article to read

[Oceanklassik]

Go checked out few local ADs for this C Daytona.And yes they do sell at MSRP now....but, Always "no stock" anywhere....so it's as good as "none". They keep all the "stock" for other reason lol!!!

I think this "letter" from ROLEX came as a surprise/shock for the ADs here, and some might still not know how to overcome this. And in order not to be the "first victims" (to be penalized by ROLEX), they would standardize their replies to customers so that it is within ROLEX's "legal framework"

This is also just in case ROLEX send in their "test buyers" to catch those ADs who are disobedient. Let's see how this progresses over the next few months.

[triton]

most expensive rolex to be sold

most expensive rolex to be sold?

read all about it here

[triton]

tudor and breitling alliance

collaboration between tudor and breitling, read it here

[Oceanklassik]

Back to some old industry practices of the past? Where you find Zenith movement in a ROLEX Daytona and JLC movement in a PAM190.... Not bad, it's like "buy-1-get-2" concept

[Cutesperm]

Interesting. Reminds me of this old article.

..partnerships, mergers, and acquisitions.

http://www.ablogtowatch.com/watch-in...omparison/?amp

[Oceanklassik]

Is this good or bad?

Read this article couple of days back:

Grey-market dilemma for luxe watchmakers

ZURICH - A diamond-studded Rolex at 40 per cent off the US$34,000 (S$47,500) retail price or an Omega Speedmaster Moonphase for less than US$10,000?

While still out of reach for most people, the increasing prevalence of such deals highlights the perplexing predicament in which luxury watchmakers now find themselves.

With sales falling, more unsold timepieces are finding their way from the Swiss-dominated industry's carefully controlled official retail networks to online platforms where they are often offered at steep discounts.

Swiss watchmakers say they loathe this "grey market" because high discounts damage the aura of prestige and make it harder to sell their goods at the full price.

"In luxury goods, when you break the illusion of prestige, the dream, the prices... it means a slow death for luxury goods," Mr Jean-Claude Biver, head of LVMH's watch division, told Reuters last month.

However, a sudden end to a boom in Chinese demand is forcing the brands to begin working quietly with dealers in the grey market, occasionally to help with sales but mostly to secure some influence over the unofficial resellers, according to dealers and industry executives interviewed by Reuters.

"There are many sources for grey-market watches: authorized retailers who want to get rid of slow-selling models, country distributors or even the brands themselves," said one watch-industry executive who asked not to be named.

He said that in some cases, operators in the grey market are cooperating with the brands, removing new models from their sale sites when asked or reducing discounts manufacturers consider excessive.

Though representatives of the biggest luxury watchmakers, including Swatch Group and Richemont, refused to discuss their strategy with regard to the grey market, some manufacturers may find that it offers benefits.

"For every timepiece we sell, the manufacturer is getting the lion's share of the profit, and then all the search engine queries, image searches, social media brand posts, and tweets are free (advertising)," said Mr Darryl Randall, founder and owner of United States-based online platform SwissLuxury.com.

Another grey-market dealer said he will sometimes withdraw watches if asked by manufacturers and that brands regularly offer US dealers packages of 15 or 20 pieces at a discount. "As much as the brands dislike us, we have more or less the same goals they have - we also want to sell the goods and be able to make a profit," he said.

Swiss watch exports fell 8 per cent in the first two months this year, on top of a 10 per cent drop last year.

In the grey market, sales are often clinched in shabby stores or via online platforms. The US is the second-biggest market for Swiss watches, and a hub for grey-market pieces, with platforms such as Jomashop.com and Authentic-Watches.com.

Germany's Chrono24.com has sales offices in Hong Kong and New York, while many grey-market watches are also sold on Amazon and eBay, the unnamed watch-industry executive said. REUTERS

[Watcha]

Grey market for hot models now.

Pretty much if you are willing to pay 26K for the new daytona, you can get one.

If they have to sell at list price, the stocks will just all goes to grey dealers.

[Oceanklassik]

Grey market for hot models now.

Pretty much if you are willing to pay 26K for the new daytona, you can get one.

If they have to sell at list price, the stocks will just all goes to grey dealers.

That's why I have been curious (since ROLEX has stopped their ADs from selling at premium prices). How does it even work now. The problem simply lies with the watch manufacturer, not the ADs, correct?

[triton]

there are several aspects to this issue.

one - one never hears of certain models being out of stock. one always hear the more popular models out of stock.

two - authorized dealers and gray dealers pricing the watch

three - consumers who spoil the market by offering to pay more.

four - why is it that in europe, when one purchase a rolex, the warranty card is never named but in singapore, it always have to be named.

the list goes on.......

That's why I have been curious (since ROLEX has stopped their ADs from selling at premium prices). How does it even work now. The problem simply lies with the watch manufacturer, not the ADs, correct?

[Oceanklassik]

Yes I understand this. For pointers no.1 and no.3, aren't they the cause of the manufacturer's fault? When the manufacturer controls its production for certain models, this is what happens - out-of-stock and consumers offering higher prices. When this gets out of control, the manufacturer now slaps the ADs with a letter, telling them not to sell their watches at premium prices?! Don't you think this is contradicting

So now that the ADs are not allowed to sell higher than its retail price, and they have a long queue for a particular watch model, then how? Say for example the new DaytonaC. The retail price is $16,660. The ADs were selling them at $25,000-$26,000 several months/weeks ago. Now how? Can the ADs still sell it at $25,000 now, under-table? If not, and they are forced to sell at retail price only, then who will get to buy it? Imagine you have a long queue of say 100 buyers waiting...

