What made Rolex so successful? 9 reasons

Needless to say, Rolex is a world-famous watch brand, and due to its unwavering popularity, it is often referred to as the "number one" watch brand. In this article, Rüdiger Bucher, editor-in-chief of Kronos Germany, talks about nine reasons for Rolex's success.

Reason 1: Fame

　It's no exaggeration to say that Rolex is the most well-known luxury watch brand. Even among those unfamiliar with watch brands, many have surely heard of Rolex, even if they're not familiar with Breitling or Patek Philippe. There are two groups of Rolex customers: those who know a great deal about Rolex, and those who know very little. The former group of watch enthusiasts buy Rolex watches because of their high quality. They likely appreciate the practicality and ease of everyday life that is lacking in the meticulously crafted, complicated watches. The latter group, while not necessarily knowledgeable about watches, still recognizes Rolex as the best. Their motivation is the idea that if they're going to wear a watch, it has to be Rolex, and it's the ultimate compliment for the brand. For example, when someone who knows nothing about watches recognizes a brand as "number one," it's proof that the brand is doing what it does best.

Reason 2: Quality

　The primary reason for Rolex's success is its highly regarded quality, which has continued from its inception to the present day. Rolex watches are highly durable, consistently accurate, and reliable for accurate timekeeping. Producing just under one million watches per year while maintaining consistently high quality is a feat of art. Another advantage is their policy of avoiding complicated watches. Rolex has no tourbillons, perpetual calendars, or minute repeaters. Furthermore, they don't even have oversized dates, power reserve displays, or alarm mechanisms. They focus all their efforts on their existing products, constantly improving the details. The same can be said for their movements and cases. Looking at any of their competitors, including high-end brands, you won't find a smooth ratcheted rotating bezel like the one found on the Submariner or GMT-Master II.

Reason 3: Everything you want in a watch

　The foundation of Rolex's reputation lies in its early days, when the brand identified and introduced the essential elements of a watch for everyday wear. In 1914, Rolex founder Hans Wilsdorf sent his watch movements to Teddington Observatory, Kew, for an official rate certificate to certify their accuracy. This approach continues today, with Rolex meeting its own Superlative Chronometer standards, which are stricter than those set by the Official Chronometer Testing Institute (COSC). In 1926, the brand introduced its first waterproof watch, followed a few years later by an automatic movement. This was developed to maintain water resistance and prevent the crown from being pulled every day. These two features are reflected in the brand's name, "Oyster Perpetual." The Datejust, introduced in 1945, was the first watch to combine all of these elements: automatic winding, a waterproof case, and chronometer certification. Along with the date window that gave it its name, it met all the basics.

Reason 4: Design and Features

　High practicality means that the design is functional. Rolex designs contribute to water resistance and legibility, and features like the sweep seconds hand and the Cyclops lens that magnifies the date display (also designed by Hans Wilsdorf) are distinctive and practical. Rolex's current collections have been continuously refined over the years. Percy Christian Schoeler, a Rolex expert and founder of the German-language portal site RLX Das Forum, supports this. He says, "Over the decades, only carefully considered changes have been made to each iconic design, resulting in a highly recognizable appearance." There have been no sudden design changes or shifts in direction, and even changes in case size have been rare. Examples include fluted bezels, distinctively shaped hands, Cyclops lens that magnifies the date display, and Oyster bracelets. As a result, existing and early models of the Datejust and Submariner are very similar. As a result, Rolex watches are easily recognizable from a distance, a fact that renowned watch journalist Gisbert L. Brunner called the "10-meter rule."

Reason 5: Stable value

　A car loses half its value the moment you buy it. The same is true for watches, with the exception of Rolex. Given the high demand for at least the stainless steel Professional models (which also plagues the gold models and Cellinis), they often sell for just under or even above the purchase price. This is an attractive factor for any buyer, whether that's their primary motivation or not. It reassures them that they've made a wise decision.

Reason 6: Auction price

　The stability of the resale market has contributed greatly to the high prices that Rolex watches command at auction. After Patek Philippe, Rolex is the most sought-after brand in the auction market. Over the past few decades, there have been thousands of Rolex auction success stories, some of which have fetched dizzying prices. In October 2017, a Cosmograph Daytona owned by actor and racer Paul Newman sold for US$17,752,500 (approximately ¥20 billion with buyer's premium, or ¥17 million without) at Phillips' "Winning Icons" event in New York, setting a new auction record at the time. This surpassed the previous record held by a Ref. 6062 with a triple-date display (pointer date, day of the week, and month displayed in windows), a one-shot black dial, and diamond indices, which had belonged to the last Emperor of Vietnam, Bao Dai. Incidentally, Bao Dai was purchased at auction at Philips in Geneva in May of the same year.

Reason 7: Popular models are hard to find

　Human desire reaches its peak when something is unavailable. The stainless steel Oyster Perpetual Cosmograph Daytona has been the object of many people's desires ever since an early model appeared on the wrist of Hollywood star Paul Newman. Rolex delivers roughly the same number of watches to its stores as it sells them, resulting in long waiting lists. This lack of availability only adds to the mythical world of Rolex.

Reason 8: Marketing and Communications

　Rolex founder Hans Wilsdorf was a marketing genius. At a time when customers were focused not on the brand itself but on the watch shop they frequented, he designed a brand name that was easy to pronounce in different languages ​​and printed it prominently on the dial. Wilsdorf also called his company's waterproof watches "Oyster" and gave one to a female swimmer attempting a long-distance swim across the English Channel. Wilsdorf ran a full-page advertisement on the front page of the Daily Mail about this event. Another magazine ad featured a young actress wearing a watch immersed in a tank of water. In the early 1970s, Rolex focused on prestige sports like tennis, golf, car racing, horse riding, and yachting. Since then, Rolex has clearly established its presence in the world of sports, serving as the official timekeeper for Wimbledon, the US Open, and Formula One.

Reason 9: Unshakable myths

　Rolex has always valued integrity, adhering to a tried-and-true approach to continuous improvement rather than chasing trends or novelties. The brand's mythology can be seen in the fact that Rolex never fully jumped into the quartz boom of the 1970s (although it did release a few quartz models). Rolex does not create complicated watches like tourbillons or repeaters, very rarely launches new collections, and has always shied away from online sales. It carefully develops and implements new technologies like silicon components. Anything "smart"—like smartwatches—is a no-no. These methods give the brand a clear image for customers and help prevent it from taking any false steps. Even when it unveils new products at Baselworld every spring, it doesn't overemphasize them. While other brands focus on world firsts, hold celebrity-filled press conferences, and unveil brand-new collections, Rolex quietly focuses on small improvements. While many of Rolex's announcements involve improvements to movements, the introduction of ceramic bezels, or new colors, some are still hotly debated and controversial among Rolex enthusiasts. Furthermore, from my own experience interacting with the brand, I can say that Rolex is as mysterious as an oyster. From its headquarters in Geneva to its movement manufacturing facility in Bienne, customers and the press rarely have access to its internal operations. And, as a rule, the CEO does not grant interviews.