Where's the Ice Machine?

Hong Kong is the luxury watch capital of the world. Even more than Geneva watch dealers are everywhere and seeing people wearing Rolex and Patek on the streets and subways is very common. If you’re visiting Hong Kong a Rolex could make the perfect souvenir, if you’ve come prepared to buy.

I found the Rolex I wanted at the right price in Hong Kong, and in this post I’ll describe the whole process. The hardest part is the market research you’re doing before you get on the plane.

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Background: Scarcity and the Rolex Business Model

Unique for a company of its size, Rolex is neither a publicly traded corporation or a privately held company. It’s fully owned and operated by the Hans Wilsdorf Foundation, a charitable organization. That status allows them considerably more opacity in how they conduct business than is possible for competitors. There’s a bit of mystery surrounding everything about Rolex; what products are introduced or dropped, how many units are produced for each watch and how allocations to dealers work.

You can learn more with your own research. Ultimately Rolex is extremely successful. As a nonprofit Rolex isn’t responsible to shareholders to raise prices or increase production. High global demand is good for the brand’s prestige.

Demand is as high as it’s ever been. The uncertainty in markets when Covid arrived and the crashing of various crypto and NFT scams means that a lot of people with money to churn are looking for the next get rich quick scheme. Luxury watch collecting/flipping fits the bill perfectly.

Style has evolved. No one under 50 wants to wear a gold watch. The demand for Rolex steel models in particular is so high now every dealer’s shop in the world is empty. Or so they’d have you believe.

How Rolex Authorized Dealers Work

An authorized dealer is usually a store that carries several watch brands and often jewelry as well. Many brands also own their own boutiques, which carry new stock from only a single brand.

Rolex only sells watches through authorized dealers, but more often than not those AD’s are easily mistaken for boutiques. They usually only sell Rolex and the signage and decor is consistent all around the world. It’s similar to buying a car dealership. Some Rolex “boutiques” are owned by a family or local partners and many are owned by global powerhouse retailers like Watches of Switzerland.

Rolex AD’s follow a lot of strict rules about how they can conduct their business. Among them is that the dealer will buy what Rolex offers them for sale. Every dealer has a display-only watch for each model. For their stock Rolex sends them a number of watches in a monthly shipment. Dealers don’t know what watches are in each shipment and have limited ability to request models.

Business is good enough that jewelers can afford to set up a Rolex “boutique” in a city like Hong Kong right next door to an identical “boutique.” They both sell out their whole inventory every month, just like every Rolex dealer in the world does.

Is “The List” Real?

Sort of. There’s no master waiting list that you can sign up for to buy a Rolex. Lead generation and deciding which client is offered a watch is an area where the brand gives jewelers a lot of leeway.

Some dealers will add your name to a list for a particular model. Some will tell you you’re on a list when you’re not and still others will tell you they don’t maintain such lists.

I’ve also heard it said that some jewelers let each salesperson build their own list of leads. When a shiny new Daytona comes in the salesperson whose turn it is for that watch will have 2-3 days to get it sold. If they can’t do it by then someone else gets a chance to sell the watch.

One thing they all have in common is a love for repeat customers. Some AD’s prefer to sell to collectors and genuine customers. Others have few qualms about selling to known flippers and grey market dealers. This is particularly true in Hong Kong. There are scores of Official Rolex Jewelers and their clients are both worldwide and also connected to the grey shops all over Hong Kong.

Hong Kong’s Pre-Owned Rolex Market

All watches in the grey market are technically pre-owned. In Hong Kong you can either seek out an actual used watch or find the model you want “new” in the box, exactly as it came from the factory. Of course there’s a significant premium over retail if you’re going that route.

I found Uptick Watch Reviews and particularly his watch safari videos very helpful in learning about the market. They’re a great tool for knowing where to look and what to expect. A European living in Hong Kong, he’s clearly knowledgable about the watch world. He’s also got the budget to be quite experienced in buying and selling. You might think a guy just pointing his phone at shop windows and vamping about watches isn’t interesting. If you’re looking to score a Rolex at a particular price there’s nothing better for learning about Hong Kong’s grey market scene.

Prices on some of the most desirable models change rapidly in Hong Kong. Sometimes they change so quickly dealers won’t even price a watch on display. But if you’re looking under $15,000 USD these watch safari videos should give you a good idea what Rolexes you can expect to find in Hong Kong and roughly how much they go for, even if the video is a year old or more.

Making a note of the particular shops featured is also helpful because when you search for “watches” or “Rolex” in Apple Maps the results are mostly jewelers (that don’t sell watches) or AD’s, which is unhelpful. Siri does not understand what the Hong Kong grey market is.

