The direct operations of Swiss luxury watchmaker Rolex have effectively come to an end in South Africa due to a fundamental restructuring of its operations in the country. Since 1948, the firm has been operating an affiliate office in South Africa and currently operates under the name Rolex Watch Company (South Africa) (Proprietary) Ltd, which plans to shut its Sandton office in June 2024. This move has been made due to new circumstances in the local market, which make it impossible for Rolex to have an affiliate in a number of countries any longer.

However, surprisingly, Rolex has not completely shut its doors to this market, but it has continued to affirm its presence in this country. It will continue to exist through its network of official retailers, and it has provided plans on how it wants to expand and improve its existing retail outlets all over the nation. This is not an isolated change but a sign of revolution to fit clients’ new requests and trends in the sales of luxurious products.

If you will recall, I highlighted that as part of the restructuring plan at Rolex, maintenance and servicing activities are being outsourced to The Vault, a partner in Switzerland. From 1st July 2024, The Vault will become the focal point for all after-sales services of the country’s Official Rolex Retailers. This transition also guarantees that existing and potential Rolex watch owners will be able to get services and support for their watches from their respective countries of origin for many more years.

The Rolex Authorised Service Centre will continue to operate from the premises that is located in Johannesburg which will ensure that service of the brand is continuous. This decision is a sign that Rolex is seriously determined to protect the quality of its products that is offered on the South African market.

For the future perspective of 2025, Rolex has planned out some new projects to improve the company’s status in South Africa. One new venture capital that is in the pipeline is that Fabtec is set to open a 200 square metre boutique in Sandton City Johannesburg in association with SHEMER. This new Flagship store will be located in the second quarter of the year, 2025 and will offer Rolex up to date models to the clients in a more elegant manner.

Other than the new boutique, Rolex is working with its long-term partner, Charles Greig, to redesign its store in Hyde Park. The upgraded area will include a new 65 sqm Rolex shop-in-shop launched during the second quarter of 2025. This upgrade demonstrates the specific approach Rolex has taken towards the development of customer engagement experiences within the confines of the existing retail relationships.

New points of sales for Rolex outside Johannesburg are being prepared, including Cape Town and Durban. In Cape Town, two stores will sell Rolex watches; Charles Greig will sell them at the Victoria & Alfred Waterfront and Van Deijl Jewellers at Tyger Valley Shopping Centres. Also, in Durban, Rolex’s The Vault will occupy a 60sqm corner of Umhlanga Arch as Rolex reaches out for a new market in the country.

For people who are interested in purchasing Rolexes in South Africa, one major advancement is the Rolex Certified Pre-Owned (RCPO) programme of 2025. This programme that commenced globally in 2022 allows customers to buy second-hand items Rolex with the guarantee of the brand. The principles of the RCPO program largely include expanding the availability of Rolex watches and satisfying the demand of diverse customers.

The changes to Rolex’s business model in South Africa are taking place in a period that can be characterised as one of mixed fortunes for luxury goods market in the country. As on the factors affecting consumer buying behaviour and after effect of inflation has seen some downfall in its effect there is a good market demand for luxury products amongst high end as well as those customer who wish to be categorised as high end in South Africa.

Economistic industry observers believe that the move by Rolex is strategic to the existing new retail market environment in South Africa. Through network of cooperation with well-selected local partners and the opening of completely new boutiques equipped with the state of the art technologies Rolex is preparing itself to meet its consumers needs even more effectively while making operational improvements.

There is resilience in the luxury goods market in South Africa even with the economic situation affecting the country. Select brands, such as Rolex, that can deliver satisfying solutions that will help the end consumers and, at the same time, uphold a rich historical background are more able to thrive in this environment. Other proof of that is the appearance of programs like RCPO that might suggest the direction towards sustainability and circularity in luxury goods, targeting more and more environmentally friendly consumers.

While starting this new chapter for Rolex in South Africa, the decisions the brand makes will not only be interesting to industry watchers but also competitors. This restructuring could, therefore, be a model by which other luxury brands operate in emerging markets with similar economic characteristics.