Rolex FINED $100 million!! The end of Rolex abusive sales practices? 

It’s crazy how I went from wanting to work hard to own several Rolex models to having immense disdain for the brand thanks to their price increases, wait lists, false scarcity, and pretentious, snobby ADs. I will always love Rolex’s history and specific models, but due to their unscrupulous business practices, Rolex is dead to me. I don’t think anybody will feel bad for the lawsuit against Rolex. Well deserved.

While Rolex didn’t necessarily create the grey market situation, they sure as hell took advantage of it by making themselves look for exclusive due to price gauging and the whole scarcity economy (like supreme). What’s worst is that while Rolex often cares way too little about bad Ads and waiting lists, they sure love punishing Ad’s and treat them horribly when they try to make Rolex purchase more accessible. Let’s hope it’s all for the best

Worked really hard to make customers feel pathetic in order to make themselves look precious and prestigious. By doing so, Rolex ended up doing exactly the opposite and drove down their own credibility to the ground. One of the most spectacular failures of brand management is recent history.

This is what happens when you focus on marketing and branding over innovating your product

If a brand organize its own scarcity, I stop caring about it. Just like the Seiko model 5 that went X3/X4 in price for literally nothing.

Tired of ADs playing the for exhibition only game. I’ve added a Cartier Santos in rose gold and a JLC Master Control in the past year while still on the Rolex waitlist. Ridiculous.

About time someone stood up to Rolex. It is the most hated watch company on the Planet.

Rolex is producing less watches than people want to buy. This creates the secondary market with inflated prices. So some ADs, not all, are encouraged to some shady sales practices and some people see the opportunity to make extra money with minimal effort and jump at the chance. But now that online sales are no longer _verboten_ by Rolex all this will change, right. How? How will that change anything? Some ADs prefer to sell online, but then they won't be able to sell these watches in their shop. Perhaps they prefer to have no pesky sales people, no brick and mortar shop, no customers walking in an out . . . That's their choice. But will they offer these watches at a discount? Of course not, there's still a shortage. Will you be albe to buy them? Of course not, they're always out of stock, because they're all getting bought by the grey market suppliers. This is simple math and basic economics. No need to cross your fingers and hope for another outcome.

I take from this that the French business competition authority isn't toothless like its German counterpart. As for Rolex's behaviour: the fine is merely peanuts to them and I don't believe it'll change anything.

From a simply Supply and Demand perspective it would seem that Demand would increase if more customers had access to Rolex on line verses having to physically enter a Authorized Dealer? Maybe Rolex could increase supply but from the experts I have listened to they have difficulties acquiring skilled labor to scale up production. Thus increasing demand without a good plan to increase supply will make the situation worse. Does everyone believe that Rolex and all of their Authorized Dealers are sitting on stock I don't see how this ruling can reduce prices. Additionally, if Rolex is working to increase supply by building a new factory a $100M settlement is not doing to help. They are a Private Company they obviously put quality first (that's why we love them). We buy their product because it last for generations. The gray market can be annoying but you don't have to buy from them. This current market took three yeas to create. We will see where we will be in the next three years if governments don't overreact and disrupt natural supply and demand markets.

I don’t agree with this. Rolex will make the argument that the limited availability and exclusivity of their products is part of their brand identity. It’s their company and they can sell or not sell to whomever they want. I am completely against the government forcing a privately held company to sell their products to everyone and you should be too.

I'd like a Rolex, but too many fakes for me to even risk buying one . I just have a couple watches , and never take off my Tissot Seastar, it serves me well.

I don't think that any government should fine Rolex for refusing to allow its dealers to sell online. Number one, the dealers know this when they sign on with Rolex; if they don't like the terms, then they don't have to take the deal. Number two, if Rolex continues to engage in bad practices, then they could upset their customers to the point that they'll patronize other luxury brands. As the saying goes, the customer is always right, and companies, including Rolex, need to remember that. Number three, no one is forcing people to buy Rolex watches; if you don't like what they do, then cast your dollar votes elsewhere. If enough people do that, then Rolex might get the message to treat their customers right. Rolex is a discretionary purchase; people don't need to buy their watches. They are what the economists would call "luxury goods". If someone just needs a watch to tell time, any Casio will do that; not only that, a watch like my Casio AE1200 (I have two!) will have more complications and tell time more accurately than any Rolex will. People don't need a Rolex to tell time; there are plenty of inexpensive watches out there that'll do a better job at that than a Rolex. A Rolex isn't a necessary purchase. However, mere time telling isn't why people buy a Rolex; they don't buy them to simply tell time. No, they buy one to make a statement. That said, Rolex isn't the only watch that makes a statement; there are plenty of alternatives. If someone wants some style with their watch, they can go with a Citizen, a Seiko, a Tissot, or Longines watch. If one wants a luxury watch that isn't a Rolex, there's AP, JLC, Patek Philippe, VC, Omega, or Blancpain, to name just a few. Rolex would do well to remember that their customers have alternatives. Keep the gov't out of their business, and let the market, via watch buyers casting their dollar votes, reward or punish Rolex as they see fit. The invisible hand of the market works EVERY time it's tried!

$100 million dollar fine and they immediately raise prices across the board.

Rolex doesn't have abusive sales practices. It's the ADs that do. Second, why would an AD want to sell online? It would just kill their foot traffic. I predict not a single AD anywhere will go to online sales.

Wow interesante no sabia los detalles 😮. Gracias por compartirlo Oliver, un abrazo.

Well, I think Rolex will pay the fine, but will increase prices substantially not only to get their money back, but also to make their watches unaffordable to normal watch people.

Is it a good thing? Yes, it is, period!

If Rolex mass produces their watches to makes them more widely available then it seems like it would depreciate the value.

Excellent outcome.

So does this impact Tudor as well???

Very interesting development 🧐

well... maybe Rolex would like to keep this low profile since making a great display as an appeal, might drive other countries eyes into more grey practices that may become a witches hunt over them. In the other hand, Rolex has to pay back for all the benefits they've got from manipulating the industry for their own interests for so long...

The mighty french government is not getting you a Rolex. LOL.

You.mistocar.