Rolex to follow AP & DITCH Authorised Dealers? Heres how they could RESCUE the Grey Market

[@Marco-cd7jb]

This is a breath of sobriety given it covers elements other channels simply either don't understand, or can't be bothered to explain. Excellent content Vinny and keep up the good work.

[@vinnyfrancis]

Wow, thank you very kind feedback, it seems not many others like the tone of the video however

[@leeharding8306]

I know no one mentions it but I personally think Rolex are getting their business model ready for selling watches out of their AD’s shop windows again. They are historically very boring watches so it looks like they are addressing that with some more funky designs and colours. Some models were only available in one size and it looks like they are addressing that too. The retail prices are so high now it’s making the grey market too expensive for most people and demand is slipping quickly so it’s looking like Rolex will have to sell their watches on appeal rather than the simple fact they say Rolex on them. I’m probably wrong but I think the watch market has become too greedy and people have just had enough of it. The watch market is dead now I can’t see things getting any better. If anything I’m hearing more and more people selling off and scaling down their collections and they definitely aren’t buying anything else. Omega could have made massive gains through this crazy period but they have made a complete mess of just about everything. From shocking bezel actions to stale collections and botched releases with missing clasp adjustments and date window changes to ridiculous prices rises it’s just unbelievable. I hear Omega sales are down 🤔 I wonder why 🤔

[@BAF605]

I don't think Rolex saw what was coming during the madness more than anybody else. They will want to sustain their long term record of a solid watch brand that holds some decent value in most offerings. Part of their strategy going forward will be to inhibit as much as possible any repeat of a situation where "Jack The Lads" are buying and selling their watches out of backpacks. The last three years have done them no favours.

[@dannysimenauer5745]

All great points Vinny makes. It all depends on what Rolex ultimately decides it wants to do. Rolex can produce over 1 million watches per year, so if it restricts the number of stores ala AP did, it may find it will need to cut production to be exclusive. On the other hand there is a saying in America "that you always leave with who you brought to the dance". Meaning I don't see Rolex abandoning it's AD network. The relationships are too valuable. But again, Rolex will do whatever they will do.

[@martinboulden4388]

One of the few watch channels that explores the watch market and gives interesting ideas and advice.

[@vinnyfrancis]

Thank you! though it looks like many people in the comments don’t like exploring, suggesting that the market could get hyped again doesn’t seem to have gone down well!

[@leemarshall3649]

All total speculation - the reality of the situation is that Rolex are investing in INCREASING their production capacity, a new $1bn production facility that was announced last year along with 3 more pop-up production facilities that will be online in 2025. Ie. They are looking to massively increase supply, not constrain it. Good for consumers, not so for gray dealers

[@vinnyfrancis]

Yes interesting point, this is a ‘what if’ video though that stresses their power is far reaching, I personally don’t believe they will dramatically pump up production, it will be marginal, that would damage brand perception

[@WordMadeFlesh777]

@@vinnyfrancisexactly, why would they go backwards now that they have achieved elevated status and the air of exclusivity and scarcity. Of course they will play on this as long as they can.

[@BufanMuayThai]

This is good news for the end users… Rolex are in the business of selling watches. I might be incorrect, but I don’t believe Rolex will accept SA’s standing in the way of Rolex sales, based on the “you have to purchase diamonds” to get allocations, as this will hinder Rolex sales. Also, Rolex has before said they couldn’t be held responsible for the practise of their AD’s… well now they are the direct responsible if SA’s choose to play games. The Bucherer name won’t shield them from this. If Rolex does anything with the CPO they will adjust, and outcompete the grey market. What they will do after the CPO is solidified, is anyones game. Last but not least, WOS will 💯% more than ever, be “inspired” to do what it takes to keep and acquire as many markets shares a possible, which means treating there customers as good as possible. On top of this, new factories and more supply… All in all, more options for the end users.

[@brianallan1036]

Rolex used watches will be at retail or below very soon,TWMID.

[@WordMadeFlesh777]

Well a lot of them will be at least. Some models will always hold a premium

[@AngeloR674]

They’re already are!! They will always be way overpriced!!

[@vinnyfrancis]

all of them? how do you know this?

[@markpiper6249]

It’s only a matter of time before Rolex watches are sold directly by Rolex. It’s already begun with the closure of so many small one shop AD’s.

[@samuelburton5576]

Bingo. They just bought the largest watch retailer in the World.

[@88EP13]

Breaking News Rolex Acquires Storied Retailer Bucherer In a stunning August surprise, the world's most renowned watch brand buys a historic retailer.

[@vinnyfrancis]

Hahaha I have a crystal ball!😂

[@michaelfierman3256]

Great stuff as always...I do see another potential "problem" for customers if somehow Rolex opened boutiques in all the major cities is this: There would still be manipulations and customer preferences given. A random customer might be able to walk in and buy an OP, but they'd still make you "wait" for the steel heavy hitters. Let's say you went in and bought a solid gold piece...aren't you going to get a steel GMT from them quicker than if you hadn't? Like you said, it's such a set of complicated circumstances that are so intertwined that this isn't going to change within a number of years...in my opinion. What say you Vinny?

