Jean-Frédéric Dufour, the CEO of Rolex, has voiced his discomfort with the perception of Rolex watches as investment pieces. In an interview with the Swiss German-language newspaper Neue Zürcher Zeitung, Dufour emphasized his concern, stating, “I don’t like it when people compare watches with stocks. This sends the wrong message and is dangerous. We manufacture products, not investments.”
Dufour’s remarks come in the wake of Rolex’s unveiling of a collection of new timepieces at the Watches and Wonders trade show in Geneva. Among the new releases is a $60,000 watch featuring a rubber bracelet, while the company has also discontinued a white-gold throwback Le Mans edition of its Daytona model.
Despite Dufour’s reservations, there is a prevalent trend of treating Rolexes as investments. Websites like Stock X, originally focused on the resale of collectible sneakers, now track sales data for secondhand Rolex watches, akin to tracking stock prices.
However, Dufour’s stance may be influenced by the challenges facing the luxury watch market. When questioned about the outlook for 2024, he acknowledged it would be “a challenge,” attributing the difficulty not only to the rising price of gold but also to shifting consumer behaviors. The era of extravagant spending by crypto millionaires and other affluent individuals on high-end luxury items appears to be waning.
Dufour remarked, “A phase in which all manufacturers were doing well is coming to an end,” reflecting a broader industry shift.
Indeed, recent market reports from the Federation of the Swiss Watch Industry indicate a reversal in Swiss watch exports. After more than two years of steady growth, Swiss watch exports experienced a significant decline of 3.8% in February. This downturn was attributed to adverse base effects and a notable decrease in demand from Greater China.
Notably, China and Hong Kong, major markets for Swiss watches, recorded declines of 25% and 19%, respectively, compared to the previous year. This trend aligns with recent warnings from companies like Kering, the parent company of Gucci, which highlighted slowing sales in China amidst economic uncertainties.
