The Maharaja Sayajiroa University of Baroda

Department of Computer Application

Msc IT 2nd Semester

E-Commerce

A CASE STUDY ON ROLEX MANUFACTURING

COMPANY

Submitted by:

Rahmatullah Khairi

PRN no: 8022057363

About the company

Rolex is a British-founded Swiss watch designer and manufacturer based in Geneva,

Switzerland. Founded in 1905 as Wilsdorf and Davis by Hans Wilsdorf and Alfred Davis
in London, the company registered Rolex as the brand name of its watches in 1908 and
became Rolex Watch Co. Ltd. in 1915.

Business Model
Rolex is a luxury brand that focuses on delivering high-quality watches at a premium
price while owning the entire supply chain.

= It is not with low prices but, on the contrary, it is with improved quality that we can not
only hold the market but improve.” - Hans Wilsdorf

The Rolex Crown embodies the perpetual spirit which is based on a foundational belief in
limitless human capability, sustained improvement, and life-long excellence.

= The words Rolex and Switzerland are virtually synonymous these days. The giant
watchmaker dominates its industry and is almost a cult among its wearers. Such images
are enhanced by the fact that the brand is acknowledged – both inside and outside the
company – as being unusually secretive.” -

= The brand is run by a non-profit organization, and a large percentage of earnings go to

charity, supporting various initiatives in social welfare, training, and culture. The
remaining percentage is retained to invest in product development.
Marketing

Guarding the Brand: The Company has managed to maintain the brand’s reputation
through advanced craftsmanship, the use of superior materials, savvy marketing
techniques, and by creating scarcity and exclusivity,

= The Rolex logo is designed in a manner that evokes royalty, and the tagline 'A Crown
for Every Achievement' connects the brand with success and implies that giving a Rolex
watch as a gift is an ideal way to celebrate an achievement, milestone, or special
occasion.

= Rolex carries out remarkable product campaigns through TV ads, print newspapers
& magazines, embedded ads in movies, and sponsoring events. Importantly for a luxury
brand, it is highly active on social media channels like Instagram and YouTube,
increasing its reach. The brand also signs up “Rolex Testimonies” (distinguished brand
ambassadors) and partners with popular sports and historic events. The company does
not give any discounts or offers as their clientele values quality over the price.

Sustainability: has become a key consideration for consumers over the last few years.
Through its Perpetual Planet initiative, Rolex leverages its brand in order to raise
awareness and fund research aimed at tackling global challenges.

= Limited production runs - Rolex limits production of its watches to maintain

exclusivity and a high demand. This creates a perception that Rolex watches are rare and
valuable.

Distribution
The watches are distributed through exclusive stores with networks covering over 100
countries around the globe. Official Rolex Jewelers are equipped to advise clients and
have the necessary expertise to adjust the watch to the client's comfort. Rolex offers a
five-year international guarantee for all the timepieces purchased through the Official
Rolex Jewelers. In order to create a personal connection with the customers, Rolex
discourages buying the products online.

Worldwide network of after-sale services: In order to ensure that every Rolex watch
preserves its excellent performance and that it's maintained to the highest standards
possible, the company has set up after-sale services in every country where its watches
are sold.
Economics
= Rolex does not disclose its financials and any information available is from third-party
sources.

= A report by Morgan Stanley in collaboration with LuxeConsult estimated Rolex’s total

turnover in 2021 as CHF 8 billion. This accounts for 29% of the Swiss watch making
industry’s turnover in 2021.

= This is significant growth from 2019 when Rolex had ~22% of the global market for
Swiss watches. This amounted to a turnover of CHF 5.2 billion.

= Rolex produces approximately watches per year. Rolex’s strong pricing power is
evident - other manufacturers like Longinus and Tissot make more but Rolex still
manages to earn more revenue compared to them.

Rolex's e-commerce system

= Rolex's e-commerce system is designed to provide a premium online shopping
experience, consistent with its brand image. The company's website features a clean and
elegant design, with high-quality images and detailed product descriptions= One of the
unique features of Rolex's e-commerce system is its store locator tool, which allows
customers to find the nearest authorized dealer to their location.

= Rolex's e-commerce system also offers customers the ability to customize their watches
with various options, such as different dials, bracelets, and bezels.

= Rolex's e-commerce system is also designed to provide a seamless after-sales service

experience. Customers can register their watches online, and the company offers a
warranty period and a service program for all its watches.

Customers can also find detailed instructions on how to care for and maintain their
watches on the website.
Success factors:
Product Quality and Innovation: Rolex has consistently focused on producing high-
quality watches that are durable, reliable, and accurate. The company has a reputation for
using the best materials and innovative technologies, such as the Oyster case, which
made its watches waterproof, and the perpetual movement, which automatically winds
the watch. Rolex has continued to innovate and develop new technologies to maintain its
reputation for quality.

Branding and Marketing: Rolex has created a strong brand image that is associated
with luxury, elegance, and quality. The company's marketing and branding strategies
have focused on creating a perception of exclusivity, rarity, and value. Rolex has
sponsored high-profile events and athletes and has limited production runs to maintain
exclusivity.

Longevity: Rolex has been in business for over a century and has established itself as a
trusted and respected brand. The company's longevity and heritage have helped to build
trust and loyalty among its customers.

Distribution Policy: Rolex has a selective distribution policy, which has helped to
maintain the exclusivity and perceived value of its watches. The company only sells its
watches through authorized dealers, which ensures that customers receive the same level
of service and quality assurance that they would expect from an in-store purchase.

Customer Service: Rolex has a reputation for providing excellent customer service. The
company offers a warranty period and a service program for all its watches, and
customers can register their watches online. Rolex has a network of authorized dealers
and service centers worldwide, ensuring that customers can receive the same level of
service and quality assurance no matter where they are.
Conclusion:
= Rolex is synonymous with quality watches. The more than a century-old brand
epitomizes timeless elegance and prestige. Rolex watches are one of the most reputable
and renowned timepieces in the world today.

= Rolex's success can be attributed to its focus on product quality and innovation,
branding and marketing, longevity, selective distribution policy, and customer service.
The company has established itself as a trusted and respected brand and has continued to
innovate and adapt to changing consumer preferences, ensuring its continued success in
the luxury watch market.

= Rolex's e-commerce system is designed to provide a premium online shopping

experience, consistent with the company's brand image. While Rolex has been cautious in
its approach towards e-commerce, the company has embraced digital channels to expand
its reach and cater to changing consumer preferences. Rolex's e-commerce system offers
customers a seamless shopping experience, with the same level of service and quality
assurance that they would expect from an in-store purchase.