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Is Rolex Overrated?
Is Rolex Overrated? A Question on the Future for the Iconic Luxury Watch
Amongst the myriad of luxury watches, one still stands out in terms of brand recognition and is often described as the entry-level to the intricate world of luxury watches. That watch is the Rolex Watch and it comes at a time where the rising cost of living is at the forefront of everyone's minds yet the topic of owning one of these watches is still being talked about. This begs the question, “Is Rolex Overrated?” in these trying times.
Sales of Rolex
According to LuxeConsult, Morgan Stanley Research, Rolex still leads the pack in terms of sales since 2017 and it remains the leader amongst Swiss watch brands with 29% of market share and an estimated turnover of CHF8 billion in 2021. So it is safe to say that Rolex is not going to lose much sleep worrying about their future in the horological world.
The Grey Market
The demand for Rolex Watches is ever increasing and so much so that buyers would go to “Grey Market” to look for their desired watches if it is not available in retail. The “Grey Market '' sells products outside of the contemporary distribution channel and are sold at a fraction of the original asking price. As shown, 20% of luxury watches sold are issued from the grey market. Luxury watch owners may also turn to this market to sell off their collection with the intention of raising enough money to make their next purchase of watches.
The Rise of Smartwatches
Some might argue that with the rise in demand and production of smartwatches, luxury watches such as Rolex would slowly slip through the cracks of modernity and eventually be forgotten. However, smartwatches are not a recent development. Surprisingly, it has been around since the 1980s when Seiko created the Data 2000. Yet, Rolex still remains the cornerstone of luxury watches as it has remained unfazed by the technological trends of smartwatches as shown in its data that since 2015, Rolex watches has stayed consistent and even persists to trend demand and sales.
To summarise, Rolex watches are still prevalent in today's market amidst ongoing competition with other luxury watch brands and the rising smartwatches. On the surface level, sales of Rolex watches are unhindered by the rising cost of living and have even seen a surge of popularity in both retail and in the “Grey Market”. So to answer the question, “Is Rolex Overrated?”, the answer is No. Rolex has served as a symbol of class for generations which is still being sought after. That is not going to change anytime soon.
Sep 14, 2022
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