[@AngeloR674]

Rolex Boutiques are already in major cities!

[@vinnyfrancis]

Absolutely, this could happen. AP have a policy where they will only place local residents of the city onto a waitlist, I experienced this in Geneva, they could possibly do that, or why not just make it fair and have a first come first serve waitlist, chronological. Either way it would all be within Rolex's power

[@faizalhakim3772]

Theory. The CPO is a lost market leader pricing strategy. Rolex does not expect any sales from their CPO range but is purely there to inflate prices in the grey market so as it keep their products in high demand.

[@vinnyfrancis]

loss leader strategy is scalping the market at a lower price then gradually inflating over time

[@faizalhakim3772]

@@vinnyfrancis thanks for the clarification (need to revisit my business management books!). So the opposite of lost leader pricing strategy!

[@Dadnatron]

The Grey market has wrecked watches. They have made it possible for fads rather than inherent value to price the watch. And, it is this same secondary market which will cause its own demise, when watches are no longer a FAD. The last few years have been artificial, brought about by idiots with 'found money'.

[@vinnyfrancis]

interesting perspective thank you

[@twistoffat]

another excellent video. What do you think will happen when the flexing magpies move on to the next flashy thing? I have enjoyed watches for years but the last 4 have been total BS and I believe we are returning to normality where prices and demand will level off where you will again get what you want at your local dealers

[@cookingwithwatches]

Great video 👍 It shows your passion

[@vinnyfrancis]

I appreciate that! thanks for your kind feedback

[@CPooter]

So you are now talking the market up? Things must be bad! Surely the reality is that we are on route to a recession due to money printing (QE), too much personal and business debt and the realisation that the grey marketeers are flipping to each other to survive. Also watches are generally NOT good investments but men’s toys. Black Tulips… before the craze AD’s offered discounts. I don’t see the sense in buying above retail.

[@vinnyfrancis]

where have i talked the market up!? 😂 the whole point of the video is stressing the market is down but exploring the powers Rolex have which may influence things, maybe watch again

[@the_shadow_realm5110]

You must either be on drugs, or have huge balls to disrespect this absolute unit if a man.

[@billchan6180]

Swiss export of watches increased by 8% that means demand is increasing??

[@MerlintheMaineCoon]

I had a dream last night. Rolex bought Bucherer. What a nonsense… 😂😂😂

[@vinnyfrancis]

Hahahaha! It’s utter genius though isn’t it, I said it would take years to implement by building up the network themselves, next day Rolex buy the network that already exists, *mic drop*

[@michaelfierman3256]

BREAKING NEWS : Rolex have acquired Bucherer retailer so....with 100 locations worldwide...what you said yesterday is already happening. great timing Vinny!

[@vinnyfrancis]

Hahaha wow I have a crystal ball! I said the biggest issue with this would be the time it would take to implement, but by buying Bucherer out it’s genius! Here comes more competitive CPO programmes, better trained staff, and potentially the beginning of fewer rolex stores worldwide and owned stores only

[@samuelburton5576]

Guess you just found out they wont take years to open their own boutiques and control their watch sales, new and pre owned

[@vinnyfrancis]

Crazy isnt it! amazing that rather than take years to set up the network themselves they just bought the one that already exists. Their business activities fascinate me. They can still pretend they are nothing to do with the retail side because the bucherer name will remain, its genius

[@martroger5063]

Great vid a quick question i am buying a black sub date 2023 for 12k is that to high in the grey market

[@vinnyfrancis]

thanks! we sold a 2023 for 11700 a few weeks back… I can try to beat the 12k of your like to message us on our instagram or via email, thanks

[@martroger5063]

@@vinnyfrancis what’s your email please

[@martroger5063]

Hi I’ve sent you an email

[@Jack-S4097]

Rolex is a trust. They aren’t chasing the biggest margins.. I hope they don’t squeeze out their dealer networks. I like the dealers I buy from

[@markpiper6249]

Yes I like the dealers too, but AD’s are already having their Rolex dealerships withdrawn. In the finish it will only be Watches of Switzerland and then Rolex will buy them. Progress ? 😏

[@AngeloR674]

Not chasing the biggest margin?? You better wake up! Rolex is nothing but high margins!! With there ridiculous prices!!

[@knoxieman]

Great video and your criminally under subbed I'm about to change that by 1 👍 the CPO program will give some peace of mind to folks in a world of fakes and stolen watches, I'm glad the market is cooling and I have no sympathy for those who drove all of this by buying watches to scalp ppl with or hoard as an investment, wether it's houses, cars, watches or graphics cards this kind of thing just hurts the consumer and I'm glad in all those areas that the market has cooled and those who drove it feel the financial pain of indulging in it.

[@vinnyfrancis]

Thanks and yes that is a popular sentiment right now following the TPG scandal

[@lovesautodetail]

Nice video man.

[@vinnyfrancis]

Glad you enjoyed it, thanks!

