1 00:00:00,000 --> 00:00:11,360 Welcome to the Gilt Trips podcast. I'm your host, Kendra Lockhart. As a goldsmith and 2 00:00:11,360 --> 00:00:17,560 gemologist, I'll be speaking 24 carat on all things jewelry, metals, and gems. Join 3 00:00:17,560 --> 00:00:24,080 me plus a few friends to demystify both materials and designs as your private jeweler. Let's 4 00:00:24,080 --> 00:00:34,520 tune in on these topics and get golden. Rolex is one of the most immediately recognizable 5 00:00:34,520 --> 00:00:42,520 luxury brands in the world. From styles to materials, carried through to colorway, font, 6 00:00:42,520 --> 00:00:51,120 logo, even packaging. The word is iconic as the branding, status, and reputation. Whether 7 00:00:51,120 --> 00:00:58,160 it's delivered masterpieces or simply excellent seduction storytelling is today's icon audit. 8 00:00:58,160 --> 00:01:07,920 Is Rolex a good investment over innovation? Is the brilliance of the brand based on product 9 00:01:07,920 --> 00:01:14,960 or promotion? I will guide you through what I recognize in today's episode. Chapter time 10 00:01:14,960 --> 00:01:27,720 stamps are in the show notes. Quote, I don't wear a Rolex to tell the time, said Roger Federer, 11 00:01:27,720 --> 00:01:35,840 one of the brand's top ambassadors. He went on to state his reasons. Quote, I wear a Rolex because 12 00:01:35,840 --> 00:01:44,060 it's the best watch in the world. unquote, is this true? And by which standards? This is a fair 13 00:01:44,060 --> 00:01:52,160 skepticism because the best can be subjective. And Federer is not unbiased. Whereas I am looking 14 00:01:52,160 --> 00:01:58,120 from objectivity and can love or leave a Rolex. So I'll make my case in five ways, 15 00:01:58,120 --> 00:02:04,480 matching their magic number of letters in their name and points on their logo. 16 00:02:04,480 --> 00:02:18,880 Number one, was it a visionary founder? The Holy Trinity of watches, Audemars Piguet, 17 00:02:18,880 --> 00:02:27,320 Vacheron Constantine, and Patek Philippe are 100 years older than Rolex. They had learned 18 00:02:27,320 --> 00:02:35,380 their winning formula, had the reputations, and obviously gained access to top resources in 19 00:02:35,380 --> 00:02:42,340 watchmaking. A new company would need to either invent or improve upon if it's going to make 20 00:02:42,340 --> 00:02:50,460 its mark. Otherwise, it would have to quote, spot the missing unquote, as we call it, and seize an 21 00:02:50,460 --> 00:02:57,620 opportunity. Let's start with the background of the founder. Hans Wilsdorf would lose his mother 22 00:02:57,620 --> 00:03:04,140 when he was a boy, and then become orphaned at age 12 when his father passed. Fortunately, 23 00:03:04,140 --> 00:03:12,420 his uncles sold the generational family business to afford Hans and his brother and sister admission 24 00:03:12,420 --> 00:03:19,460 to excellent boarding schools, and therefore became well educated. Hans excelled in math and 25 00:03:19,460 --> 00:03:25,580 languages. That helped his desire to travel and opened up the chance to work in foreign countries. 26 00:03:25,580 --> 00:03:32,380 He began working in watches at the turn of the century in Switzerland as a watchwinder, 27 00:03:32,380 --> 00:03:40,860 which deeply exposed him to mechanics, kinetics, and accuracy. Within five years, 28 00:03:40,860 --> 00:03:46,700 he moved to London, saved up money, and opened his own company with his brother-in-law, 29 00:03:46,700 --> 00:03:55,780 as Wilsdorf and Davis. His aim was high quality at affordable prices. Three years after that, 30 00:03:55,780 --> 00:04:03,420 in 1908, the company would be renamed. Hans wanted it to be five letters, to look good visually, 31 00:04:03,420 --> 00:04:09,460 and to fit on a watch, without having to be abbreviated like he was currently doing, 32 00:04:09,460 --> 00:04:19,180 and shortening his company to W and D. After 100 possibilities and still no inspiration, 33 00:04:19,180 --> 00:04:23,860 it was during a ride on a horse-drawn double-decker carriage, he said, 34 00:04:23,860 --> 00:04:32,020 a good genie whispered in my ear, Rolex. He immediately registered that name in Switzerland, 35 00:04:32,020 --> 00:04:38,940 so he has intuition, or