Rolex Potentially Destroys Replica Watch Market With Identity Chip and Blockchain Verification.

At a certain point in the history of Rolex watches, the hologram in the image above represented the pinnacle of being able to differentiate genuine Rolex watches from others.  Now it's possible to purchase a hologram for $20.00.  The world has moved on, and Rolex has made numerous changes since then in efforts to make a real watch stand out.  Acid etched crowns in the sapphire crystal, rehaut engraving of the Rolex brand name, however as anyone who has become aware of the modern replica watch world knows, all have been replicated.

The internet has tremendous power to facilitate communication, as is commonly understood.  What human beings do when they communicate is compare notes, and seek to improve what they have.  The application of this to replica watches has created pieces which challenge the originals in every respect.  While Rolex don't mention their view on this, and given their strong sales you would have thought they don't really care, a patent filed in late 2024 suggests they care a great deal, and may be about to introduce the final boss of anti-replica measures.

The patent, registered in August 2024 by Rolex at the Organisation Mandible de la Propriete Intellectuale, proposes the integration of a microchip inside a Rolex, which has a number of functions.  The chip allows the user to register the watch to themselves, to have an app based repair service notification, and chiefly for the purposes of this article, to have in app and blockchain authenticity verification.

This last element is in our view fatal to the replica watch market.  This does present an unusual issue, as referring back to the replica watch market that has exploded, the forums which are inhabited by hundreds of thousands of users get daily enquiries on "how close to gen is it?".  This question is derided by long term users who claim some sort of purity of purpose in respect of replica watch collecting, as if it somehow has a higher calling than wanting to have something that looks like a genuine watch.  This is quite an odd suggestion to make, and has within it an inherent contradiction.  If a person wasn't concerned about whether a replica watch looks identical to a genuine one it copies, why not buy an entirely different watch and why try to ape the output of a luxury watch manufacturer?

The extent to which the conceit these forums suggest is true is set to be put to a real test with this new technology once introduced.  Because if someone can take out their phone and scan your watch and say its not genuine, then no matter how accurate the physical details are, indeed even it the president of Rolex were standing there saying it's genuine, it won't be believed.

We predict one of two outcomes.  One, this technology will be introduced, and it will be the death knell of the replica watch industry for newer models.  Older "pre-chip" models will still be produced, but nothing after that will attract significant investment from replica factories to produce.  Because blockchain's are pretty immovable, so it just won't be worth it to try.  There will be humorous side effects of this, as those aforementioned purists will no doubt humiliate themselves talking about how they are dedicated to the hobby, and don't care.  They however will be laughed at, and ignored.

The second outcome we suggest is Rolex won't introduce the technology.  The fact is they are not having trouble selling watches because of replicas.  Indeed there is a healthy contingent of replica watch buyers that own genuine watches, and buy replicas to wear in dangerous environments.  Not to mention people who buy them the "try them out" and see if they like the feel on their wrist before committing to a real one.  Rolex know this, and so they are likely to be very cautious about introducing a technology which by it's very nature invalidates part of the promise of a mechanical watch, which is the hand crafted, non tech elegance, while also exposing a customers privacy by virtue of a digital tracker chip on their wrist.  

We will wait to see the path Rolex choose.  We hope it's the latter, as the replica watch market is no threat to the luxury watch industry in reality and makes a great many people quite happy, both the self deluded ones and others.