The Incredible Story of Hans Wilsdorf, the Visionary Founder of Rolex
Discover the journey of Hans Wilsdorf, from orphaned youth to luxury watch industry titan, and the birth of the iconic Rolex brand.
Despite the fact that there are so many Rolex resources available today, if you’ve seen my previous post on LVMH, this post takes the same approach. It is primarily based on an episode of the Founders Podcast, entitled “The Founder of Rolex: Hans Wilsdorf” but draws on a couple of other referenced sources scattered in between. That episode was released last week, and while it doesn’t uncover anything new it does tell the story in a different way.
Besides, writing these posts is my way of internalising the knowledge, and if you happen to enjoy reading it, that’s a bonus! I fully expect
aka “Mister Rolex” to hit me with some fact-checking comments too. James, all errors are undoubtedly my own, and I will more than happily correct them if you find any!David Senra brings Wilsdorf’s story to life in the Founder’s Podcast, and he masterfully uses his tangential knowledge from his other podcast episodes to draw parallels between Hans Wilsdorf and other famous entrepreneurs he has studied. I went into his source list and found an extremely deep dive on the history of Rolex which is where I will refer you if you want even more detail than you will find below. All the sources are listed in the references section at the bottom of this post, but are also linked throughout, for convenience.
Consider this essay a ‘whistle stop tour’ of Wilsdorf’s life which may highlight areas you’d like to delve deeper into. The estimated reading time is between 20-30 minutes - hope that helps with your planning 😊
ScrewDownCrown is a reader-supported guide to the world of watch collecting, behavioural psychology, & other first world problems.
The Early Years: An Orphan’s Resolve
Born in Kulmbach, Bavaria, Franconia (Germany) on 22 March 1881, Hans Eberhard Wilhelm Wilsdorf’s early life was marked by tragedy. In his own words, “My mother’s early death was soon followed by that of my father’s. And at age 12, I was an orphan.”1 These pivotal moments set the stage for a decision that would alter the course of Wilsdorf’s life forever. His uncles, recognising the importance of education, chose to liquidate the family business to fund the children’s boarding school tuition. Wilsdorf later reflected on this decision, noting, “Looking back, I believe that it is to this that much of my success is due.”
It was at boarding school that Wilsdorf discovered his aptitude for mathematics and languages, a combination that would prove invaluable in his formation of Rolex. “This inclination,” he says, “drove me to travel and work in foreign country.” Little did he know that the skills he acquired would unlock the door to an opportunity that would define his life’s work.
“We want to be the first in the field and Rolex should be seen as the one and only–the best.”
–Hans Wilsdorf (1914)
The Pocket Watch Era: A Young Man’s Vision
Before we continue, just bear in mind, Wilsdorf was a perfectionist.
At the tender age of 19, Wilsdorf entered the watch industry, working as an English correspondent and clerk for Cuno Korten, a Swiss company that exported pocket watches. It was a time when wristwatches for men were virtually non-existent, a fact that astounded Wilsdorf. “Prior to World War I,” he observed, “wrist watches for men did not exist… The idea of wearing a watch on one’s wrist was thought to be contrary to the conception of masculinity.”
Through his work at Cuno Korten and later at another unknown firm, Wilsdorf gained invaluable experience in international marketing and the inner workings of the watch industry. He noted, “My work there provided an excellent opportunity to study the watch-making industry closely and to examine every type of watch produced both in Switzerland and abroad.”
The Birth of a Brand: Wilsdorf & Davis
In 1905, at the age of 24, Wilsdorf took a leap of faith and established his own company with modest capital and a partner named Alfred James Davis, who was Hans Wilsdorf's brother-in-law. They called it Wilsdorf & Davis. Initially, the firm imported Swiss watches and sold them to retailers, a business model Wilsdorf was well-versed in from his previous employment. However, he soon realised for his vision to materialise, he would need to create a distinctive brand identity.
Wilsdorf’s vision for the wristwatch was met with scepticism from the established watch industry. Watchmakers argued that the small, delicate mechanisms required for wristwatches could never withstand the rigours of daily wear and that dust and moisture would quickly render them unusable. Undeterred, Wilsdorf pressed on, driven by his dogged belief in the potential of the wristwatch. “In spite of all of this,” he declared, “I kept my faith in the wristlet watch and was determined to see what could be done.”
