Rolex buys retailer Bucherer in surprise move that will boost its presence globally

The largest watchmaker in Switzerland, Rolex, has made an unexpected acquisition of Bucherer, a prestigious retailer with a 135-year-old history. Despite this development, both companies will maintain their individual brand identities and carry on with their operations independently.

The exact amount of the agreement between Rolex and Bucherer was not revealed by Rolex. However, this deal will greatly enhance Rolex's global presence. Rolex also mentioned that the merging of Bucherer into the Rolex group will occur once regulatory bodies have given their approval for the acquisition.

Geneva-based Rolex, a privately owned company, has announced its decision to purchase the watch retailer previously known as an independent entity. This action was prompted by the choice made by Jorg Bucherer, who lacked direct descendants, to sell his company's business. The acquisition was confirmed on Thursday by Rolex.

This decision showcases Rolex's "wish to continue the prosperity of Bucherer and maintain the strong relationship that has connected both companies since 1924. Over the course of more than 90 years, the two firms have collaborated in tandem and have mutually contributed to each other's accomplishments and development".

Rolex, completely possessed by the Hans Wilsdorf Foundation, solely possesses and manages a single establishment globally, located in its birthplace, Geneva. The brand proffers its timepieces via endorsed sellers across the globe.

Bucherer, a renowned luxury watch retailer headquartered in Lucerne, offers a diverse selection of high-end watch names. With a presence in several countries including Switzerland, the United States, England, Germany, France, Denmark, and Austria, Bucherer boasts over 100 sales locations worldwide.

Bucherer, a trusted distributor of Rolex since 1924, offers Rolex watches at 53 of its stores and the more affordable Tudor brand at 48 of its outlets.

Additionally, the watch vendor operates as an authorized post-purchase support hub for both labels and houses watch mending studios.

Rolex and Tudor function autonomously, with the latter having its own CEO.

In accordance with the conditions of the recent purchase, the leadership of Bucherer will not undergo any modifications, and Mr. Bucherer, the sole individual to have had personal acquaintance and collaboration with Hans Wilsdorf, the visionary behind Rolex, will retain his esteemed position as honorary president of the Bucherer organization.

"The Rolex company firmly believes that this purchase is the optimal resolution – not just for its own labels, but also for all the watch and jewelry affiliated brands, as well as for all the staff members within the Bucherer group," stated the corporation.

In the year 2018, Bucherer successfully obtained ownership of Tourneau, a watch retailer based in America, as a means of expanding its business. This strategic decision was made following their acquisition of The Watch Gallery situated in the United Kingdom a year prior.

Following a period of restrained expenditure in 2020, the craving for goods and services experienced a resurgence in both China and the United States during 2021. However, this upturn was subsequently hindered by the conflict in Ukraine, surging inflation rates, and disruptions in the supply chain.

According to Deloitte, the Swiss watch sector had a remarkable year in 2021 as its export value reached a whopping 21.2 billion Swiss francs. This not only surpassed a record set in 2014 but also surpassed the levels seen before the unfortunate outbreak of the coronavirus pandemic.

Over the last couple of years, the United States has emerged as the primary market for the Swiss watch industry. In 2022, it accounted for a significant 15 percent of all watches exported, according to the consultancy.

According to a recent survey conducted by Deloitte, industry leaders have expressed their belief that the United States stands as the upcoming colossal market for growth. Following closely behind are India, China, and the Gulf nations, which also show promising potential.

Hong Kong's market is still facing a downward trend, while China has not yet regained its previous level of exports before the pandemic hit. On the other hand, Europe and Japan have managed to maintain their stability, with 30% and 6% export shares, respectively.

Rolex, renowned for its Daytona, Submariner, GMT, and Master II timepieces, produced a staggering quantity of over one million watches, resulting in an impressive revenue of over $13 billion in the year 2022.

According to Deloitte, high inflationary pressures in an unpredictable market have led to luxury watches being viewed as secure investments that retain their value.

Based on the study conducted by the consultancy, individuals who buy watches as a means of investment are driven by two main factors. One reason is to sell the watch later at a higher price, which accounts for 36 percent of respondents. The other motive is to expand and vary their investment portfolio, which is reported by 33 percent of participants.

Chinese consumers have a strong desire for diversifying their investment portfolios, with 55 percent showing particular interest. On the other hand, Singaporeans are more inclined towards resale opportunities, as 49 percent of them are attracted to this option. In Italy, around 31 percent of individuals are predominantly interested in buying watches to pass on to their family members as heirlooms.

Last updated: August 25, 2023, at 5:23 in the morning