David Rosenthal: belief

Transcript context

…A whole bag full of TAG Heuers. Exactly. And it’s a non-exclusive market. Anybody who’s a watch collector isn’t just a Rolex collector. I’m sure there are some people, but I think for a lot of people who love Rolex, they’re also going to own a Panerai or they’re going to own a whatever, and that doesn’t hurt their relationship with Rolex. Fair. The question remains, why did they buy Bucherer? Here’s my supposition. Yes, it will help them improve their economics for watches that they sell through Bucherer, but not why they did it. Yes, it will help them improve leverage over other retailers, but they didn’t need that. They already do things like, gee, it would be nice if you wanted to remain a Rolex authorized dealer if you sunk a whole bunch of capital costs into rebuilding this part of the store to make it better. Oh no, no. We mean you. We would like you to do that. We will get back to you this December if we’re going to renew the contract for next year for you to stay a dealer or not. But let us know in those renovations. They have all the leverage, all of it. I don’t think it’s like, oh now we own this retailer. They didn’t need that at all. It will also let them have a tighter grip on watch allocation and the customer touchpoint.…

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