From Top Electric.

In early 2025, a bombshell leak from China rocked Rolex, the iconic Swiss luxury watchmaker, forcing the brand to slash prices on select models. The leaked documents, which surfaced on Chinese forums and platforms like Weibo and X, exposed Rolex’s production costs, revealing that retail prices for models like the Submariner and Daytona were marked up by as much as 85-90% over manufacturing costs. This sparked outrage among Chinese consumers, a key market for Rolex, who accused the brand of price gouging and exploiting artificial scarcity to inflate demand. Amid economic uncertainty and growing scrutiny of wealth displays in China, the backlash intensified, prompting Rolex to cut prices by 10-20% on stainless steel sports watches, a rare move for a brand known for steady price hikes. The leak also disrupted the grey and secondary markets, driving down resale values and unsettling collectors who viewed Rolex as a safe investment. The scandal has raised broader questions about transparency and fairness in the luxury watch industry, challenging Rolex’s carefully crafted image of exclusivity. As the brand navigates the fallout, it faces pressure to innovate and rebuild trust while adapting to shifting consumer expectations in a digital age. The China leak underscores the vulnerabilities of luxury brands in an increasingly connected and critical global market, signaling a potential shift in how prestige is defined and priced.

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