But, Why Rolex?

No matter your stance on Rolex, one thing isn't up for debate. They are more popular today than ever before. This is an astonishing reality given that mechanical watches as a product category have become increasingly antiquated in today's fast-moving technological landscape. Looking at the numbers from the Morgan Stanley and Lux Consult reports, Rolex accounts for roughly 32.1% market share of the Swiss watch industry by retail value in 2024. To put that in perspective, if you combine the following five brands that trail them in the report into a single company, and that would include Cartier, Omega, Patek, AP, and Long Jeans, Rolex would still be larger than all of them combined. And it doesn't stop there. In the pre-owned market, their dominance is just as extreme, with some reports indicating that nearly a third of all watches sold in the secondary market involve a Rolex. To make sense of just how influential that is, let's compare it to something more familiar for most of us, smartphones. According to IDC's 2024 global market data, Apple holds around 18.7% of the smartphone market, and Samsung around 18%. Combine those two giants together, and that's roughly the level of dominance we're talking about for Rolex in the Swiss watch world. And it's just narrowly edging out Rolex in that regard. So how did Rolex get here? Why do so many people, from first-time buyers to seasoned collectors, still end up choosing Rolex? In this video, I want to explore exactly that, not from a personal or emotional point of view, but through the lens of human behavior and brand psychology. We'll break down the four biggest reasons Rolex has the market share it does, and why their appeal continues to transcend the category. And as we dive into Rolex, this question of where do you start with Rolex is always one that is brought up. We have an amazing piece of content for looking at the most attainable Rolex models. In this article, you'll notice by collection, the point of entry, the most sought-after models for each collection with different tables and diagrams. Also looking at the prices of different Rolex models over the decades and tracking it with inflation and how it's scaled since the initial release of the models, and going through some of those standard collections that offer up the best value in the Rolex catalog. This is a long, comprehensive article. If this sounds interesting to you, we'll leave it in the description down below. So as we go through the list of points in this video, some will be more specific to watches, while others will focus more on branding. Point number one falls squarely into that first category, about the watches. Now, one of the most common criticisms you'll hear about Rolex is the phrase, there are better watches for the money. Usually when someone says this, they're referencing the fact that you can find a Diver or a GMT for cheaper. Or in another case, they're speaking to the idea that you could get a more artisanally crafted watch for a price similar to select Rolex models. But here's the thing, the numbers tell a different story. Either people aren't aware of all of those alternatives or more likely, those statements miss what Rolex has actually perfected, its product lane. Rolex has found this sweet spot that very few others have, a balance between being precious and practical. They've managed to create a luxury product that still feels usable, resilient, and reliable. Despite how refined and polished modern Rolex watches are, they've never completely abandoned their utilitarian roots. Yes, Rolex is not likely going to be labeled as a tool watch nowadays. However, Rolex still makes some of the most capable watches on the market, ones that look luxurious but perform like professional instruments. The word luxury is a loaded one. It comes with all kinds of adjectives associated. You have precious, valuable, exclusive, and those ideas often make us think of something delicate, something that you have to be overly careful with. Rolex, on the other hand, has developed a watch that perfectly aligns with the modern day watch and luxury consumer, offering a highly sought after, recognizable symbol of luxury that is practical enough to be worn in pretty much any circumstance. I mean, if you think about it, is there a single day or task that a Rolex couldn't handle? Whether you should wear it in certain situations is one thing, but if we're just talking about whether you can, the answer is almost always yes. And that's exactly why Rolex grips people the way it does. When you start thinking about actual wear and use, Rolex makes way more sense than we often give it credit for. Their watches are exceptionally built for what they're meant to do. Their classic professional models like the Submariner, the GMT-Master, and the Explorer were originally designed for diving, flying, and mountaineering, yet they're refined enough to wear with a suit or formal attire. And then you have the more elegant pieces like the Datejust, the Day-Date, or the Landweller. They might look dressy, but underneath they're built really tough. 100 meters of water resistance, solid bracelets, and robust, accurate calibers to go along with it. And if we circle back to the criticism at the beginning, there are better watches for the money, you begin to see why Rolex is so compelling. For those trying to make a more attainable product or those competing for maybe a similar price, but maybe slightly less, they likely missed the mark on the finer details of finishing, or more importantly, providing the feeling of wearing something as prestigious and exclusive as owning a Rolex. Whereas the more artisanally crafted high horology watches that might deliver more craft for the dollar are likely too delicate to match the mighty oyster case that has a century of time proving its ability in everyday life. And yes, there are some amazing competitors to Rolex, but I think this balance is what allows them to be so unique in the marketplace. Rolex watches are