Rolex Now Owns Bucherer
It was announced that Rolex, the premier Swiss watchmaker, has entered into an agreement to purchase one of the largest luxury watch retailers Bucherer. With this acquisition, Rolex now owns over 100 retail locations that used to be part of their authorized dealer network. Of course within the world of watches this is major news. Everyone is speculating what this might mean for existing Rolex authorized dealers and collectors alike. In this article we will analyze what this merger means and how it has an effect on the watch market.
Is Rolex Getting Rid Of Authorized Dealers?
Although Rolex now has a stake in the distribution of their watches, there is no indication that Rolex is terminating their authorized dealer network. With that being said, the purchase of Bucherer does signal that Rolex may attempt to take control and improve the buying experience of a Rolex. It is no secret that many, but not all, Rolex authorized dealer have taken advantage of the demand for Rolex watches. Now a day most conversations around Rolex are focused on the negative buying experience rather than the superior quality of Rolex watches. It wouldn’t surprise me that over time Rolex might eliminate their authorized dealer network and control their entire distribution of their watches to take back control, with the intention to provide a better luxury buying experience.
Are Hot Models Only Going To Rolex Owned Stores (previously Bucherer)?
It is highly unlikely that the allocation of Rolex models are going to change after the announcement of Rolex purchasing Bucherer. Rolex is very in tune with their audience, and most likely not willing to upset the market by unevenly allocating the hottest models to their newly purchased retail stores. In our opinion, this move signals that Rolex has identified that the point of sale is a problem that needs to be solved. I’m sure the last thing they want to do is to introduce another pain point in the buying process.
Is The Price Of A Rolex Going To Go Up?
Even though Rolex now owns part of their distribution network, there is no indication that this will have an effect on the price of a Rolex. Retail Rolex watches consistently have annual price increase, which isn’t anything new. In fact, some economist may argue that since Rolex is now is profiting from the distribution of their watches, making an extra 30-35%, this acquisition may protect consumers from more significant price increases in the future. On top of that, Rolex has invested in a new factory therefore manufacturing more watches that could help stabilize retail and pre-owned prices.
Why Does This Matter?
The news that Rolex bought Bucherer matters because it will have a massive ripple effect. At the moment, what might happen in the wake of this news is purely speculation but it is safe to assume that if you are either a Rolex authorized dealer or collector, change is coming. Now we just need to wait and see if the change is for better or worse.