Expansion of Production Facilities... Surge in Used Prices Due to Shortage
Surpassing Louis Vuitton, the Largest Domestic Fake Luxury Market
Bloomberg reported on the 18th (local time) that Rolex, the Swiss luxury watch brand that has been in short supply both domestically and internationally, has decided to significantly increase its production facilities.
In the domestic luxury watch market, most of the display cases where watches should be placed were empty, or there was no stock other than display models, to the extent that the phrase "Rolex stores only sell air" was circulating.
Rolex Submariner Oyster. [Photo by Rolex]
According to foreign media reports, Rolex plans to establish three temporary production facilities in Fribourg, western Switzerland. Construction is expected to begin by the end of this year, with production possibly starting as early as 2025.
Currently, Rolex operates four factories in Switzerland and plans to build a fifth permanent production facility in Bulle, Switzerland. In a statement sent to Bloomberg, Rolex said, "The new production site in Bulle, like the three temporary production facilities, will allow Rolex to expand production capacity, support growth, and meet the continuously increasing demand."
Rolex has not increased production despite supply shortages. In September 2021, Rolex stated, "Currently, supply cannot fully meet demand," but added, "This is a refusal because the quality of the product must never be compromised." It is estimated that Rolex produces about one million watches annually, which is a considerable number given the handcrafting involved.
Rolex is also popular enough to rank among the top 10 in sales in the domestic luxury market. After the COVID-19 pandemic, production lines were halted, causing supply disruptions, but demand hardly decreased, making it difficult for consumers to purchase. In the secondhand market, watches were sometimes traded at two to three times the retail price.
Rolex Tops Counterfeit Imports, Surpassing Louis Vuitton
Rolex Lady Datejust 31mm.[Photo by Rolex]
Meanwhile, over the past five years, the scale of the counterfeit luxury goods market imported from overseas has exceeded 2 trillion won, with Rolex accounting for the largest share.
According to data analyzed and released by Yang Kyung-sook, a member of the Democratic Party of Korea, based on information received from the Korea Customs Service on the 11th of last month, the value of intellectual property rights-infringing goods seized by customs authorities entering Korea from overseas between 2018 and 2022 was 2.2405 trillion won (7,250 cases, market price basis).
Among brands, the watch brand Rolex was seized with goods worth 306.5 billion won over five years, surpassing Louis Vuitton to take first place. Other luxury brands frequently seized included Louis Vuitton (219.7 billion won), Chanel (97.4 billion won), and Burberry (83.5 billion won).
Rolex also appears to have become a brand symbolizing Koreans' 'love for luxury goods.'
Last month, the right-wing tabloid Yukan Fuji, affiliated with Japan's Sankei Shimbun, highlighted the luxury buying craze among Koreans, claiming, "Young Koreans take photos wearing fake Rolex wristwatches even while eating cup ramen for dinner."
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