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Why Rolex Is Preparing War.
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- Опубликовано: 14 авг 2024
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Why did Rolex SWOOP in to buy Bucherer so quickly? What's the cause for concern with watch AD's being for sale? Well, today Christian and Michael dive into those questions BUT not before they talk about all the insane benefits Rolex will get from buying Bucherer one of the most famous watch AD's ever. Does this help or hurt they grey market? Can Rolex stay ahead? Will Rolex increase sales for brands like JLC? Find out, today!
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NOTE: there are NO giveaways in the comments section of this video
Suprised it hasnt been talked about much but it seemed that the main intention of the acquisition was to preserve rolex (and tudors) standing with Bucherer. The Bucherer family had no succession plan and was looking to exit. Rolex bought them so a competitor wouldn't buy the stores and prioritize that brand's watches. If Rolex overprioritizes its watches, large watch companies may pull their brands out of Bucherer, leaving Rolex with 100 stores operating at a steep loss. Don't see the watch landscape changing as much as everyone thinks
That is what I think as well. Rolex just doesn't want things to change. And this is the main motivation behind the acquisition. So that nothing much changes. However - now that they have the Bucherer customer data - this could potentially open up so many avenues....and I can see why competitors might not be too happy about it.
@Yorkiepoocharlie you make some excellent points.
I was surprised when Martin’ s lost the Rolex AD license. Now they are promoting Omega and have changed the logo in front of their store.
As they should
Who cares. If they lost it, they probably deserved it.
I'd say there's zero chances ALL the competing brands remain invested in Bucherer as a retail outlet for their products.
So you're saying Panerai, JLC, Hublot, etc are going to loose that exposure and do what? Spend the money to open their own single brand boutique??
@@eliyahum4285 it might be a complete and total shock to you, but that's not even close to ALL of the competing brands.
@@eliyahum4285Panerai and JLC both left the flagship nyc bucheret store in the last few months for their own boutiques. They also lost Vacheron. That won’t work everywhere obviously but I wouldn’t completely discount it.
@@eliyahum4285Yes. These brands are already in the process of doing this. JLC in particular is currently pulling out of lots of retail stores and moving towards a boutique only model
LMAO , the Majority of Whoalex AD's sell the bulk of theyre Watches out the back door at over MSRP.
The more I hear you guys talk about Rolex, the more reasons I have no desire to buy a Rolex from an AD.
AD's are the absolute worst. There's no shame.
Great video. The one aspect I think you guys overlooked is these other brands may pull out of Bucherer. Hard to fathom they sit idle by while Rolex profits off of them.
Strange that no one has discussed this in more depth
Database technology will not solve your problem, my friend. I can think of three or four workarounds to defeat a centralized database.
If you want to solve the flipper epidemic, Rolex has to do two things:
1. Make more watches and force AD's to actually sell them.
2. Police the pay for play schemes at the AD level.
Rolex will do neither because it will cost the crown money.
I think Omega's play will be just to expand their own boutiques and rely far less on multi brand dealers like Boucherer. This is already happening here in the UK. In the big shopping malls you no longer have as many multi brand boutiques with Omega in them, as they now have a dedicated Omega boutique in the mall.
They won't make it and will need to close
Rolex obviously doesn’t give a crap about the customer experience. It’s really unfortunate.
The best watch podcast there is. You guys get better and better
Wow ! 😂
If I where in investor I would buy some stock on Watches of Switzerland. Rolex is huge but so is Swatch, Richemont and LVMH and they might be looking to gobble up a high end chain store themselves, if for nothing more than insurance against what ever Rolex is planning.
Check out the WOS stock last week...it plummeted 30-40%. So Yes could be a good time to buy as price is cheap but will WOS rebound and how long will it take?
Don't forget Kering. They restructured their eyewear division to compete with Luxottica who has a monopoly on the market, and with their poor watch brands portfolio I can see them wanting to grow in this market too.
No no. You’re doing it wrong. You buy high and sell low
what is stopping you now to invest though? you don't need trust fund to start you know
All of this will increase the price of the watches, thankfully am done with collecting
Bucherer has 100 stores globally.
