Ferrari, Rolex, and the Risks of Gatekeeping
Ferrari and Rolex carry just about as much cachet as any brand can, and given their histories, it’s easy to understand why. But the two revered luxury brands have made some choices that have come back to haunt them, and will probably to continue do so. Let me explain.
For context, I own a Rolex and a Ferrari. (OK, Boomer, you’re fancy, we get it.) The Rolex I bought in 1981, and I wear it almost every day. I bought the Ferrari in 2017, a 2005 model. I use it like most “modern” Ferrari owners, which is to say, not much. I love these brands and the incredible machinery they’ve created over the years, but their gatekeeping strategies are becoming a turn-off, and I don’t think I’m the only one who feels that way.
Try buying a new Rolex watch. That lovely display at the authorized dealer is empty. Why? Because there are no new watches available in the system. They have been sold by authorized dealers to “favored customers,” almost all of whom are not end users but friends, influencers, celebrities, used watch dealers or flippers. There is nothing on the store shelves, but conveniently, a quick look at online, non-authorized retailers reveals a much different story. Fresh 2024 watches are for sale at a markup over their retail price. Who benefits? Rolex, their retailers, and a small group of connected individuals. The losers? The rest of the world who would like to buy a new Rolex at retail.
So what happens? Those rejected buyers buy something else or go without. The bitter feeling of being rejected by a brand might not resonate at first, but it lingers. That lingering feeling can cause resentment. And that resentment sends qualified buyers to other stores. Rolex, a Boomer “must-have,” has become a Gen X reject, a Millennial inside joke, and a Gen Z “I’m never going to afford a house, so I’ll rent one for my next Tik Tok” prop.
Is it just me, or am I the only one who thinks that paying the favored client, the brother of the watch retailer’s owner, or the flipper a $5,000 to $10,000 ransom (or 100 Timex watches at $100?) for what is a two-month-old but now “used” watch is the height of arrogance, or perhaps stupidity? Is Rolex leveraging its future in an era when hundreds of new watch brands and thousands of new watch models appear every year?
Rolex has a sister brand, Tudor, which is where they are now placing their innovative and lesser-priced timepieces. However, Tudor as a brand is less aspirational than Rolex. Rolex makes it perfectly clear that they are not the same as a Tudor, and Tudor reciprocates. But I must wonder, does the lack of a new Rolex drive buyers to other brands? I think it does. That Patek Phillipe, Blancpain, Chopard, IWC, or Audemars Piguet might have flown under the radar unnoticed if not for a potential owner leaving the Rolex store empty-handed.
On to Ferrari. It is one of the best-known of all brands not just in the U.S., but in the world. If you don’t have the means or access to a genuine Ferrari car, you can get genuine (or licensed) Ferrari hats, key chains, license plate frames, scale models, shirts, socks, jackets, posters, model cars, and hundreds more trinkets, and thousands more if you count the unlicensed rip-offs.
Just to be clear, you can walk into a Ferrari dealer and buy a new Ferrari, should you have the coin or credit. But there is a treasure trove of new Ferraris you can’t have, that is until you have worked your way up the sales ladder, or are a favored client, aka a popstar, an influencer, or a celebrity. Again, mere mortal’s money is not good enough, you have to buy car A, B, C and possibly D and E before you can get the coveted F, G, or H. Maybe I’m a luddite, but I just don’t get it. Call it brand management, or call it savvy marketing if you follow the company line. I don’t agree.
I’ll call it something else. This extreme “hide the good stuff” philosophy has—I believe—helped fuel the unprecedented growth of rival brand McLaren. That’s a good thing for the marketplace, as competition breeds innovation. McLaren Cars (Now McLaren Automotive) introduced its first production car in 1992—the now legendary F1. After an extended period of dormancy, they have more than hit the ground running with a plethora of new models since 2010.
Now, let’s talk Lamborghini. In my opinion, the Lamborghini brand is in ascendancy. They, like McLaren, are seemingly everywhere you find high-value sports cars, be it on track, on the street, or at cars and coffee or concours lawns.
Has Ferrari’s brand management helped create the opportunity for the growth of other brands? Is it just me, or have a good percentage of the car guy Cool Kids (particularly the younger ones) jumped from the Prancing Horse to the Snorting Bull or to McLaren?
