The Hour Glass

[Choon]

The way I see it:

1) Rolex want to keep the profiting on Rolex watches between itself and its authorised distributors (i.e. a close ecosystem).

2) If executed well, Rolex-Certified will drive out Non-Rolex-Certified as consumers gravitate towards Rolex-Certified.

3) Near-medium term, good for ADs as the profits earned by the gray market are now earned by ADs.

4) Long-term, if ADs prosper greatly from this pre-own business, Rolex may just adjust the economic terms between itself and ADs such that the prosperity is shared between itself and ADs.