For those of you shopping for a Rolex, this one’s for you. At the beginning of the year, you’ll recall we reported that the luxury watchmaker increased prices in most markets for its popular models. Styles such as the Perpetual and Submariner increased by 4% and 10% respectively. Fast forward to nearly the end of 2022, the luxury world (and indeed the world itself) finds itself in a very different place than where it started. Economic uncertainty, destabilized currencies, the list goes on. It is this very situation that has led Rolex to enact a second price increase this year in the EU.
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A price increase of about 5% is said to be in order for the continent. This, just mere months after a similar increase was applied to the UK as a result of the plunging value of the British Pound. It seems that Rolex is taking a page out of Chanel’s playbook in enacting a price harmonisation strategy across markets. When the Pound fell sharply against the US Dollar earlier this year, it made these highly coveted watches much cheaper for US shoppers looking to purchase a model overseas. As the same occurrence is taking place with the Euro, it seems Rolex is looking to beat the currency exchange to the punch.
An article from the Business of Fashion highlights a statement from Rolex. A representative for the brand says that “there is an alignment of euro zone prices due to currency fluctuations.” A few thoughts to ponder, though, in considering this latest move from the luxury house. Are there really that many Americans in the market for a Rolex? Moreover, are this same group ready, willing and able to fly across the pond to make that purchase? Maybe. Then again… maybe not. The question is up for interpretation and research, however surely those holding US Dollars, wherever they may be, are certainly in the green at the moment.
Image Credit: Bloomberg
On the flip side, what about those clients on the European subcontinent? For that matter, what about those in the UK too? Now that prices are up (yet again), it will be that much harder to purchase a Rolex watch. Are they not the target market Rolex seeks to cater to? Or, at the end of the day, does it just come down to simple economics? The US Dollar has long been the global standard for trade and currency exchange, so wouldn’t it make sense, then, to make sure prices across the board are reflected equally regardless of country?
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What are your thoughts on this second Rolex price increase? For what reasons do you think the brand decided to pursue it? For those of you currently in the market for a watch, how do you take this news? Are luxury brand price increases just something we will have to come to accept now? Share your thoughts.
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- Shirin posted 2 years ago
- last edited 2 years ago
