By 
The Grand Complications is a classic Patek Philippe piece engineered with an exclusive band that differs from any other.
INVEST
Jaded collectors during the pandemic were wondering how else they could invest their money with the lack of summer vacations and live entertainment. Collectors (and even those curious newcomers) decided to invest in thousands of dollars worth of luxury watches for their future, rather than risk their assets on something that might cause a liability to their bank account.
Given the pandemic lasted more than people anticipated, it made sense for people to begin investing in pieces that would last longer than a quick trip. People have more time than they’ve ever had before to think about the investment they’ve always wanted to make, but never felt they could before.
Okay, that all makes sense, you’re thinking, but where have all the luxury watches gone?
PANDEMIC
If their trip was cancelled because of Covid, they might have updated a diamond engagement ring. If they couldn’t take their dream honeymoon after their wedding, they might have bought a rare watch that could be passed down for generations to come.
Yet, even with a surge in sales, these tough times hit watchmakers unable to meet demand. Rolex alone makes about 1 million timepieces a year, and the consumer demand far outstrips supply. The lack of sufficient supply in Rolex watches specifically is causing companies to steer their customers to other luxury watch brands. Brian Duffy, CEO of Cartier, says, “We can’t get enough Santos. We can’t get enough Tudor, particularly the brand’s chronograph models.”
As more people get vaccinated, the urge to get out and spend will likely continue to increase. We are starting to see the light at the end of the tunnel and trying to make up for lost time. The pandemic isn’t the only reason for Rolex and high-end watches being in such short supply.
SUPPLY AND DEMAND
Yes, it’s a matter of supply, demand and the simplicity of wanting what you can’t have. This creates waitlists, empty display cases, skyrocketing prices and record-breaking auctions. (Waitlists, empty cases and high prices. Oh my!) But there’s so much more to this.
It’s no surprise that Rolex is one of the most fashionable and notable brands in the luxury watch market. From John F. Kennedy to Jay-Z, Rolex was a timepiece of choice for its use of expensive steel, sleek look, and hand-assembly for that authentic touch. Not only does it pair well with your wedding day attire, but it can make a second-hand t-shirt look chic. These prestigious pieces of jewelry will also increase in value overtime, making it a fantastic investment piece.
Sure, the pandemic brought bored collectors and new watch enthusiasts wishing to join the party, but this increase in supply also brought on a lack of parts. Rolex makes nearly every part of its watches, and some contain over a hundred tiny parts. If just one part is delayed or unavailable, the production on that watch can stop. If it takes about one year to produce one single watch, waiting on a single part could prolong that time extensively.
A Rolex Day-Date is the perfect accessory for a special night out.
SOCIAL MEDIA
At the 2019 SIHH industry conference, Audemars Piguet debuted the CODE 11.59, a watch collection in the works for years. Despite the original unflattering caused by having paid reviews as opposed to the traditional press-written reviews, social media sparked newer, younger enthusiasts than ever before. Exclusive watch brands are realizing the importance of having an online presence, despite being around longer than the internet.
During the pandemic, social media was everyone’s main form of communication. E-commerce sales went up because people were shopping from the comfort of their own home. And with the new trend of watch brands using social media as a marketing platform, more people were finding interests in things they might not have originally known much about.
Reginald Brack, a watch industry analyst at The NPD Group, said, “The staid luxury brand industry — both Swiss and Japanese — is doing a better job reaching customers online through social media. And some of the excitement the brands are generating is spilling over to new customers, not just those who are already collectors.”
UNIQUE QUALITY
Consumers wonder why companies can’t just create more watches. It seems simple enough: create more supply for the demand. Alas – you can’t rush art.
With unique watches comes unique processes. Swiss watchmakers can’t just ramp up production and respond accordingly to an increase in demand. Creating luxury watches is a complicated and precise process. Each watch requires a lot of time and care to maintain the sophisticated quality the watch is known for.
Rolex made a rare statement regarding the lack of their product following the pandemic, for an article in Yahoo Finance. “The scarcity of our products is not a strategy on our part. Current production cannot meet the existing demand in an exhaustive way, at least not without reducing the quality of our watches.”
As an artist, you never want to feel you are jeopardizing the quality of your product, and the same can be said about a watchmaker. Rolex, as well as other popular watch brands (Patek Philippe, Audemars Piguet and Richard Mille) are keeping their watch collection limited so that their timepieces remain rare. This is what makes them collectibles – if there were more and everyone had the same watch, it would lose the excitement and its value.
The Rolex Day-Date Olive Green Roman Dial is assembled with a rose gold 40 mm case and a rose gold bezel set with 48 diamonds.
Cartier’s CEO, Cyrille Vigneron, is working on shifting production to meet demand for their hottest models in a quarter of the average industry’s time. So, it looks like more swanky watches will be made readily available for those looking to spruce up their outfits this summer.
However, if it’s a Rolex specifically that you hope to add to your collection, all we can say is - be patient. Besides, having to wait on your new investment could make the buying process even more exciting!
