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Luxury watch expert Oliver R. Müller on the takeover of the traditional Lucerne watch retailer Bucherer by Rolex.
A bang in the world of luxury watches: Rolex takes over the traditional retailer Bucherer for an estimated four to five billion francs. Neither Rolex nor Bucherer wanted to comment on the deal to SRF today – no surprise in this secretive business. Luxury watch expert Oliver R. Müller classifies the takeover.
Oliver R. Muller
Luxury watch expert
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Oliver R. Müller is a luxury watch expert. He worked in the watch industry for 25 years and now advises the luxury and watch industry.
SRF News: How important is Bucherer for Rolex?
Oliver R. Müller: Very important. According to estimates, Bucherer accounted for almost 10 percent of Rolex’s total sales.
How could the deal have come about?
There is a long-standing business relationship between Bucherer and Rolex – more than a century and over three generations. The companies have a very close and good business relationship. Company owner Jörg Bucherer is 87 years old and had to arrange his successor. He has no children, so selling was an option.
The companies have a very close and good business relationship.
Actually, he originally wanted his company to become a foundation. Apparently, Rolex boss Jean-Frédéric Dufour didn’t see this as the best solution.
What does the takeover mean for Bucherer?
It is of course a turning point. A family story ends and a new chapter begins. One can be pleased that Rolex is taking over a Swiss company that is continuing to invest in Bucherer and is likely to expand its business significantly – not only in Switzerland but also internationally. All in all, this is positive for Bucherer.
Buying Bucherer means Rolex is now entering retail. Why this change of strategy?
Oliver R. Müller: I see it as an offensive measure. Rolex wants to better control its brand, right down to the point of sale, and connect with the end customer.
To what extent is Rolex expanding its power in retail?
The takeover means more market presence and customer proximity. Rolex will probably enlarge certain stores or significantly expand the presence of Rolex and sister brand Tudor.
The takeover means more market presence and customer proximity.
The company now knows what is being sold, where, when, at what price and, above all, to which customers. This will give her a huge competitive advantage. In addition, Rolex wins back the margin that was previously given to the retailer.
The interview was conducted by Urs Gilgen, Harry Stitzel editor.