Rolex acquires Bucherer

Rolex, The world's largest watch brand, Has acquired Bucherer, A major watch distributor. This move has further strengthened the partnership between Rolex and Bucherer, Who have maintained an authorized dealer relationship for nearly 100 years. Rolex has stated that Bucherer will continue to operate independently but there is much attention on how this will impact the market.

Here are some noteworthy perspectives regarding this news.

What is Bucherer?

Bucherer Berlin / ⓒ Watchtime

Tourneau TimeMachine, Bucherer New York / ⓒ Bucherer

Bucherer holds significant influence in the watch industry in both the United States and Europe. Bucherer is a distributor specializing in watches and jewelry, Operating in Europe and the United States. Out of more than 100 locations, 53 are Rolex stores and 48 are Tudor stores, Accounting for two-thirds of Bucherer's sales. In 2018, Bucherer greatly expanded its business by acquiring Tourneau, The largest watch retailer in the United States. Rolex has announced that there will be no changes to Bucherer's management structure as a result of the acquisition.

The background of the Rolex acquisition Lack of Bucherer heirs

According to Rolex's official statement, The Bucherer family decided to sell the company as there were no direct descendants to continue the business. Public opinion suggests that this was a natural decision, As Rolex best understands the operation of Bucherer, Its oldest distribution channel. There is also growing curiosity about whether Rolex will become more involved in the business. Watch enthusiasts are also interested in whether the Bucherer family's watch brand, Carl F. Bucherer, Will become a subsidiary of Rolex. According to local Swiss opinion, Rolex and Bucherer are seen as having a brotherly and close relationship.

Will the number of Rolex boutiques increase?

Rolex directly operates only one store. Except for a single boutique in Geneva, Where the company is based, All Rolex stores are run by authorized dealers or retailers, With the company acting as a wholesaler. There is curiosity about whether Bucherer's Rolex stores will now be converted into Rolex's own boutiques. It is not yet clear whether Rolex will secure retail margins without converting to boutiques for cost savings or will push for boutique conversion to manage all sales processes.

Expanding CPO

ⓒ watchpro

Rolex's Certified Pre-Owned (CPO) program has been in place since December last year. Bucherer was the first company to participate in this new project. Although there were concerns that it could negatively impact the resale market culture, It has not yet generated a significant market response. However, Rolex, Known for its long-term planning, Is expected to gain momentum in tracking and securing pre-owned Rolex watches through this acquisition.

Ability to monitor watch brands

ⓒ Kurier/Jeff Mangione

Rolex can now monitor the performance of luxury brands handled by Bucherer. This means Rolex is now in a position to observe the sales and inventory of renowned watchmakers such as Cartier, Jaeger-LeCoultre, IWC and Panerai. In Bucherer's shop-in-shop structure, Where brands compete fiercely for prime locations, It is worth watching whether Rolex and Tudor will receive preferential space allocation, Which is of interest to both consumers and the industry.

The impact of the Rolex Bucherer acquisition

On the 25th, When news of Rolex's acquisition of Bucherer reached the European stock market, The share price of Watches of Switzerland Group, A competitor of both companies, Plunged 20.91% in a single day on the London Stock Exchange.

Watches of Switzerland Group London stock market status on the 25th

Watches of Switzerland Group sells luxury watches such as Rolex, Cartier, Omega and TAG Heuer. This may reflect a sense of crisis over the emergence of a giant in the watch industry.

This has been an update on the hottest news in the watch industry, The acquisition of Bucherer by Rolex. We will continue to monitor and update the market situation going forward.