In a remarkable display of foresight, Wilsdorf says in 1914, “My personal opinion is that pocket watches will almost completely disappear and that wrist watches will replace them definitively! I am not mistaken in this opinion, and you will see that I am right.” This almost stubborn belief in the potential of the wristwatch would become the driving force behind Rolex’s success.
The Power of a Name: The Birth of Rolex
Recognising the need for a memorable and easily pronounceable brand name, Wilsdorf set about creating a moniker that would become synonymous with excellence in watchmaking. As he sought to find the perfect name for his watch company, Wilsdorf experimented with several options before ultimately settling on “Rolex.”
Some of the other names he considered included Lusitania2, Mauretania, The Eastern Watch, Unicorn, Roco, Elvira, Roll Watchco, Falcon, GenX, Lonex, Lorex, Rollexus, Halfax, and Wintex. Wilsdorf even played with variations on the Rolex name itself, such as the Rolex Watch Company and RWC Limited.
Wilsdorf ultimately chose “Rolex” because it met a series of criteria he had set for the ideal brand name: it was short (no more than five letters), easy to pronounce in any language, memorable, and aesthetically pleasing on a watch dial. It is not, as some have claimed, a word derived from hoROLogie EXcellence - although that would be an epic story too!
On July 2nd 1908, Hans Wilsdorf registered “Rolex” as a trademark for Wilsdorf & Davis Ltd:
With the Rolex name set up, Wilsdorf embarked on an intensive advertising campaign, investing heavily in promoting the brand. This set Rolex apart from its competitors, who traditionally relied on retailers to market their products. Wilsdorf’s insistence on featuring the Rolex name prominently on his dials reinforced the brand’s identity and helped foster consumer demand.
The Three Pillars: Precision, Waterproofing, and Self-Winding
Wilsdorf’s vision for Rolex was built on three pillars: precision, waterproofing, and self-winding mechanisms. He tirelessly pursued these goals, collaborating with inventors and investing in innovative technologies and patents to bring his ideas to fruition.
The point here, is to appreciate Wilsdorf’s vision. He wanted the watch to be really good at fulfilling it’s main purpose: telling time. He also realised it would benefit from being waterproof because this would improve durability and usability - but it would also prevent anything penetrating the case and affecting the performance of the watch’s main purpose. Finally, making it self-winding would ensure the sealed case did not need to be unsealed regularly, further preserving performance and reliability. It sounds rather simple, but at the time, was incredibly strategic.
Wilsdorf was a perfectionist and never ceased pressing Aegler to improve the timekeeping of watches they made for him. One of the areas of watch performance that Wilsdorf was very insistent on was gaining certificates of performance from independent testing establishments, usually astronomical observatories that, in the days before atomic time, were the sources of national time references.
On July 15th 1914, a Rolex wristwatch was awarded a “Kew” Class A precision certificate from the National Physical Laboratory, a first for a wristwatch. Wilsdorf leveraged this achievement in Rolex’s advertising, emphasising his brand’s commitment to accuracy. His clever use of social proof, highlighting Rolex as the choice of discerning individuals, did wonders for the brand’s prestige. Senra refers to Charlie Munger’s words in Poor Charlie’s Almanack to drive this home: “Social proof is a form of leverage.” If you’ve been reading SDC for long enough, you’ll know I’m a huge fan of Munger!
The development of the Oyster case in 1926 finally allowed waterproofing to be realised, and marked another milestone in Rolex’s history. Wilsdorf astutely bought the patent for this innovation, ensuring that Rolex would be the sole beneficiary of this groundbreaking technology for some time. More on this shortly.
The final pillar, the self-winding “perpetual” mechanism, was realised in 1931. This innovation, which Wilsdorf had long dreamed of, ended the need for manual winding, and brought the convenience and reliability which Wilsdorf deemed critical to his strategy.
