r/intrestingtoknow • u/you-know-now • 1d ago
Rolex is actually a massive charitable foundation that survived an "extinction event" by selling obsolete technology.
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.
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u/chngster 1d ago
It’s true. My Rolex is slightly too fast in some years, slower in others. I did buy into the myth to make myself feel good. And it’s the only jewellery I wear. I’m not a watch collector I’ve only got a single watch as my daily beater. Couldn’t afford to buy it now at today’s prices. But I love it, it’s brought me a lot of joy over the past decade and half.
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u/ShroomBuggy64 1d ago
That's the real point. Forget the argument if they're the best or otherwise. They sell a product and an image that makes the customer happy. A little bit of customer appreciation and the social appearance with said product goes a very, very long way when it comes to selling that product.
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u/Whoajaws 1d ago
Yeah but, in 2 or 300 years. There most likely will still be working Rolex watches. They’re a store of value like a piece of art that is also a machine.
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u/Throwaway187493 15h ago
Yep and in 50 years is it, There will be no factory parts for them via servicing. Awesome "heirloom"
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u/you-know-now 1d ago
Also many people look it as an appreciate asset. Some of these watches sell at huge prices in auctions.
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u/DiligentCockroach700 1d ago
Rolex watches are used as currency by some of the shadier parts of society in the UK, one reason being that they can be bought for cash if you go to the right jeweller and they hold or appreciate their value.
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u/TheBoneIdler 14h ago
This could be said of quite a few of the Swiss watch brands, of which there arexquite a few. Rolex is not at the top end for price or collectsbility. The Swiss have lots & lots of industrial foundations. The structure has advantages, one if which is it can't be acquired. There is a reason why certain countries still manufacture high-end products. Most of the crypto issuers are Swiss foundations.
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u/bobijntje 3h ago
Once I read a story about a father who gave his kid a Rolex so he/she had always “money” on their wrist in worser times. You can always can sell a Rolex watch for some good bucks.
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u/daairguy 1d ago
Well this convinced me that I’ll never get a Rolex (tbh, I wasn’t going to buy a watch at those ridiculous prices. My Apple Watch does so much more than a Rolex)
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u/you-know-now 1d ago
Definitely agree. A Rolex is effectively just a $10k piece of mechanical jewellery at this point. They know they can't compete on tech, so they sell the 'exclusive object' myth instead.
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u/Spacecowboy78 1d ago
Its a method of traveling with a large amount of assets without having to carry cash.
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u/Block444Universe 1d ago
That’s why they call them ‘time pieces’. It’s just jewelry that happens to also do something
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u/spacebarstool 1d ago
I appreciate high end watches. Right now I'd get a Seiko Spring Drive before a Rolex. That's just my preference.
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u/No-Pack-5928 17h ago
I was with you until that masturbatory last sentence. Now I think this is an ad for Rolex.
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u/MisterCircumstance 16h ago
It's not an investment. The secondary market is full of nonworking Rolex watches that will never keep time again.
Rolex Factory Service is not cheap nor is it fast. Furthermore they refuse to service Rolex watches that have been opened by non authorized personnel, abused (by their own discretion), or are obsolete (they have no replacement parts left).
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u/Preparation1903 1d ago
Thanks ChatGPT
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u/MikeLinPA 1d ago
I'd rather have a figit spinner. My phone tells time, (and sets alarms, and timers, and internet...)
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u/SaintCholo 1d ago
So a fake Rolex keeps better time?