connection to visioning, and the smarts to make good business decisions, 36 00:04:38,940 --> 00:04:50,220 proactively versus reactively. Rolex, as he said, can be easily spoken in many languages. It means 37 00:04:50,220 --> 00:04:57,580 nothing as a word, so interpretation is limitless. And being in Switzerland would prove strategic 38 00:04:57,580 --> 00:05:06,620 within a decade. Next was his mission. Wrist watches were frowned upon, and pocket watches were 39 00:05:06,620 --> 00:05:13,900 favored. Hans wanted their potential realized, and he got his wish in six years, when World War 40 00:05:13,900 --> 00:05:19,420 I broke out. You can't be in combat, and needing to pull an instrument out of a pocket to tell time. 41 00:05:19,420 --> 00:05:27,620 His betting on wrist watches paid off. He finished his own prototype 14 days before the war. 42 00:05:27,620 --> 00:05:37,620 Until 1915, when England imposed a 33% import tax, Hans had been importing movements, which are the 43 00:05:37,620 --> 00:05:43,500 internal workings of a watch, and assembling into cases in England, where the assembled product 44 00:05:43,500 --> 00:05:51,340 was sold. It was better for business to move to Switzerland. So now, he registered the name, 45 00:05:51,340 --> 00:05:59,140 relocated his company, established he has keen hunches, willpower, and business smarts in both 46 00:05:59,140 --> 00:06:12,540 production and profit. Number two, speaking of production, not only did Rolex innovate, 47 00:06:12,540 --> 00:06:19,940 it was also one of the earliest nearly completely vertically integrated manufacturers in the game. 48 00:06:19,940 --> 00:06:28,580 With an in-house foundry and proprietary alloys, Rolex would set itself apart. This means Rolex 49 00:06:28,580 --> 00:06:35,020 orders metals, but then makes its own recipes for both steel and gold that aren't known, 50 00:06:35,020 --> 00:06:43,740 so they can't be easily copied. Does their steel look stronger? Does their rose gold seem pinkier? 51 00:06:43,740 --> 00:06:50,740 Not really, but this is the invisible half of setting the brand apart. The other half is 52 00:06:50,740 --> 00:06:58,620 consistent recognizability in all its components. The link styles, two-tone bezels and their 53 00:06:58,620 --> 00:07:05,380 soda-pop nicknames, distinctive dials, and monikers of their designs in the product lines. 54 00:07:05,380 --> 00:07:12,820 So what did Rolex invent? The brand had back-to-back breakthroughs in the world of watchmaking, 55 00:07:12,820 --> 00:07:21,220 in 1927 the first waterproof watch was launched, called the Rolex Oyster. Four years later, 56 00:07:21,220 --> 00:07:28,620 the company would debut the Rolex Perpetual, the first self-winding mechanism with a perpetual 57 00:07:28,620 --> 00:07:36,220 rotor, which is an oscillating pleat that can swing in either clockwise or counterclockwise motion 58 00:07:36,220 --> 00:07:43,180 and contribute momentum to the running of the timepiece. So now we know Rolex for signature 59 00:07:43,180 --> 00:07:50,700 alloys, creating almost everything top to bottom under the same roof, and two groundbreaking 60 00:07:50,700 --> 00:07:58,540 contributions to modern timepieces. The next step would be how to publicize and promote these 61 00:07:58,540 --> 00:08:13,140 achievements. Number three, innovative marketing. Marketing communications is both a love and 62 00:08:13,140 --> 00:08:20,980 a study of mine. So let's look at Rolex through that lens. Their strength of a strong name, 63 00:08:20,980 --> 00:08:28,100 a symbolic logo, those two are the visual parts. Their slogan that ties into the letter 64 00:08:28,100 --> 00:08:39,100 quote, a crown for every achievement, unquote, and a motto built to last would prove both predictive 65 00:08:39,100 --> 00:08:44,780 and prophetic. Today we hear words that are normalized in the industry of entrepreneur, 66 00:08:44,780 --> 00:08:53,660 especially online. Surprisingly, Rolex was superb at powerful opt-ins, influencer marketing, 67 00:08:53,660 --> 00:09:01,300 and lead generators. Let me break those terms down before I show their executions. Opt-in, 68 00:09:01,300 --> 00:09:08,620 simply said, is when you're being asked to sign up. It is a capture of your contact information 69 00:09:08,620 --> 00:09:16,540 so that you can be approached to do business. Influencer marketing is a current concept of 70 00:09:16,540 --> 00:09:22,260 having someone else use their community to promote your product to their following. 