The concept of a self-winding watch had first been introduced in the 1770s, with early designs by Hubert Sarton and Abraham-Louis Perrelet. It was not until 1923 that the first self-winding wristwatch was invented by John Harwood. Harwood’s design used a semi-circular weight that pivoted at the centre of the movement and swung through a 300-degree arc, winding the mainspring through a train of gears. This “bumper” design, while innovative, had its limitations.
Emile Borer, head of research and development at the Aegler Bienne factory, took up the Harwood design and improved it. Borer’s design incorporated a rotor that could rotate smoothly through a full 360 degrees and turn in both directions, enhancing performance, durability, and feel for the wearer. This innovation eliminated the need for manual winding and offered convenience and reliability which was exactly what Wilsdorf was looking to accomplish.
With automatic winding, the tension on the mainspring remained more consistent than with daily manual winding, resulting in even greater precision. Finally, as the crown was used primarily for setting the time, the waterproof seal was disturbed less frequently, reducing wear on the threads and also reducing the probability of user-error in forgetting to screw the crown down.
The Oyster Case: A Waterproof Marvel
The Rolex Oyster case, introduced in 1926, was a significant development in the world of watchmaking. Its design was heavily influenced by the earlier Borgel screw cases, which Wilsdorf had used in some of his watches before the Oyster’s introduction. There are similarities between the two designs, with both using a threaded carrier ring to hold the movement and a screw-down bezel and case back to create a water-resistant seal.
Despite the Borgel case’s influence, the Oyster case incorporated several innovative features that set it apart. The most notable of these was the screw down crown (!3), which provided an added layer of protection against moisture and dust. The Oyster case also featured a more streamlined design, with a sleeker profile that was better suited to a wristwatch.
The development of the Oyster case seems to have been a collaborative effort between Wilsdorf and the case maker C.R. Spillmann & Co. SA. Spillmann was heavily involved in the acquisition of the rights to the Perregaux and Perret patent for the screw down crown, which was a crucial part of the Oyster’s waterproof design.
Over the years, the Oyster case has undergone numerous refinements and improvements, but its core design principles have remained largely unchanged.
Marketing Genius: Associating with Excellence
Throughout his tenure heading up Rolex, Wilsdorf displayed an uncanny knack for marketing and promotion. He consistently sought to associate the brand with the world’s most remarkable individuals and their groundbreaking achievements.
One of the most notable examples of Wilsdorf’s marketing genius at the time, was his work with Mercedes Gleitze; The first woman to swim the English Channel. In 1927, Gleitze attempted to swim the channel wearing a Rolex Oyster watch around her neck. Although she was ultimately unsuccessful in completing the crossing, the watch survived in perfect condition after more than 10 hours of water exposure. Wilsdorf seized this opportunity - Gleitze’s story - to showcase his awesome Oyster case. This marketing narrative is one which Rolex would continue to leverage for decades to come.
Wilsdorf’s marketing acumen also extended to celebrity endorsements, with people like Sir Winston Churchill and Dwight D. Eisenhower proudly wearing Rolex watches. The brand’s advertising boldly declared, “Men who guide the destinies of the world wear Rolex watches,” reinforcing its status as a symbol of excellence and prestige. From Sir Malcolm Campbell’s land speed records to the first successful ascent of Mount Everest4, Rolex was there, adorning the wrists of those who pushed the boundaries of human endeavour.
Central to Wilsdorf’s success was his unwavering belief in the potential of the wristwatch. As he wrote, “I had very early realised the manifold possibilities of the wristlet watch and, feeling sure that they would materialise in time, I resolutely went on my way. Rolex was thus able to get several years ahead of other watch manufacturers who persisted in clinging to the pocket watch as their chief product.”
This concept of belief as the “highest order bit” is echoed by Senra in the story of CNN founder, Ted Turner. In his autobiography, Turner observes, “Clearly, the companies for whom the economics of twenty-four-hour news would have made the most sense were the Big Three broadcasters. They already had most of what was needed— studios, bureaus, reporters, anchors almost everything but a belief in cable.”
Even today, Rolex’s marketing strategy focuses on partnering with the best in various fields, from sports to the arts. Ben Clymer explains in the Business Breakdowns podcast: “They look at that. They want to be associated with people that are not only the best but are genuinely good people as well.” These partnerships are long-lasting, with examples like Jack Nicklaus’s association with Rolex since 1967.
