Rolex’s Huge Achievement
In the year 2023, Rolex has been reported to have made sales of worth 10.1 billion Swiss francs, which converts to approximately $11.5 billion or AED 41.8 billion. With this, the company has shown an YoY growth of about 11% when compared to 2022. With the ongoing demand, the company’s market share in the industry has grown by over 30 percent.
During the year, a total of 1.24 million Rolex watches were produced according to the reports shared by Morgan Stanley. The reports further suggest that the brand achieved better sales numbers when compared to the sales numbers of Patek Philippe, Richard Mille, AP, Cartier, and Omega combined.
The Early Days: Discounts and Accessibility
A decade ago, Rolex watches were more accessible than they are today. Many of my friends bought steel watches from Rolex at retail via the Authorized Dealers. There were even instances where the AD offered them a discount on the purchase of the watch. Back then, owning a Rolex was a sign of success, but it didn’t carry the same state of admiration as it does today.
The Shift in Perception
Over time, Rolex strategically shifted its marketing and positioning in the watch industry. The brand began emphasizing on exclusivity and rarity. While they were very capable of meeting the demands by increasing production, they decided not to. Instead of investing more money into expanding the factories, they invested their time and efforts into perfection. To this day, they take pride in their quality control and proudly offer a 5-year warranty on all their watches.
Crypto played a huge role
Besides the production being limited, the demand for these watches just sky-rocketed as the cryptocurrency started going up. The surge in the price of Bitcoin meant more people were profiting from their investments. As soon as they liquidated the coins, they either put their money towards real estate or on luxury accessories like LV Bags and Rolex watches.
The $10 Billion Milestone
Fast forward to today, Rolex has achieved unprecedented success. The brand’s sales have soared, crossing the $10 billion mark. And if you want to know in short how they did it, here’s how:
- Brand Equity: Rolex’s reputation for precision, durability, and timeless design has only grown stronger. People trust the brand implicitly, and that trust translates into sales. Rolex has always been and will be the first brand that comes into people’s mind when they talk about luxury watches.
- Off-Catalogue Pieces: Rolex, for past few years, has been releasing some off-catalogue pieces that are often offered to celebrities. These celebrities then like to show-off these watches. People who are fans of these celebrities want to follow them so they just started buying these watches to create a strong profile with the hopes of getting one of these off-catalogue pieces one day.
- Global Appeal: The brand’s global reach is remarkable. From New Delhi to New York, everyone wanting to start a watch collection almost always steer towards Rolex.
Rolex’s journey from discounts to waitlists has been extremely impressive. The company has been standing for over a century at this point. Their success and achievements of milestones have made them a benchmark for all the Swiss watch brands out there.
Being a part of this industry, I can confidently say that Rolex’s ascent to $10 billion in sales is well-deserved. And I would even go as far as to say that this is just the beginning. Rolex, as a brand, is capable of doing a lot more than this while also maintaining the quality and exclusivity that it brings to the table.
