Rolex Hit with Massive $100 Million Fine: The End of Their Business Model? 

Very good analysis here. What some folks in comments fail to recognize is that Rolex as selling online themselves(!) but not allowing ADs to do it. Thus, we have an unfair competition practice by Rolex who benefits from a practice they won’t allow their Ads to undertake. This decision will be a wake-up call to all other companies(so not just Rolex) who follow this unfair competition practice.

I went in to my closest dealer (Nottingham/Goldsmiths) with cash (in the bank) for a submariner Date, I wanted the black dial with green bezel but would have taken an all black. I was asked if I was an existing customer to which I replied 'with Goldsmiths yes (various watches mostly Oris) but with Rolex no.' I was immediately told that until I purchased a different 'lesser' (my view) model I wouldn't be able to purchase that watch from them. I asked them 'so just to be clear, youre refusing to sell me a watch you have in stock here in the shop, because I havent bought from that manufacturer before' which was then confirmed. I refused to waste my hard earned on something I hadn't been saving all year for, I asked what car she drove, which took her back slightly, she said an Audi, I argued if she went in to an Audi dealer looking for her dream car ( R8 apparently) and was told she couldnt purchase that car until she bought a second cheaper A 3 model first, how would she would feel and react!' to which she replied 'don't be silly that wouldn't happen!' Amen to THAT sister....... But hey, what do I know? So I bought a second Omega, and put the rest towards a new motorcycle.

Couldn't have happened to a nicer company.

Rolex is not transparent. Nothing about them is . They have to change their act altogether .

A good video, here in the UK it's virtually impossible to purchase a Rolex from an AD, so I'm unable to buy a Rolex at the retail price through an AD. However I can buy a brand new Rolex from a trader but for twice the price, who in their right mind are buying these inflated prices. This is down to Rolex preventing the average customers from buying their watches but releasing their range to the rich and famous. Rolex can keep their watches there are better quality and priced watches available in the marketplace.

The raids probably found loads of stock in the back room, while they tell the public they have none. This may be another issue that Rolex ADs are discriminating against customers based off random undefined biases, and that may not work legally. Sure companies should be able to sell to whomever they want, but telling one customer there is no stock based off the AD thinking they may not have the money or some other intangible thing feeling, just to sell to the next customer who they think is rich enough to buy many watches from them may go against discrimination laws.

Great video. I own two Rolex watches, two Tudors, Brietling, Nomos and Omega. However, I've left the luxury brands and their prices in the dust. Paying 5k+ for a stainless steel watch is stupid. The luxury brands are basically a form of confidence scam. We are convinced there is value. But It's a lie. We are convinced to pay 100 times what it cost them to make. If you love watches, seriously look at the thriving micro-brand market. You will find gorgeous watches, assembled with identical quality and specifications, with identical bill of material, for under 1k. I'm never buying a luxury brand again. Entirely unnecessary.

I expect prices on Rolex to go back to normal after 1 year. Luxury market is done along side these decisions

This sounds about right. I was tuning 50 and had enough saved up to buy a watch but since I was just an average person who only wanted one watch I had to overpay at a second hand dealer. I tried for almost a year before a woman told me it wasn’t going to happen. I got the watch but no thanks to the AD.

Weird that they don't allow Rolex online sales but you can buy Tudor - their sister company - online.

Awesome work my friend! Great coverage of the topic.

Well covered and well researched video! I appreciate that your content is informational and free of fluff, the RU-vid watch community is better for it

Great information. Thank you for posting the video.

This could be good news for collectors and AD’s who want to sell to customers. Seems every industry is using the web to reach customers everywhere. We all know that Rolex tightly controls its brand and has ignored how ADs worldwide force customers to buy unwanted jewelry and brands we don’t want to get a Rolex we do want. I suspect an AD did it to someone in authority in France, hence this ruling! I imagine it will be adopted worldwide after Rolex loses its appeal.

Great video thanks so much, at the end of the day Rolex AD’s and Rolex upset a lot of people. They probably really upset some really important people not knowing who they know and who they are. At the end of the day this is a clear sign of respect, when you disrespect people you’re going to get it back to you. If the Rolex representative were respectful And had a high level of customer service. This would not be an issue. It’s not what you say. It’s how you say. Thanks and happy holidays.

The easiest answer for Rolex is to simply pay the fine and fire all their European AD’s. They just bought their largest dealer so now they can keep the entire EU allotment for their own direct sales. Stores in EU are not required to sell online.

👍👍 Most interesting - thank you.

Means nothing because the moment a AD sells their watches online they will stop receiving any type of desirable allocation, and they’ll stop real quick.

Rolex and their AD’s can keep their watches, because they are, after all, just watches. There are plenty of other brands out there who are happy to do business with first time buyers. Like I was told, many years ago, (blank) manufactures watches, Rolex markets watches.