Clymer emphasises the longevity of these relationships, stating, “Rolex has worked with Jack Nicklaus since 1967. 1967. They work with him to this day.” Rolex is also highly selective in its event sponsorships, focusing only on the most prestigious occasions. Clymer explains, “If they’re going to do golf, we only want to be involved with the majors. So, the US Open… the Masters, and of course the British Open. And that’s it. If they’re going to do tennis, it’s going to be Wimbledon and the US Open.”
This selective approach to partnerships and sponsorships tends to reinforce Rolex’s image as a brand associated with only the very best in every field, which enhances its prestige and desirability.
The Aegler Connection: A Handshake Deal That Lasted Decades
One of the more fascinating aspects of the Rolex story is the company’s long-standing partnership with Aegler, a Swiss watch movement manufacturer. Jean Aegler, the founder of the company, was a brilliant watchmaker whose innovations in miniature movements caught the attention of Hans Wilsdorf early on.
Wilsdorf recognised the potential of Aegler’s movements and began buying them for his watches. In a remarkable display of trust and mutual respect, Wilsdorf and Aegler entered into a handshake deal that would last for decades. The agreement stipulated that Aegler would supply movements exclusively to Rolex, a partnership that endured for nearly 70 years without a formal written contract!
Aegler manufactured movements in its ébauche factory in the Rebberg district of Bienne, and consequently, Rebberg was registered as a trademark by Aegler. Early Aegler movements used in Rolex watches are often referred to as “Rebberg” movements because of this, even if they are not stamped with the Rebberg name. If they are stamped Rebberg, it is often on the bottom plate under the dial, so it is not normally visible.
The significance of this partnership cannot be overstated. Aegler’s expertise in movement manufacturing allowed Rolex to focus on innovation, marketing, and distribution, secure in the knowledge that their watches would always be powered by the finest movements available. This synergistic relationship enabled both companies to thrive and cemented Rolex’s reputation as a watchmaker of uncompromising quality.
As Senra notes in the podcast, “From the very start of Rolex, Aegler is actually the one manufacturing the watches that were sold as Rolex watches.” This arrangement allowed Wilsdorf to concentrate on building the Rolex brand and expanding its reach, while Aegler focused on the technical aspects of movement production.
The Aegler connection speaks to me for two reasons; One is the sentiment of honouring one’s agreements, and the other is the power of strategic partnerships or long-term, mutually beneficial relationships in business. This notion of handshakes being binding - honouring an agreement - is all but lost nowadays. Yet, a company as reputable as Rolex has such a deal at its very foundation; this is inspiring. Also, we observe how Rolex achieved more by aligning itself with a company that shared its commitment to excellence and innovation. Wilsdorf didn’t care about in-house creation at the beginning. He left each aspect to be developed by the team most capable and qualified to do it well. As a result of this thinking, Rolex was able to achieve a level of success that might not have been possible otherwise.
In the 1990s, CEO Patrick Heiniger (now deceased) initiated a move towards vertical integration, reducing Rolex’s reliance on external suppliers.
In 2004, nearly a century after the initial handshake agreement, Rolex formally acquired Aegler, bringing the movement manufacturer fully under the Rolex umbrella. This move ensured that Rolex would keep complete control over every aspect of its watch production, from the movement to the case to the dial, furthering Hans Wilsdorf’s vision of a vertically integrated, uncompromisingly excellent watchmaking enterprise.
Before Heiniger’s initiative, Rolex relied on a network of external suppliers for various components. Under Heiniger’s leadership, Rolex acquired and integrated many of these suppliers, reducing their number from 27 to just four (this includes the Aegler deal). Today, these four facilities are entirely owned by Rolex, giving the company complete control over its production process.
This vertical integration allows Rolex to ensure the highest quality standards, maintain tighter control over its supply chain, and potentially improve its margins. It also set Rolex apart from many of its competitors, who continued to rely on external suppliers for key components.
Heiniger’s drive for vertical integration was a key factor in strengthening Rolex’s position as a leader in the industry, and no doubt played a huge part in helping them achieve the levels of quality, efficiency, and control over its production process that we now take for granted when it comes to Rolex.
