In recent years, the Swiss watch industry has become polarized on the high end of the segment as the Federation of the Swiss watch industry show: A few big brands like Rolex, Patek Philippe and Omega capture most of the growth of the watch industry while sales of lower segments, below 3000 Swiss Francs in the terminology of the Federation of the Swiss watch industry, are declining.

Rolex has probably the first and the best to create and applies this strategy of product scarcity.

 This of course consists in completely controlling your distribution network in order not only to control stocks and spare parts but also to understand customers aspirations and create the perception of scarcity: buying a Rolex is worth it….

Limited number of parts available, waiting list for most flagship models (Submariner, Milgauss). The customer pays in advance for the desired product which is then only delivered to the drop-off account. The main conclusion of this modus operandi is to allow strong growth in turnover without necessarily greatly increasing production, customers becoming inelastic to price increases and simply obsessed with the idea of ​​finally getting the product so desired which allows increases. almost double-digit annual prices.

 

Both Remy Cointreau and Rolex share a number of values: Perfectly executed product taste, attention to detail, respect for tradition and a feeling of belonging to a restricted circle when you have this product.

Remy Cointreau seems to have successfully applied this same strategy for two years, in particular with cognac and gin.

When they were last published, Cognac sales were up 52% ​​in the first half of the year which was breaking down, 35% in volumes and 20% in price which shows that almost 50% of the growth in turnover is driven by price increases. These increases have nothing to envy to those of the Rolex models. The icing on the cake, Remy who is constrained by the barrels of old water for his Cognac no longer has this constraint for the manufacture of his Gin "The Botanist" with the same Rolex strategy.

Conclusion

A little less than fifteen years ago, Hermès to escape the clutches of LVMH had already applied this "Rolex" strategy to its line of bags, Remy Cointreau is doing the same today.

To execute this type of strategy which combines constant price increases thanks to the organization of the shortage of its own products, it is necessary to have a rigorous control of its distribution and a flawless managerial execution and finally exceptional products that which appears to be the case with Louis 13 and The Botanist.