- 26/8/12
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I believe this market shortage and grey market is created by rolex and Rolex knows very well how their ADs operate and supply the grey market. And it's part of Rolex's rough business plan.
Crazy Inflated price helps them increase them their Retail price and their customers will oblige accordingly coz the grey market the prices are 30-50% higher.
They want to bring thier steel sports model prices up to a level where they make Rolex a even more handsome profit. This is when they will enter the retail game selling directly to the customer thru boutique cutting out the AD. They'll keep pushing AD's with precious metal watches and slow moving watches and keep the highly sought after ones as boutique only and supply for these models will increase to a point were Boutique will have enough allocation for walk in customer but AD's won't unless they sell PM and Slow moving models.
This way they will reduce the need for grey market and also ADs business model of selling just PM and Slow Moving watches is not going to make sense thus driving more traffic to thier own retail boutiques. So it's win win for Rolex and ADs are the one who will get screwed in the long run. Grey Market will exist with Discontinued pieces but in production models will not have crazy Inflated prices in the grey market.
This is my analysis of the whole crazy situation.
Crazy Inflated price helps them increase them their Retail price and their customers will oblige accordingly coz the grey market the prices are 30-50% higher.
They want to bring thier steel sports model prices up to a level where they make Rolex a even more handsome profit. This is when they will enter the retail game selling directly to the customer thru boutique cutting out the AD. They'll keep pushing AD's with precious metal watches and slow moving watches and keep the highly sought after ones as boutique only and supply for these models will increase to a point were Boutique will have enough allocation for walk in customer but AD's won't unless they sell PM and Slow moving models.
This way they will reduce the need for grey market and also ADs business model of selling just PM and Slow Moving watches is not going to make sense thus driving more traffic to thier own retail boutiques. So it's win win for Rolex and ADs are the one who will get screwed in the long run. Grey Market will exist with Discontinued pieces but in production models will not have crazy Inflated prices in the grey market.
This is my analysis of the whole crazy situation.
