None of these options are good news for the brand

Jul 06, 2019,09:10 AM
 

Which is why I tip my hat to companies who purposely and intelligently ensure the supply of their product is always below demand. Richard Mille in the watch world is a good example. I was having this conversation with the President of Rolls Royce Americas when they launched the latest generation Phantom a few years back. RR had a very good grasp on global demand and would purposely build below that to ensure price integrity, there was always a wait list, and exclusivity remained a driving factor of purchase.


NickO

  login to reply

Comments: view entire thread

 

What becomes of

 
 By: Thomas_3 : July 6th, 2019-08:45
unsold watches. As an example, let's say Brand A produces 10,000 watches a year, only 9,100 sold, where do the other 900 end up? Do the stay at the AD's waiting to be sold,do the stay in the brand's distribution center, end up on the grey market, where do... 

AD always need money.

 
 By: brauner : July 6th, 2019-08:51
That's a part of the answer

Some houses I know just disassemble the watch...

 
 By: mahesh : July 6th, 2019-10:53
Potentially reuse movements.

None of these options are good news for the brand

 
 By: NickO : July 6th, 2019-09:10
Which is why I tip my hat to companies who purposely and intelligently ensure the supply of their product is always below demand. Richard Mille in the watch world is a good example. I was having this conversation with the President of Rolls Royce Americas... 

When you say “sold”, do you mean (1) sold from manufacturer to AD or do you mean (2) sold from AD to end consumer?

 
 By: Tavio_George : July 7th, 2019-07:47
If (1) they are either dismantled or sold to grey market, if (2) they are sold to grey market.