Rolex Acquired Bucherer and Royally F'd Everyone In The Process.
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- Опубліковано 30 сер 2023
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Rolex acquired Bucherer...we know this. However, what we truly DON'T know is what this will mean for the watch world. Is a good thing? Are Rolex prices increasing, is the grey market going to die, will brands like Omega try to fight back? Yes, no, no.
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I don't think this is about distribution at all. Bucherer only has 100 stores and out of those only 50 carry Rolex. This is out of more than 2000 world wide ADs. I think the real answer is that no one, not Rolex and not the Bucherer's, wanted private equity to get a hold of the stores. It was a defensive move. Rolex bought it because they didn't like who else was interested.
100%. Plus Rolex also has now full visibility into omega , AP sales data and what’s most popular , what sells with discounts etc
@@tangoESPECIAL Some of those brands are gonna bounce out of Bucherer, Omega is already not on the website anymore. And I can bet you that those 50 stores carrying Rolex will soon go to all their stores. And they will all get more allocations compared to other authorized dealers and customers will gravitate towards Bucherer. For the simple fact that their relationships with the stores will be a hell of a lot more secure from losing Rolex than your independant mom and pop regional jewellery store.
They will expand and open more Bucherer stores or buy the competition in certain areas, like small retailers. Rolex didn't buy 100 shops, they bought a prestigious brand name.
PE or Swatch Group
@@IoanMihali bucherer being prestigious ? lol. Debatable. It’s not like the other ADs are usually long established family owned stores as well…
I feel like Christian and Michael make a sport out of smooth transitions into sponsors.
I was looking for exactly that comment haha
The "Oyster" name is so clever, glad Christian and Michael point this out. Of course, oysters are associated with a water tight shellfish. But, Oysters are also a luxury food associated with wealth and good taste, as well as with precious stones (pearls).
It's a brilliant Trademark and a marketing team's dream come true!
The world is your oyster...
Dude…I live by the ocean. Oysters are not a luxury food. Every restaurant within 5 miles of the beach sells them, fresh out of the gulf.
Oysters back in the day were certainly not associated with luxury. They were trash food for people that couldn’t afford better sources of food. Same with lobster btw.
I think the bigger brands like omega will pull out. They can create more boutiques and more concessions within other stores. But the smaller leaser know brands won’t be able to afford to loose that chunk of sales.
Swatch Group will almost certainly pull out. Question is whether they can replace the lost Bucherer/Tourneau sales through other retail partners. There's also the murkier, harder-to-quantify question of what % of Omega sales are because of retail proximity to Rolex - i.e. someone goes in for a Sub, can't get it, and is directed to a Seamaster instead.
This acquisition reminds me of that quote from The Founder "You don't make money from the burgers you sell, but by owning the land the burger is sold on" ⌚=🍔
The answer to the Rolex/Bucherer problem is for all other brands to pull out of Bucherer.
It would just be really great if we could actually walk in to a store and purchase one now. As always, great video.
What a stupid idea, that someone with sufficient funds could just walk in off the street and buy something from a shop?? Where did you get this half-baked crazy notion from?? 😂
Did you want to buy one so badly before they weren’t so hard to get? I didn’t, but now I really want a Pepsi from the AD because it’s worth double if I can get one, see how that works?
Funny thing is now folks are gonna pay even more for (certified pre-owned) which is the same shite as the old no papers but dealer warranty. Just imagine Daytonas,GMT, silly colors OP pre-owned going up to 30k average price. 💸😮💨
Many are speculating about Rolex’s motives in acquiring Bucherer. I think it’s helpful to consider Rolex - the entity - as a grant-making foundation under Swiss law. (I am not an attorney - I’m just a guy with an internet connection) Most of us watch nerds know that Wilsdorf created the foundation because he had no heirs and wanted Rolex to continue. Under Swiss law, foundations cannot be bought or sold, nor do they pay taxes or dividends to shareholders. Swiss grant-making foundations operate within a fairly narrow set of rules outlined in the Swiss Civil Code and Swiss Foundation Code and they are audited for compliance. When trying to forecast what Rolex will do regarding the Bucherer acquisition, it may help to hold the forecast up against what the SCC and SFC says a grant-making foundation may or may not do. There’s a pretty good paper out there, titled “The Swiss Legal Framework on Foundations and Its Principles About Transparency”. Yes, the paper is mostly about transparency - or lack of it - but it is meticulously footnoted, with a lot of references that go into broader detail about foundations.
Watches of Switzerland is down 30% in stock price, If I were Swatch or Richemont I would be very interested in taking that chain over.
Exactly. This is to have complete control over the distribution of their product and to own the aftermarket. This is nike and adidas buying stockx so they can utilize it as a channel to sell marked up products. Rolex knows how to control the market and this is going to further their ability to do just that.
