9 Reasons why Rolex is Successful – What Makes Rolex Successful?
Rolex is one of the most, if not the most sought-after, iconic, and well-known luxury brands in the world. Rolex is known all over the world as the ultimate symbol of success and prestige. Rolex has become the ultimate status symbol and is considered by many “the” watch to have and own. The huge demand for Rolex watches has led to long waiting lists at official Rolex retailers where the demand is far greater than the supply. And for a luxury brand, this is the ultimate token of success.
Rolex’s reputation goes far beyond many of its competitors such as Omega, Breitling, and Blancpain. With this powerful reputation and prestige, why is it that Rolex has been able to differentiate itself so much from its competitors to the point where it seems like it is playing in its very own league?
Naturally, there are many different reasons for this. And Rolex’s position as one of the most iconic and prestigious watch brands wasn’t built overnight. For Rolex to come to the point it is today, it has taken Rolex almost 100 years of consistent work, persistence, research & development, and clever marketing.
If you are curious to learn more about the reasons why Rolex is so successful and the different factors that have gone into the success of Rolex, you have come to the right place. Without further ado, let’s look at the most important reasons why Rolex is so successful.
Reasons why Rolex is so successful
1. Quality
No marketing or promotions can compensate for a low-quality product. At least not if you want to build a brand that is as strong as Rolex. To get to the point that Rolex is at, you must build exceptional products with a quality that is so great that few can compete. And that is exactly what Rolex has done.
Rolex puts utmost focus on creating high-quality timepieces and this is reflected not only in the actual quality that Rolex watches have, but also in every step that Rolex takes to ensure this.
When it comes to manufacturing, Rolex is not like everyone else.
Rolex goes above and beyond to ensure the highest possible quality for its watches and they never compromise. Each Rolex goes through strict quality controls and watches that are not up to par will not be accepted.
Over the decades, Rolex has consistently worked to improve and revise its timepieces to ensure better and better quality. They have addressed issues related to the longevity of their timepieces to make them sturdier, higher-quality, and longer-lasting. For example, they changed their aluminum bezel inserts to ceramic to prevent scratching and fading. They changed from 316L steel to 904L steel to prevent pitting and rust. And they changed from hollow links to solid links to make the bracelets more robust. All of these steps have allowed Rolex to constantly improve its timepieces and create timepieces that can last for a very long time.
Now, when it comes to finish and decoration, Rolex is not at the top but that is because Rolex focuses on making durable and robust tool watches that have high quality and are long-lasting. They are meant to withstand harsh environments and still continue to tick year after year. Plus, finishing and decoration are not the same as quality.
Quality is just that everything is perfect and continues to function for a long time to come. The bottom line is, that when you buy a Rolex, you can rely on its quality and that it will be a trusted companion for many years to come, no matter which challenges or environments you put it through.
2. Rolex makes superb movements
Continuing on the theme of quality, the movement is naturally one of the most critical and important aspects of a watch. This relates to quality, durability, and longevity.
Today, Rolex recommends a service interval of 10 years for its watches. Most watch brands recommend service intervals of 2-5 years for their mechanical watches. This reflects Rolex’s confidence in its movements and the fact that it will continue running properly for a long time.
As discussed earlier, Rolex focuses on durability, reliability, and precision, rather than fine decorations. As such, the movements are developed to be workhorses that can continue to tick year after year, not to be pieces of art like some other watch brands like Patek(which usually also results in more fragile and less robust movements).
The list can be made long of all of the steps that Rolex has taken and innovations that the company has introduced in regard to its movements. Parachrom hairspring, superlative chronometer certification, balance wheel with variable inertia, traversing balance bridge, and much more…
Rolex’s movements have proven time and time again that they can continue to function for years with perfect accuracy. Today, Rolex’s movements have a specified accuracy of +/- 2 seconds per day and this accuracy is specified to be kept throughout the whole 5-year warranty period.
Rolex does not make any of the traditional complicated functions that watch brands tend to focus on such as tourbillons or perpetual calendars. Instead, the focus is all on durability and robustness, And the mentioned complications rather make the watch more sensitive and fragile. Rolex simply focuses on what it does best. And this has made them famous all around the world as a timepiece with superb quality that will last a lifetime.
3. Timeless and iconic designs
Few watch brands have so many iconic and timeless designs as Rolex. Almost all of Rolex’s designs are considered iconic and have been huge inspirations for the watch industry as a whole. Whilst other watch brands may have just one or two iconic watch designs that remain relevant year after year, Rolex has a handful.
Now, there are many reasons for this.
