Amid Speculation, One Rolex Defies the Market

Tick-tock to the top. (Source: WatchCharts)

Chalk it up to Watches and Wonders jitters, and it certainly happens every year. Less than two months away from Rolex’s new collection unveil, one Rolex model defies the secondary market.

The value of the Rolex GMT-Master II 126710BLRO for the past two years had been following the Rolex general market trend: a steady decline. But starting five months ago, it reversed the trend while the rest of the market continued to drop.

Amid speculation the Rolex “Pepsi” will be discontinued, in steel or completely, its market value has defied not only the WatchCharts Index for the Rolex market in general, but also for the GMT-Master II model in particular, showing the trend reversal is unique to the Pepsi. The BLRO hasn’t stopped climbing since September.

Despite Lack of Sponsorship, Rolex Wins the Super Bowl

Crowned champions. (Photo credit: NFL via Twitter)

On Sunday, the biggest sports league in the world by revenue held its biggest event — in the world’s biggest Rolex market. The average 30-second ad during Super Bowl topped $7 million dollars. A record 123 million fans watched the event.

Rolex's partnerships extend to the highest level of elite sports, including equestrianism, golf, motor sport, skiing, tennis and yachting, but leave out NFL football.

Still, San Francisco 49ers quarterback Brock Purdy, 24, swapped his Apple Watch Ultra for a Tudor, a brand owned by Rolex SA, as he entered Super Bowl LVIII in a game against the Kansas City Chiefs, a team led by Patrick Mahomes, 28, already famous for his Rolex collection: GMT-Master II, platinum ice-blue Day-Date and rainbow Daytona, to name a few.

In one of the multi-million-dollar commercials on Sunday, titled “Tom has won enough,” a steel sports Rolex was spotted on the wrist of Tom Brady, who has won the most Super Bowls of any player in NFL history.

Rolex's Newest GMT-Master II Video Feeds Rumors

Clocking frames. (From Rolex via YouTube)

A recent YouTube video posted by Rolex about the GMT-Master II has fans of the brand buzzing in the comment section and on forums.

The video posted on Jan. 30, roughly two months before the brand's slated unveil of the new collection at Watches & Wonders, is titled “Rolex GMT-Master II – Keep track of ties [sic].” The 37-second clip features most GMT-Master II in the collection. “Most” because two models already rumored to be discontinued are glaringly absent: The iconic “Pepsi” BLRO and the “Sprite” VTNR. Rolex never comments on potential releases or discontinuations.

Still, Rolex said in 2018 the BLRO was the only Rolex using an alumina-based ceramic bezel because of the challenge of producing the red color. All the other ceramic bezels are made from the more durable zirconia. The VTNR is the only watch at Rolex with a crown and date on the left. Rolex not only had to reverse the typography of the date disc, but also retool any kind of equipment that regulates time keeping for a reversed movement to earn its superlative rating, according to the brand.

Unearthed Article from 1929 Explains Rolex Ad Strategy

The test of time. (Source: Sales Management)

An article just recently discovered from the Aug. 31st, 1929, edition of Sales Management, a trade weekly for marketing executives, gives a rare glimpse into the origin story of Rolex advertising. The article was first found by Nick Gould.

Sidney T. Garland, its author, who owned an ad firm in London contracted by Rolex in the 1920s, explained how textual ads, "built around the necessity for punctuality [...] did not bring the results anticipated,” Garland wrote. “A complete change was therefore indicated; space was utilized to reproduce in half-tone as many watches as could be laid out […] and copy confined itself to the bold statement of Rolex observatory successes.”

Through trial and error, Garland found Rolex ads for the public should have “illustration” and be “redolent of achievement,” he wrote. He featured one of London's most popular actresses, Evelyn Laye, wearing her Rolex with her wrist immersed in a fish bowl. Rolex two biggest marketing ingredients — achievement and ambassadorship — had been born. I’ve posted the full article here: Page 1 and Page 2.

Rolex Patent Could Revive Milgauss Line

Attraction issues. (Source: Rolex via IPI.ch)

A patent filed by Rolex with the Swiss Institut Fédéral de la Propriété Intellectuelle reveals the brand is working to improve further the anti-magnetic properties of its watches.

Rolex engineers realized they didn’t need to redesign the Parachrom — or Syloxi — hairspring to raise the current anti-magnetic rating. They just needed to change the composition of the balance wheel with an alloy less conductive to electricity. Rolex said the findings were “surprising and unexpected.”

When Rolex engineers conducted testing with a balance wheel made of lead-free brass, the watch could withstand up to 40,000 gauss, instead of 25,000 gauss with a balance wheel made of copper-beryllium, the alloy in the current collection.

The results are “absolutely remarkable,” Rolex said in the patent. Read more about it here.

Bespoke Rolex Watches: Courts Clarify Limit of the Law

Making time. (Photo credit: Artisans de Genève)

Courts on both sides of the Atlantic seem to agree: Businesses that sell customized Rolex watches infringe on Rolex's trademark, but a business can legally personalize a watch owned by a customer.

