Rolex

MGolodetz
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Rolex article in Herald Tribune

The Herald Tribune had a large insert devoted to watches, and an intersesting article on Rolex. Unfortunately I no longer have the paper, but I can recall some of the points made.

1. A report from a well placed insider saying that Rolex lost 1 billion dollars in the Madoff Ponzi scheme. Rolex has denied the claim, but there was at least one high level resignation which coincided with the scandal going public.

2. Rolex is in the process of doubling their space, and increasing output.

3. This despite the market particularly the US market is very soft.In creases in prices have not gone down well, and some dealers are either returning stock or contemplating no longers acting as agents. Discounts continue to dog the brand, and many watches, (the Submariner was the example given is being sold at practically no profit to compete (generally the mark-up is 40%).

The tone overall was overall quite negative, as one would expect given the current economic situation. Unfortunately Rolex did not respond. Other brands have even bigger problems, and it seems that many have to be incredibly creative to survive.

Another article BTW was about the lack of skilled craftsmen to cope with the huge increase in watches with complications.

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