71 00:09:22,260 --> 00:09:33,180 Commonly, the influencer is an expert in a niche or specific area. And lastly, a lead generator is 72 00:09:33,180 --> 00:09:39,780 what a company offers to create interest in consumerism and it's designed to assist in 73 00:09:39,780 --> 00:09:45,780 converting into a sale. It creates the new business for the product or service provider. 74 00:09:45,780 --> 00:09:54,420 Rolex's example of an opt-in would be the clever placement of a fish tank in a department store 75 00:09:54,420 --> 00:10:00,980 window with their waterproof watch in the bottom. A prospective party walks into the store, 76 00:10:00,980 --> 00:10:08,780 asks about the watch in the fish tank. A brief conversation ensues and at some point you typically 77 00:10:08,780 --> 00:10:16,340 arrive at the end user, which would be the future watch wearer, asking for more information, or 78 00:10:16,340 --> 00:10:24,780 the salesperson offering more. Information gets exchanged and outreach is begun, usually either 79 00:10:24,780 --> 00:10:34,940 in an appointment or a phone call or in today's world via emails. The lead generator is the 80 00:10:34,940 --> 00:10:42,180 company's offering via attraction marketing that you receive if you engage. You get a freebie of 81 00:10:42,180 --> 00:10:48,220 some sort and the business has your attention to see if a sale emerges from your interest. 82 00:10:48,220 --> 00:10:57,220 Rolex's classic move was publishing ads in local papers presenting a free catalog. So you get 83 00:10:57,220 --> 00:11:04,180 their asset and more likely than not, you look through it and then you get a follow-up which 84 00:11:04,180 --> 00:11:12,820 then develops a customer journey. Awareness to consideration, to purchase, to client retention, 85 00:11:12,820 --> 00:11:20,700 and finally their advocacy. This is the importance for both sides to have promotional materials. 86 00:11:20,700 --> 00:11:27,140 Do you suppose the traditional houses had that dash of maverick in them like Rolex? 87 00:11:27,140 --> 00:11:33,180 Switzerland is more conservative than England, where Hans got a taste of different ideas and 88 00:11:33,180 --> 00:11:38,900 approaches to business. What Rolex's influencer marketing looked like was connecting with 89 00:11:38,900 --> 00:11:45,940 industries gaining attention and power stunts with daring individuals. Some examples include 90 00:11:45,940 --> 00:11:52,740 his first brand ambassador, who was female, the swimmer Mercedes Gleitze, who had been the first 91 00:11:52,740 --> 00:11:59,940 woman to swim the English Channel. Her record was allegedly broken, so the media declared a do-over. 92 00:11:59,940 --> 00:12:08,420 Rolex swooped in, having already heavily invested in advertising for its oyster model. She wore 93 00:12:08,420 --> 00:12:14,860 it around her neck in colder temperatures than her first success. And even though she didn't complete 94 00:12:14,860 --> 00:12:24,700 the journey, Rolex used this in marketing from 1927 into modern ads as recent as 2023. Another 95 00:12:24,700 --> 00:12:31,780 power partnership was with Malcolm Campbell, a racing motorist who set many records for both land 96 00:12:31,780 --> 00:12:40,140 and water speed. Rolex is the official watch in World War II for the Royal Air Force. Sir Edmund 97 00:12:40,140 --> 00:12:48,980 Hillary in 1953 is sponsored by Rolex, climbing up Mount Everest. Now the brand is associated with 98 00:12:48,980 --> 00:13:00,140 discoverers and pioneers, as well as areas of interest such as racing and flying. And in 1960, 99 00:13:00,140 --> 00:13:07,140 the US Navy sent a submersible to explore the Mariana Trench, the deepest part of the ocean in 100 00:13:07,140 --> 00:13:15,020 the world. A Rolex was externally strapped to the craft. And while a window imploded due to 100 101 00:13:15,020 --> 00:13:22,260 times sea level pressure, or six tons per square inch, the Rolex was unfazed. These stories, 102 