Noteworthy Extras
Investing in Brand Recognition
Wilsdorf’s commitment to advertising, even in the face of economic uncertainty, is a strategy shared by other successful entrepreneurs. Senra links this to Isadore Sharp, the founder of Four Seasons Hotels, who says, “It’s tempting during recession to cut back on consumer advertising. At the start of each of the last three recessions, the growth of spending on such advertising had slowed by an average of 27 percent. But consumer studies of those recessions had showed that companies that didn’t cut their ads had, in the recovery, captured the most market share. So, we didn’t cut our ad budget. In fact, we raised it to gain brand recognition, which continued advertising sustains.”
And in this vein, the Business Breakdowns podcast reiterates, “Rolex was effectively the first watch brand to have real marketing dollars put behind a watch. Rolex did this in a concentrated way, and they’ve continued to do it in a way that is simply just unmatched by others in their industry.”
Wilsdorf’s dedication to his vision was unwavering. “In developing and extending my business, I have always had certain aims in mind, a course from which I never deviated,” he says… and as Senra emphasises, “What really matters is Hans understood the opportunity better than anybody else and invested heavily in developing the technology to bring his ideas to fruition.”
What modern watch companies do you think embody this today?
Opportunity Begets Opportunity
One of the most fascinating aspects of Wilsdorf’s story is how each innovation and opportunity paved the way for the next. The development of the Oyster case and full waterproofing, led to the relevance and pursuit of the Perpetual self-winding mechanism. “Opportunity creates more opportunities,” Senra observes. “The Oyster unlocked the opportunity for the Perpetual.”
This concept of making things easier for the customer to expand the market is echoed by Steve Jobs, who famously said, “My vision was to create the first fully packaged computer. We were no longer aiming for the handful of hobbyists who liked to assemble their own computers, who knew how to buy transformers and keyboards. For every one of them there were a thousand people who would want the machine to be ready to run.”
I had never considered the parallels between Apple and Rolex or Jobs and Wilsdorf - but this makes so much sense!
A Legacy Secured: The Hans Wilsdorf Trust
In 1945, Wilsdorf made an inspired decision that would shape the future of Rolex and ensure its adherence to his founding principles for generations to come. He handed over his fortune to a trust named the Hans Wilsdorf Foundation. This move was designed to safeguard the continuity of the Rolex Organisation and provide annual grants to charitable institutions, reflecting Wilsdorf’s commitment to philanthropy and his desire to create a lasting legacy.
By establishing the trust, Wilsdorf created an ironclad legal structure that would protect Rolex from the pressures of outside ownership and the temptation to compromise quality for the sake of short-term gains. This farsighted decision has allowed Rolex to remain true to Wilsdorf’s original vision, decades after his passing.
Wilsdorf’s legacy extends beyond watchmaking. In 1981, on the 100th anniversary of his birth, a street in Geneva was named Rue Hans Wilsdorf in his honour. The naming ceremony was presided over by Claude Ketterer, Vice-president of the Administrative Council and later Mayor of the City of Geneva, with Mrs. Wilsdorf and Mr. Andre J. Heiniger, Managing Director and Chief Executive of Rolex, in attendance.
Heiniger, who joined Rolex in 1948 and became chief executive in 1962, played a crucial role in carrying forward Wilsdorf’s vision. As the second chairman in the company’s history, Heiniger guided Rolex until his retirement in 1997, ensuring that the company remained true to its founder's principles of excellence, innovation, and independence.
Hans Wilsdorf passed away on July 6th 1960 at his home on the shores of Lake Geneva, at the age of 79. His legacy, clearly, lives on through the Hans Wilsdorf Foundation and the enduring success of Rolex.
Today, the Hans Wilsdorf Foundation continues to operate as the sole owner of Rolex, ensuring Rolex’s independence and adherence to Wilsdorf’s founding principles. The foundation’s financial strength is immense, with an estimated 300 million Swiss francs or more available annually for charitable purposes. This presumably makes it the most financially robust charitable foundations in Switzerland.