Watches of Switzerland has almost twice that many at 193 stores globally. Watches of Switzerland also own Mappin & Webb (86 stores globally) and Goldsmiths (110 stores in the UK).
So whilst Bucherer is big...compared to Watches of Switzerland they are tadpoles. So will be interesting to see how this plays out
Dude, you're right but way too analytical. This is not about a precise prediction or whatever. It's more like Christmas for these RUclips content creators to produce more videos.
@@amiramis9 I love Theo & Harris and the points they make are always thought provoking and interesting. I was just thinking about another/different way of looking at this acquisition, is Bucherer VS The rest of the watch retailers. Will Bucherer evolve into x100 Rolex stores? I don't think it's unlikely in the long term, for all the reasons Michael and Christian explore in this video.
take a drink everytime MIchael says Wow!
Lol I said the same thing before reading your comment
"Hello, is this A. Lange & Söhne?"
"Yes, this is A. Lange & Söhne. How can we help you."
"This is Patek Philippe. We need to have a discussion. Let us get AP, JLC, Vacheron, & Cartier on the phone too."
"O.K."
... ring .... ring ... ring ...
"Hello? Are you all here?'
"Yes. Yes. Yes. Yes. We're all here. How can we help you?"
"We have an emergency. Let's get the f*k out of Bucherer."
"You mean, go to war with Rolex?"
"Yes."
*"DONE."*
They’ll probably have like a 25 year contact with Bucherer, which can’t be broken, or they’ll take them to court and win .
@@Alex_J44 They have a contract with Bucherer, not with Rolex. If they all stick together and pull out at the same time, Rolex will be tied up in the courts. Each brand could give one watch a year to Bucherer and not break the contract. Cry hardship. They need to play hardball.
@Alex_J44 I see those brand supplying Bucherer with their "basic" entries and selling their limited, special , and most sought after models on other outlets more aligned with them
@@seanthomxx2694 Yes, there's many ways they can screw over Bucherer without breaking the contract. Also, if Bucherer is no longer Bucherer, maybe the contract is null and void. Give Rolex a headache. Tie Rolex up in court. Christian is kissing Rolex's ass.
@@davidhunternyc1 I do think they have a point about improving the "watch buying experience" by ridding the extortion for watches but this is also about undercutting the competition
24:58 The “Mom, can I go to Rolex’s house” quip about made my drink come out through my nose. Gold
Very good call Christian! This essentially has already happened with many staple British businesses, football clubs and real-estate. Good call!
I love this channel, enjoy these think piece videos and the amazing insights you both bring.
I do feel on this one…it’s over egging it a bit. Rolex bought Bucherer firstly for brand/revenue protection, because it was up for sale, and they didn’t want it to be someone else. Secondly, I think Rolex brand image has taken a hit by (some) bad practices at ADs, so more tightly controlling this in a b2c model and getting closer to their end customers is beneficial. I like your smart suggestions on how they should’ve always done this.
I get the think long term, and there are some interesting possibilities around how this works with other brands, but I feel all this is secondary. Primary is protecting and elevating their brand, which has become all the more important having invested in ramping up production
Rolex always do it- hard to get- people fighting to buy- it’s easy to get- nobody want it . At my Rolex Ad- lots of omega GS and Cartier- nobody look at them , why ? It’s a weird World. 😂
What happens when LVMH Richmond Swatch or Patek decides to pull their products from Bucherer? Rolex will be left with only Rolex stores….
Since they don't sell from their own website like Omega and some other brands this gives them some edge having actual stores. It will also allow them to have locations where you can trade in your pre-owned Rolex which will make them even more money.
i seriously doubt that happens
Having tried to buy a Rolex from an AD, and being treated like some kind of tramp, if Rolex are as in control as you claim, then there idea of customer service is a really bad joke. Enough to make me go off the brand entirely, as grey market prices are silly. ( still 3 times the price of an Omega) In the end Omega customer service and availability put Rolex to shame. Best thing about Rolex experience is that I have looked at, and now consider, far more brands for my next watch.
