was founded in 1908 by Mr. Hans Wilsdorf, a German National
Citizen. Initially the company was named Wilsdorf & Davis
as Wilsdorf founded company together with his brother in law.
At the time, mostly pocket watches were produced by Swiss
watch manufacturers as manufactures still had difficulty to
produce accurate and reliable movements in such small size
that they would fit in a wrist watch. Wilsdorf was a perfectionist
who improved the standards for watch making as he did strive
for smaller and more accurate movements that transformed style
and fashion from larger pocket watches to smaller more practical
wristwatches. Aegler, a small Swiss company agreed to supply
Wilsdorf with movements small enough to be worn on the wrist.
Wilsdorf's production included a variety of case designs:
casual, formal and sporty.
In 1910, Rolex sent their first movement to the School of
Horology in Switzerland. It was awarded the world's first
wrist watch chronometer rating. Wilsdorf recognized two major
requirements for watches: 1) To keep accurate time, and 2)
To be reliable. With the Chronometer Award, 'accuracy' of
timekeeping was considered to be under control and Wilsdorf
started to work on improving the reliability of his watches.
One of the main problems at the time was, that dust and moisture
would enter in the watch case and progressively damage in
movement. To solve, one would need to develop a completely
dust and waterproof watch case. Dust and water would enter
watch cases via the casebook and via the crown. Wilsdorf developed
a screw crown and casebook mechanism that revolutionized the
The first waterproof watch was cleverly advertised around
the world. At the time, the public was rather skeptical if
the watch would be really waterproof. However, after seeing
a watch in an aquarium in the shop window, many people were
convinced. Around the world one could see windows of watch
shops with an aquarium and submerged Rolex watches. This campaign
created an enormous brand awareness for Rolex. Since then,
Rolex has continued to be at the forefront of the watch making
industry. Today, almost every watch manufacturer followed
Rolex and offers waterproof watches.
Rolex Prince, developed in 1928 became a best seller with
its dual dial and rectangular case. In 1931 Rolex invented
the "Rotor" - a semicircular plate of metal that
with gravity, would move freely to wind the watch. Thus, the
Rolex "Perpetual" (automatic) movement was born.
Rolex's star has risen much higher since those days of the
First World War. "People want to own a Rolex because
it shows that they made it.". It is something to which
you aspire and then treat yourself after a successful venture
or a windfall.
Industry watchers say that what distinguishes Rolex from other
premium timepieces is its signature look--a big, round face
paired with a wide metal band--that's become as familiar on
a basketball court as at a black-tie reception. Identifiable
from across a room, the Rolex look has an unrivaled, near-universal
appeal. Sportsmen value its ruggedness, adventurers its reliability
and royalty its elegance. The design's evolution could be
best described as glacial. There have been changes over the
years, but it's all in the details. Take Rolex's first calendar
watch, the Datejust. If you put a Datejust from 1945 beside
a Datejust from 1998, you'll see the resemblance. There probably
won't be a single part inside that's interchangeable, but
the outward design has evolved ever so marginally."
This timeless appeal often translates into an excellent investment.
At Christie's auction house in London last September, the
excitement created by the sale of a private collection of
360 Rolex watches dating from the 1910s to the 1990s surprised
even the most nonchalant pundits. The highlight of the auction
was the sale of a cult icon--a late-1960s stainless-steel
manual-wound Paul Newman Cosmograph Daytona (so named because
the actor wore one in the 1969 racing flick Winning) that
took the hammer for a cool $21,212, twice its estimated value.
The Paul Newman, with its flashy dial and oversized indexes,
wasn't an immediate success and was produced for a very limited
time. Its meteoric ascent in popularity didn't begin until
the mid-1980s. The Italians were the first to go for it. It
was perfectly possible 16, 17 years ago to buy a Daytona at
20 to 25 percent under list price in England or America at
the same time Italians would pay you 30 to 40 percent over
list. Let's just say it was a nice little earner for quite
a number of enterprising people.
By the time Daytona fever swept across Europe and the United
States in the late 1980s, a relaunch was already in the works.
Introduced in 1991, the updated Daytona replicated the original's
racy chronograph--a built-in stopwatch that's perfect for
timing the morning sprints of Kentucky Derby contenders or
your nine-year-old's dash for first base--but added an automatic
winder. Today, the $5,150 stainless-steel Cosmograph with
a white face--the rarest combination and the one that Paul
Newman reportedly wears off screen--is one of the country's
most-coveted timepieces. The Daytona is actually worth more
on the secondary market than its retail price. I mean, here's
a watch that--assuming you could find one, that is--you could
pick up new and turn around and resell for a $2,000 profit.
