How many watches does Rolex produce in a year? - why the production is limited
The brand with the golden crownis omnipresent. Whether in the film and television industry, in sports or even in private life sooner or later you can not get around Rolex.
But surprisingly, the Rolex shop windows at Bucherer and Wempe radiate a frightening emptiness, so that a Rolex is never an impulse buy.
How can it be that a brand seems so ubiquitous and yet is at the same time unapproachable? Are there simply too few watches being produced?
The exact number of watches produced per year is unknown. It is estimated that Rolex produces about one million watches per year. This number by no means saturates demand. Certainly, Rolex's production capacities will also reach their limits at some point, but hardly at the current production volume. Artificial shortage is the key word. Rolex is accused of deliberately keeping the number low so that the brand remains sought-after and exclusive.
The mystery of Rolex piece numbers
One million is the magic number. That's how many wristwatches are estimated to be produced annually at Rolex, and the emphasis is on "estimated." Since the exact number is unknown, we can only make educated guesses.
The COSC, the Swiss chronometer inspection body, certifies Rolex watches. However, the latter no longer discloses annual reports. Rolex itself also does not provide information about their unit numbers.
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Rolex excellence requires elaborate production
It must be said in advance that Rolex ranks at the top in terms of quality and craftsmanship in the world of watches. The quality of the watches is one of the most important features in the history of Rolex. Only a few other manufacturers can claim to compete with the traditional company from Geneva.
It is obvious that it is extremely costly to produce a Rolex because the standards are so high. Only individual components are produced overnight, if at all. So making a wristwatch is a lengthy process that requires countless steps.
Moreover, it's important to remember that Rolex manufactures everything in-house, from the case to the hands. This is a guarantee for the consistent quality of all components.
Ultimately, four production sites (3 of which are located in the canton of Geneva) are responsible for production.
They process around 13 tons of gold annually, which makes Rolex the largest consumer of gold in Switzerland.
Then, when the wristwatch is finally completed, it is subsequently subjected to numerous tests to ensure that the timepiece is and remains impeccable when it finds its way to the customer.
Given these circumstances that characterize the luxury watchmaker, it is clear that Rolex will never become a mass-produced item.
When does production really reach its limits?
An expansion of production is certainly within the realm of possibility. In fact, the watch manufacturer plans to build three new factories in the future to achieve this goal. Among them is even a large, permanent factory in the Swiss canton of Fribourg, which would provide space for about 2,000 new employees.
But critics are asking a lot of questions here about whether Rolex can produce more right now after all, and whether the additional factories are just a pretext for not having to act immediately. The hype should become even greater so that the cult brand can flood the market with a torrent of newly produced Rolex watches in a few years, they say.
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Artificial scarcity - the strategy of Rolex?
The phenomenon of artificial scarcity may already be familiar to some people. Other brands have been using this strategy for years. Be it Hermès with its extremely popular handbags or sports goods manufacturer Nike, which permanently sells strictly limited sneakers.
Die Idee dahinter ist so einfach wie genial. Je seltener ein Produkt erscheint, mag es noch so banal sein, desto begehrenswerter ist es für die Käuferschaft. Das extrem prominente Gefühl von Exklusivität bringt dann die Käufer dazu ein Vielfaches vom Listenpreis zu bezahlen. Ganz nach dem Motto: Der Preis eines Produktes bemisst sich daran, wie viel die Käufer bereit sind zu bezahlen.
Opinions are divided as to whether this is Rolex's intention. Critics have been claiming for years that the empty shop windows are deliberately intended.
On the other hand, this contradicts the fact that the luxury watch manufacturer plans to expand its production, as already mentioned.
However, the production expansion will still take a few years, which should not change the status quo at all.
The Rolex Hype as a Result of Scarce Quantities
One of the main reasons why the luxury watchmaker is so hyped is the low supply.
Basically, Rolex demand behaves like a hungry lion in the zoo that gets just enough to eat to survive, but still remains hungry all the time.
The Rolex hype would not have grown as immense if the coveted timepieces had always been available everywhere for everyone. It is important to consider that the high demand is also due to a certain swarm effect.
The mainstream is like a giant octopus that keeps getting bigger and bigger with everything it snatches up and captivates with its tentacles. And when my boss as well as my role models on the net and also a couple of my friends wear Rolex, it stands to reason that at least some interest in the brand would be aroused and I would find that these watches are not so easy to come by, which would eventually lead me to covet one as well.
To put it in a nutshell, the demand wouldn't be nearly as high if it hadn't piled up over the years due to the low quantities.
What's exciting is that the high demand holds up, even though there are countless very good alternatives to Rolex watches.
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Should Rolex really expand production?
So far, so good. The wristwatches from the luxury manufacturer in Geneva are in greater demand than ever, while annual production proceeds relatively leisurely. But is it even advisable for Rolex to produce more watches? Or would that jeopardize the exclusivity and good investment opportunities offered by Rolex?
Rolex has responded to the exorbitant demand by raising prices several times. However, these price increases have also been justified with currency fluctuations and the energy crisis. Be that as it may, this only addresses the problem at its root.
Most economists would probably urge with a raised finger to expand production in order to plug the huge leak between supply and demand and generate even more sales.
In the short term, this seems to be the most sensible solution. However, in the long run, the Swiss luxury watchmaker runs the risk of the market becoming oversaturated with too many newly produced watches, causing the supply-demand spectacle to reverse: Too many Rolexes for too few buyers, a scenario that seems unimaginable today.
Rolex darf seine Markenidentität auf keinen Fall verlieren. Gewiss würde die Uhrenmarke bei einer größeren Produktionsmenge keine Kompromisse in Sachen Qualität eingehen. Allerdings darf man nicht vergessen, dass die Marke mit der goldenen Krone auch von Ihrer Exklusivität lebt.
A Rolex is not for everyone. You buy a Rolex because it is a very special wristwatch, because the brand has a very special history, because the watch has proven itself in very special situations, because very special personalities wear and have worn it, etc....
What we're trying to say is that, if Rolex increases the production numbers too much, it will also have a negative impact on the cult status and the magic surrounding the brand.
Certainly, the rising gray market prices and the years-long waiting times are unbearable for every Rolex lover. However, it is important to find a golden mean when increasing the production numbers. There should be enough watches produced to satisfy the demand to a large extent, but only up to the point where the brand remains desirable.
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Conclusion - Rare is coveted
It is like many other things in life. Some things are so sought after precisely because they are rare.
Rolex holds a very special position in the world of watches due to the enormous demand. This demand can only be superficially met by the company with a limited production quantity of about one million watches per year.
Rolex has already taken measures to counter this phenomenon with additional factories planned. However, these will not be able to bear fruit for a few years.
At the same time, the rumor persists that the watchmaker is deliberately keeping its production volume low in order to make its goods more exclusive.
When looking at the whole situation objectively from a bird's-eye view, it can be observed that Rolex, with its low production numbers in relation to the enormous demand, has reached an absolute peak in terms of hype but must now take action.
Nonetheless, the watch enthusiast can be very certain that even if the numbers were increased and the brand were given a different image as a result, the class and excellence of these watches would remain unchanged.
Scource cover image: Rolex
About the author
Alexander Weinberger
For me, the most fascinating thing about watches is the interplay between precise craftsmanship and artistic development. In a watch movement, hundreds of small parts have to be put together precisely so that they form a large whole.
