http://www.barrons.com/articles/rolex-slow-steady-radical-1490407488 BARRON'S PENTA Rolex: Slow, Steady, Radical How the largest luxury-watch brand stays ahead. By PAUL BOUTROS March 25, 2017 There is arguably no luxury-watch brand more polarizing than Rolex. It had estimated revenue of 4.9 billion Swiss francs ($4.9 billion) in 2015, according to the latest available analysis from Bank Vontobel. That makes it easily the largest and most powerful single watch brand on the market. Interbrand, the global consultancy, estimated Rolex’s brand value at CHF7.4 billion in 2016, the third most valuable Swiss brand across all industries. Its nearest competitor, Swatch Group’s Omega, comes in at No. 7 with less than half the value. But Rolex’s impressive achievement is easily, and frequently, misunderstood. Rolex haters claim that its success is nothing but brilliant marketing, while obsessed Rolex zealots—known for aggressive fanboy behavior—launch attacks on discussion forums should someone criticize their beloved brand. James Marks, a London-based investment manager, offers a more personal take: He bought his first Rolex at the start of his career, to mark what he had achieved professionally: “It just struck a chord with me growing up, that as your professional career progresses, you crown those big achievements with a Rolex watch.” Rolex made an estimated 830,000 Rolex watches in 2015, according to Bank Vontobel. That puts off many collectors who prefer the exclusivity of a Patek Philippe or Vacheron Constantin, both of which produce a fraction of that output due to significantly more hand-finishing. I, too, dismissed Rolex in my early years of collecting, but as I scratched the surface and learned about the brand’s history, I realized there is real substance to Rolex’s success—and that it is, in fact, remarkably innovative. (... ) It’s the classic and timeless styling of Rolex’s purpose-built sports watches that draws in watch lovers. “Rolex constantly evolves its products in such an understated manner—something I admire immensely,” says collector Marks. Rolex typically introduces a new product and then gracefully evolves it with subtle but important improvements over decades. Penta’s “best sports watch of 2016”—the Rolex Cosmograph Daytona—exemplifies this slow and steady approach. It clearly resembles the first Daytona from 1963, but the modern $12,400 version has tastefully updated its movement and case redesigns over 54 years. (... )