LOL Cameradactyl is a legend in film photography world. You've met a celebrity in our community .
The definitely didn’t fuck me over! Just got the call this morning for the new Cermit which is now currently on my wrist. This is great news for current Bucherer clients
This kind of expansion is great when times are good, but the risk exposure is huge when things turn.
Rolex so far seems to be defying gravity, still mostly trading above retail even in this current economic climate.
Credor is a Golden Crest. I personally love the name as it's almost like they are saying we do elegance better than anyone.
Surely the plan here is now they can make more money without increasing production.
Instead of increasing production and, over time, alleviating the hype around hard to get pieces, now they can keep production limited (relatively) and they still make money while you buy Omegas and JLCs to get higher up the wait list.
In Switzerland there are Swatchgroup owned multibrand Boutiques that are selling also watches from other non-Swatchgroup brands and they've been doing this for a while, although on a smaller scale but nothing new per se.
God damn I love your guys’ channel. Keep it up!
Michael’s shirt looks like the inside cover of a boy’s camping handbook from the 1950s, and I meant that as a compliment.
Excellent video but let’s also not forget the CPO side. CPO seem to be offering a higher rate to buy back a rolex. So not just they are making money from selling rival products, they would also be taking business away from the grey market and setting the baseline price for pre owned. Why would I sell my hulk to a grey dealer when rolex are offering me more and a potential to start a long term relationship…
This!
Theo, where did you get the G-Shock? I love the color.
Great video as always.
Christian what kind of watch are you wearing? I’m really digging it
I thought Rolex was going to partner with the Timepiece Gentlemen....since he's such a gentlemen.
Not sure about all Bucherer locations, but the ones I have been in NYC and Vegas were huge, multi-level shops. No way Rolex could fill all of that retail space with Just Rolex and Tudors - especially if all they have is demo/ display units? Going to need other brands to fill out the retail space or do something else with it.
Most of the reasons I heard is Rolex going after the primary market, to put pressure on their ADs to get in line.
I'm watching many folks talk about Rolex Acquiring Bucherer and I'm wondering how does the fact that Rolex is set up as a charity affect this purchase ...... can you speak on this? Love your channel..... big fan! Thanks
They are just acquiring an asset. They will reincorporate under the current Rolex structure
The thing about "The Grey Market" is it's just "The Used Car Market" with the exception of COVID when everything shot up in value. For decades used watch dealers made small margins buying watches after the most significant amount of depreciation hit. Occasionally watches would hold value or increase slightly. That was the game and that will be where the game returns. You make money in volume, not buying lambos because you hoarded Hulks
Don’t buy jewelry, art, antiques, collectibles, etc as an investment, buy because you like the item.
Bucherer stores in the UK are limited to central London only. Not every British citizen lives in central London. Other ADs will be fine in the main. Maybe some consolidation here or there but I predict nothing much changing overall.
A feel like there are more than a few watch brands that have some variation of a crown as their logo.
Brands DO have control over how their products are merchandised in stores, and if standards are not met, the store is subject to having their AD status revoked. This goes for everything from personal electronics to Omegas, believe it or not.
Bucherer works mainly in US, with a few in Europe. What difference will this make other areas?
They probably got tired of the dealers selling them on secondary or jacking the prices up. Ford told the dealers keep it up and we’ll just sell direct. It’s easy to figure out
For once i like both your shirts 👀great job lads 👏🏻
I expect to see shortages in every Swiss watch brand across the board and grey market markups everywhere
Why? Could you elaborate?
really? even Tissot? 😂 can wait to see that.. Tissot's watch get more expansive than its retail price
If Rolex wanted to get into the secondary market and make more money that way, they would have bought someone like Chrono24 or a secondary dealer. Instead they bought a retailer. To me, this screams that they are looking to remove the fugazi waitlist and hold ADs accountable for the years of back door deals with secondary dealers and “preferred clients” with a spend history. Consumers should not have to wait a year or two just to buy an OP or Datejust.
Additionally, in order for this to pass anti-trust concerns, they won’t be able to throttle the sales of competitors like Omega. Thus, I firmly believe the only change will be Rolex increasing the availability of their watches at the retail level.
With just 50 stores worldwide - most of them in Europe - I don’t think there’s a lot of antitrust concerns
Exactly. The one blight on Rolex’s brand is the ADs and how they use a fictional waitlist that allows for mad pricing on the grey market. There will be waitlists at Bucherer, too, but it will be an honest one.
Regarding the 50 stores, that will soon become the full 100, and I think this is Rolex using an available store purchase to test the waters and move into the retail space, proper. I think they want to fully control the brand (including purchase) experience.