00:13:22,260 --> 00:13:32,300 personas, careers, and achievements, as well as mishaps, was free PR on Rolex's reputation, 103 00:13:32,300 --> 00:13:47,460 which is what others say about you or your product. Number four, smart business practices. Did you 104 00:13:47,460 --> 00:13:54,980 know Rolex is a charity? I mentioned earlier that Hans moved the company from England to Switzerland 105 00:13:54,980 --> 00:14:03,980 to bypass war import taxes. Other benefits were Switzerland's neutrality, its local labor, 106 00:14:03,980 --> 00:14:14,820 and it being a tax haven. In 1944, Hans's wife died, and there were no errors. So he established 107 00:14:14,820 --> 00:14:23,740 a trust. In 1960, he transferred all, meaning 100% of his company shares and stake in his own 108 00:14:23,740 --> 00:14:33,020 business to this foundation. He would die the same year. Now the claim is that incomes from 109 00:14:33,020 --> 00:14:39,060 Rolex are donated to charities and causes. But you know what else is part of a European charity? 110 00:14:39,060 --> 00:14:47,660 Non-disclosure in Switzerland. Public record is not required. Plus the absence of corporate 111 00:14:47,660 --> 00:14:54,420 taxes on a not-for-profit status. While Hans insured his legacy would live on, 112 00:14:54,420 --> 00:14:58,700 we will never know the financials of its converted company status. 113 00:14:58,700 --> 00:15:13,380 And number five, product placement. Mid-century heroes and Hollywood. By now, 114 00:15:13,380 --> 00:15:22,220 Rolex has created ADs or authorized dealerships globally. The original watch for the fictional 115 00:15:22,220 --> 00:15:31,260 character, British secret agent James Bond, has European association and affinity. It was also 116 00:15:31,260 --> 00:15:39,340 worn in the filming of Apocalypse Now to reach the USA market. Rolex sponsors the Academy Awards, 117 00:15:39,340 --> 00:15:47,220 America's entertainment event for glamour and cinematic wins. It is also the official 118 00:15:47,220 --> 00:15:55,140 timekeeper for Wimbledon, the prestigious tennis tournament. Rolex earned that partnership in 1978, 119 00:15:55,140 --> 00:16:02,740 at a time when the sport was reaching new transcontinental heights. Legends would face off, 120 00:16:02,740 --> 00:16:10,180 become household names overnight, and gain lucrative endorsement deals for their victories and 121 00:16:10,180 --> 00:16:19,660 attempted championship statuses. And we come full circle to the Tennis Star comment. The Swiss 122 00:16:19,660 --> 00:16:27,100 former player and record breaker Roger Federer, whose quote I opened with about not wearing a Rolex 123 00:16:27,100 --> 00:16:35,580 to tell time, has been compensated $15 million per year to exclusively wear and promote his 124 00:16:35,580 --> 00:16:43,420 timepiece for the company. The brand has mastered a winning formula, strategic branding, 125 00:16:43,420 --> 00:16:53,300 plus superior quality, and controlled growth such as weightless and under production, 126 00:16:53,300 --> 00:17:00,940 which became the Rolex bubble during the pandemic. As FOMO, an acronym for fear of missing out, 127 00:17:00,940 --> 00:17:09,940 and YOLO, you only live once, accelerated the uncertainty and acquisition of the watch of your 128 00:17:09,940 --> 00:17:25,020 dreams. In conclusion, Rolex's arrival as status wasn't only mastery or marketing. The fusion of 129 00:17:25,020 --> 00:17:31,300 planned and unplanned elements in both of these realms have led Rolex to being the champion in 130 00:17:31,300 --> 00:17:41,620 recognizability, familiarity, excellence, what it says about the wearer, and the triple threat of 131 00:17:41,620 --> 00:17:51,900 utility, exclusivity, and prestige. They say if it ain't broke, don't fix it. But that limitation 132 00:17:51,900 --> 00:17:58,700 gives no room for opportunity. And those who want to reinvent the wheel further than you might have 133 00:17:58,700 --> 00:18:08,900 done. Thank you for listening and learning with me. I would love you to share this project with 134 00:18:08,900 --> 00:18:13,860 people finding rare beauty in today's world and throughout our times. Until the next episode, 135 00:18:13,860 --> 00:18:29,420 keep your own story sparkling.