Same here 👋
You guys are using the term gray market incorrectly. Gray market dealers sell new watches without the manufacturers warranty ex Jomashop
Visiting Las Vegas a few weeks ago, I went to Bucherer inside Cesars Palace. The new store was nice, but passing shops before walking in Bucherer, I saw a shop under construction, with a sign saying"Tudor comming soon". So Tudor will have its own dedicated shop. The store salesperson I talked to told me that Tudor was moving out and being on their own.
Tudor already has its own boutiques in Europe.
Most ADs sell every Rolex, but they sell far more other watches and jewellery due to sheer availability.
My opinion, the Rolex pre owned program at Bucherer is not designed to make them money, but more so is designed to keep grey market prices steady. To me it’s analogous to how the Federal Reserve sets interest rates primarily to control other banks; the FED doesn’t care whether it makes money or not, it’s not their goal. Rolex’s goal is to ensure a stable secondary market.
interesting comparison
I honestly hope all jewelers get their AD taken away. I don't want to buy jewelry ever to get access to a watch, that's why people go to the gray market and hate the buying experience.
Rolex could have easily required all watch serials to be entered in a database with owner info to regulate the grey market, it would have been cheaper than this acquisition. This is about selling direct to customers and cutting out the middle man in the name of more profit.
Forbidden in EU without owner's written authorization, it's one chapter of the GDPR protection act.
Omega is thinking what color should we do the next toy watch😂😂
Love Omega. It's not owned by douche bags like Rolex is.
Is it not about keeping the retail part of the profit in house?
Help me out y’all, I put myself on a wait list for an OP 36 green, not sure if it’ll ever come in. Found one brand new grey market, $8k 2022 model. Good deal? New to this so it’ll be my first watch.
Your problem is talking to only one AD. An OP is relatively easy to get. $8k for a $6k watch is not a good deal.
@@456MrPeople I figured. The AD I spoke to yesterday told me it could be 1-2 years, or 2 weeks. I just got the vibe they won’t ever call me lol. Will try another tomorrow, i don’t mind waiting months, just 1 year or 2 seems a little far which made the 8k price seem a little justified.
A year flies by dude. I was fully intending to wait over a year for my Explorer, but it came in a few months. You could be surprised.
@@456MrPeople any purchase history prior? I’m 24 so I look younger, felt like maybe they won’t take me serious especially being my first rolex. Would be awesome if it came earlier. Can I stop at another AD to get in their waitlist as well or is it all the same system?
I’m 24 too. No purchase history at all, not even jewelry. Although I will say being in a smaller town probably helped. Every AD has their own system so they can’t find out if you requested at another place.
If Rolex wanted to capture all this money being made in the grey market, why didn't they just acquire a secondary dealer such as Chrono 24? There's all this mental gymnastics of analyzing Rolex's decision, but the most obvious answer is in our face--they want to make their watches actually available to clients again without having to first buy another watch from a competitor. Rolex is an old-school company--owned by a trust might I add--and they want business to go back to the way it used to for 99% of its existence. Why would Rolex acquire Bucherer and not sell more watches at the retail level? That makes no sense. Additionally, if you think there is all this money to be made in the grey market, imagine how much money could be made at the retail level if consumers could actually buy their watches. There's infinite more money to be made at the retail level. Rolex has lost so much business by having consumers be denied the ability to (a) buy a watch, and (b) having to buy something like an Omega first, actually like Omega, and end up sticking with that brand.
And, in order for this to pass anti-trust concerns, Rolex will not be able to throttle the sales of their competitors like Omega or Cartier.
Been waiting for someone to finally say this truth in public. Rolex wants to also enjoy the markups that hitherto only grey market dealers enjoy.
When I think of the concept Rolex. I think of a rolling (circle) X (that marks the spot). Circle & plus sign. O+ universal donor. Is that what a crown means?! Cheers
The other thing is Rolex is tired of not being able to kick their customers in the balls to abuse them the way the authorised dealers are doing now.