@@tangoESPECIAL Rolex is a competitor of Omega, for example, correct? You don’t think being able to throttle the sales of their competitor(s) is predatory or monopolistic conduct?
😮 Wow, this merger really shook the watch world! ⌚
It’s a great brand name to use as your boutique, but they won’t have enough physical watches to sell unless they take over the second hand market to. Certainly Tudor will sell more through it , the big competitors will sell elsewhere unless there is an understanding that you buy 3 Omegas and you get 1 Rolex ? Will the promise of more sales to get the Rolex entice Omega to stay and play nicely?
I love how two watch dealers are calling a watch maker the bad guys for wanting money selling watches...lol
Curator of Theo and Harris = I sell stuff online
I hear curator too
Buddy, it’s called branding it’s all good
Smart move for Rolex to be the first watch brand to have the grey market as a source of income. Genius! However, this will more than likely mean no more second hand Rolex deals. Fyi all the major brands are pulling out from Bucherer. It would make no sense to allow the competition to make profits or be made aware of new designs before the general public.
Outstanding!!!
For correctness I’d just like to say gents, Christian and Michael that the Rolex logo is a coronet not, a crown. Many make that mistake.
An English watch brand made the first waterproof wrist watch in England about three or more years before Rolex. It was called the Submarine. They didn't copyright the name. Guess who did, quite a few years later?... yeah, you got it. No one has ever heard of the Submarine but everyone has heard of the Submariner. The Girard Perregaux Mimo was the first wristwatch with a date display but Rolex still claim to be the first. Their words state "patented the first automatic watch with a date window". The Mimo, was manually wound. Nearly all of Rolex's "firsts" were copies of other ideas and work.
There’s a certain romance to Casio/G Shock, just as much as something like my constellation c shape
Hint. No pictures show Sir Edmund Hillary or Tensing Norgay wearing Rolex watches atop Everest or even when having returned to base camp. They are shown wearing Smiths watches, however, because they were officially issued to them. Recently it has been reported it was admitted by Rolex that they didn't wear their watches on the mountain and the adverts showing this were simply jumping on the band wagon. I do not know this for certain, but in this period advertising was somewhat Rafferty's Rules.
Oysters aren't sealed watertight though! If they were watertight, the oyster would suffocate. They have to have water flowing through them to stay alive.
Another thing not mentioned about Rolex is that they’re is set up as a trust, so they have an unfair tax and reporting advantage compared to their competition.
Rolex’s main advantage of being owned by a charitable trust is they do not have to meet quarterly targets to satisfy shareholders and can invest in long term strategies.
There are so many overlapping upsides, plus they can afford it, so it's a no-brainer. You put Swatch Group and Richemont in a hilarious no-win situation where they either allow their biggest competitor to make money off sales of their watches, or they pull out and have to scramble to find a way to regain the lost Bucherer sales via other retail partners or channels. Just such a bad look either way and I'm sure some junior executives are getting their heads ripped off at both conglomerates this month.
I've never heard anyone miss pronounce Timex or Rolex.
Giving me goosebumps!
Rolex doesn't need to sell watch to be rich. Watches are just for the image.
Yep. It reminds me of how the Lego group bought one of the biggest and best grey market LEGO dealing sites, Bricklink. So now as well as buying new Lego set from LEGO, AFOLs (adult fans of LEGO) will be buying used parts and retired set from LEGO too. A rigged game whether it’s Rolex or LEGO.
Don't hate the player, hate the game - Mahatma Gandhi (2001)
Jenni Elle mispronounces it 🤣 “wholex”
She’s fit , she can pronounce it how she likes…
Reg. the crown and the name: Rolex may sound like "REX", which in latin means "king".
Lol Ethan Moses made a watch! He's super cool.
What a bizarre situation. I mean, what are Breitling and Omega gonna do? Just not work with Bucherer anymore? - I doubt it. It's like you gotta buy your Mercedes from BMW from now on. Rolex really is on another level.
Corona is a crown, no more royal than that
Obtaining Bucherer to sell watches that you can only obtain if you fit the Rolex advertising and celebrity/influencer dynamic. A lot of better watch manufacturers out there Rolex will always be a status symbol pure and simple.
ROLEX is already on the mountain top. TUDOR is the entity that's going to just explode now...
It’s like 50 stores *worldwide* out of 1,500 ADs ? Big big big deal 🙄
The question is: can clients buy rolex sport models in bucherer stores?
And TUDOR is the Shield protecting the Crown 🤯🤯
Tudor is nice but not nicer than omega etc and I frankly don’t want to buy a Tudor at msrp I’m not interested in just to “qualify” for a Rolex
“Pepsi? No Pepsi…Coke.”
