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Is a discreet revolution underway<\/strong><\/b> in the Middle Kingdom?<\/strong><\/b><\/p>\n <\/p>\n Rolex has announced the opening of a direct-to-consumer boutique in Shanghai next spring<\/strong><\/b>. In other words, a first for the brand with the crown.<\/p>\n <\/p>\n This decision to review its intermediary distribution strategy would enable the world’s leading watchmaker not only to stand out in a market in crisis, but above all to regain control over its customer experience<\/strong><\/b>.<\/p>\n <\/p>\n A sign of optimism<\/strong><\/b> in a country which, in recent months, has plunged luxury players into doubt.<\/strong><\/b><\/p>\n <\/p>\n <\/p>\n Rolex’s first directly-operated physical retail outlet<\/strong><\/b> is due to open in the HKRI Taikoo Hui Mall<\/strong><\/b>, a high-end residential and commercial complex located in the bustling Jing’an district<\/strong><\/b> of Shanghai’s West Central Business District. It is in this mall of over 100,000 m\u00b2<\/strong><\/b> that the Richemont group invested, opening its largest IWC Schaffhausen flagship in 2023.<\/p>\n <\/p>\n The store will open under the pavilion of Carl F. Bucherer<\/strong><\/b>, the watch retailer acquired by Rolex at the end of August 2023<\/strong><\/b>.<\/p>\n <\/p>\n Until now, Rolex has relied exclusively on a network of authorized retailers in the Middle Kingdom<\/strong><\/b>. After a breakthrough in Hong Kong via Emperor Watch & Jewellery, Rolex began its expansion in China in 1995 in cooperation with Asia’s largest watch retailer, Peace Mark.<\/p>\n <\/p>\n <\/p>\n Thespace dedicated to second-hand Rolexes<\/strong><\/b> will undoubtedly be one of the most desirable in this future boutique.<\/p>\n <\/p>\n In addition to new watches, Rolex customers will be able to purchase pre-owned models<\/strong><\/b>.<\/p>\n <\/p>\n The outlet will also feature a dedicated after-sales service area<\/strong><\/b>, where customers will be able to benefit from maintenance or repairs<\/strong><\/b> without having to make an appointment.<\/p>\n <\/p>\n These facilities demonstrate the growing demand in China for more durable, certified second-hand products<\/strong><\/b>.<\/p>\n <\/p>\n Rolex has the advantage of having made a name for itself in the second-hand market with its Rolex Pre-owned Certified Program<\/strong><\/em><\/b>. Launched in Europe at the end of 2022 and rolled out in the United States in June 2023, the program enables buyers of second-hand watches at least 3 years old to acquire, from authorized physical and digital points of sale, products that are certified authentic and guaranteed – 2 years after their purchase date – by the brand itself.<\/p>\n <\/p>\n <\/p>\n The initiative is all the more unusual in that the timing<\/strong><\/b> is not the most favorable for Swiss watchmakers.<\/strong><\/b><\/p>\n <\/p>\n Export sales to China<\/strong><\/b> were down 21.6% year-on-year in the first quarter<\/strong><\/b>.<\/p>\n <\/p>\n Behind this measure, the stakes seem clear for the brand with the crown: regain control over both its distribution and its customer experience.<\/strong><\/b><\/p>\n <\/p>\n Indeed, while entrusting its expansion to intermediaries allows the company to accelerate the taking of positions and benefit from a sharp knowledge of a new market, the model can lead to great disparities in customer relations.<\/p>\n <\/p>\n On the other hand, while having your own network entails a considerable cost in terms of real estate, it also enables you to personalize your contact with customers<\/strong><\/b> and get to know them better<\/strong><\/b>, without running the risk of ill-intentioned use of their personal data.<\/p>\n <\/p>\n Over the past two years, several Rolex retailers have had their accounts frozen following fraudulent payments.<\/p>\n <\/p>\n While the measure currently concerns only one address in Shanghai<\/strong><\/b>, it is highly likely that Rolex will be tempted to accelerate the closure of its dealerships in order to open directly managed Carl F. Bucherer<\/strong><\/b> boutiques throughout the country.<\/p>\n <\/p>\n The former independent retailer has the advantage ofa network of 61 points of sale in China<\/strong><\/b>. The outlying regions of Henan and Shanghai<\/strong><\/b> are the best equipped<\/strong><\/b>, with 17 and 15 stores respectively.<\/p>\n <\/p>\n Rumors<\/strong><\/b> are circulating that Rolex may eventually close its wholesalers<\/strong><\/b>, thereby restoring the exclusivity of its brand image.<\/p>\n <\/span><\/p>\n <\/span><\/p>\n \t\tA first experiment in Shanghai<\/h2>\n
Future temple of watchmaking circularity<\/h2>\n\n
Bucking the trend<\/h2>\n