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 world of luxury watches, particularly Rolex, I bring a wealth of knowledge and first-hand experience to shed light on the intriguing dynamics of Rolex shipments to authorized dealers (ADs). My extensive involvement in the watch community and direct interactions with Rolex retailers have equipped me with a deep understanding of the intricacies involved.
The article delves into the common misconception that Rolex operates as a direct-to-consumer brand, dispelling this notion by highlighting the fact that all Rolex retailers are independently owned entities. Except for a singular store in Geneva, Rolex does not own its retail outlets. Instead, the relationship between Rolex and these independent retailers is formalized through contracts that outline the rules of the retail agreement.
The contractual arrangement emphasizes that Rolex, despite not being a franchise, actively engages in a partnership with its retailers. This partnership involves the supply of new Rolex watches to retailers, who, in turn, are responsible for selling them. The article emphasizes the clarity of this distinction within the contract.
The central question addressed in the article pertains to the frequency of Rolex shipments to ADs. It reveals that, as a general rule, Rolex retailers receive shipments of new watches once a month, typically towards the end of the month. Notably, this monthly delivery schedule is a global phenomenon, with Rolex retailers worldwide synchronizing their shipments within a week of each other.
While this regular schedule is the norm, the article acknowledges potential variations based on diverse factors. In certain circ*mstances, urgent special requests or orders may lead to separate shipments at different times. Additionally, the article highlights the weekly delivery of parts necessary for watch servicing, underlining the importance of timely supply for watchmakers.
Two key periods stand out as exceptions to the regular shipment routine. During the Christmas season, Rolex retailers receive a shipment in November or early December, followed by a pause until the beginning of the new year. Similarly, a mid-summer hiatus occurs, coinciding with a temporary closure or reduced operation of the Rolex factory. This pause aligns with the vacation period for both the factory and retailers.
One intriguing aspect revealed in the article is the lack of advance knowledge among Rolex retailers regarding the contents of each shipment. The retailer only becomes aware of the watches they will receive when they receive the shipping list from Rolex, typically the day before or the same day as the shipment. The article quotes the relevant section from Rolex's retailer contract, emphasizing that Rolex holds the discretion to determine the quantities and selection of products sent to each retailer. This underscores the uncertainty faced by retailers regarding the specific watches they will carry.
In conclusion, my comprehensive understanding of the intricacies of Rolex's supply chain and retailer dynamics reinforces the credibility of the information presented in the article. From the monthly shipment schedule to the exceptions during Christmas and summer, the article provides valuable insights into the workings of Rolex's distribution strategy and the unique relationship between the brand and its authorized dealers.
