Globally, the Swiss shop has more than 100 locations and will carry on with its own identity and management.
Rolex, the largest watch company in Switzerland, has made an unexpected acquisition of Bucherer, a 135-year-old luxury retailer, under which both businesses will continue to function as independent brands.
Bucherer will be integrated into the Rolex group once the takeover has received approval from the competition authorities, according to Rolex, which did not disclose the deal’s value but claimed it will increase the company’s global presence.
According to a statement released on Thursday by Geneva-based and privately held Rolex, “Rolex chose to purchase the watch retailer, which was, until recently, an independent entity, following the decision made by Jorg Bucherer to sell his company’s business in the absence of direct descendants.”
Rolex’s “desire to continue the success of Bucherer and maintain the close partnership ties that have connected both companies since 1924” is reflected in this decision, which was made. The two companies have collaborated for almost 90 years, with one supporting the success and expansion of the other.
The Hans Wilsdorf Foundation, the only owner of Rolex, only owns and manages one store worldwide, which is located in Geneva, the company’s home city. It offers its timepieces for sale through authorized merchants all around the world.
With more than 100 sales outlets worldwide, Bucherer, located in Lucerne, sells a number of high-end watch brands. It has stores in Switzerland, the US, England, Germany, France, Denmark, and Austria.
Since 1924, Bucherer has distributed Rolex watches as an authorized retailer, and 48 of its stores carry Tudor watches, which are less expensive than Rolex models.
The watch retailer has watch repair shops and serves as both brands’ authorized after-sales service center.
Rolex and Tudor run their businesses separately, with Tudor having its own CEO.
The management team at Bucherer will remain the same under the acquisition conditions of the most recent agreement, and Mr. Bucherer, the last person to have met and worked with Hans Wilsdorf, the original founder of Rolex, will continue in his role as honorary president of the Bucherer group.
The Rolex group is sure that this acquisition is the greatest move for all of the watch and jewelry partner brands, as well as for all of the Bucherer group’s employees, according to the firm.
As part of its expansion strategy, Bucherer purchased American watch retailer Tourneau in 2018. A year after purchasing The Watch Gallery in the UK, it made the transfer.
After spending was muted in 2020, it picked up in China and the US in 2021, but the war in the Ukraine, rising inflation rates, and supply chain concerns later had an impact on demand.
According to Deloitte, 2021 was the strongest year ever for the Swiss watch sector, with exports increasing to 21.2 billion Swiss francs, breaking the previous record set in 2014 and surpassing pre-coronavirus levels.
According to the consultancy, the US will account for 15% of Swiss watches exported there in 2022, making it the industry’s largest single market for the past two years.
Deloitte’s poll of business executives found that the US is the next major growth market, followed by China, India, and Gulf nations.
While China hasn’t yet restored its export share to what it was before to the epidemic, Hong Kong’s market is still declining. With 30% and 6%, respectively, Europe and Japan continue to be stable.
Over a million watches were produced by Rolex, which is famous for its Daytona, Submariner, GMT, and Master II models, in 2022, and they brought in more than $13 billion in revenue.
Luxury watches are regarded as reliable stores of value, especially in a market that is unstable and where inflationary pressures are considerable, according to Deloitte.
Consumers who buy watches as investments are motivated to do so, per the consultancy’s research, to resell at a higher price (36%), or to diversify their investment portfolio (33%).
Chinese consumers (55%) are most interested in portfolio diversity, while Singaporeans (49%) prefer resale potential and Italians (31%) are most likely to buy a watch for family members to inherit.