[@davidbrown9947]

nice, I shall comment substantively later.@@vinnyfrancis

[@baniconeocleous5837]

Why sell a Rolex for £20 k to a middle man who will sell it for £30 k, when you can pocket the xtra £10 k , really surprised they didn't do it sooner.

[@vinnyfrancis]

exactly! they listened to me haha

[@Robert-vw3od]

I’m not uncritical of the so-called authorised dealer.

[@rodrigosoriano4780]

number one two and three They won the marketing battle so the brandNAME is making the story on the streets and tables arround..when one buys a Roly he will alllllways lose selling..never a good investment...to wear yess it can be a good investment cos there will be always a conversation arround.

[@MrPINKFL0YD]

Rolex ADs are selling out of the back door to the flippers for 5k on top of the RRP well my local one certainly is

[@Milofchg]

Rolex does NOT care about the grey market at all. If they did, they wouldn't put into play a Rolex authorized certified pre-owned program. They appreciate the free hype the grey market and KZbin gives Rolex, but that's about it. The grey market is going back to where it use to be. The days of black hoodie, baseball cap, muscle bound, luxury leather backpack dealers are over. However, I feel prices slightly above retail for new watches will remain until the hype is completely gone. Once Rolex can fill those empty display cases once again. It's over and grey dealers will go back to focusing on jewelry. Rolex is a luxury brand, and they don't want the Nuvo Rich clientele. They don't want their brand to be cheapened which it already is. It's bad enough there's a scumbag stigma that goes with Rolex owners. They definitely don't want broke Crypto Bros wearing their watches.

[@aln74]

Vinny , do you think Rolex are putting into the CPO watches that have been returned to the on the lost & stolen program because for sure they are never returned to the registered owners 🤔

[@vinnyfrancis]

Highly doubt that, imagine the scandal of serials registered as stolen were resold by Rolex, it would come to light

[@Milofchg]

Rolex just killed the grey market by buying Bucherer…. 100 locations worldwide. They will have total control over their products. More profitable for Rolex. Cut the middleman and sell directly to the public. If I were an independent family owned Rolex AD? I would be worried and prepare to redirect my sales into other products. Can’t rely on Rolex 100%.

[@vinnyfrancis]

haha im yet to fully react to the news on a video as this was coincidentally released 24 hrs before the announcement, seems they listened to me!

[@oktfg]

Why would Rolex help greys when Rolex sells watches at MRSP regardless of supply tightness. All Rolex are doing is advertising and marketing the brand to sell x watches per year and populate a WL of new potential customers. New models and type tweaks are offered periodically to encourage existing owners to return. None of this is magic. Bordeaux producers have been using the same tactics with en primeur to limit commercial risk for centuries.

[@vinnyfrancis]

…i’ve made clear why in the video.

[@Saints-Forever]

If I were Rolex, I would go one step further in complete monopoly of the secondary Rolex watch market by offering CPO watches lower prices than the market. The way for this to work is for Rolex to offer customers trade-in options their preowned watch for new at retail. Once the secondary Rolex market dealers are stuffed of supply, Rolex will then have complete control and dictate their CPO prices moving forward

[@vinnyfrancis]

Interesting idea! but they’d have to buy them for less and no one would sell to them over grey market dealer who would pay more

[@Saints-Forever]

@@vinnyfrancis But if is on trade-in basis with a new Rolex then there will be business to be made. I initially it will be hard for them to get preowned stock but at time past, this will benefit Rolex and eventually have FULL control of the secondary Rolex market

[@pjchling8088]

They don’t need to price CPO lower than grey market. They just need to price it near grey market. I know where people would buy from if prices are comparable(unless grey market reduced their prices significantly).

[@vinnyfrancis]

very true!@@pjchling8088

[@CPooter]

I do like your usually wise productions BUT watches are not investments in the financial sense and whatever Rolex do in relation to the economy will not make them so. Watches are men’s fashion jewellery which some men like to flex. The last few years have been insane covid and watch wise. I look forward to a return to normal business where grey markets sell below retail and retailers offer discounts on list as they used to. True some few models get hyped up but hype is not eternal and fashions change. Far too many people thought they could cash in on flipping and have burnt their fingers.

[@vinnyfrancis]

I didn’t say they were…

[@CPooter]

VINNY @watchinvestorvinny…. ?

[@vinnyfrancis]

suggest you go back and watch previous videos to get my opinion on the subject, there are many videos exploring this topic. I don’t generalise and say watches are investments. Carefully selected pieces can be and have proven to have the capacity to gain value over LONG TERM. There are videos where i discuss the facts on this at length

[@CPooter]

Will do. Thanks for responding.

[@BobbyDazzler888]

🍭

[@vinhhuynh1205]

Rolex has no innovation when compared to other watch companies!

[@vinnyfrancis]

Not much recently at all i cant really disagree, innovation leaders historically but they play it safe nowadays

[@baroh2413]

On the other hand they dont make Spiderman watches

[@ebymathews9071]

Rolex is going to get very very cheap

[@vinnyfrancis]

really? cheap?