The Federal Supreme Court of Switzerland reversed last week the lower court's decision after one of the biggest Swiss-watch customization brands, Artisans de Genève, was sued by Rolex S.A. Artisans de Genève made the news last year, when Maroon 5 singer Adam Levine revealed a personalized neon-green Daytona. The Supreme Court said Artisans de Genève is not infringing on Rolex trademark as long as it sells customization services and not customized watches.

The decision came coincidentally the same week a U.S. Court of Appeals told a Texas-based dealer he could not sell customized Rolex watches, but could customize a watch upon request after it had already been purchased, as reported in theses pages.

Rolex Is Still King of Premium

A larger portion of Rolex models than any other brand trade above retail. That's according to the latest data available by WatchCharts, Morgan Stanley.

While Rolex commands premiums for the largest percentage of models out of all nine brands tracked by WatchCharts, Patek Philippe watches command the largest premium at +39%, compared to +20% for Rolex. The vast majority of pre-owned watches from brands outside of the Big Four are available at a discount.

Still, at 68% of Rolex watches selling above MSRP on the secondary market, Rolex watches continue to be a good deal when bought at authorized dealers — though less and less as the trend has declined for the past three quarters.

The Executive Behind Rolex's Successful Partnerships

Net gains: Rod Laver and Arnaud Boetsch. (Photo credit: G. Ciaccia/ROLEX)

When Jannik Sinner was signed by Rolex, in early 2020, the 18-year-old Italian tennis player had never reached past the second tour of any Grand Slam tournament. But last Sunday, Sinner, crowned winner of the Australian Open, lifted the trophy with a Rolex Submariner on his wrist.

Rolex, which has signed top players early in their careers, including Roger Federer, has had a knack for picking talents. That is because Rolex's global director of communication and image, Arnaud Boetsch, is a former tennis pro himself.

Boetsch, an Alsatian who once ranked in the ATP top 12, is the man at Rolex responsible for building partnerships with some of the biggest events and Testimonees in Formula 1, classical music, golf and tennis, including bringing Federer back to Rolex, in 2006, after he had left for Maurice Lacroix. In recent years, Boetsch has pioneered the brand’s entry into the world of cinema.

If Rolex's image and reputation is arguably the brand's biggest asset, it was recruiting Boetsch almost two decades ago that turned out to be the real ace for Rolex.

Appeals Court Finds for Rolex Watch U.S.A.

Clock blocked. (Photo credit: Jackson Lewis)

Is a Rolex still a Rolex if the movement and case are from the brand, but the bezel was swapped with a diamond-studded bezel not made by Rolex? What if the dial is genuine but repainted using non-Rolex methods — or simply embellished with diamonds?

An appeals court on Friday published a decision in a lawsuit filed by Rolex Watch U.S.A., a subsidiary of Geneva-based Rolex Holding S.A., against Texas-based watch dealer BeckerTime. It affirmed the lower court that parts replaced, such as the bezel, dial, and bracelet, “are integral and necessary,” and therefore BeckerTime infringed on Rolex’s trademarks despite dealer's disclosures to customers.

The lawsuit was filed against BeckerTime just months after Rolex U.S.A. won its case against La Californienne, in 2020. The case against BeckerTime was cross-appealed last year and reaffirmed on Friday, a potential death knell for Rolex customizers and their dealers in the U.S.

One setback for Rolex U.S.A.: the court says while repainted dials constitute copyright infringements, embellished dials with added diamonds or stones “not involving the removal or reapplication of Rolex’s trademarks” do not.

Rolex: Working from Home Approved!

Clocking in from anywhere. (Photo credit: Rolex)

More than 150 years before Covid, the Swiss watch industry was already well versed in the practice of remote work, using stay-at-home wives and idled farmers during the winter to help assemble timepieces. By 1870, it's estimated 60,000 Swiss men, women and children helped in the production of watches — all from home.

Today, big manufactures like the Swatch Group, the largest employer in the industry, have prohibited remote work after Covid restrictions were lifted. The Swatch Group argues that if 80% of employees are unable to work from home due to their positions in productions or sales, neither should the other 20% who possibly could.

Rolex, however, says it will continue to allow non-production employees to work one day per week from home even if post-Covid restrictions are no longer in effect.

“In order to best reconcile personal and professional life, Rolex has implemented various approaches to organizational work giving more flexibility to all its associates, including remote work of one day per week for those outside the production unit,” Rolex’s Head of Public Relations and Spokesperson Virginie Chevailler said.

A list of job openings can be found on Rolex’s official hiring site.

When a Queen Rocks a Rolex

Someone's allocated OP was worn by a queen.

Britain's Queen Camilla tried on a 31mm Oyster Perpetual with a turquoise-blue dial on Monday during her visit to a Rolex authorized dealer in Swindon, England, the latest sign of the power of that dial color in the Rolex collection.

We're told she went to the 175-year-old family-run jeweler not to shop for a Rolex but to bring in a vintage Breitling for repairs though it's unclear whom in the royal family the watch belongs to.

