Rolex, a symbol of luxury, has long thrived on its exclusivity and craftsmanship. But in an era dominated by Millennials and Gen Z, who demand transparency and authenticity, is the brand scarcity strategy sustainable or is it time for a shift in how luxury is defined?
Let’s explore how brands like Rolex can balance mystique with modern relevance in an era of evolving consumer expectations.
Rolex’s Brand Philosophy of Exclusivity
At the core of Rolex‘s identity is their commitment to quality, craftsmanship and exclusivity. Their dedication to exclusivity has always been an integral part of their brand narrative. This isn’t just about producing high-end timepieces, but about creating a culture where owning a Rolex signifies membership in an elite club. Exclusivity in this context is more than a marketing tactic, it’s woven into the brand’s philosophy. Their customers are not only buying a watch, they are securing a piece of a legacy that few can own, which elevates the brand’s prestige.
Rolex’s limited production ensures that each watch remains a rare and highly desirable object. The company’s manufacturing processes are slow and meticulous, focusing on impeccable craftsmanship rather than churning out products at high volumes. This strategy keeps their watches in demand while maintaining their exclusivity. Consumers do not just buy a Rolex for its functionality or aesthetic appeal, but because it represents an aspirational status – one that’s not easily attained.
The Luxury Brand Experience
Luxury brands understand that their products are more than just items, they are status symbols, emotional purchases and aspirational investments. This is why the in-store experience is carefully curated to make customers feel special, reinforcing the brand’s prestige.
But as I recently experienced firsthand, this carefully controlled process can sometimes feel less like a luxury experience and more like an exercise in exclusivity for exclusivity’s sake.
My Experience at Rolex
When my friend and I recently visited a Rolex boutique, the experience started as you’d expect from a luxury brand. A security guard checked if we had an appointment before opening the door, and once inside, we were warmly greeted by the associate we had booked in with. Before even showing us any watches, they sat us down and took the time to understand what brought my friend in, what he was looking for, and why Rolex. Initially, it felt personal, as if they genuinely cared about my friend’s interest in the brand.
Then came the reality check. When my friend asked for a specific model, we were told none of the watches were available to purchase. When we pressed further, asking when they might become available, the response was, “We don’t know, it could be up to four or five years.” There was no indication of when or if he could ever purchase the watch he was interested in. Instead, he was told he could be added to a waitlist.
We visited three other authorised dealers (ADs), and the narrative was exactly the same. When we asked if the waitlist was first come, first served, one associate finally admitted, “We review the waitlists internally,” strongly suggesting that Rolex chooses who gets access to their watches, rather than following a straightforward queue system.
This personal experience at Rolex highlighted a deeper issue – the difference between the perceived scarcity of a luxury brand and the reality behind its allocation process.
Perception vs Reality
After this experience, my friend researched Rolex further.
Former Rolex dealers, YouTubers, watch forums and collector groups claimed that Rolex does in fact have stock, but it isn’t necessarily being withheld due to demand alone. Instead, allocation is often strategic, prioritising VIP clients, those with a purchase history, or customers who align with the brand’s ideal customer.
For instance, a Reddit user noted, “They have stock, almost every AD has watches in the safe. They have a backlog of clients that are waiting for said watches and they are deciding who to sell them to.”
This revelation completely reframed our experience. The messaging in-store was that Rolex simply couldn’t keep up with demand. However, the reality is they drive demand by limiting supply to create a sense of scarcity, reinforcing its prestigious image.
The Art of Scarcity
Unlike many luxury brands that prioritise accessibility through diverse product ranges, Rolex has positioned itself on the foundation of scarcity. This scarcity is not accidental. It’s a carefully crafted part of their identity. The Rolex brand is part of the exclusive world of luxury, where demand often exceeds supply.
The message is clear – owning a Rolex isn’t just about buying a watch, it’s about earning the right to own one. Long waitlists, limited stock, and the concealed prioritisation of VIPs are meticulously designed to reinforce the brand’s prestige.
