Rolex-Venture Perception

Rolex

So, this is a new series which I announced on the twitter that I was doing. In this series, I will talk about the insights into the business, which is chosen by you guys, hence the name "Venture Perception". More details are on the tweet.

The first company we are looking at is Rolex, and we are looking into their marketing and why it is so successful. They are a watch brand that produces luxury watches and according to Forbes magazine is the most reputable company EVER. So if you haven't heard of them, first of all, what are you even doing with your life, here's a brief background.

They are a swiss made company, that started off producing watches to survive everything, they're most commemorable watch is their submariner which had its first debut in 1954 and was marketed as being able to withstand water. The first started off as a company that were making watches to last but over time became the brand that they are today.

Why is Rolex' marketing so good?

The brand today is marketed as a luxury brand, unlike when it first started where it was marketed as more of a tool. When Rolex first started, they used sponsorships to market their watches. But, they only sponsored people that were doing things that would make their watches look good. Take for example the woman who swam across the English Channel wearing a Rolex Submariner. It was this that made Rolex famous.

Taken from Consuming Cultures

They then also went on to have Sir Edmund  Hillary wear an Oyster Perpetual to the peak of Mount Everest. It was these that made them known to people. The public felt that if the watches were able to withstand these extreme conditions then they could withstand their everyday life. If a Rolex could withstand being underwater for 10 hours every day, they didn't need to worry about getting some water on their Rolex. Or maybe they were going to extremely cold temperatures, they didn't need to worry about it because they had seen Rolex taken to one of the coldest places on Earth.

This marketing was really effective because it gave customers a sense of relief about their Rolex, they felt that it was something that could last and from what we understand it does, as we see many vintage Rolex watches being sold every month!

 Another great aspect of their marketing was and still is that they only tend to sponsor famous, recognisable and reputable actors, athletes and musicians. They look for the "Creme de la Creme" to sponsor so that when you buy a Rolex it feels like you're joining a "million-dollar club", you get an identity and your Rolex Story begins.

Why are Rolex' good watches?

Rolex suits every style. From every person who owns a Rolex, they all have their own unique style, you can be a businessman, always wear a suit and own a Rolex, then you can change into some tennis gear and keep the Rolex on and it still looks good. The adaptability of the Rolex is what makes them so impeccable. It's also down the Rolex reputation as well, when people think of Rolex they also think of a luxury lifestyle that comes with it, only the best of the best can own a Rolex. If  James Bond wears a Rolex surely it's good? Right?

Source Kronos 360

Rolex watches are recognisable. Due to the fact that there are only subtle changes in Rolex watches over time, when you see someone with a Rolex you can almost always tell straight away it's a Rolex. This is really good if you want to flaunt your wealth to all the people that can't afford to partake in social activities that you can, due to their mere undistinguished socio-economic class. When people think of watches they think of Rolex, it's part of being the most reputable company in the world. If you tell someone to think of a watch company they'll tell you Rolex, they're known by everyone thanks to their great marketing.

A Rolex is an investment. We've all heard and seen stories of antique Rolex watches selling for prices well above the yearly average income across the world. It makes one wonder if the real reason to buy a Rolex watch isn't just to wear it and look cool but so that it can hold greater value in the future. But, unfortunately for you and I this is only really the case for either really old Rolex watches which aren't made anymore and due to the scarcity of them prices soar.
From my research, many sites have all said that your Rolex watch could increase in value by varying amounts over the next 10 years, but in my opinion with how many watches Rolex produce per year I don't see the typical Rolex watch selling for much more than what you bought it for at the time of sale. Instead, you could try going for a custom made Rolex or for limited edition Rolex watches that way, their scarcity will allow for the product to obtain really high prices over time.

Conclusion

Overall, I think Rolex is a great company, they've made a huge name for themselves in their industry while revolutionizing that same industry all at the same time. There are however a few drawbacks to this great success, people are greedy, I say this because whenever you try and buy a vintage Rolex nowadays you have to spend a really long time checking to see if it's authentic because so many people try to sell fake vintage Rolex watches. This does cause some customer sales because people don't want to deal with that kind of trouble when buying vintage Rolex watches. But, don't let that cause you to stop looking for Rolex watches to buy and sell, Enjoy your day everyone and thanks for reading.

I do have other posts which you can check out "Want a quick way to reduce your expenses and have more to invest?" and "Is now the best time to invest?". You can also check out the rest of the Series here. 

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Lastly, I have a twitter which is "@MediaEconomist" follow me on there for updates on new posts and a way to contact me if there's something you want me to post about. Whenever I'm free I'll be sure to contact you!