And in steel.
the best-known Swiss watchmaker has always been something
of an outsider in Geneva. Perhaps it's because the company
didn't start out Swiss. As mentioned, Rolex was founded in
London, in 1905, by the 24-year-old Wilsdorf, a German who
became a British citizen after taking an English bride. It
was an era when national borders tended to define men's ambitions,
but Wilsdorf thought big from the beginning. In 1908, before
anyone had uttered the term multinational, Wilsdorf trademarked
the word Rolex, a name that's easily pronounced in different
languages and short enough to fit on a watch dial. It's said
that Wilsdorf dreamed up the word while riding a London bus,
having been inspired by the sound a watch makes as it is wound.
Rolex didn't leave England until after the First World War,
when an import tax hike of 33 percent made receiving its Swiss-made
movements prohibitively expensive.
The company's first decade was driven by its founder's relentless
obsession with precision. "Wilsdorf wasn't content merely
to invent the first wristwatch. He wanted to invent the first
truly accurate wristwatch, one that you could actually run
your life by." Validation came in 1914, when London's
Kew Observatory certified a Rolex wristwatch to be as precise
as a marine chronometer. It was the first time that a watch
had received "chronometer" status--a classification
that, even today, is held by a relative few timepieces.
Still, improved accuracy didn't immediately transform the
wristwatch into an essential item in the common man's wardrobe.
Dust, heat and moisture had a way of wreaking havoc with a
wristwatch's intricate mechanical movements, and the earliest
models required too much maintenance to be practical. Rolex's
big breakthrough came in 1926, when Wilsdorf developed a case
that was impervious and waterproof. The secret was a revolutionary
double-locking crown that screwed down on the case like a
submarine hatch to create an airtight seal. Recalling his
difficulty in prying open an oyster at a dinner party, Wilsdorf
christened his creation the Rolex Oyster.
To launch his company's new timepiece into the popular consciousness,
Wilsdorf came up with an ingenious publicity stunt. After
learning that a young British woman named Mercedes Gleitze
was planning to swim across the English Channel, he presented
her with a Rolex Oyster and dispatched a photographer to chronicle
her endeavor. When Gleitze emerged triumphantly from the sea,
her Oyster was keeping perfect time and, true to its name,
had remained waterproof. Wilsdorf capitalized with a splashy
front-page ad in London's Daily Mail newspaper, touting "The
Wonder Watch that Defies the Elements: Moisture Proof. Waterproof.
Heat Proof. Vibration Proof. Cold Proof. Dust Proof."
It was the genesis of the famous Rolex testimonial ad campaign
that continues to this day.
the first Oyster had an Achilles' heel, it was its winder
button. The watch was hermetic only when the button was screwed
down. To discourage people from toying with the winder, Wilsdorf
came up with another innovation that propelled the industry
forward even further. In 1931, Rolex introduced a "perpetual"
rotor that literally rewound a watch with every flick of the
wearer's wrist. The world's first successful automatic watch
became the bedrock of the Rolex empire. "The Oyster Perpetual
is really what makes a Rolex a Rolex--it's waterproof, with
a tiny engine that you power every single time you move your
Nearly 70 years later, the Oyster Perpetual has proved undaunted
by the worst possible conditions. It has survived the depths
of the sea with Jacques Piccard and the summit of Everest
with Sir Edmund Hillary's Sherpa. It has retained its accuracy
in subzero arctic temperatures, the scorching Sahara and the
weightlessness of outer space. It has shrugged off plane crashes,
shipwrecks, and speedboat accidents, broken the sound barrier,
and been ejected from a fighter jet at 22,000 feet. Some of
the most colorful recommendations are the cautionary tales:
the Englishman who inadvertently laundered his Oyster in a
scalding cycle, then rinsed, spun and tumble-dried it; the
Australian skydiver who dropped his from 800 feet above the
outback; or the Californian whose wife accidentally baked
his in a 500-degree oven. In each case, the recovered Rolex
was running perfectly.
By the advent of the Second World War, the Rolex name had
become so prestigious in Britain that pilots in the Royal
Air Force rejected inferior government-issued watches and
used their paychecks to nearly deplete England's supply of
Oyster Perpetuals. The compliment was duly returned: any British
prisoner of war whose Rolex was confiscated had only to write
to Geneva to receive a replacement. Yankee GIs returned home
with a new trinket on their wrists. And so Rolex's romance
with America began.