However, this scarcity also fuels the grey market, where resellers capitalise on inflated prices, further amplifying Rolex’s exclusivity. While this helps to enhance the brand’s desirability, Rolex actively manages its impact to preserve its reputation and maintain long-term brand integrity. By vetting in-store buyers, monitoring distribution channels, and taking legal action against unauthorised resellers, Rolex ensures control over warranties, customer relationships, and after-sales service. This strategic balance allows Rolex to protect its pricing structure, authenticity and reputation while maintaining its allure in the competitive world of luxury.
The Fine Line Between Exclusivity and Exclusion
While the intention behind this approach is to control the brand’s reputation, the strategy presents some significant challenges. According to research, 81% of consumers need to trust a brand before making a purchase. My friend and I are part of that majority, and when we were told, ‘Sorry, we don’t have stock,’ only to later discover that this likely wasn’t true, it felt misleading and even disingenuous. As a result, Rolex lost my friend’s trust and he turned to other retailers.”
So, why isn’t Rolex upfront about its process of maintaining brand integrity? The answer lies in the luxury experience. Luxury brands aim to make every interaction feel aspirational, and questioning a customer’s intentions or explicitly prioritising VIPs could break the illusion of exclusivity. However, this delicate balancing act risks alienating younger audiences who value honesty and openness.
The Generational Shift
A 2023 McKinsey survey found that 75% of Gen Z consumers expect brands to be transparent about their business practices, and 89% of customers remain loyal to brands that share their values. In a world where trust and authenticity are paramount, Rolex’s opacity in its allocation process might be a deal-breaker for younger generations.
Millennials and Gen Zs have grown up in an era of information overload. They can fact-check, crowdsource reviews, and expose shady practices in seconds. They’re not shy about calling out brands that don’t align with their values, making things like transparency, ethical standards and sustainability not just a preference but a necessity for future luxury brand success. When brands like Rolex lean into scarcity without being transparent about the process, they risk losing credibility.
This doesn’t mean abandoning exclusivity altogether but it does mean redefining it. Authenticity can coexist with luxury if done right. Imagine if Rolex openly said, “We carefully allocate our timepieces to ensure they find a home with true enthusiasts. Here’s how you can begin your journey with us.” This doesn’t erode the brand’s prestige, it enhances it by inviting customers into its story.
Lessons from Other Luxury Brands
Rolex isn’t alone in crafting a high-touch customer experience, but not all luxury brands take the same approach. Some balance exclusivity with transparency in ways that build trust rather than leave customers feeling uncertain.
Hermès
Hermès has mastered the art of scarcity with its Birkin bags. They are upfront about exclusivity, openly acknowledging that items like the Birkin bag are limited and require either a longstanding relationship with the brand or a place on a waitlist. Customers may not know exactly when they’ll get their bag, but they understand the process and why it exists. This transparency enhances the desirability of the product while maintaining trust.
Audemars Piguet
Audemars Piguet, like Rolex, also limits access to its timepieces, but its approach is more transparent and relationship-driven. In recent years, AP has shifted towards selling primarily through its own boutiques rather than third-party dealers, giving the brand greater control over its client relationships.
Customers are often required to build a history with the brand before being offered sought-after models, but AP is more upfront about this process. They emphasise that their watches are reserved for true enthusiasts rather than flippers, creating a sense of exclusivity while still fostering trust.
In contrast, Rolex’s strategy often feels more elusive. Buyers are frequently told that models are unavailable without clear insight into how allocations are made.
While both brands vet their customers, AP’s approach makes collectors feel like valued members of an exclusive club, whereas Rolex’s opacity can sometimes leave buyers feeling uncertain or frustrated.
Ferrari
Ferrari carefully controls who can buy its most exclusive models, but it does so with a level of transparency that strengthens its brand prestige rather than frustrating potential buyers.
For Ferrari’s limited-production and special-edition cars, buyers must often have an established purchase history with the brand, demonstrating their passion and commitment as owners. However, Ferrari is open about this approach. Customers know that certain models are reserved for long-term enthusiasts and collectors, making the exclusivity feel earned rather than arbitrary.
Ferrari’s strategy reinforces its brand loyalty while maintaining excitement, whereas Rolex’s secrecy can sometimes alienate newer customers rather than encourage them to engage with the brand over time.
