Everyone has been touched by the pandemic in some way. Whether you got it, have a family member that got it, or a friend, it has interrupted all our lives. But what really has gotten to me isn’t the fact that we had to shelter in place, or that our business had problems because we were forced to close, or even wearing a mask. It’s that Rolex had supply chain issues and now you can’t find one to save your life.
Rolex and The Supply Chain
Let’s start by saying that Rolex having supply chain issues is not anything new. In fact, Rolex was experiencing the effects of low supply and high demand as far back as 2016, putting them well ahead of the recent trend. Right now, we remain in a Rolex shortage, with customers waiting literal years to score the latest Daytona or Submariner.
Rolex did experience a disruption to their supply chain during the pandemic, and they did close their factory for several months. However, many people believe the shortage was already underway by the time this happened. Also, if you look at basic economics, which is high demand and low supply, was it really the pandemic that has caused customers to wait well over a year for any model of Rolex? After all, the luxury market industry is on fire right now.
Is It a Conspiracy?
Do you think Rolex has reduced distribution to keep demand and prices sky high? The conspiracists will say that Rolex has created the illusion of scarcity to create a trickle-down effect across their entire portfolio. In other words, when a customer can’t get a Daytona, they will go with a GMT or a Datejust instead, which will boost those sales.
My theory is that Rolex has always produced the same number of watches as they do now, but why is there such a scarcity? And has it always been like this? Absolutely not. You used to be able to walk into a Rolex store and see tons of models, but now, they are empty, save a few that are the 31 mm, and no one is buying those.
Is It a Strategy?
This seems more plausible, after all, Rolex does have marketing geniuses, even though they don’t need them. Let’s just say that if dealers are getting the same number of watches as before and they are just selling out faster, then why the shortage?
“The scarcity of our products is not a strategy on our part,” Rolex said to Yahoo Finance. “Our current production cannot meet the existing demand in an exhaustive way, at least not without reducing the quality of our watches — something we refuse to do.”
So, there you have it, straight from the proverbial horse’s mouth.
Is it Authentic?
No, I don’t mean the brand, but the shortage? Is it being driven by genuine demand and Rolex hasn’t changed what they are doing at all? This is a question no one can answer by Rolex, but we do know that the watches are iconic. They represent exclusivity, and if they are also scarce, well, that just makes them even more wanted and coveted.
Here’s the Truth
Not all Rolex models are scarce, and yes, you will see retail stores empty, and yes the prices have gone up on all models, and even a preowned Rolex can be sold for more today, but that has to do with not only the elan of Rolex, but also the fact that prices go up on all luxury goods, especially when they have to source in different ways due to a pandemic that forced a global shut down.
If you are looking for a Rolex steel sport model, such as the Submariner, GMT Master, Explorer, or Daytona, you will not find one readily available. But, if you really want any of these watches, guess who does have them?
Jonathan’s Watch Buyer does, and if we don’t have the model you are looking for, we can find it for you. We are just that good. Not only are we that good, but we are trustworthy and only sell the real deal when it comes to luxury watches, such as Rolex.
When you are ready to buy your Rolex, contact us and make an appointment to come by and see the many Rolex watches we have in our inventory.