If there is one name which is most synonymous to luxury watch it would be Rolex. Why is Rolex so expensive and why is it the most famous luxury watch brand in the world? There are four factors which are responsible for why Rolex is expensive:
- Rarity of Certain Models
Rolex watches are notorious for being overengineered. Before a Rolex rolls out of its factory, the movements are sent to COSC, a center which certifies accurate movements, to ensure that all Rolex movements are up to the best standards. Once the movement has passed all the tests, they are certified as chronometers.
It is also important to note that Rolex is focused on one thing: making some of the highest quality watches in the world. Rolex has steered clear of highly complicated watches and decided to concentrate on improving their movements. This is the reason why the Rolex watches are some of the highest quality watches you can buy.
In essence, it can be said that Rolex makes simple watches and they make them really good.
Rarity of Certain Models
Try to go to an authorized dealer and look for sports models (such as the Daytona, Submariner, and GMT-Master) and you will find none or close to none. The sports watches of Rolex are difficult to find with your authorized dealer and that is why it commands a premium at the secondary market. In the Philippines, the waitlist for the GMT-Master II Ref. 126710 BLRO a.k.a “Pepsi” is too long to even ask. A similar waitlist stands for the GMT-Master II Ref. 126710 BLNR a.k.a. “Batman”. The high demand coupled with low supply from the authorized dealers have led to the spike in the prices of certain Rolex watches.
For reference, the GMT-Master II steel models retail around P500,000. However, due to the unavailability, prices in the black market range from P800,000-P1,000,000. A Daytona has a listed SRP of P703,500. In the black market, the Daytona starts at P1,400,000 and goes up to around P1,700,000.
Rolex has always used the media to portray the power and the strength of its watches. Look at the following iconic advertisements which will make you want to buy a Rolex.
The clear message which Rolex is sending is that the common factor behind successful people is that they were all wearing a Rolex watch when they made history.
Endorsers and Wearers
A Rolex watch has been seen in the wrists of many famous men and women. Most recently in the US, newly-elected President Joe Biden was spotted wearing a Datejust. His two immediate predecessors, Former Presidents Donald Trump and Barack Obama, were also seen wearing Rolex watches.
From the business industry, notable people who wear Rolex watches are Warren Buffett and Steve Wynn. Locally, Jaime Zobel de Ayala, Enrique Razon, Jr., and Alice Eduardo, among others have been spotted wearing Rolex watches.
In the entertainment industry, Michael Buble and Jay-Z are known to wear Rolex watches. In the Philippines, two of the three mainstays of Eat Bulaga, Vic Sotto and Tito Sotto (Senate President), have recently been seen wearing Rolex watches in the image uploaded by Joey de Leon.
The personalities shown in this page are just a fraction of people who wear Rolex watches. In the deep roster of Rolex patrons and endorsers, it is almost sure that there is someone wearing a Rolex that you look up to (and you hate). The impact of seeing someone you admire wearing a Rolex is very strong.
The combination of the four aforementioned factors has surely driven the prices for Rolex watches up. Despite the increase in the price of Rolex, the demand for their watches has not yet slowed down. It appears that people still reward themselves with a “Crown for Every Achievement”. Expect Rolex to continue its hold and dominance in the luxury watch industry in the coming years and decades.