I bought in 'my' AD's shop a Cartier Santos for my wife and she really loves it. It's a stunning watch! But my Ex II black dial is still not available. For me. After one year waiting. My AD is not Bucherer and the CS was the last watch I bought in this shop. I will buy my preferred watch in the grey market - and not even one cent will go again to my 'not for me AD'.
The biggest mistake that Rolex made was buying Bucherer and not Theo & Harris! What is wrong with Rolex?
Rolex: We f*
"mom, can i go to Rolex's house?" is the best line from your channel i have ever heard.
in china they send you to Tudor. 2-3 entry level watches for even a chance for a decent datejust. almost same value worth of Tudors for a sub.
there is a Rolex Only boutique in Vancouver
Quite honestly super clones have gotten so good that Rolex needs to find a way to keep watches hard to get, but more possible to get if you’re serious to give consumers confidence
I wonder how many of those dials got dealt out the back door of Rolex and have been made into franken-watches
Rolex does not overly care that people sell their 'hot model' watches. They can't stop this, and if they wanted to inhibit this practice they would have implemented many more measures.
However, they do care about ADs knowingly selling 'hot model' watches to people selling them very swiftly post purchase.
I think you may well be correct. Rolex whether unwittingly or by design helped the Grey market to flourish by supplying product to the same client without appreciating that that client is in the 'business' of supplying watches to others at over list price or under as the case may now be!
The whole wretched thing created an unedifying gold rush bubble - until the pin prick of reality burst the market
I did buy a two tone explorer recently at my local Family AD. (2 month wait and at rrp). The experience was good but the company had a telephone vetting procedure which appeared to discourage applications for a Rolex 'due to overwhelming demand and lack of supply.'
I love my new Watch but it is likely to be my only Rolex.
They are so confidently wrong I’m getting second hand embarrassment. Even the centralized database idea is ridiculous and would solve nothing when the scarcity is necessary and is what keeps the price somewhat palatable when we’re talking about 10000$ machine mass manufactured steel watch.
The war on the grey market is sort of like the war on drugs, in that it cannot be won. The scale of the grey market is massive, it's far larger than the retail market in both turnover and revenue. Rolex may be able to exert slightly more influence over it with the acquisition of Bucherer, but full control over the grey market is just never going to happen.
What is also true: if you can't get a Rolex from an AD now, you won't be able to get one directly from Rolex either. If anything, buying a Rolex is about to get even harder and as a result I think we will start to see prices for Rolex on the secondary and grey-market begin to climb again.
Excellent video. Let’s not also forget the CPO program. Looks like Bucherer is offering a higher rate for your used rolex. If that’s the case then why would I sell my Hulk to a grey market dealer when I can sell back to rolex and build a relationship. So now by this single move they can gradually control the prices of second hand pieces too. Genius!
🕰️ Rolex preparing for war? Intriguing concept! 👀
Must also listen to Teddy Baldassarre+Kevin O’Leary’s take regarding the Bucherer acquisition.
Christian, what about guys with names like Mike Rodriguez; I share this name with probably thousands of Americans and hundreds in my city.
Yes. There is a reason the database idea is never used anywhere, by anyone .
I've been commenting on many videos about this subject for the best part of the last couple of years - how is an AD pushing clients towards other product, on the soft promise they may eventually get a Rolex (and the same can be said for Patek and AP), actually benefiting Rolex?
That concept talked about at minute 13 would be a breach of GDPR, even with the customers consent (prohibition of coupling).
Its not obvious to me that the competition authorities will sign off on it. Atleast demand will be to keep these to as independent entities not allowing them to collaborate in a way that will skeiw competition. This tings worl very differently in Europe. There’s a reason that its just a market info on intent to buy. Also, not unlikely that authorities will agree on some aquisitions, but demand that some stores, in selection of countries will have to be rebranded as Rolex stores. Interesting to see how this will play out
How can Rolex compete against the conglomerates when they don't sell any watches? They're all for display only.
Lol...they are all sold for months to come. Dude, all the Rolex's are spoken for, thus already bought. Simply: the demand exceeds the supply.
"Possibly the biggest acquisition of all time..." - Maybe in our little corner of the internet, but no, not the biggest acquisition of all time.