Though he lived in Geneva for 40 years, Wilsdorf never became
a Swiss citizen. He died a Briton in 1960 and was remembered
by colleagues as a good-humored, fatherly man who loved life
as much as he loved a fine watch. Two years after his death,
the company's board of directors appointed 41-year-old Andr
Heiniger as Rolex's new managing director. While working under
Wilsdorf for 12 years, Heiniger had come to share his boss'
vision for the company, as well as his high energy level and
sanguine outlook. All three traits proved invaluable when
the Swiss watch industry found itself slipping into oblivion.
as video killed the radio star, the quartz boom of the late
1960s and early 1970s nearly snuffed out the mechanical timepiece
faster than you can say "Seiko." By substituting
low-cost, digital technology for labor-intensive artisanship,
the Japanese sent the Swiss horology industry into crisis
mode. Yet while most of Geneva's watch houses feverishly hitched
their star to the digital bandwagon, Rolex stuck resolutely
to its mechanical guns. By the time the dust had settled,
more than half of Geneva's watch manufacturers had gone under.
Fully a third of the survivors, including such prestigious
names as Omega, Longines, Blancpain, Tissot, Rado, and Hamilton,
were subsumed into a publicly owned consortium to avoid bankruptcy.
This fate won't befall Rolex. Wilsdorf, an heirless widower
at his death, created a private trust run by a board of directors
to insure the company would never be sold.
What made Rolex so resilient? "The single most important
thing that saved Rolex is that up until then the company had
only been run by two managing directors: Hans Wilsdorf and
Andr Heiniger. They really never had to worry about this quarter's
results. They could think long-term appeal: 'Where will we
be in five or ten years' time?' That's a completely different
philosophy than at another watch house. Even in times of uncertainty,
Rolex's greatest policy was never to adopt change for change's
sake." Revealingly, the single quartz model developed
by Rolex in the 1970s never exceeded 7 percent of the company's
total production. (Today, that figure is 2 percent).
"If Rolex had gone to quartz there's no way it would
have the image and prestige it has now." And being a
private company without external shareholders, Rolex can better
afford to remain aloof to fads than many of its counterparts.
That means no chunky cases, no madcap numerals, no avant-garde
shapes--nothing that's going to look dated in a decade's time.
In 1992, Patrick Heiniger replaced his father as Rolex's managing
director. Both Heinigers share the twin virtues of undying
optimism and ironclad discretion, according to colleagues.
It's a combination that generates intrigue among rivals and
industry observers. Montres Rolex S.A. is hugely secretive.
Rolex always was an outsider company in Switzerland. Their
top executives almost never do interviews. Essentially, their
philosophy has always been to let the product speak for itself.
At Rolex, the product is an obsession."
Consider the care taken to decorate the inside of a Rolex--the
parts the wearer never even sees. At the company's Geneva
headquarters, Rolex's craftsmen, dressed in white laboratory
smocks, pull up to ergonomically designed workstations, then
execute minute operations in near silence. Each component
of every tiny movement is sculpted with swirls, lines or loops.
Every angle is rounded and polished to a brilliant shine.
This provides absolutely no value to the consumer, except
as a gesture of the brand's refinement.
Rolex has always produced its own movements separates it from
other well-known mechanical brands. More than 200 craftsmen
and technicians will work on a watch before it acquires Rolex
certification. "There's so much more to a Rolex than
the average person will ever need. And in that sense it's
the Mercedes-Benz of wristwatches. It's over engineered. Not
because Rolex wants to squander money but because that's just
the way they do things."
Before leaving Geneva, every Rolex watch must travel through
a high-tech obstacle course of quality-control checks. Every
dial, bezel and winder will be checked and double-checked
for scratches, dust and aesthetic imperfection. The microscopic
distance between its hour and minute hands will be painstakingly
calibrated to ascertain that they are lying perfectly parallel.
An ominous-looking air-pressure chamber will verify that each
watch is waterproof to a depth of 330 feet. (The Submariner
and Sea-Dweller divers' models are guaranteed to 1,000 and
4,000 feet, respectively.) And every watch will engage in
a precision face-off against an atomic-generated "berclock"
that loses but two seconds every 100 years. Only after successfully
passing dozens of checkpoints does a watch receive the Rolex
Such attention to detail limits Rolex's production to about
650,000 watches a year, based on industry estimates. "That
might sound like a lot," insists Lister of Christie's,
"but it's very far below market demand." But, as
Andr Heiniger once said, "We've never wanted to be the
biggest, but certainly one of the finest in the field."
Our Featured Rolex:
Rolex Mens Stainless
Steel Daytona Black Dial
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