Good video! I really enjoy your videos with some good logical feedback mate!

I don't know but the Grand Seiko keeps looking better and better.

Thank you so very much for this information this is the first time I washed your channel and I have subscribed and also liked it please continue this informative information the way you did this video was truly outstanding it was very simple to understand,

5:44 Not really because why would the authorized resellers (i.e. Rolex ADs) care to now sell Rolex online when it would be to their detriment. Their existing (shady) sales model of only selling in store is working perfectly for them while they use Rolex as reward pieces to incentivize their consumers to buy junk that they dont want or to influence gray dealers to buy from them at a premium. It would never be in their best interest to now sell online. So that's the problem; it wouldn't really change anything even if ADs now had the OPTION of selling Rolex online.

Thank you for NOT doing a watch/wrist check. I like you I like your cut through the sand for your perspective to be shared. T)

The Rolex x Bucherer deal apparently ruffled some feathers. The timing can't be a coincidence. Furthermore, neither AP and Patek sell online.

Need moar info on thisssss. Loving your channel!

They'e been too greedy, they 've been too complacent. This was probably necessary!

Good for them 👍

Great analysis

The solution to all of this.... AD's should of kept the warranty cards like that did at first on new Rolex models for a year. This limited and devalued the hype/flipper price to a degree. It made sure customers were not flipping watches, at least for a year. Rolex can limit authorized independent Rolex watchmakers. By limit, I mean don't supply parts to them unless they pay a yearly fee to remain authorized service watchmakers. Rolex can start a Rolex owner registry, like Patek Philippe has. Original owner has his name on record with his watch serial number. If a watch is sold by the original owner. Then the new owner can register his name on the watch with Rolex. For now limit this registration to modern releases. Rolex watches older than 3-5 years, no need to register. When that watch is sent in for service. Rolex will know that watch was sold, flipped, or stolen. Rolex could place strict service laws or fees. Non-original owners pay a added fee for service. If a guy goes in to service his watch that's less than 3-5 and his name does not match the card or serial number? Rolex can refuse to service the watch until that 3-5 years is up. I've always suggested this and flippers and Rolex fan boys would attack my online. But.... if you really think of it. This could of prevented any Rolex watch hype in the grey market.

The easiest solution is to require a pre-qualification meeting at a local dealer, that will allow on-line deposits for on-line purchases. The local dealer will make a decision with their limited stock as to who gets them.

one thing that rolex needs to look into is AD's selling thru grey market dealers for a huge profit.

More interesting, what happens to brands like Patek Philippe that are telling their retailers in the EU, and probably the entire world, they are strictly forbidden to sell their watches to anyone not residing in the country the retailer is located. It should be very interesting to see if these brands either allow retailers to sell online etc or privatize all their retail operations as AP has done here in the U.S. and abroad.

Apparently Chanel recently started selling online most likely a similar situation happened.

Imagine having any government tell a private company they must make their product more accessible. This is madness!

My local ADs always said that prices were set by Rolex and they could never give a discount. But this would also mean that AD could raise the prices like car dealerships! 🤪

The reality of all this is it's already to late. All of these watch companies charging so much for these watches is the real reason all of this has happened. There is a huge market for inexpensive luxury watches. By charging so much for these watches, these companies have ensured that someone else will step up to fill that gap, and they have. We all now know that you can have a luxury watch for a very affordable price. Rolex and all the big companies would really like all of us to forget this fact. To late.

Rolex is missing out doing that but Grand Seiko just loves it. :) BTW, I just got a new Sugess Racing Chronograph which is a very close homage to the new Rolex Daytona. It has the new Peacock SL4801 movement, which is a clone of the 4130 and it's also adjusted to 5 positions and is very accurate. Most of any auto I own. I got it for $420 shipped to me in 7 days.

I think it's time for authorities investigate deeper the Rolex business model to the extent of looking for issues beyond the watch industry norms, everything they do makes no sense or straightforward to make it a darling for customers the way it is.

How about it’s Nobody’s damn business how rolex sells their products

Could this ruling apply to Goyard?

Without seeing the court documents, I have the feeling that there is more to it. If AD's signed that contract that they cannot sell their watches online, that is an agreed agreement. What does the Trade Authority interfere with an agreed agreement? I don't see it as a problem that I have to go in a boutique and buy a watch, actually I prefer that, it's part of the glamour. The other practices of Rolex AD's I cannot stand, and there I could see valuable arguments, advertising models, but you can't get them. Discrimination etc. So, to me, it's got to be far more than just prohibiting online sales that's a case the trade authority cannot win. (obliging someone to have to sell online)

Louis Vuitton and Chanel available online ?

