Published on February 24th, 2020 | by Manish Gehlot


Rolex And It Genius Limited Supply Tactic To Ensure High Demand

Have you ever wondered how a brand can flourish up to the point that it becomes untouchable by competition? Well, it is not something that you would think of in the everyday life. It is still an intriguing thought, nonetheless. When luxury watches are concerned, Rolex is one such name that comes to mind that perfectly fits the above mentioned description. Over the years, Rolex has managed to become the world’s 71st most valuable brand, three of its watches have made it to the list of the top ten most expensive watches auctioned, and it is the largest maker of Swiss-made chronometer certified watches. But there is something else that makes this mega brand the icon it is today.

Rolex Epic Strategy

A little hint, perhaps? It is marketing. There are only a few names in the world of business that have been able to leave a mark in terms of advertising and marketing. It is really much more difficult than it sounds. Business ventures all over the world engage in marketing but how many do you actually remember? That is the true power of a good marketing campaign. But Rolex takes its marketing a step further. Its tactics go way beyond an average person’s pay grade. That being said, it is also true that Rolex does not refrain from getting its hands dirty every now and then.

To simplify things, Rolex restricts the supply of watches from its end to boost the demand in the market. It is true that this is not an isolated move, which means that this move alone cannot succeed on its own. But it is true that it plays a huge role in Rolex’s rise in popularity and the ever-increasing demand for Rolex timepieces like the Daytona and GMT-Master II.

How Does It Help Rolex?

Well, the answer to this is quite simple and at the same time very complicated. Rolex is a luxury watchmaking tycoon. This translates into the fact that at the end of the day, it relies on the number of watches it sells. It also means that in order to be relevant in the industry, it has to make its presence felt. The supply restriction tactic is one that solves both the issues at once.

You also need to consider the fact that the target audience here is not your everyday public. This is the top 1 per cent we are talking about, the elites of the society who belong to a social class that is known to be lavish. Naturally, the buyer behavior is much different from what we usually see in the consumer markets.

That being said, try and inquire about a stainless steel Rolex Daytona or GMT-Master II. You will be surprised that the answer will be the same everywhere you inquire. This is true for all Rolex boutiques and retailers in the world. The reason? You guessed it right, limited supply from Rolex. This does not necessarily mean that retailers do not have the timepieces. At times, retailers too, play a part in this play and aid Rolex and in-turn themselves.

How Does One Procure Watches Then?

Well, they don’t. When a buyer calls or visits a Rolex boutique, the official answer on the inquiry of such watches, also known as ‘Premium’ watches is that they are out of stock. Hilarious, right? Rolex maintains this across all its boutiques and even conveys the message to its official retail chains.

In order to procure these watches, one might have to wait for about 4 years. And even then the guarantee of eventually getting their hands on these timepieces is not there.

But this is not the only move up the Swiss Haute Horlogerie icon’s sleeves. The watchmaker is a rampant investor in advertising campaigns and is as aggressive as any brand can be. In fact, it was the first watchmaker to break the class barrier and appeal to the common masses. People who can probably never afford a Rolex know about the brand and aspire to own one someday.

As mentioned earlier, that is the true power of marketing. You might also call it a product of a capitalistic market, but it all boils down to the same thing, which is, the urge to be better. That is what brands like Rolex thrive on. The Author recently shifted her focus to Rolex timepieces where she discovered her new-found appreciation for enigmatic and elegant Rolex Daytona and Cartier Ballon bleu.

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About the Author

I am a privacy, security, encryption and software freedom enthusiast. I am into VPNs, TLS security. Recently I also got into technical writings. I am working as a VPN support and consultant at some nordic VPN providers.

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