For the first time ever, Rolex acquired a watch retailer (Bucherer). The purchase has set the news ablaze. Why? It’s the first time ever, Rolex purchased a retailer. But, what does that mean for you and I? Probably nothing. Some think it could be the start of Rolex’s entrance into controlling its retail business and from that point, it could spread to more acquisition.
What happens to our authorized dealers, our relationships, and the wait list? I don’t think we have anything to be concerned about. Rolex cherishes its dealer network and they aren’t disappearing or reigning in their franchises anytime soon. But, it does pose a good question, why did they do it then? Given Hans Wilsdorf’s relationship with Joerg Bucherer, it could have been due to an old, special, valued relationship, and even an old arrangement. Rolex could have also had concern with what would become of Bucherer’s 100 stores valued at over $8 billion. Of Bucherer’s annual sales, Rolex sales account for approximately $210 million. This is roughly 5% of its annual revenue.
Either way, as curious as many people are with the purchase, what would be more interesting is to see if Rolex purchases or opens other retail locations owned by Rolex. The relationship with Bucherer has always been a very close one, given the founder’s relationship between Bucherer and Wilsdorf. This could have been an uncharacteristic move for Rolex, given the unique relationship between retailer and manufacturer.
It’s very simple…Rolex wanted to control its brand image. In other words, they didn’t want some billionaire Elon Musk “type” doing to the Rolex brand image what Elon did to Twitter. Furthermore, those stores are the primary retail front for the Rolex CPO watches.