LUMP OF COAL! Amazing Vid again man, keep it up!

Well, what happened every time you click on their website it will say out of stock out of stock out of stock in your dreams out of stock. Maybe next year. lol. Better luck next time.

This is nuts. So as a private business you are not able To choose how you sell your product?

I would love to see Rolex sold online. They could still hold back inventory by making people put a $100 deposit in any watch they want. Th ey could out deposits on as many different models as they desire but only one of the same model at a time. Once the watch is delivered, they could put a deposit on another of the same model if they want. This would limit flippers and make more watches available to end users while still regulating the market. It’s a win win for everyone.

Just get a speedy and call it a day, as good as any watch. I’m saving for one

There's no such thing as bad publicity for a prestige marketing brand. The Rolex business will hugely benefit from all this talk. 100%

How do grey market retailers obtain their inventory? Just curious.

I dont have a horse in the race but what gives a third party the right to tell a company how they must run their (sucessfull) business?

did rolex know this was going to happen, and is this the reason for the new rolex factory... to feed the new online sales?

I guess i just see Rolex’s differently, i get they are considered top tier but if I went to store to buy one and was told I have to get put on a wait list I would do a few things. I would only put my name on a list if it is free to do so, if not, there are countless other really nice options that I’d get. If I put my name on a list I would expect some kind of discount for waiting, if not, once again on to next brand.

Buy Online collect in store when its available and you will still have to have a purchase history etc etc. This ruling is in France what is stopping them from pulling their products and selling in non EU countries ?

Well done, France. I don't know why anyone bothers with Rolex anymore. I mean, I know, I just don't get it. At this point is just hype. I like divers and chronos. For a diver their sister company makes great ones, the Pelagos and the Black Bay lines. Breitling and Longines have wonderful divers. Not really a fan of the Omegas, but they're also a very good option. As for chronos, an El Primero would be my first choice (pun?) over a Daytona. And then there is good ol' Speedy, also preferred over a Daytona. And the list goes on. Oh, and then there is GS who have wonderful watches. Why put up with all the Rolex nonsense and customer abuse just because they have a bit of prestige? Silly, really.

About time bravo, surpised only one fine.

Rolex can only be dangerous to the greymarket, if they start selling new watches for retail with enough stock backed up or also of course manage to sell their used watches with the same reasonable price offers as the greymarket. Wait a minute... If Rolex focus is on the used watches and they will have control over the prices, greymarket will adapt! If Rolex out of nowhere sets the price for an Explorer I to 15k, the the greymarket will react and stay slightly under other way around also possible but highly unlikely as Rolex constantly is raising its prices🎉 But you did have also mentioned Rolex CPO... So my conclusion is ( now EVERYTHING makes actually sense ), that Rolex will go into online business for used and preowned but certified watches. They will that way, have a workaround for the 100M by agreeing to sell online and gently manage to get rid of the french anti trust agency. Since they knew what was rolling towards them probably a year or so ago ( good lawyers can predict that for you ), they started to mobilize their powers and shift! What a Thriller😂

Allow ADs to sell online. Pull back allocations to countries that enforce this. Then send more watches to countries that would be more than happy to pick them up. It’s allowed but when there is nothing to ship equals to a whole bunch of nothing.

Great great great

I'm not sure about France or other European countries.... but from an American perspective, if Rolex is a private company, they should be able to make whatever rules they want. It's their product, if they don't want it sold online... then fine. Governments and courts shouldn't have any say in it. Does it suck for consumers? Sure, but that's the companies choice

Nice shirt

The Rolex AD has freedom to set prices, actually all watch ADs got that freedom. Typical Rolex MSRP nets them 35-38%. And they don't even list the MSRP on their window price anymore after Covid. I tried asking 2 sales person same day and they reported different prices to me on the same exact Rolex watch. Compared to Omega, whom they sell online (but leave some exclusive models to ADs), the profit margin on MSRP is 20%. I'm not sure if the "exclusivity" would totally die down. Probably the normal versions, but the special versions can still be AD exclusives like Panerai, Omega, etc. That will put a big dent to the mass grey market, but likely not (yet) for the rarer ones like platinum and other diamonded versions.

Rolex will be like ok AD's you are allowed to sell online 'if you want too' because we have to allow that now .. but any AD's who follow through you can guess what Rolex will be like with sending them new stock ;)

Ive been on a submariner wait list for 3 years without a single call. Its obscene that i need to buy multiple Rolex pieces to justify gettjng a Sub? Yet their flipper customers who give sales people back handers, will get a Sub right away. Shocking way to treat customers.

Restricting to certified sellers also keeps the price high because they have to dance to Rolex’s tune or you get no watches

Good point. BUT Maybe that's the Rolex wanted. Just rid of the grey market by other institutions. Hope AD inventory will be exposed that can't no longer hold only for the grey market and "special buyers" .

