Rolex demand hotter than at any time in the past 30 years says Govberg

Danny Govberg, chief executive of Govberg jewelers and Watchbox.

“In my 30 years working in luxury watches, I have never ever seen the shortages of Rolex sports watches that are taking place now,” says Danny Govberg, chief executive of Govberg Jewelers, a luxury watch destination in Philadelphia.

His comments came after reading a letter to the New York Post that asked whether the current difficulty to find certain Rolex models is limited to Republican states, particularly California.

“When you talk with retailers you discover that since Trump’s arrival, Rolex watches have been flying out the door. Now remember, this is California, where Democrats outnumber Republicans 100 to 1 or something. I was wondering if that is true in New York City or another Democratic stronghold,” a letter from “J.K.” asks.

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Mr Govberg certainly sees the same shortage in Philly, and says it is actually a global phenomenon.

“It used to be just the Daytona model. Now it’s the entire sports line. And it is not just a United States issue, it’s worldwide,” he adds.

The story is not so much one of a Rolex drought caused by the watchmaker, but an astonishing increase in demand.

Mr Govberg believes this is part of a wider increase in the desirability of luxury sports watches that can be worn all day in the office or at the beach club and kept on the wrist at a swanky dinner event when people used to switch to dress watches.

“Basically the industry is moving to what I call beach-to-tux usage,” Mr Govberg opines. “A customer wants to wear the watch to the beach, on the tennis court, and then a fancy dinner.”

It isn’t only Rolex benefiting from the ‘beach-to-tux’ phenomenon. Richard Mille is the most expensive brand that is worn during sport and dinner by the likes of Raphael Nadal and Bubba Watson. Audemars Piguet and Hublot are also showing strong growth with their sporty mechanical pieces and association with the likes of golf and soccer.

The shortage of sports models is driving up prices on secondary platforms like Watchbox and Chrono24 where models like Rolex’s Submariners and Patek Philippe Nautilus pieces are changing hands for more than 50% above retail price for new watches.

“Preowned is off the charts, particularly for Patek and Rolex models, followed by Audemars and Hublot. Omega is gaining ground at a nice pace,” reveals Mr Govberg, who is also a founding partner of Watchbox, which sells certified pre-owned luxury watches.

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5 Comments

  1. Mark said:

    Yes, we knew that. It’s not just not demand it’s supply. Rolex is a charity and doesn’t have to saturate the market, they are now becoming the De Beers of watches.

  2. Pingback: Event Horizon 2020 - the year everything changes? - Page 13

  3. Peter Tai said:

    You should thank Hong Kong market because most of the Chinese customers bought their Rolex there.

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