IWC Schaffhausen
My friend and I also visited IWC Schaffhausen. While IWC still personalise their consultations and maintains many of the positive brand experience elements that the Rolex store offers – the security guard at the door, a dedicated associate, a glass of water, tea or coffee, and a seat where you are presented with the watches – they take a more inclusive and transparent approach to luxury and don’t employ the same level of artificial scarcity. If a watch is in stock, you can purchase it, and if it’s not, you can order it.
Their in-store experience feels like an invitation into the world of fine watchmaking rather than a test of worthiness. Customers generally have a clearer path to purchasing an IWC watch, whether through boutiques, authorised dealers, or online, without the frustration of opaque waitlists or preferential treatment for VIPs.
IWC focuses on storytelling, craftsmanship and innovation to create desire, rather than using exclusivity as a primary driver. This difference makes IWC feel more welcoming to enthusiasts and collectors alike.
The Case for Evolving Luxury
For brands like Rolex, the challenge isn’t just maintaining exclusivity, it’s doing so in a way that resonates with the values of their future customers. Millennials and Gen Zs want more than a product, they want to feel part of a story that aligns with their values.
Here’s how luxury brands can adapt:
- Reframe scarcity as selectivity: Instead of pretending there’s no stock, luxury brands can focus on curation. Explain that products are carefully allocated to protect their legacy and ensure they’re cherished.
- Educate without alienating: Train dealers to communicate processes tactfully. For example, “We prioritise clients who have been part of the Rolex family. Let’s explore how you can start your journey.” This balances exclusivity with inclusivity.
- Introduce membership models: Adopt loyalty programs, where customers build their way to exclusive access. It creates a transparent pathway while maintaining prestige.
- Leverage storytelling: Shift the focus from scarcity to craftsmanship. Celebrate the years of artistry behind each watch and why it’s worth the wait.
Crafting Desire Beyond Scarcity
In an era where consumers seek meaning behind their purchases, storytelling has become one of the most powerful tools luxury brands can leverage. While exclusivity and craftsmanship remain key pillars, the brands that truly stand out today are those that immerse customers in a rich narrative. One that goes beyond simply owning a product to becoming part of a legacy.
Storytelling rooted in heritage and innovation
IWC Schaffhausen has mastered the art of storytelling by blending its Swiss watchmaking heritage with themes of adventure, engineering and purpose. From the Pilot’s Watch collection, inspired by aviation pioneers, to the Portugieser, linked to nautical exploration, every IWC timepiece carries a deeper meaning.
Rather than relying solely on scarcity to drive desirability, IWC builds emotional connections through content, brand ambassadors and immersive experiences. The brand also aligns with sustainability by weaving its responsible sourcing initiatives into its narrative, making modern consumers feel they’re investing in a piece of history that also respects the future.
Other luxury brands that elevate storytelling
- Patek Philippe: Their iconic tagline, “You never actually own a Patek Philippe, you merely look after it for the next generation,” is the perfect example of powerful storytelling. It positions the brand as more than a watchmaker. It’s a creator of heirlooms and legacies.
- Louis Vuitton: The brand leans into the idea of travel and adventure, making each product feel like part of a journey. Their campaigns, collaborations and experiential retail spaces reinforce this narrative.
- Aston Martin: Beyond selling luxury cars, Aston Martin tells a story of speed, refinement and British craftsmanship. Their partnerships with James Bond films have only strengthened this brand persona.
Luxury brands that rely purely on scarcity may capture attention in the short term, but those that build a compelling story will forge lasting connections. Today’s consumers don’t just want to own something exclusive, they want to be part of a story that aligns with their values and aspirations.
Luxury in the Age of Conscious Consumers
As consumer expectations evolve, luxury brands are increasingly aligning with values beyond exclusivity – sustainability, ethical craftsmanship and social responsibility are becoming just as important as prestige.
Millennials and Gen Z, in particular, seek brands that not only deliver high-end products but also reflect their values. According to recent research from Deloitte, nearly two-thirds of Gen Zers (64%) and Millennials (63%) are willing to pay more for environmentally sustainable products or services. In the fashion industry, 68% of fashion shoppers across seven countries prefer to buy from brands that are socially responsible or environmentally friendly.
