches per year
Habring 200 watches per year
Yeah, I met the local rep for Habring here in California. Those watches really shine in the metal.
i never cared for overrated rolex. they have no history and zero innovation. they got big and well known for the same reason that mcdonalds did. the name
They do have some real innovation, but it's stuff that the public never cares about.