The foundation’s philanthropy is primarily focused on the canton of Geneva, where it supports a wide range of causes from social welfare and education to culture and animal welfare. The foundation’s impact on the city is so significant that some refer to it as a “state within a state.” The close ties to the local administration and its ability to swiftly provide substantial funding for various projects have made it an indispensable part of Geneva’s social fabric.
That said, the foundation’s influence has also raised questions about the potential undermining of democratic processes. Some argue the foundation’s ability to finance public projects without taxpayer money may circumvent the usual checks and balances. The foundation is aware of these concerns and has taken steps to ensure that its support is directed towards projects with political legitimacy and that the authorities retain control over the design and operation of these initiatives.
Despite its immense influence, the Hans Wilsdorf Foundation remains highly discreet, and at this point it is widely accepted that the luxury watch business is a mere speck of their overall portfolio which is focused primarily on real-estate but includes other varied interests (defense, media etc).
The Quartz Crisis
Rolex weathered the Quartz Crisis of the 1970s better than most, maintaining its focus on luxury mechanical watches while others struggled. Ben Clymer explains in the Business Breakdowns Podcast:
“Rolex was really smart in that, through that period of real turmoil when, I would say, their chief competitor Omega decided to make some Quartz watches, decided to make some funky looking things, Rolex stayed the course, and yes, they did make Quartz watches. The Beta 21, which was a Swiss conglomerates answer to Quartz, is the most expensive Quartz watch ever made. I mean like thousands and thousands of dollars, they said, ‘We’re going to focus on what we do best,’ and the focus went away from precision and accuracy and time telling to luxury.”
Fundamentally, Rolex’s decision to focus on luxury mechanical watches during the Quartz Crisis, while still offering some quartz options, allowed them to maintain their prestige and weather the storm better than many competitors. This strategy, combined with strong brand identity and marketing probably helped solidify its position as a leader in the luxury watch segment.
Conclusion
The story of Hans Wilsdorf and Rolex is essentially one of unwavering convictions, innovation, and sheer marketing brilliance. From his humble beginnings as an orphaned youth to his eventual status as a titan of the luxury watch industry, Wilsdorf’s story contains plenty of inspiration for aspiring entrepreneurs and business leaders alike.
If you’re interested in a more detailed insight which explores everything in even more detail, I’d highly recommend the Vintage Watchstraps source listed below.
The life and work of Hans Wilsdorf is but one of many such stories which demonstrate the transformative impact that one individual’s passion and perseverance can have on an entire industry… In this case, it happens to be about an industry we are a part of and follow very closely! Even if most of this was not news to you, I hope you enjoyed it.
Believe it or not, that “❤️ Like” button is a big deal – it serves as a proxy to new visitors of this publication’s value. If you enjoyed this post, please let others know and leave a comment if you have the time; thanks for reading!
References
Wilsdorf, H. (1946). Rolex Jubilee: Vade Mecum.
Vintage Watchstraps Blog: Hans Wilsdorf and Rolex.
The quotes attributed to Wilsdorf are taken from Rolex Jubilee Vade Mecum:
Step By Step – this was written by Wilsdorf himself.
The Evolution Of The Wrist Watch Chronometer
How The Waterproof Watch Came Into Being
The Story of the Self-Winding Watch
The first he name he chose to register was "Lusitania", on 1 November 1907. Lusitania was an ocean liner launched by the British Cunard Line in 1906; the biggest, fastest and most luxurious liner in the world at the time. In 1915 Lusitania was torpedoed and sunk by a German U-boat, an event that brought America into the First World War on the side of the Allies, but by then Wilsdorf had long since lost interest in the name. - David Boettcher
Given this blog’s name… This topic deserves a whole post of its own. There is so much information to parse!
Here’s a story - but this is a hotly disputed topic nonetheless. Many will say these plaudits belong to Smiths Watch Company alone.
Thanks. There’s many a recounting of the Rolex story, but I like the simplicity and the key points you’ve raised. An easier and more digestible read. 👏🏼👏🏼👏🏼
A great Sunday morning read. Love the thought “opportunity leads to more opportunities”. Opportunity can and does compound as well. Founders is a great podcast. Cheers