Pretty sure the “in the watchmaking industry” is implied, they’re not gonna suddenly start covering the oil industry or something.
AD backdoor selling and extortion to buy less desirable watches before getting a Rolex doesn't just sometimes happen....it always happens. In Vancouver Canada it is the only way it is done. They wont even put your name down on a waiting list.
There is a better way for Rolex to reduce the grey market: double the price. This would make some current flippers significantly richer but afterwards the Rolex market would start to shrink.
Sun Tsu talks about fighting only when the field is in your favor. Battles are often over before they begin. Rolex just bought the field of battle.
If Rolex is smart this type of verification would already been implemented years ago and they can also put a free to transfer the ownership/certificate for the new owner. It would depends on the seller/dealer/buyer on who would pay for that $500 fee. That should preserve the premium membership of the ownership within the Rolex club but also will avoid scams. Thats how you take care of your brand's quality. And also have a website to search the document number for a quick verification.
Also they could make additional money for renewal of these certificates/membership.
Now tge watch marketing is plummeting on the secondary - Rolex are soon going to be fighting for sales. Most of the gold stuff drops as you walk out the shop now. Rolex “was” a currency but those days are over.
@@martinboulden4388 plot twist Rolex is funding fake rolex trade that's why they have shit verification system.
You are so right. If Rolex didnt like the grey market they could make a waiting list today that included everybody and the grey Rolex market would be gone for good😊👍
I guess I'm an underdog guy, because the bigger Rolex gets, the less I like them. Well, I have mixed feeling at least.
Rolex has already taken it up with the grey market by increasing their prices every year. A steel GMT was around 7k EUR in 2018. Now it's almost 11k. This will continue.
It would be cool if you guys replied to customer emails inquiring about products you sell on your site
take the watches out the window and put them in the CPO section (after 5 years)
I've been subscribed since 2019 Theo & Harris are my go to watch company 👍
I was in Phoenix and I went into an omega store. I asked them about a certain watch and what are the discount. They said they are not an AD that can discount the watch. They are owned by omega and have to sell at retail. I said then how do you stay competitive? They said they can give you something with the watch for free. I said give me a metal mesh bracelet with the diver 300 and they laughed at me.
why do you assume any AD can offer a discount on retail pieces regardless of brand? this aint the 90's anymore
Since these are luxury items how they start competitive is availability. Having some of the hard to get models. It's about the luxury experience not the deals.
@@alex-poeppel many ADs that sell omega give discounts as there is so many places you can get their watches
Rolex wants to create … “the “Rolex Lifestyle” experience …. IMO
Take 🥃 every time Michael says “wow”
Lol. Rolex registration like the Amex 5 card rule. Sorry you already have five of our watches you’ll need to sell one back to us in order to free up a slot, then we’ll be happy to sell you a new watch.
Rolex is now the greatest 'cliché' of the new 'tulipomania' of look at me B.S. consumerism!
It has been a bit heavy with the Rolex content lately.
Why? Why? Why? I'm soooo scratching my head as to just why Rolex is the cause of "heavy" content recently.....hmmmm. Ayo....if Rolex wasn't heavy content as of late, then Theo and Harris would be out of touch with the watch world. Yeah, slim chance that happening any time soon.
Really quick or quickly.
Love your squares! The G-Square is the coolest family of watches. I really want the Porter Square Casio released as part of their 35th Anniversary, the GMW-B5000TFC-1 scarcity has really driven the prices up.
Great vid and am really curious to see the reactions by other watch companies. I bought a Tudor Black Bay at Bucherer and was in there only to look at that watch but always look at JLC and their collection of vintage GMT Master IIs.
Please STOP saying grey market. it´s used market, wether it´s marked up or not. wether the watch has been worn or not. if it is sold to a person. that is a used watch. you guys should know and emphasize the difference
The Saudis as pect is just chilling to me, we are literally selling our souls to the devil with that one and with those bastards there is no going back
Thank you for this comment. Ppl will learn once it’s too late and look stupid. Golf will be first
I’m never buying from a AD
Interesting hypothesis guys but i think Christian may be over analyzing some of it. I think Michael knows that and just says "wowwwww!!!!"