simply well-made for the type of buyer that they are trying to attract, as you don't really ever have a reason other than maybe being a bit too flashy for a circumstance to take it off. Here's another comparison that I can draw. Imagine you're shopping for a sports car with phenomenal performance. You could go with something exotic, maybe a Lamborghini, a Ferrari, something loud and attention-grabbing, but a lot of petrol heads out there end up choosing a Porsche 911 instead. Why? Because Porsche, much like Rolex, understands its customers. It can deliver a near supercar level performance all while giving you a street legal vehicle with just enough practicality and elite brand prestige to be a daily driver. In short, that's what Rolex has mastered, understanding what people really want from a luxury product, even when they don't say it outright. So as an industry, watchmaking spends a good part of its modern existence looking backward, trying to really preserve the artistry, craftsmanship, and spirit of its golden era in the early to mid 20th century. And of all the brands that contributed to the growth of mechanical watches during that period, no other brand can claim the same level of influence as Rolex. When you analyze the story of Hans Wilsdorf, Rolex's founder, you recognize that he was a trailblazer of innovation in brand building. If he were alive today, he would likely be pushing boundaries, finding himself in Silicon Valley, working on some new cutting edge technology. In this period though, in his period of existence, that innovation was best applied to the world of watchmaking. But now let's play a quick game of yes or no. I'm gonna go through a few common watchmaking ideas, genres, and features. And as you listen to them, I want you to think, was Rolex influential in developing this concept, yes or no? Ready? First is automatic winding. I would say yes, Rolex was one of the pioneers here. Water resistance, I would say yes again. Oyster case, 1926. Chronometry, absolutely. They're still pushing boundaries today like dynapoles. Diving, I won't say anymore. Aviation, I'll bring up Pan Am and the GMT Master. Magnetic resistance, bring up the Milgauss. Product marketing and branding, come on, that's a huge yes. Bracelet design, how many times have you seen a company rip off the Oyster or Jubilee? Racing, I'll bring up the Daytona, enough said. GMT watches, of course. And then you have things like vertical integration and having the foresight to understand if that was gonna be important, then you have to say yes for that as well for Rolex. So I gave you a lot of the answers for these, so I was leading you in a direction, but that said, if you really spent the time in thinking about your response to all of these, I think the answer has to be simply yes. The world of watchmaking would not be where it is today without Rolex's contributions in the 20th century. Rolex has dominated so many of these concepts, so much so that the frequently traveled path for other brands is to iterate or simply imitate Rolex's ideas. Some might argue that Rolex's designs feel played out today, but I'd counter that in saying that fatigue people often feel around Rolex isn't only because of Rolex themselves, it's because of their influence. We see Rolex everywhere, not just in its own catalog, but in the DNA of countless other watches. And that just shows how deeply the crown has shaped the world of modern watchmaking. Several years ago, I was having a conversation with an executive in the watch industry, and naturally the topic of Rolex eventually came up. He said, quote, Rolex doesn't make decisions for the next quarter or next year, not even the next decade. They think in centuries. That line has stayed with me ever since. And this mindset of playing the long game traces directly back to Hans Wilsdorf, and he was really just a visionary of this concept, a man that clearly was thinking far ahead of his time. Take this example. In the early years of Rolex, Wilsdorf built a partnership with a movement manufacturer called A.Glaire based in Vienne. They were Rolex's leading supplier and delivered time and time again. Then after years of collaboration in the 1930s, Wilsdorf proposed a formal partnership that rebranded A.Glaire, a company that was still going to be family owned as having more connection to Rolex that had this exclusivity of their manufacturing process. The reason I bring this up is that Switzerland still values specialists for watch production, and the idea of in-house manufacturing during that period was never a talking point. Wilsdorf understood the power of vertical integration nearly a century before it became a commonly discussed buzzword. The move positioned Rolex for explosive growth in the decades that would follow it. And in recent years, you saw Rolex has spent billions of dollars entirely absorbing A.Glaire and other suppliers creating a truly self-contained ecosystem. Rolex's unspoken superpower is its ability to protect its image and think long-term. Rolex operates as a trust, meaning its mission isn't short-term growth, it's to preserve the brand's prestigious legacy for generations to come. And that mindset shows up in everything that they do. First, they know when not to change. Rolex doesn't reinvent their icons, it refines them. Subtle improvements, modernized materials, better movements. Secondly, Rolex is a brand that will not try to follow trends. Instead, they either start them, ignore them, or give them validity when they feel it is safe to do so. Think about its adoption of silicon components with the release of the revolutionary escapement concept of Dynapulse this year. Further, you can look at the decisions of case sizes, such as the Submariner to 41 millimeters or the Explorer series, now including 36 and 40 millimeter options. Or the decision to move into certified pre-owned and legitimizing the category despite other brands being earlier to the punch. Three, even amidst chaos, they don't panic. Think back to the 1970s