My Days Shopping Rolex in Hong Kong

Whether it’s on the street or in a mall watch dealers tend to have most or all of their stock in windows for passers-by to see. One of the largest concentrations of dealers is found in Chungking Mansions, on Nathan Road in Tsim Sha Tsui.

The day before I arrived there was a major robbery in the building. Thieves came in with knives and stole $10M HKD worth of watches and cash. Such things do happen from time to time. In this case all the dealers in the area freaked out. They packed up their stock and vanished. Walking through the malls in Chungking was a ghost town. A place that had held millions’ worth of luxury watches the day before was reduced to a dusty, empty flea market overnight. Even dealers with shops on the street were worried and most kept their rolling steel doors down all day.

The thieves were caught and things returned to normal eventually. I can’t say if this was related to the Triads, but you’re never very far from organized crime in Hong Kong. Fortunately it was business as usual in Mong Kok, Yau Ma Tei, and on the Island.

Dealing With Dealers in Hong Kong

If you’re looking for a Rolex with no luck at home you should’ve already narrowed your search to one or two models. Try on the watches you like and have a target price for each one before coming to Hong Kong.

Prices are lower than online. They’re not cheap but if you’re looking at a Rolex model above $12,000 You might get the watch and a vacation for the same money. Think of it as a shopping trip/mileage run combined or an interesting way to cash in some miles. Keep an eye on Skyscanner for sub-$1000 flights.

Don’t get your hopes up about negotiating in Hong Kong. Dealers know what watches are worth. You’re unlikely to get more than 5% off and even that takes legwork. Expect a 2% premium on each credit card transaction. Dealers love cash but getting your hands on that much HKD is a hassle. A good travel card offers purchase protection.

A box, warranty card, or full set carry a premium. The shop where I purchased had two identical watches: with and without a warranty card. The difference was $650 USD. For a card! As an owner that won’t enhance your enjoyment daily. You save a lot buying a watch-only piece without worrying about packing the box or customs.

The seller can size your watch but it’s important to know how many links were on the watch new. You should also know the value of that model’s spare links. They’re expensive and dealers love to collect them. Missing links are one of your best negotiating chips.

If you don’t see the watch you want, ask for it. Some dealers have multiple locations and computerized inventory, or can source a watch for a finders’ fee that comes out of their end.

Pounding the Pavement for Your Rolex

Conveniently, most of your search will be in areas where lots of hotels and subway lines are. You should start either in Central or TST and check up as far as Sham Shui Po if you’re coming up empty. Definitely make time to see The Vintage Concept in Central. Most of the store is vintage Rolex. It’s a nice approximation of a Rolex museum but everything is for sale. This store is worth a look as just a regular tourist attraction, even if you’re not in the market for a watch. If it’s an Explorer 14270 you’ve got your eye on they’re always here and start at $45,000 HKD. Easy peasy.

If you’ve checked every store between Sham Shui Po and Causeway Bay it’s hard to imagine you haven’t found a suitable watch. But if you’re still striking out you might try taking the ferry to Macau. There are many watch dealers among the casinos. The window shopping is as good as in Hong Kong but the prices felt just a tick higher. Watches there are priced in both Hong Kong and Macau currencies so you can compare to any examples you’ve already seen in HK shops. You can go over there and shop and get back to Hong Kong in 4-6 hours altogether.

Not on the same level as Hong Kong, Orchard Road in Singapore also features a concentration of grey market dealers and Rolex prices there are also very competitive. If you’re traveling through Asia it’s good to do your research on both markets before you buy.

Bringing Your New Watch Home

Ultimately I found the watch I wanted at the price I was hoping to pay. I walked out with it on my wrist and went straight to the laundromat to fold my underwear. Worn it every day since.

Making a major purchase overseas can be a bit daunting. There’s always someone in your life or online ready to chime in about how if it’s not from an AD it must be a fake. Don’t pay any attention to the stories about a friend of a friend buying a Bolex on Canal Street 20 years ago. A lot of people have a very narrow view of the world and can’t possibly imagine that people in another country spend their whole lives dealing in luxury watches, and value their reputation in the business over everything.

The Watch Internet contains a lot of hype and wannabe influencers, as well as a lot of newbies with very strong and very wrong opinions. But there’s signal amidst the noise and a lot of good information to be found. If you’ve done your due diligence both online and out in the world you’ll be fine. You can bring home a watch that will last you a lifetime.

_{(Note: Photos 3-5 below are from Singapore)}