The Rolex Effect

Just for kicks, ask 10 people to name an expensive watch - I’d be willing to bet that nine of them will say “Rolex!” faster than Lindsay Lohan cycles through rehab. And if you sat them in front of a palate of logos, that little crown would score like Nike and Coca-Cola in terms of world-wide brand recognition and cachet. Considering that Rolex produces and sells close to one million watches per year but is still synonymous with exclusivity is nothing short of remarkable.

But this incredible brand awareness didn’t happen overnight. Rolex’s marketing success comes from consistency. The product, logo, quality, and pricing has remained the same for over fifty years. Well-planned, long-term sponsorship, advertising, and distribution policies allow Rolex to precisely control where and how their message is delivered. The slow-and-steady approach obviously works; despite a recent price increase, millions of fanatical, brand-loyal customers buy them as fast as they can make them.

But it goes deeper than that. People all over the world crave the feeling they get when they strap on their Rolex. Wearing the Daytona makes Bob feel confident at the board meeting. Bob’s wife and her diamond Date-Just fit in at the country club luncheon. And Bob’s loser son picks up skanks sporting the TT Sub. Either way, it’s what I’ll call The Rolex Effect, and it’s the reason behind Rolex’s phenomenal success.

Successful brands capitalize on The Rolex Effect. Think Starbucks, BMW, and Apple. At the end of the day, they’re not selling you a product; you’re buying their emotion.