when the quartz crisis was creating havoc for the Swiss watch industry and the industry's jobs were cut in half in a little over a decade because of the newly industrialized quartz tech. Rolex explored quartz, sure, but they stayed true to their roots in mechanical excellence while their peers scrambled. When the dust settled, Rolex stood stronger than ever, becoming the defining name in modern luxury watchmaking. And then fourth, they maintained the prestige of the brand and value retention of their products. Now, this point might upset some people because there's been a lot of talk about Rolex over the last five years about their availability. If Rolex were a public company, make no mistake, they'd be under pressure to pump out more watches to hit earnings. They also would likely have a more vocal CEO doing product presentations like Steve Jobs, but they don't. Making highly precise mechanical watches at scale is difficult enough. And even if Rolex could flip a switch to make more watches, they will always consider the implications of how it could hurt the brand's value long-term. This is a big reason why Rolex watches hold their value so well. They act like custodians of their legacy, like a museum preserving a great work of art, not opportunists chasing a quick profit. So if you were to ask a random person on the street to name a Swiss luxury watch brand, odds are the first name out of their mouth would be Rolex. Apart from creating some of the most legendary watches of all time, Rolex developed the strongest brand in watchmaking, transcending the category altogether. Forbes came out with a piece where they ranked the top 100 most valuable brands in the world, placing Rolex in the 80th position ahead of other names like Lego, Goldman Sachs, Nintendo there, Dell, and FedEx, just to name a few. A wild feat, all the more impressive given that mechanical watches are no longer the tool that they once were. As watches evolved from being about utility to more craftsmanship, luxury, artistry, and status, Rolex once again found itself perfectly positioned. This didn't happen overnight. It was a century-long masterclass in brand building with just a bit of luck in the process. In 1926, Hans Wilsdorf tapped arguably the first brand ambassador in the industry, Mercedes Gleitz, to wear a Rolex watch around her neck as she aimed to swim across the English Channel. Then you had the gifting of the Datejust to President Eisenhower by Rolex, which may or may not have influenced later presidents wearing Day-Dates in the years to come, as well as other global figures and positions of power. In the 1950s, Rolex created watches that can handle the extremes, from peaking summits to exploring underwater depths and navigating the open skies. Rolex also developed key connections to sports like golf through prominent figures like Arnold Palmer, Gary Player, and Jack Nicklaus. And then there was their connection to racing as they were a primary sponsor of the Daytona International Speedway. Pop culture icons like Steve McQueen, Paul Newman, and the world's favorite fictional spy were all fans and wore Rolex. Rolex didn't just market success, it eventually became a symbol of it. You probably have heard a story about someone who worked for success and went out to buy a Rolex because they, quote, made it. In the 1950s, they had a tagline that stated this vision very proudly, quote, men who guide the destinies of the world wear Rolex watches. That statement might sound bold, but in hindsight, it was prophetic. In a world of nearly endless options for buying a watch, Rolex's dominance is a testament to long-term thinking and the consistent production of stellar products over the decades. Whether you love them or not, they've earned their position by knowing precisely who they are and never losing sight of it. But all right, guys, that is my video here today looking at the case of Rolex. Why are so many people obsessed with Rolex despite all the options in the industry? Why are they so definitively number one? This was my take. I really wanted to think about this. I wanted to also remove some of my own opinions about Rolex. I mean, I am a fan of Rolex, but that said, I wanted to truly look at this as an isolated case study because it is pretty remarkable what a brand in an industry that has had so much change over the last hundred years has been able to accomplish to really transcend all other brands in its category, which almost becomes synonymous with luxury watches for people that don't know anything about the world of luxury watches. But what do you think? Do you agree with some of my takes? Do you think there's other reasons why Rolex dominates in the landscape of watch collecting today? Leave a comment down below. If you enjoyed this style of video too, give this one a thumbs up, subscribe, hit the bell icon. Really appreciate that. Also, 70% of the people that follow this channel, they are not subscribed. So if you could do me a favor, really would appreciate that. YouTube also, they care about that thing probably more than I do, but still really appreciate it. Also check out teddybaltister.com, full authorized dealer for over 35 brands. Every purchase from our website comes with quick and fast fulfillment, dedicated customer support, and a full factory warranty for all the products that we offer. Also, if you have any questions about watches on our website, feel free to reach out to us on live chat, little bottom button at the right corner of the site. That's a person on the other line. It's not AI. Also, if you're ever in the Cleveland market, love to be able to help you out at our boutique. All the people in that store are watch people. They want to help you out with your next purchase and really would appreciate being able to help you. I know you can buy a watch from a lot of different places nowadays, but it allows us to keep doing what we're doing here. We love what we do. Guys, thank you again so much for watching. Be well, and I'll see you all very soon.