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

In an unexpected twist, Rolex, the largest watch brand in Switzerland, has acquired Bucherer, a well-established luxury retailer with a 135-year-long history. This purchase allows both companies to maintain their distinct identities and operate independently.

The exact worth of the agreement between Rolex and Bucherer was not revealed by Rolex. This partnership will enhance Rolex's worldwide influence. Rolex further mentioned that the incorporation of Bucherer into the Rolex group will only take place after the takeover has received approval from competition authorities.

Geneva-based and privately owned Rolex announced on Thursday its decision to purchase the watch retailer that had previously operated as an independent entity. This acquisition comes after Jorg Bucherer, the owner of the company, made the choice to sell his business due to his lack of direct heirs.

This decision demonstrates Rolex's "aspiration to uphold Bucherer's prosperity and maintain the strong alliance that has connected both organizations since 1924. For over nine decades, these two enterprises have collaborated and made valuable contributions to each other's accomplishments and advancement".

Rolex, a company owned entirely by the Hans Wilsdorf Foundation, possesses and manages just a single retail outlet worldwide, situated in its place of origin, Geneva. The brand distributes its timepieces through approved merchants across the globe.

Bucherer, a company headquartered in Lucerne, offers a range of high-end watch brands. They have retail locations in Switzerland, the United States, England, Germany, France, Denmark, and Austria, totaling over 100 stores worldwide.

Bucherer, an authorized seller of Rolex since 1924, offers Rolex timepieces at 53 of its retail outlets, while also showcasing the more affordable Tudor line at 48 of its stores.

The watch store is additionally an authorized maintenance center for both brands and offers workshops for repairing timepieces.

Rolex and Tudor work separately, with the latter having their own CEO.

According to the conditions set forth in the most recent agreement, Bucherer's leadership team will remain intact, and Mr Bucherer, who had personal acquaintance and collaboration with Hans Wilsdorf, the mastermind behind Rolex, will uphold his position as the esteemed president of the Bucherer group.

"The Rolex company firmly believes that this purchase is the optimal resolution – not just for its own labels but also for all the timepiece and accessory collaborator brands, along with all the staff members of the Bucherer group," stated the firm.

In the year 2018, Bucherer obtained ownership of Tourneau, a watch retailer based in America, as a significant step in its growth strategy. This decision followed its previous acquisition of The Watch Gallery in the United Kingdom, which occurred a year earlier.

Following a period of restrained expenditure in 2020, there was a resurgence in demand in China and the United States in 2021. However, this recovery was subsequently hampered by the conflict in Ukraine, elevated levels of inflation, and complications within the supply chain.

According to Deloitte, the Swiss watch industry experienced exceptional performance in 2021. The total value of exports reached a staggering 21.2 billion Swiss francs, surpassing the previous record set in 2014 and recovering beyond the levels seen before the COVID-19 pandemic.

Over the last couple of years, the United States has emerged as the largest individual market for the Swiss watch sector. In 2022, it represented approximately 15 percent of the total exported timepieces, according to the consulting firm's report.

Business leaders interviewed by Deloitte have indicated that the United States is poised to become the next major market for growth, closely trailed by India, China, and the countries in the Gulf region.

The market situation in Hong Kong is still on a downward trend, while China has not been able to return to its pre-pandemic level of export contribution. On the other hand, Europe and Japan maintain a steady market share with 30 percent and 6 percent, respectively.

Rolex, famous for its Daytona, Submariner, GMT, and Master II timepieces, produced and sold a staggering amount of over a million watches, resulting in a mind-boggling revenue of over $13 billion in 2022.

According to Deloitte, high levels of inflationary pressures in a volatile market make luxury watches a reliable source of value retention.

Based on the findings of the consultancy's study on consumers who buy watches as a means of investment, the primary reasons for doing so are to later resell them for a pricier sum (36%) or to expand and vary their investment portfolio (33%).

The Chinese have a strong inclination towards expanding their investment options with diverse portfolios (55 percent), whereas Singaporeans show a preference for purchasing previously owned items (49 percent), and Italians tend to buy watches that can be passed down to their family members (31 percent).

Last modified: August 25, 2023, 5:23 AM