I will concede that my observations are mostly, well, observational. I can tell you that on the Monterey peninsula in August, I saw groups of Lamborghinis and McLarens out in force on group drives. Ferrari? Some, but not as much. Perhaps the collectors are buying Ferraris while the drivers are getting McLarens and Lamborghinis.
Maybe I saying the quiet part out loud, or maybe I am off base. They were always exclusive brands, but based on what I see, I have to ask the question: Does the emerging hyper-exclusivity of Rolex and Ferrari, two great, storied, aspirational brands, mean that they have sold their future at the expense of the present?
FWIW “I don’t get it” applies to Ferrari and Rolex in general, not just in regard to “gatekeeping”.
Overpriced status symbols for insecure men.
Sounds like similar comments usually made about Corvettes. These comments are mostly rooted in good old fashioned, plain jealousy.
What makes you think a man who owns a Rolex or a Ferrari is insecure?
Naw! You’d understand if you had one and drove it.
You’re not off base. I can dismiss this whole thing as first world problems, but it is pretty silly. I don’t own a Ferrari or a Rolex, but I’d like to think I’m a pretty serious car guy. (I’m 48 and have owned 51 cars thus far)
I would expect treatment more in line with how our local MB dealer does business. Buy a C-class, get a gift basket and a thank you note. You’re a Mercedes owner now. I had no idea Rolex was so snooty. I will stick with Land Rover, BMW, MB, Corvettes… all of which we own and all of which have retailers who are happy to sell you whatever car you want.
Lamborghini is a special case. McLaren, Ferrari, Porsche, even Lotus come from racing. Lambos are for show offs, that’s their entire history.
The problem is that most new Rolex’s aren’t sold like that, Rolex makes over a million watches a year – almost 100k a month – how many 2024 watches can you find for sale at any given point? If the majority of Rolex’s are grey-market/back-door sold from authorized dealers, then at any given time shouldn’t there be 50-60-70k almost brand new 2024 Rolex’s for sale (honestly it would be a lot more)? Where are they? Oh and Patek, AP, Omega, etc all do the same thing for in-demand models, go find your local AP dealer and ask how long the wait list is for a simple Royal Oak.
Same with Ferrari, Porsche, McLaren, Lamborghini – they release a very limited edition model there is now more demand than supply – if you are a dealer and you are limited to what you can sell the car for – do you sell it to the random guy who walks in who may never buy something from you again, or do you sell it to your best customers who have bought plenty from you and will continue to buy stuff from you into the future? We all know the answer to that question 🙂
No doubt there are flippers out there, given the money involved that will always happen, if you can make 50-300+% by doing nothing more than buying something and selling it, a chunk of people will do that.
You’d want to think that a Ferrari or McLaren owner would prefer a Richard Mille over a Rolex. You can pick up a lower end for under 50k but you’ll be forced to carefully shop. Then there’s the ‘preowned’ market as well. As far as I know Tudor is marketing more towards sports watches and the like. Different watches for different needs and occasions you know. As far as Patek Phillipe going ” unnoticed ” by who? They are generally considered to be one of best, if not the best by most. A Grandmaster (one of three) sold for 31 million +. The record price for a wristwatch as far as I know. There are still some little known ‘cottage industry’ makers that will custom make you a watch using their own handcrafted movements. (Many even somewhat more expensive manufactures now use shared movements. Some are better than others. Like cars do the research) . But prices can start at about a million and you’ll have to wait even longer than that hard to find Rolex.
Fascinating. I don’t quite get it about Rolexes (my Rolex days are far in the past), because I think there are better looking watches out there (a matter of taste) It is a bit astonishing that with all the watches they crank out, you can’t just buy one at retail. Sounds like a good argument for buying either a vintage Rolex, or an Omega, or one of the better competing brands. And I’m pretty sure that despite their efforts, Patek is still the top of the watch heap.
Ferrari has had that tiered thing going on for years, where ‘friends’ of the company work their way up the ladder to finally get a crack at an Enzo, or LaFerrari, or whatever. Restricting the supply and requiring that you get your ticket punched a few times before you can buy the zenith of Ferrari models is something they’ve done for years. I think anyone who buys into all that is either stupid, or rich, or both.
It’s a manufactured exclusivity all around. If you want to try to get something REALLY rare and exclusive, try to get your hands on a Dumble guitar amplifier. There are no more new ones, and folks who own them are holding tight. And with good reason.