[triton]

the reason why it has come to this is because many years back, there was loophole to exploit. the manufacturer knew it, but chose to turn a blind eye to it. the black hole just got bigger and bigger over the years. as i do not know how the manufacturer operates, i cannot comment on their way of operation. back about 10 years ago, i was in zermatt in swizterland. there is a bucherer there up in the mountain resort. i am not sure how many swiss will go there to buy rolex watches, yet they have almost all sports models of different material on display and they have discount on sports models. comparing the same time in singapore, the hottest model then was the kermit. it was almost never on display and price was about 3-4k above the list in singapore.

it is not just the watch industry. the industry that i am in also, the black hole just got bigger and bigger and then the principal now wants to impose restriction on the way we operate. so it is the authorized dealers/distributors who suffer. they are caught in between.

the question as to who gets to buy it, the chances is almost zero for walk-in customer now. this is because customers of authorized dealers will get priority first and the authorized dealers will want to give the customers priority first. i have mentioned many times before, buy from AD if one intends to buy watches in the long run, as repeat customers of authorized dealers, one will have benefits in times like this. gray dealers are not always able to get customers the watches they want, hence when the piece you want that your gray dealer can't get you, you have no choice but to go to AD for assistance. even if gray dealers can get the model you want, they also have their preferred customers. hence their preferred customers will get priority again.

Yes I understand this. For pointers no.1 and no.3, aren't they the cause of the manufacturer's fault? When the manufacturer controls its production for certain models, this is what happens - out-of-stock and consumers offering higher prices. When this gets out of control, the manufacturer now slaps the ADs with a letter, telling them not to sell their watches at premium prices?! Don't you think this is contradicting

So now that the ADs are not allowed to sell higher than its retail price, and they have a long queue for a particular watch model, then how? Say for example the new DaytonaC. The retail price is $16,660. The ADs were selling them at $25,000-$26,000 several months/weeks ago. Now how? Can the ADs still sell it at $25,000 now, under-table? If not, and they are forced to sell at retail price only, then who will get to buy it? Imagine you have a long queue of say 100 buyers waiting...

[Oceanklassik]

Well explained, yes I understand. Sometimes, it is not just the ADs' frustrations, it is also the consumers' (of not getting the watch(es)). But at least, if one pays a 'reasonable' premium, one could still get the watch. Now, getting the watch of your choice is becoming a 'miracle'. I hope to land myself a new Daytona C. at its list price

[triton]

for consumers who does not have existing relations with either AD or gray dealer, then they have the option to put down their name down and hope to secure the watch. though it is tough for new walk in customers, there is not much of a choice since rolex has issued this letter to address certain concerns.

then again, what is a reasonable premium? 3k abover premium? 8k above premium?

if you want to get the new daytona C, let me know. let me see if i can help you.

Well explained, yes I understand. Sometimes, it is not just the ADs' frustrations, it is also the consumers' (of not getting the watch(es)). But at least, if one pays a 'reasonable' premium, one could still get the watch. Now, getting the watch of your choice is becoming a 'miracle'. I hope to land myself a new Daytona C. at its list price

[Oceanklassik]

for consumers who does not have existing relations with either AD or gray dealer, then they have the option to put down their name down and hope to secure the watch. though it is tough for new walk in customers, there is not much of a choice since rolex has issued this letter to address certain concerns.

then again, what is a reasonable premium? 3k abover premium? 8k above premium?

if you want to get the new daytona C, let me know. let me see if i can help you.

That is the common practice, i.e. leave a name and contact. Most of the time, especially for popular watch models, one is unlikely to hear from the ADs after leaving his/her contact. Likely because, the ADs would choose to sell the watch(es) to their regular/preferred buyers. Reasonable premium, in my opinion, should vary according to how popular the model is, and to be capped at not more than the highest discount the ADs would give for that brand.

For example, say ROLEX. If the ADs can give a max discount of 15% for some of their regular watch models, the "max 15%" should also apply on the premium the ADs slap on the popular models. So, take the more sought after "Batman" and Daytona C. models as reference. The Batman retails at $12,010. If there's a premium on it, then it should be capped at 15% of the retail price, i.e. 12010+15%(1802)=$13,812. Not more, can be less if demand is not extremely high. Make sense? Same goes for the Daytona C. It is listed at $16,660 now, but selling way above! So applying the 15% cap premium, the max (premium) one has to pay would be $2,500 (based on 15% of 16660).

What I'm trying to say is, ROLEX should not have imposed curb on their ADs on premium-selling totally. The root of the problem stems from ROLEX themselves for goodness sake. If they couldn't meet the world demand or intentionally control production of certain models, they shouldn't penalize their ADs like that.

[triton]

i understand and agree with you that it is unethical to impose a curb on AD. however, since the issue could be raised by other AD in say european countries that singapore is selling above premium, hence the curb. in european countries, i think the moment any AD sell items above the RRP, the consumers will be up in arms to raise their concern and a lawsuit can be taken against the AD. so it may be easier to force pressure on the brand manufacturer.

i believe that there are means to circumvent this situation. it is just how creative the AD wants to be. i believe that walk-in customer can also buy the premium models if certain conditions are met. i can think of several conditions off hand already.

What I'm trying to say is, ROLEX should not have imposed curb on their ADs on premium-selling totally. The root of the problem stems from ROLEX themselves for goodness sake. If they couldn't meet the world demand or intentionally control production of certain models, they shouldn't penalize their ADs like that.