Invest Like the Best with Patrick O'Shaughnessy

Rolex: Timeless Excellence - [Business Breakdowns, Forever Episode]

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Jun 6, 2023

Ben Clymer, founder of HODINKEE and luxury watch expert, dives deep into the enigmatic world of Rolex, illuminating its iconic status and non-profit structure. He shares insights on the brand's history, innovative marketing strategies, and commitment to craftsmanship. The allure of the Rolex Daytona and its evolution from obscurity to a luxury symbol is explored, along with the emotional connections formed through high-end watches. Clymer also discusses the complexities of customer loyalty and the challenges buyers face in accessing these coveted timepieces.

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ANECDOTE

Favorite Rolex

Ben Clymer's favorite Rolex is the Daytona, particularly the early 6239s.
He's fascinated by its history, especially since its movement wasn't produced by Rolex until the 2000s.

INSIGHT

Shifting Purpose of Watches

Before 1969, mechanical watches were the only way to tell time accurately, serving a purely functional purpose.
The rise of digital timekeeping shifted the focus of high-end watches from utility to luxury and status.

INSIGHT

Luxury Strategy

Rolex's marketing strategy involves maximizing awareness while limiting availability, creating a sense of exclusivity.
This strategy, coupled with consistent marketing investment, has solidified Rolex's position as a leading luxury brand.

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Today, we are running a special episode from our show Business Breakdowns. In this conversation, Ben Clymer does an incredible job breaking down what makes Rolex so special. If you enjoy this episode, follow Business Breakdowns for more discussions like this.

Founded in the UK in 1905 under the name Wilsdorf & Davis, Rolex has become the leading name in luxury watches. But, while the company’s products are iconic, the business itself is highly secretive. Owned by a Foundation and run as a non-profit entity, little is known about Rolex. To unlock the secrets, we are joined by Ben Clymer, founder of HODINKEE, and an expert on all things luxury watches. Ben has had rare access to Rolex and the people behind the manufacturer, making him the perfect person to dissect this business with us. Please enjoy this excellent Breakdown of Rolex.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Show Notes

[00:03:01] - [First question] - His favorite Rolex watch ever

[00:04:24] - What makes the Rolex Daytona such a special watch

[00:07:19] - The job-to-be-done for high-end watches beyond just telling them the time

[00:12:18] - The strategy behind marketing luxury products: The Luxury Strategy

[00:14:34] - An overview of the Rolex business

[00:19:38] - The history of Rolex

[00:38:45] - Their genius in marketing and distribution

[00:41:55] - How they make decisions and what others can learn from them

[00:47:14] - The financials of Rolex and other luxury watch brands

[00:49:02} - Most important business lessons others can learn from Rolex

[00:52:54] - Other luxury brands worth studying

[00:57:26] - Negative lessons gleaned from Rolex