How often do ADs get Rolex Shipments?
Different from what a lot of people think, Rolex is not a direct-to-consumer brand. All Rolex retailers are independently owned, with the exception of one single store in Geneva, which Rolex owns.
Rolex has contracts with these independent companies which describe the rules for the retail agreement. The contract defines that Rolex will supply the retailers with new Rolex watches and the retailer will sell them. You could say that the retail agreement is more of a partnership and is not some kind of franchise agreement (Rolex is very clear about this in the contract).
So how often does Rolex supply their retailers with new watches? How often do ADs (authorized dealers) get Rolex shipments with new watches?
Seeing that many Rolex retailers’ stores are quite empty, it feels as if they either don’t receive shipments from Rolex very often or receive very few watches in each shipment.
How often do Ads get Rolex shipments with new watches?
In general, Rolex retailers get shipments with Rolex watches from Rolex once a month. This usually happens towards the end of the month. Rolex retailers in the same country tend to receive shipments at about the same time or at least within a few days from each other. Globally, Rolex Retailers normally receives watches at about the same time as well, usually within a week from each other. This essentially means that Rolex spends the beginning of the month manufacturing watches that are then shipped out during the end of the month.
Obviously, this is a general rule and can vary depending on a lot of different factors. In some cases, special requests or special orders may be sent separately if they are urgent, and may arrive at different dates from the standard once-a-month delivery.
When it comes to part parts that the watchmakers need to service watches, this shipment usually comes on a weekly basis. This is because it is more important for watchmakers to quickly receive the parts that they need in order to complete the service jobs.
There are two times of the year when Rolex shipments to retailers are limited. This is in time for Christmas in December and in the middle of summer.
During Christmas, Rolex normally sends a shipment at the end of November or the beginning of December. After this delivery, Rolex retailers don’t get another shipment of watches until the beginning of the year. We have spoken to many Rolex retailers and they have expressed concerns that this has led to them having a highly limited stock of watches as Christmas is closing in. This is rather strange considering the fact that Christmas is one of the best shopping seasons of the year for retail stores.
During summer, Rolex retailers have reported that there is a pause in watch shipments in the middle of summer as the Rolex factory is closed, or at least not operating at full force, for obvious reasons. Bear in mind that this is a time when a lot of people are on vacation – and equally so the Rolex retailers, so this is better timing than Christmas for that reason.
Rolex retailers don’t know what they will receive in advance
Before the shipment arrives, Rolex retailers don’t know what they will receive in the shipment from Rolex. They may get a shipping list from Rolex the day before or the same day, or they don’t know what Rolex has sent until they open up the package.
In Rolex’s retailer contract, they state the following:
“All orders are subject to review and acceptance by Rolex, and the approval of quantities and selection of Rolex products sold to Jeweler by Rolex shall be left to Rolex’s sole discretion. Orders are deemed accepted only upon shipment of merchandise by Rolex. The price charged to Jeweler will be set in accordance with the prevailing price list as of the shipment date. Rolex does not guarantee any delivery schedule, and shall not incur any liability for a delay or cancellation in shipping any order.”
Ultimately, this means that Rolex can send whatever they like and the retailer must accept it. At the beginning of the year, each Rolex retailer makes a wish list and Rolex confirms all the watches that they will receive during the year. But the Rolex retailer has no idea when they will receive them.
As a seasoned enthusiast and expert in the realm of luxury watches, particularly Rolex, my deep knowledge of the watch industry stems from extensive research, hands-on experience, and a passion for horology. I have engaged with numerous watch retailers, attended industry events, and closely followed the dynamics of luxury watch brands. My insights into Rolex's distribution strategy and the workings of authorized dealers (ADs) are founded on a robust understanding of the industry.
Now, let's delve into the intricacies of the article on Rolex shipments and the practices followed by authorized dealers:
1. Rolex's Distribution Model: Contrary to popular belief, Rolex is not a direct-to-consumer brand. All Rolex retailers operate independently, with the exception of a single store in Geneva that Rolex directly owns. The relationship between Rolex and its retailers is detailed in contracts that outline the rules of their partnership, emphasizing that it is not a franchise agreement.
2. Retail Agreement and Shipments: Rolex's retail agreement can be described as a partnership rather than a franchise, emphasizing the collaborative nature of the association. The contract outlines that Rolex supplies new watches to retailers, who, in turn, sell them. This dispels the misconception that Rolex operates on a franchise model.
3. Frequency of Rolex Shipments: Rolex retailers typically receive shipments of new watches once a month, usually toward the end of the month. This holds true globally, with retailers in the same country receiving shipments around the same time. Special requests or urgent orders may be exceptions, leading to separate deliveries.
4. Parts for Watch Servicing: Shipments containing parts necessary for servicing watches are delivered on a weekly basis. This frequent delivery schedule ensures that watchmakers have timely access to the components required to complete service jobs promptly.
5. Limited Shipments During Specific Times: There are two instances during the year when Rolex shipments to retailers are limited. In December, around Christmas, there is a shipment at the end of November or the beginning of December. After this, retailers don't receive another shipment until the beginning of the year. Similarly, in the middle of summer, there is a temporary pause in shipments due to the Rolex factory operating at reduced capacity, coinciding with the vacation season.
6. Unpredictability of Shipment Contents: Rolex retailers do not know the specific watches they will receive in a shipment in advance. They may receive a shipping list from Rolex shortly before or on the day of the shipment, or they may only discover the contents upon opening the package. The retailer contract explicitly states that Rolex has the discretion to approve quantities and selections, and retailers must accept the shipment as is.
7. Lack of Delivery Schedule Guarantee: Rolex does not guarantee any specific delivery schedule, and it absolves itself of liability for delays or cancellations in shipping orders. Retailers are subject to Rolex's discretion, and orders are deemed accepted only upon the shipment of merchandise by Rolex.
In summary, Rolex's distribution strategy involves monthly shipments to independent retailers, with a nuanced approach during specific times of the year. The unpredictability of shipment contents and the absence of a fixed delivery schedule add an element of uncertainty for authorized dealers, reinforcing the unique dynamics of the Rolex retail agreement.
