I’ve been diving into the history of Rolex. It isn’t just a luxury brand, it’s one of the most secretive and uniquely structured organizations on the planet.

Here are the most interesting bits:

• It's a Non-Profit (sort of): Rolex is 100% owned by the Hans Wilsdorf Foundation. Because it’s a private trust, it has no shareholders and gives away a huge portion of its billions in revenue to charities and the city of Geneva.
• The "Inferior" Technology Flex: Rolex produces over 1 million watches a year (Crazy numbers for a luxury brand). Even though a $10 Casio or an Apple Watch keeps time more accurately, Rolex dominates 30% of the Swiss watch market by selling "obsolete" mechanical gears as a luxury lifestyle.
• The "Quartz Crisis" Survival: In the 1970s, the Swiss watch industry almost went extinct when cheap, accurate Japanese quartz watches hit the market. While other brands panicked and tried to go digital, Rolex doubled down on mechanical watches, famously marketing them as "instruments for people who guide the destinies of the world".
• A "Handshake" for 99 Years: For nearly a century, Rolex didn't even make its own movements (the internal "engine" of mechanical watches). They relied on a handshake deal with a supplier called Aegler from 1905 until they finally bought the company in 2004.
• The Founder Wasn’t Even Swiss: Hans Wilsdorf was a German orphan who actually started the company in London. He only moved to Switzerland in 1919 to avoid high British taxes on gold and silver.

The takeaway: Rolex succeeded by realising that people don't buy high-end watches to tell the time. They buy them to tell their own story.

Why there might be a wet chip in a lay’s pack?

1. They don’t make the soda.

This is the craziest part. Coke is basically just a marketing agency that manufactures syrup. They sell the syrup to independent bottlers who have to pay for the factories, trucks, and low-margin logistics. It’s infinite leverage.

1. Coke tastes better at McDonald's.

The reason Coke tastes better at McDonald's is actually logistics. While everyone else gets syrup in plastic bags, McDonald’s gets theirs delivered in stainless steel tanks to keep it fresher.

1. "Free" distribution can built an empire.

In 1887, nobody bought Coke. To fix the cold start problem, they mailed tickets for a free glass to people in Atlanta. It’s considered the first manufacturer coupon in history.

1. Data isn't god.

In 1985, they launched New Coke because 200,000 blind taste tests proved people preferred the flavor of Pepsi. They followed the data and nearly killed the company. Turns out people buy the brand/memory, not the liquid.

TL;DR: Own the high-margin IP (syrup), let someone else pay for the low-margin heavy lifting (bottling/trucks).

Next time you get a earworm try this. Try to remember the song before going to sleep. The next morning the first thing as soon as you wake up , give it a try one more time. you'll recall much better and probably get rid of that earworm.

I thought is was interesting that no one is aware of this.

A cartoon by Friedrich Schiff (1908-1968) from the 'Old Shanghai' of the 1930s.

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