This shift to values-driven marketing not only helps build trust but also fosters deeper emotional connections, which are essential for maintaining loyalty in a competitive market.
Let’s take a look at a few luxury brands that are doing this well:
Richemont-Owned Brands
Richemont, with six of its brands ranking in the top 10 on the WWF sustainability report, has set a high standard for ethical and environmental responsibility across its portfolio. Under the umbrella of Richemont, both IWC and Cartier are part of a luxury powerhouse that stands out for its commitment to sustainability, leaving its second biggest competitor, Swatch Group, and independent manufacturers, like Rolex and Patek Philippe, behind.
Source: watchpro.com
Cartier
Cartier’s commitment to corporate social responsibility (CSR) plays a significant role in maintaining its status as a leading luxury brand, especially as younger generations increasingly prioritise ethics and sustainability in their purchasing decisions. Cartier’s CSR initiatives focus on several key areas such as ethical sourcing, environmental responsibility, social engagement and transparency in their operations.
This strategy benefits the brand by aligning its image with the values that are becoming increasingly important to consumers today. It allows Cartier to attract younger, ethically-minded consumers who are willing to pay a premium for brands that are both responsible and luxurious. By positioning itself as a responsible jeweler, Cartier ensures that it remains relevant and admired by both current and future generations of consumers.
IWC
IWC Schaffhausen goes a step further by integrating sustainability into its entire business model. The brand publishes detailed sustainability reports, focuses on responsible material sourcing (such as recycled gold and ethically mined diamonds), and actively works to reduce its carbon footprint.
Unlike Rolex and other luxury watch brands with low WWF sustainability ratings, IWC stands out for its transparent environmental and ethical commitments, positioning itself as a leader in responsible luxury. This shift from status to conscious craftsmanship resonates with modern consumers who want their purchases to reflect environmental values. IWC’s transparency enhances its appeal to a new generation of collectors who expect brands to be accountable, not just exclusive.
Tiffany & Co.
Tiffany & Co. upholds ethical practices through its commitment to responsible sourcing, transparency and human rights. The company ensures that all diamonds in its collection are conflict-free by adhering to the Kimberley Process Certification Scheme, which aims to prevent the trade of diamonds that fund armed conflict.
The brand is also a pioneer in the traceability of its diamonds, offering customers detailed information about the origin of their stones. Tiffany has also embraced fair labor practices in its supply chain, ensuring that the people involved in the creation of its products are paid fairly, work in safe conditions and are treated with dignity and respect. This dedication to ethical sourcing extends to its use of recycled precious metals, reducing the environmental and social impact of mining.
A New Era of Luxury
Yes, my friend bought a watch – While he went into this journey with Rolex in mind, he ended up opting for IWC, a brand that aligned more closely with his values, with a story that he related to. Ultimately, the decision wasn’t solely based on the watch itself, but rather on the entire experience – the transparency and the feeling of being genuinely valued as a customer.
With IWC, there was no mystery, no endless waitlist and no sense of jumping through hoops to prove he was ‘worthy’ of a purchase. Instead, he was welcomed into the brand’s world with open arms, offered clear insights into availability and treated like a true enthusiast rather than just another name on a list.
This experience speaks volumes about the changing landscape of luxury. The old strategy of mystery and scarcity has worked wonders, but the next generation of consumers demands more. Brands like Rolex have the opportunity to redefine what it means to be exclusive, crafting experiences that are aspirational yet authentic.
While prestige and exclusivity still matter, the way brands deliver them is evolving. The next generation of buyers isn’t just looking for a status symbol, they’re looking for brands that reflect their own principles, whether that’s authenticity, sustainability, or simply a respect for their time and commitment. For brands like Rolex, the challenge isn’t maintaining their legacy, it’s ensuring that legacy remains relevant in a world that values trust just as much as tradition. The brands that understand this will be the ones that continue to thrive.
In the age of conscious consumers, luxury brands must balance exclusivity with transparency to maintain loyalty and relevance. How do you think luxury brands can evolve their strategies? Share your thoughts in the comments below.