I had a Rolex. I aspired to a Ferrari along the line after being fortunate enough to have purchased a bunch of vintage BMWs I wanted. No more. What I feel these brands don’t understand well enough is their tactics work with their current customer base higher end, but the foundation for that is eroding, fast. Any potential buyer can find all the information they want for the models they want to own – wasn’t that way a couple decades back. Now, their new class of buyers are being driven to other brands because of being told they “can’t get the good stuff”? I and a LOT of others will wave as we drive off in a different brand we consider we have a better connection with. And personally, I’ll be checking the time on my A. Lange as I do so.
I was in Switzerland last year and walked into a Rolex shop. Salesman super nice. Each watch was “display only” and nothing in stock. Why the heck were the doors open? It’s a museum not a store
This year I was in Porto Fino. Went into the Rolex store thinking maybe last year was a Covid supply issue. Noooope. Nothing for sale. Display only
I happily spent 25,000 on a Breitling. I have a Rolex from the years and bloke could buy one. It’s collecting dust on my dresser
Owning things solely for the purpose of showing off to others is a waste of energy and money. Who cares what Ferrari or Rolex do … there are other great automobile and timepiece choices.
I would never own either as they are not worth the price and the utter nonsense of the very process you outline well. To quote Mrs. Doubtfire “you must be compensating for something “!
If you need that compensation, then endure the nonsense. I will pass you by keeping perfect time with my Seiko in my Ford GT.
I find it fascinating that so few care about the Grand Seiko or Astron. Both superior timekeepers, yet totally uninteresting to most.
I am guilty of owning a vintage Tudor (amongst other fine Swiss watches, and a daily worn Citizen Skyhawk).
I do have a lot of fun wearing it though. A persons reaction to it generally tells me alot about their watch knowledge. “Why does your watch have a Rolex winder” or “what year is that?” initiate very different conversations.
Its funny how guys not so successful think successful men are hiding something!!
Trust me. a guy in a Ferrari & wearing a Rolex won’t get passed by a loser in a Ford GT!!
Those who hoard Ferraris do not wear Rolex timepieces, they look to Richard Mille for that.
I don’t wear a watch or any jewelry so I’ll just look at my phone. If your buying a car to impress someone else and not to Really Drive it, I feel sorry for you. Buy a painting. I don’t want or need anything that badly to be in their club. 🤔
What watch ?, gave my Rolex to my son, now my Ferrari keeps the time
Thus why the vanity plate on my Lamborghini is “ENZO SUCKS”. And consult the last few years sales numbers of Lamborghini vs Ferrari. This speaks volumes – along with Lambo buyers being significantly younger…
For the most part, I am completely ignorant of these brands and their sales operations. Yes I know the brands, however, don’t give a hoot about them. I have a one word response: “Impractical”. I fell down while out for a walk. Broke my wrist and my wrist watch was in various pieces on the ground. To a Rolex owner this may have been a tragedy or a simple inconvenience, to me it was simply a reason to stop wearing a wrist watch. Now I check the time using my flip phone which is in my pocket. I also I am not that impressed with Ferrari’s, Lambo’s etc. Their styling is full of broken lines and the maintenance and repair costs totally absurd. I still pay a lot for my Porsche’s, however, I’m at my reasonable limit right there. The value is still questionable. There certainly is no value above that. My Porsche’s are not a status symbol. I use the Cayenne to go to the dump. That’s practicality. I bought my 356B Cabriolet in 1967 because it was simple, well made, fun to drive and my wife and I were 24 year old kids that wanted a used sports car. Fifty seven years later, still have the same wife and the same car. I think that two 81 year old grandparents going for a ride in a 61 year old used sports car with the top down is enough status and has nothing to do with the makers badge on the car.
So true, lovely.
Have a 55 year old Alfa GTV that I bought new, it is fun, looks great, runs great, and like you I look at time on my phone.
BRAVO!!
Ferrari can keep their policies and their cars. I have an acquaintance who has bought into all this nonsense. If was fun finding out it was easier to get in and out of his Roma, than it was getting into my 944S. We went to the Orlando Ferrari dealer and I was out of my mind seeing not one, but two 288 GTOs. He and his son were only mildly interested. For me, Ferrari hasn’t built a driver’s car since 2008. I guess that since Ferrari owners don’t drive them, that is an acceptable business practice.