The worst case is you buy a watch verus the worst case is you die. 🤣
You've got a bit carried away with whole king and crown branding story. It's a coronet, and in europe was mostly by dukes and similar (peer) ranks of royalty... Actually, not even royalty I guess. Another point, we all know that the brand was founded in UK and that Wilsdorf wanted it to end with an "ex" and be easy to pronounce... Also Fortis, Oris and other brands are swiss but also easy to pronounce and are founded around the same time in freakin Switzerland.
But not most people know that
Your first statement, “Rolex only wants money” ….. isn’t that the point of being in business?
I wonder what Rolex, a non-profit, does with all its profits.
CPO has started offering higher rates than grey market dealers. Don’t want to be rude but why would I want to sell my hulk to a grey market dealer when rolex are offering more and a potential for a long term relationship…
I keep thinking of Rolex being like that guy on Seinfeld strutting aroud saying " Im the wiz,Im the wiz" Just change the wiz to king.
I disagree. You will now be able to walk into a Bucherer or Tourneax store and pay msrp for the watch. You don't have to worry about an AD selling your watch to a gray market seller, who marks it up so that you can pay 100% more than MSRP. Rolex the manufacturer can talk to Rolex the retailer and know exactly what is going on at the street level. They are no longer dealing in the murky lack of clean data about what real consumers are paying for their products and how many pieces are selling to real consumers. They will be able to do a better job of adjusting production quantities at the SKU level far more precisely to meet demand. Net result should be a better equilibrium of supply and demand and fewer consumers being f'd by the arbitrage created by the imbalances came out of covid.
RC cola....Royal Crown cola...back in the day
So why wouldn’t Rolex just dump all the other brands from the Bucherer stores?
Does it really matter how many stores Rolex acquires if people still cant get the watches....
Also what happens to Bucherer if all the othe brands pull out of Bucherer. Then Bucherer becomes a ghost town with empty Rolex cases....
It wasn’t an aggressive acquisition. Bucherer was for sale. I guess the owner watched Succession. What if someone else bought it? that might have been damaging to Rolex. What if San Martin bought Bucherer 😂
People are blowing this right out of the water, bucherer has 100 stores worldwide that it, a piffling amount. Rolex bought bucherer for one reason, so someone else didn't , someone they may not approve of selling their watches. Even if other brands pull out of the bucherer altogether who cares and Rolex won't stop having other ADs as it's just 100 stores .
I don't care if Rolex creates a more profitable business model as long as I can walk into an AD and actually buy a watch.
What about Cartier?
Wonder if they realised that they didn’t actually make any meaningful points
The only thing interesting about this purchase is whether or not brands will put out of Bucherer now. I couldn't care less about Rolex purchasing Bucherer. Yawn.
The watch world should introduce a rolex free month, we talk way way way to much about the Mercedes of the watch world
fractional ownership isn't ownership
Now all other branda can unite and make their own ,, Bucherer "
Is this Monopolistic purchase by Rolex going to be legal in Europe?
Earlier this year the Swiss government got their biggest bank to buy their second biggest bank and lent the money for the deal. If the Swiss want it to happen to protect Swiss interests it will happen.
If Rolex would not buy then possible some other brand will and damage RLX. If someone who is somewhat close to the grey market will buy then all hell breaks loose for RLX, they will loose complete control over the market, they did not have a choice.
Rolex deserves everything haha god tier. I love Rolex. If you own a Rolex, you should love this deal
Which model is the g-shock? 🔥
A Coronet was for noble but not Royals. If you had a bit of cash and had some standing, then Coronets could be worn by basically anyone.
Crowns are for royals. I am from England and we know the history of rolex.
You must know its a Coronet. If not, naughty, naughty.
As long as Rolexes are still scarce, Bucherer will still sell plenty of the other brands to folks who can’t get that Rolex.
Thats if the brands doesn’t pull there stock
The first 10 seconds are the only 10 seconds
Yep! And they used a run-up instead of lube! 🤪
Omega started it buy opening their own boutiques and cutting profits from AD.
Jeez. Biggest acquisition in watch history. Its just rolex bolstering their wall.
Everyone is overreacting to this!
Can't wait to see which sponsor is on this vid😅
Ah, the sweet release when I heard.......
Theres literally a product called CROWN ROYAL 🤣
Not everyone if just decide not to play Rolex games. They’re many many watches out there to buy and you don’t have to play the Rolex circus. They don’t even make the best watches and are at a minimum 30% overpriced. And I’m not a hater, I just prefer not to give my money to company that doesn’t want it.
I’d rather have an
Apple Watch vs a casio or gshock.
Its a coronet not a crown. Surely you know this.
Did these bozos just claim that no other brand uses a “crown” as their emblem?
Wow