The Rolex authorized preowned should have launched at slightly below the grey market they couple have killed the Rolex grey market
Arch isn't making much content currently.....can I stay n ' slam here please?
rolex can easily fix the flipper issue, by creating contracts banning resale of the watch for 5 years. that will instantly kill the gray market. rolex loves the grey market. for it only propagates the brand's unreachability.
Well Guys, I thought Bucherer was on the block to be sold.. Any truth to that story ?? If it’s true then I would bet Rolex bought Bucherer because they have too many stores to fall in the hands of the wrong person or investment fund.. What do you guys think ??
You both need keeps.
I stand a better chance of growing my hair back then of getting the Rolex that I want. Keeps it is....lol
😄@@toddallgier914
Methinks buying WoS stock trading under $10 a share wouldn't be a bad idea right now.
Rolex paid millions to aquire a lucrative business , the common sense says that they will captalize on their new investment as much as possible , even if that mean selling other brands next to their own watches . And I truly believe that rolex will completely run this store separately from their original tepical management, other wise its going to be just another rolex store .
CONSPIRACY THEORIES!! CONSPIRACY THEORIES!!
I LOVE ME SOME CONSPIRACY THEORIES!!
I have no problem with Rolex reigning in the market. It got ridiculous these last 3 years
So.... who is theo and harris?
That's yellow not green...
what do you do to get such pearly white teeth curly haired young man? with the mustachio
I feel one of the biggest reasons (one of many) for this acquisition of Bucherer. Rolex doesn’t want its brand to be cheapened. By cheapened I mean no luxury VIP buying experience. I mean c’mon buying a $30k Rolex from a muscle bound guy with a backpack rocking a trucker hat and skin tight jeans at the back of car trunk? Dude…. That’s not luxury and the buying experience is ghetto. Rolex doesn’t like to see that.
I wouldn't say Nico Leonard is muscle bound though hahahahaha
@@r.sakarollsafe1285 That's body positivity LOL
That mustache tho
The way cristian stares at the little gay guy when he talks is funny the sexual tension between these two is crazy
Nice video mate 🥃
For Rolex to make the experience better they have to be able to sell the watches in the stores to walk in customers. Maybe they will funnel more watches to Bucherer.
That will never happen. Mechanical watches became obsolete in the early 1970s when quartz watches came to market (resulting in what is known as the Quartz crisis, where almost 2/3rds of watch makers became extinct). The only reason why brands like Rolex, Patek and AP are much sought after is because they are not easy to get. The moment they become readily accessible to anyone is the day their brand value disappears, and none of those companies will allow that to happen.
What Rolex buying experience? It’s horrible because you can’t go in and buy one. The other confusing thing is the price premium given the lack of rarity. Rolex’s are not rare. If you have the largest market share, it’s because you are making a s…. ton of watches. The premiums are based on a complete mirage.
Looks like they need to prioritize men's steel sport watches. I think it would be better for them if anyone could walk in and buy an explorer. Maybe they are pushing toward tudor.
Good lord that mustache loves to talk. It’s just rambling on and on and on.
The Saudis buying everything in sight is not a good thing but if greed is the only factor they get what they want..
First I thought you guys were ignorant. Now I find out you’re just naïve. Rolex=money=Rolex. Ask Rolex if they care who buys their watches.
Rolex are already bigger than all their competitors combined. What more do they want, global domination? Have they hired Ernst Stavro Blofeld as CEO? 😅
You guys have become prime time TV at our house. Keep it up.
Your family must hate you LOL
Interesting video and insights. Going forward, I also can see the Saudis owning various watch ADs... wherever and as many as they want. The Saudis are testing similar waters now with the PGA and its PIF and LIV golf league. They will likely own all of traditional professional golf worldwide. Further to that, with the electrification of automobiles and other driven machines, I can see them buying electric power generation companies and distributors of electric power to back fill the decline in demand of fossil fuels.... battery, ECU, electronics providers as well. A Saudi global multi-monopoly is on the horizon. Afterall money and power always changes everything.
Jewel-ry