You keep mentioning what the implications are for Rolex. The better question is what are the implications for the luxury market period in the EU. Hermes, AP, etc.... do not sell online. This affects them all!!!

Happily i only invest in Vintage Rolex only '60s and '70s decades. They are impossible to fake. Specially Sea Dweller double reds

It’s pretty simple: No Shoes, No Shirt, No Service.

I wish a Rolex Insider would chime in.

People should try using the “road” that is less traveled….😊

Iv been done with Rolex for a while now, sick of the overpriced overhyped and them trying to make them more exclusive with falsely creating demand.

The “boomerang” has struck them in the testicules!!!!!! 😂

AWESOME 😂 ABOUT TIME!

Hmmm I wonder what the end game is? High quality Rolex's at a reasonable price😮

I dont like rolex business model, but why should a goverment tell me how to manage my business.

It could mean easy access to the less popular watches. The hot ones, forget about it. Better than nothing. I actually really like some of their less desirable models.

Even if Rolex loses the appeal they will still win. Who'd like to be the AD who beat Rolex in court? I'd suggest their allocation will consist of 28mm gold lady Datejjusts with diamond dials, bezels, and bracelets for the next forty years!! Good luck with that.

Not that i am so wealthy to buy loads of these, but just decide not to play the game, dont buy these things. There are people who stay away from Ferrari because of toxic attitude, and thats a car ,shouldn't be hard to stay awayfrom a watch you can fake for 200 dollars.

Rolex has a world class business model and product! To say anti-on line sale is against consumers is pure bull shit! Their products sell just fine and all my Rolex watches all have been bought through dealers!!! I would never buy from gray market!

What is deceiving is the fact you have to put your name on a list for a Rolex but can move up the list faster when the AD suggest you buy a few other of their products first. I don't know but to me this sounds like a racket and I most certainly wouldn't encourage that way of doing business. I'd rather give my money to other watch manufacturers that don't do business with any of these Rolex authorized dealers.

What about the foundation of capitalism. Free to trade within the law. Why should any authority or court be able to instruct ANY free market trader on how they MUST conduct their business ? If the people outside of the AD network want to sell their second hand, pre used watches online or from shops or thru individuals on a street corner then fine, they can do that, those companies bought the watches from n owner and now own them and can resell them any way they choose. However Rolex offering NEW watches to the market through ONLY their AD's can also choose how they wish to do this. Their product, their TIED to the business model AD's. I am no fanboy of the Rolex method, the AD network and the practice of waiting lists and prequalifying for watches through 'lead up' sales. I detest it ! BUT its their product, their business model and NO-ONE should be allowed to say you MUST trade in any specific way. Do the French authorities or courts tell Peugeot how to run their business ? Do they cross border tell BMW and Mercedes how to sell their cars within France . ???

Now I may wrong but Ibdid hear a comment years ago that if you dont play the Rolex way they simply refuse to supply you? Never had one but I did have a Pelegos.

How can AD’s sell anything online, when they have no stock sitting on their shelves that they need to sell anyway? They’re selling everything every month. They’re all doing ok. What’s the point of allowing them to sell online? I don’t understand about the fuss.

Online sales should be band....i dont want to pay twice the price for the same watch at a dealer, especially if the online sale is from the same dealer!

What do you think would happen if Rolex ended ADs and sold direct to consumers only? They could set prices hourly like airlines do.

Wow! This is massive like the whole ETA third party thing.

Isn’t this practice the same with Hermes bags?

If they sold online I could finally get one

Their CPO program is bullshit. $21k for a Pepsi Jubilee, if they want to charge 21k for a watch that isn't worth 21k they should just say so.

you can't buy a patek or vacheron or AP online either. this fine won't stand.

About time this happened, Rolex have had their heads stuck up their own arses for far to long, hopefully this will bring them down to earth with a bump. What's the point having stores if they never have anything to buy or sell online unless you have your name down. Rolex started as making extreme long lasting work horses, somewhere along the way they lost sight of where they begun

Who’s next? Patek? Richard Mille?

If I were Rolex, I’d set up online sales and be constantly out of stock. 😂😂

Nobody can "mandate" that a company sell their products online.

I am not necessarily a fan of Rolex, but they should be able to sell their watches through any method they want. Too much government doing too little that is actually important.

About time 😂I'm not a Rolex hater. I'm wearing a Submariner and have a Date just.

French ADs can set their own prices above Rolex MSRP, basically ADs could sell higher but they usually don't

Like the medallions for taxis in NY the authorized dealers days are numbered

They will just put a 31mm date just for sale on line with a price tag of €91 million & everything will say sold out.