Rolex SA has increased the prices of some of its precious metal watches in the UK by 4% as the price of gold reached record highs, reflecting the impact of market trends on luxury goods.
For example, the retail cost of the Rolex Daytona chronograph in white gold saw a 4% increase to £38,700 ($49,312) from £37,200 as of June 1, as reported on the Swiss watchmaker’s UK website and tracked by Bloomberg News. The price of a yellow gold GMT Master II also rose to £35,400 from £34,000.
Economic Indicators
Prices of country-specific Rolex timepieces can be considered a reflection of the economic strength of that country. With more than 1 million watches produced annually and sales exceeding 10 billion Swiss francs ($11.08 billion), Rolex’s pricing strategies can provide insights into market trends and consumer behavior.
Market Dynamics
The surge in gold prices, which have increased by 14% this year and reached record levels of $2,450 an ounce in May, has impacted the pricing of luxury goods like Rolex watches. This trend is further supported by other significant market movements, such as the strengthening of the British pound against the euro.
Considering these factors, Rolex’s decision to adjust prices aligns with the broader economic landscape and market conditions.
A spokesperson for Rolex in Geneva chose not to provide a comment regarding the pricing changes, emphasizing the brand’s adherence to its pricing strategies.
Pricing Strategy
Rolex traditionally revises its prices once a year, typically in January. In the UK, the company previously implemented a 4% price increase for some models earlier in the year, which included steel watches, while keeping prices stable in the US.
In response to significant currency fluctuations, Rolex adjusted prices twice in the UK in 2022, both in January and September, in line with market dynamics. This move was mirrored in European countries as well, underlining the brand’s strategic approach to pricing amid changing economic conditions.