First and foremost, Rolex focuses on evolution, not revolution. For example, if you look at early examples of the Rolex Submariner and compare them with the versions from today, they are extremely similar. This goes for most of the company’s models. Plus, bear in mind that many of its models were released many decades ago, the Submariner in the 1950s. In addition, Rolex’s vintage watches are more popular than ever.
This goes to show the timeless nature of Rolex’s watch designs. And there’s just something special about designs that continue to remain “relevant” decade after decade. It proves that the designs are beyond the ordinary. Many watch brands release watch designs that become outdated after just a few years, but not Rolex.
The result of this is that Rolex has some of the most iconic and recognized watches in the world. The GMT-Master, the Daytona, and the Submariner are just three examples of watch designs that have proven to be truly timeless. You can rely on the fact that the watch will remain just as relevant 10 years from now as today. Plus, there’s just something special about truly iconic and legendary designs that make them particularly attractive.
4. Rolex watches hold their value very well
One of the main reasons why Rolex watches are so immensely popular is the fact that they hold their value extremely well. In general, Rolex watches tend to actually increase in value over time.
Due to the legendary status of Rolex and the growing demand for them, Rolex watches have proven to be a very stable investment. Over time, they have proven to increase in value, making them greater investments. Is there anything better than being able to wear and enjoy your watch for years and then actually be able to sell it at a profit?
A lot of people have also started to see Rolex watches as assets to buy rather than gold and other alternatives. Rolex watches are extremely liquid due to the huge demand for them. Pair this with the fact that they hold their value very well and potentially also increase in value and they become very attractive to buy. It’s an easy way to spread financial risk in investments and also a way to avoid just having money in the bank. Best of all, you’ll be able to wear and enjoy the watches in the meantime. And if an issue arises where you need money quickly, you can easily sell the watch.
Most other watch brands tend to lose a substantial amount of their value when they are purchased. This goes for most items, including cars, gadgets, computers, and much more. If you buy a brand new watch from a brand such as Breitling, Omega, or Zenith, you can expect to lose between 10 to 50% of the value depending on which watch you buy. But those who are not just seeing their watch purchase as a way to treat themselves and see it strictly as a cost may find it worth the cost. On the contrary, those who want to be wise with their money and potentially see a value increase in the future will often opt for Rolex.
With a Rolex watch, you’ll likely lose very little when you decide to sell your watch – or even make money if you purchased the right model at the right time and at the right price.
This is one of the key reasons why Rolex is so successful and popular today.
5. The ultimate symbol of prestige
Rolex is known all over the world and has an extremely strong brand. Whilst this hasn’t always been the case, it certainly helps Rolex immensely today.
When people think of a luxury watch, most people will immediately think of Rolex. And when the time has come for someone to buy their first luxury watch, chances are that they will gravitate towards Rolex. There are many reasons for this. But the fact that it is so iconic and recognized all over the world, and is seen as the ultimate symbol of success and prestige certainly contributes.
Rolex’s strong reputation on the market helps the company further to be chosen above other luxury watch brands. In other words, it makes a strong company even stronger.
Due to clever marketing but also exceptional products, Rolex has been able to build an image that Rolex is not like everyone else. And the fact of the matter is that Rolex isn’t like everyone else in many aspects. This makes wearing a Rolex watch a greater sense of special occasion than other brands which naturally makes Rolex even more successful and attractive. The value proposition in this case is the sense of enjoyment and special occasion that you get every time you put on a Rolex on your wrist.
Rolex has become the ultimate status symbol and for anyone who wants to show the world their success, Rolex is the watch to own. The brand’s strong reputation means that even people who are not into watches will recognize and admire the watch you are wearing.
So Rolex’s strong reputation is certainly a factor that greatly contributes to the company’s success today.
6. Demand exceeds supply
For all luxury watch brands, regardless if it is for watches, jewelry, or handbags, exclusivity is crucial. People need to feel that the products that they are buying are rare, special, and exclusive. Humans always want what we cannot have and this is something that luxury watch brands, including Rolex, know.
To uphold exclusivity and keep the demand up, the key is therefore to produce fewer products than the market demand. This creates a shortage, causes FOMO, and makes people more eager to buy them.
Today, Rolex is in a position where demand far exceeds supply. The result is that many of Rolex’s models have waiting lists, sometimes as long as 5 to 10 years. Whilst customers may be frustrated because they cannot buy whichever watch they want immediately from a Rolex retailer, it does make them want it more and make them appreciate the watch more once their time has come.
The result of the Rolex shortage is that Rolex’s status and prestige have grown stronger over the years, making its watches even more sought-after. Naturally, this is something that contributes to making Rolex successful.
7. Marketing and promotion
At the heart of any successful luxury company is clever marketing. And marketing is something that Rolex does extremely well. It’s very evident that Rolex’s marketing is a lot different from most other watch brands. And naturally, due to the company’s sheer size, its marketing efforts include a lot of different things.
