Rolex has not yet provided an official reason for the closure of its service center in Guangzhou. However, customers will still be able to send their watches for repairs through authorized retailers, who will forward them to Rolex’s service centers in Beijing or Shanghai.
Recent data from Morgan Stanley reveals that Rolex’s secondhand market index has dropped by over 30% since its peak in March 2022, including a 1.6% decline in the fourth quarter of 2024 alone. The hashtag “RolexPriceDrop” has gained attention on Xiaohongshu, further fueling discussions around the brand’s shifting dynamics.
An anonymous dealer executive suggests Rolex’s move could be a strategic pivot, likening it to Moutai’s shift to direct distribution. This strategy helped Moutai boost profits, although it also alienated some distributors. “Rolex is following a similar model,” the executive noted.
Yang Yongxing, secretary-general of the Xiamen Watch Association, speculated that Rolex’s decision might be a precursor to opening a flagship store in Guangzhou, which could combine retail, after-sales service, and certified pre-owned offerings. This theory gained traction after a post on Xiaohongshu garnered over 73,000 views.
Rolex’s Certified Pre-Owned program, launched in 2022, allows authorized dealers to sell vetted secondhand watches. The program expanded to China in 2024, with its first store opening in Hong Kong through the Oriental Watch Company. According to experts, this move seems more focused on gaining control over its distribution network than cutting costs.
Mai Sir, co-founder of luxury resale platform Hui Mai, emphasized that Rolex could easily open more service centers but chose not to, as this decision is more about governance and risk management than savings.
During the pandemic, supply shortages led to bundling of watches with less popular models, inflating secondary market prices. Rumors also surfaced about staff reselling spare parts off the books. The closure of the Guangzhou facility could be part of Rolex’s effort to restore order and tighten control over its inventory and customer interactions, safeguarding the brand’s reputation.
The recent price corrections in the secondhand market highlight broader changes in consumer perceptions of luxury. While watches were once seen as investments, today’s focus is more on the product experience and brand meaning. For Rolex, “value retention” extends beyond resale value—it is a reflection of scarcity, stability, and financial utility. If trust in the brand falters, it risks not only losing pricing power but also undermining its status symbol.
Taken together, the service center closures, the rollout of the certified pre-owned program, and the introduction of a new reporting platform suggest a broader strategy for Rolex: controlling every aspect of its ecosystem. What Rolex is truly safeguarding is not just its pricing power, but the very mythology that elevates its watches as a symbol of status among the world’s wealthy.
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