Continuous Price Increases by Luxury Brands

With the strong dollar and unprecedented inflation persisting, Retail prices in the luxury industry continue to rise. At this time, There are many excuses to raise retail prices such as increased raw material costs and high exchange rates, So everyone is paying attention to the domestic price increase of Rolex. In the midst of this, A domestic media outlet reported that Rolex is preparing for its second price increase of the year.

ⓒ Theguru

According to Theguru, In Korea, The price increase will likely be applied first at duty-free shops, And on the 22nd, Most models including Day-Date, Submariner, And Oyster Perpetual will see price increases at stores worldwide. The increase is expected to range from 4.38% to 5.45% depending on the model.

Unwelcome Guest Price Increase

In fact, For buyers planning to purchase a watch, A “price increase” is a significant variable. Especially for luxury watches, Even a 1% increase can mean a price jump of millions of won, So watch enthusiasts are always on alert. However, Since price increases are often announced suddenly, It is impossible to know in advance when they will happen, And there is rampant speculation that if overseas or duty-free prices rise, Domestic prices will follow.
Let us look back at when Rolex retail prices have changed in the past and how the market reacted at those times.

Wave of Price Increases
(2008 ~ 2012)

The financial crisis that swept the world from 2007 to 2008 sent the global economy into panic, And soaring exchange rates and raw material prices also drove up watch prices.

2008 Rolex Price Increase Trend / VIVER Index

In 2008 alone, There were as many as three price increases. This was a very unusual case, And according to employees at the time, Even just changing the price tags was a difficult task. Popular models that had not exceeded ten million won, Such as the Daytona Ref. 116520 and Deepsea Ref. 116660, Ushered in the era of “ten million won” watches, Further solidifying their image as high-end timepieces.

Also, The words of watch enthusiasts who said, “If the Submariner costs ten million won, I won’t buy Rolex anymore, ” became reality in 2012. Due to the rising exchange rate at the time, Some models were cheaper than at duty-free shops, And with prices rising continuously, Rolex stores were left almost empty except for a few less popular products, Much like the situation after COVID-19. This seems to support the saying that “luxury goods remain strong even in a recession.”

Daytona 116520

40mm, Black, Oyster

Submariner Date 116610LN

40mm, Black, Oyster

GMT-Master 2 116710LN

40mm, Black, Oyster

The Price Increase Relay Resumes
(2019 ~ 2022)

Submariner 116610LN Resale Price / VIVER Index

After a period of stability, Price fluctuations quietly began to reappear in 2019. In March 2019, There was an increase of about 3 to 5% for some items, And at the time, Many felt it was understandable since there had been no price changes for a long period. However, The sudden price change on January 1, 2020, Surprised many consumers, And the much-anticipated 2022 price change was powerful enough to shake the entire market. The increase of about 8 to 13% compared to the higher retail price confused buyers who were about to make a purchase, And above all, It had a huge impact on the secondary market, Resulting in explosive premiums.

Submariner Date 116610LN

40mm, Black, Oyster

Not All Product Prices Increase

ⓒ Rolex

In 2022, The prices of models with “MOP (Mother of Pearl)” dials decreased. Consumers who purchased those models the previous day were likely surprised, But in the past, Gold Submariner models and Turn-O-Graph also experienced price drops. Of course, Prices did rise again, But the brand has never publicly explained under what conditions prices go up or down.

Lady-Datejust 28 279173

28mm, White Mother of Pearl/Diamond, Jubilee

Lady-Datejust 28 279383RBR

28mm, White Mother of Pearl/Diamond, Jubilee

What Is the Outlook?

Now that articles about Rolex retail price increases have been published, It seems certain that there will be a price increase within this year. However, One cannot be complacent, As luxury watch prices are sensitive to economic conditions and, As in the past, There may be several increases in a single year. (News of another price increase may come again soon.) I believe the right time to buy a watch is when you have enough budget and find a product you like. For this, It is important to always be flexible and adapt to the watch market.