One of the key efforts that Rolex does for marketing is sponsoring and arranging various events. The most important thing is that Rolex’s events always align well with the brand’s target audience and need to be on the more exclusive and luxurious side to align with the activities that its customers are doing.
In Rolex’s own words. “Today, Rolex is present at the most prestigious events in golf, sailing, tennis, motor sport, and at equestrian tournaments. Rolex makes a unique and lasting contribution to global culture, science and exploration.”
For example, Rolex arranges the Rolex series in golf, Rolex big boat series, Rolex Sydney Hobart Yacht Race, and many more.
Moreover, whilst some watch brands may sponsor specific teams in Formula 1, Rolex goes above and beyond and instead sponsors the whole event as the main sponsor.
Rolex’s marketing success began already back in the day when Rolex founder Hans Wilsdorf was at the lead of the company. Hans Wilsdorf is considered a marketing genius and did many clever marketing activities that proved to be immensely successful.
During Wilsdorf’s time, Rolex began using testimonies to prove the performance of its timepieces. This is something that Rolex has continued to do ever since. Because what better way to prove the quality and performance of your timepieces than by having professionals subject the watches to extreme challenges that regular people likely never will face?
When Rolex created the first waterproof “Oyster” wristwatch, Wilsdorf gave a watch to the Swimmer Mercedes Gleitze who became the first woman to swim the English channel. After her Swim, Wilsdorf bought a front-page ad in the Daily Mail to mark this historical event and to highlight the fact that the Oyster watch she had around her neck functioned perfectly after the swim.
Rolex’s strategy of using ambassadors and testimonies to prove its watches has proven to be immensely successful and is just one of many promotional strategies that Rolex has used.
Rolex is the official timekeeper at many important and prestigious events such as Wimbledon or Monte Carlo Masters. Moreover, Rolex partners with some of the most successful individuals in various sports around the world who act as ambassadors for Rolex. Some of them include Roger Federer, Stefanos Tsitsipas, Jackie Stewart, Micheal Bublé, and many more. Rolex is a luxury brand that wants to be associated with success, hence their slogan “A crown for every achievement”. As such, it makes sense that Rolex partners with some of the most successful individuals in the world.
All in all, marketing plays a crucial role in the success of any luxury brand, and it’s safe to say that marketing has played an important role in Rolex’s success as well.
8. Rolex watches can last a lifetime
Whilst marketing is an important aspect, it will never be enough to build a brand as strong as Rolex if you have inferior, low-quality products. With that said, Rolex’s marketing efforts are backed up by a strong focus on quality, performance, and longevity. This point naturally also ties in together with the quality of Rolex watches, as discussed earlier.
Rolex watches are known to have very high quality and they are also known to be able to last for generations. Rolex watches can be passed on from generation to generation as heirlooms with little maintenance and reparations over the decades.
Few watch brands can say the same and if you factor in this when you consider the price of Rolex watches, then they don’t seem that expensive after all.
Rolex is a contrast to the fast fashion and high consumption we are living in today. Whilst cheap and affordable objects tend to be thrown away after just some time, Rolex is the opposite, where the company constantly works to improve the quality of its products to last longer.
The bottom line is that this has contributed greatly to Rolex’s success.
9. Rolex only uses the best materials
As mentioned earlier, Rolex does things a lot differently from its competitors. This is a vision that can be seen in all aspects of Rolex, from the material it uses to its marketing.
And when it comes to the use of materials, Rolex certainly stands out from its competitors in many ways. Rolex is only satisfied with the very best materials to create the best possible products.
For example, Rolex is one of only a few Swiss watch companies to have their own in-house foundries. Here, Rolex melts and crafts its own gold alloys with secret recipes to create alloys with the best possible qualities.
Another example is the fact that Rolex uses 904L steel instead of 316L which almost all other watch companies use. Rolex saw that 316L steel can start to rust and develop pitting after many years. As such, they set out to solve this issue which resulted in the use of 904L steel instead, which Rolex calls “Oystersteel”.
Moreover, when Rolex doesn’t find a material that is good enough for its purpose, they instead set out to create it. For example, the ceramic for its bezels was invented and made by Rolex, which the company calls Cerachrom. Moreover, the luminous material for the hands and hour markers used is Chromalight, a Rolex-developed type of lume with exactly the properties that Rolex needs.
These are just a few of many examples where Rolex goes above and beyond when it comes to the material the company uses for its watches. All of these aspects can be part of the explanation for why Rolex watches are so expensive, but also why they have such great quality over others. Naturally, Rolex’s willingness to constantly improve and innovate to create better products is something that has greatly contributed to the success of Rolex.