Queen Camilla seemed interested in all things watches, checking out vintage pieces and taking a tour of the sixth-generation workshop, where she spoke to a young female watchmaker. Also in attendance was Deacon & Son's manager director Richard Deacon and, of course, Richard de Leyser, the CEO of Rolex UK, who had been briefed of her visit.

Queen Camilla didn’t pull the trigger on the Tiffany-dial OP, we’re told. That could be a future gift idea for King Charles III. After all, Valentine’s Day is right around the corner.

High Supply Persists on the Pre-Owned Rolex Market

Total supply remains near all-time highs even for discontinued Rolex models. That's according to the latest WatchCharts, Morgan Stanley research released last week.

WatchCharts analyzed 90 Rolex models from three distinct generations, including discontinued models, and the analysis shows that total supply remains at or near all-time highs for all segments. Median age of Rolex inventory increased by 25% in 2023.

Total supply levels for discontinued five-digit-reference models has jumped +32% in the last three years (-4% YoY). Total supply levels for discontinued six-digit-reference models has increased by +55% in the last three years (-4% YoY).

“Some dealers may still be holding out on realizing losses on older inventory purchased at higher prices,” WatchCharts cautioned in the report. “Which may put further downward pressure on prices in the future if the urgency to sell increases.”

Pre-owned inventory for current-production models saw the biggest jump over the past three years at +189% (+8% YoY).

London Cops Try New Tactic Against Rolex Robbers

Ticking towards justice. (Photo credit: Met Police)

Until now, undercover cops were used in the investigation of narcotics crime, radical groups and vice operations. But having them pose with Rolex timepieces in order to catch robbers is a first. While Rolex watches have been tested on the highest of mountains and in the deepest of seas, one place the brand seems to have difficulty surviving is European capitals, like London.

In a press release on Wednesday, Scotland Yard released CCTV footage and explained how plain-clothed officers wearing valuable timepieces volunteered to go out to streets known to be hotspots in London. The footage shows brave officers being grabbed by the throat after being ambushed by up to five robbers in some cases. A covert team of officers then emerges and pounces on the criminals.

The multiple operations, which resulted in 27 men being arrested, are the latest strategy regarding watch robbery: trapping malefactors before real victims could fall prey. The innovative tactic by Scotland Yard in the past two years is said to have led to robberies halving, an encouraging sign.

Rolex Confirms New Hiring Center Open in Bulle

Clocking in. (Photo credit: Rolex)

Rolex confirmed it has opened a recruitment center, a business space occupying several hundred square meters on one floor at the Bulle train station. “The recruitment center was opened early December and the director of HR has taken possession of the premises,” Rolex spokesperson Céline Gouzer-Monney said. “The space is not open to the public and remains a work space linked to recruitment.”

While the Bulle site won't be operational until 2029, one of its temporary sites, located in Villaz-Saint-Pierre, will begin work in the second quarter of 2024, according to Rolex. “These will be after-sales service activities,” said Ms. Gouzer-Monney. “The number of employees will be defined according to needs.” The other temporary site, in Romont, will begin operations as early as 2025. A list of job openings can be found on Rolex’s official hiring site.

For more reading, I’ve already reported on Rolex recruitment efforts here and the company’s plans to open temporary sites in Romont and Villaz-Saint-Pierre here.

Rolex's Newest Face of the Brand is 21

A watch to serve him well. (Credit: Rolex)

U.S. tennis player Ben Shelton announced this weekend on Instagram he is Rolex’s newest Testimonee. The announcement came before the start of the Australian Open, an event sponsored by Rolex that marks the start of the tennis season. The left-handed tennis player chose the Rolex GMT-Master II with the crown on the left.

Shelton joins Carlos Alcaraz, Iga Świątek and Coco Gauff, young players signed by Rolex early in their careers. From equestrian sports to Formula 1, Rolex is signing athletes younger than ever — some in their teens — and before their first wins, I’ve reported earlier. Shelton is just 21 and has never won a Grand Slam tournament or even an ATP Tour Masters.

None of the pros wear a Rolex while playing tennis, and they are rarely photographed when not plying their trades — unlike, say, actors or singers. Still, Rolex sponsors more tennis players than any other kind of celebrities. The brand wants to be associated with the lifting of the trophy, and it is willing to wait for it.

Is the Syloxi the Future of Rolex?

All the right moves. (Photo credit: Rolex)

Rolex released a "Celebrating Rolex Watchmaking in 2023" video earlier this week, and while the 30-second video briefly features the Parachrom hairspring, it’s leaving out the brand’s newest hairspring innovation which made an appearance for the first time in a men's watch in 2023: the Syloxi hairspring.

Rolex has been slowly and cautiously introducing the Syloxi hairspring for years in women's watches, like the Ladies Datejust, OP 31 and Yacht-Master 37. The brand says the silicon-made hairspring provides great stability during temperature variations and is also resistant to strong magnetic fields and shocks.

“Although it was designed for our small and medium-diameter models and our thinnest watches... [it] has all the makings of a giant,” Rolex said. The Syloxi could be the future in Rolex men’s watches and a new reason for its clients to upgrade.