So here’s my humble view:
Since you brought up Rolex, but as of late same phenomenon applies to most luxury items, cars, properties, clothes, restaurants, etc...
It’s no secret I like Rolex, primarily because the product, the way they advertise “underpromising and overdelivering”not much “we are better than... watch “as other brands do. I bought Rolex when it was in almost zero demand, and personality can’t care less what anyone thinks when I wear one(or any other item for that mater), but to answer your question I think is mostly the heard mentality, the genetical coding of belonging to a tribe/group.
In today’s world, credibility is given by what you own, so brands capitalized on that.
I also think the it’s the loss of individuality,, taste, humans don’t care how it looks or fits, just “ I have that too”!
The appearance of influencers, who tell us what to like and buy...
So this is my two cents on the subject, eager to hear other angles...
P.S. To my AD, give me that 5740G since I’m waiting for over two years;-))))