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The Position of Rolex’s CEO on Watch Collecting and Investment
CEO of Rolex, Jean-Frédéric Dufour, recently expressed his discomfort with the notion of watches being viewed as investment pieces. In an interview with the Swiss German-language newspaper Neue Zürcher Zeitung, Dufour emphasized that watches are manufactured as products, not as assets for financial gain.
Despite Dufour’s stance, many individuals do treat luxury watches, particularly Rolexes, as investments. The emergence of platforms like Stock X, originally geared towards reselling sneakers, now caters to a market interested in trading secondhand Rolex timepieces. The ability to track the sales performance of these watches resembles the monitoring of stock prices.
Rolex’s Latest Releases and Discontinuations
At the Watches and Wonders trade show in Geneva, Rolex showcased a new collection of timepieces, including a model priced at $60,000 featuring a rubber bracelet. Concurrently, the company announced the discontinuation of the white-gold Le Mans edition of its Daytona model. These decisions are part of Rolex’s ongoing effort to evolve its product offerings.
The Challenging Landscape of the Luxury Watch Market
Amidst the unveiling of new models, Dufour acknowledged the challenging year ahead for the luxury watch market. Factors contributing to this difficulty include the increasing price of gold and shifting consumer behaviors. The era of extravagant spending by crypto millionaires and other wealthy individuals on luxury items like high-end watches seems to be dwindling.
The Federation of the Swiss Watch Industry’s recent report highlighted a concerning trend in Swiss watch exports. After a period of consistent growth, exports experienced a significant decline of 3.8% in February. Notably, the slowdown was most pronounced in Greater China, with both China and Hong Kong reporting reduced imports of Swiss watches compared to the previous year.
These economic challenges are not isolated to Rolex, as evidenced by warnings from luxury conglomerates like Kering regarding sluggish sales in China. The luxury watch market is undergoing a period of transition, necessitating manufacturers to adapt to evolving consumer preferences and economic conditions.
In conclusion, Dufour’s remarks underscore the complexities of the luxury watch industry and the need for industry players, including Rolex, to navigate these challenges strategically in a rapidly changing market environment.
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