Story Highlight
– Austin evolves into a major business ecosystem.
– Tesla and Oracle relocate headquarters to Austin.
– Major corporations invest heavily in Austin’s market.
– Luxury retail sector rapidly expands in the city.
– City attracts tourism through major events and culture.
Full Story
Austin, once primarily known for its vibrant cultural scene, has emerged as a significant player in the US business landscape. Renowned for its music festivals, such as South by Southwest, along with esteemed educational institutions and an appealing lifestyle, the Texas capital has increasingly drawn in entrepreneurs, startups, and major multinational corporations looking for conducive business conditions and a wealth of technical and creative talent.
In 2021, Tesla made waves by moving its headquarters from California to Austin, constructing the sprawling Gigafactory Texas as part of the transition. Following suit, Oracle also relocated its headquarters to the city, contributing to its growing profile in enterprise technology, particularly appreciated for its regulatory advantages.
Tech giants, including Google, Apple, Amazon, AMD, and SpaceX, have collectively invested substantial resources into the region, further solidifying its status as a tech hub. The influx of wealth has spurred the growth of luxury retail, positioning Austin to compete with major Texas cities like Houston and Dallas. High-end brands such as Korman and Zadok have established flagship stores, including one anchored by Rolex.
Rob Corder recently spoke with CEO Jonathan Zadok about Austin’s rise as a key centre for education, business, and culture, and the implications for the luxury jewelry and watch retail market.
**WATCHPRO**: It seems there’s a lot happening in Austin lately. Can you tell me about your new location?
**Jonathan Zadok**: Our new store mirrors the design of our Houston showroom, albeit on a slightly smaller scale. Interestingly, the Austin store spans about 11,000 square feet, making it a significant destination in its own right.
**WATCHPRO**: What should clients expect during their visit to your Austin store?
The layout includes a Rolex showroom complemented by a Tudor boutique. There’s an inviting entry leading to the main area featuring brands like Panerai and IWC. Visitors are often surprised by the spacious interior, as it opens up significantly after passing through the narrower storefront.
**WATCHPRO**: Does the store have a single main entrance?
**JZ**: Not exactly; we designed it with five distinct entrances. Similar to Houston, while there’s a primary entrance, the layout encourages casual foot traffic, allowing customers to explore as they browse through the upscale lifestyle mall, The Domain, which experiences high visitor numbers.
**WATCHPRO**: Austin’s vibrancy is gaining attention both domestically and internationally, especially with events like the Formula 1 race and South by Southwest.
**JZ**: The city has transformed into a major tourist hotspot, drawing visitors for its music, festivals, and burgeoning tech industry. Many business travellers extend their stay to enjoy all that Austin has to offer.
**WATCHPRO**: Being only a short distance from Houston, have you noticed a boost in clientele who were familiar with Zadok from your previous location?
**JZ**: Absolutely, especially since the University of Texas attracts many Houstonians for education. Many fall in love with the city and decide to stay long term.
**WATCHPRO**: Introducing Rolex to your Austin store must signify a significant achievement for you.
**JZ**: We’re fortunate to have established a partnership with Rolex in Austin. The brand upholds high standards and contributes to elevating its retail partners, including ourselves, enriching our understanding of luxury retail.
**WATCHPRO**: Many retailers express similar sentiments about their long-time associations with Rolex.
**JZ**: Rolex has indeed heightened our service standards, enhancing how we engage with clients and follow up post-purchase, ensuring an exceptional experience when acquiring a luxury timepiece.
**WATCHPRO**: Are you planning to offer Rolex Certified Pre-Owned watches?
**JZ**: Not at this moment, but it’s something we aspire to achieve in the future.
**WATCHPRO**: Is this related to expanding your service and watchmaking capabilities?
**JZ**: While we’ve invested significantly in service, it’s more about timing as the Certified Pre-Owned program is rapidly growing.
**WATCHPRO**: Information suggests that Rolex Certified Pre-Owned valid sales are already capturing about 10% of the entire secondary market for Rolex watches within a mere three years.
**JZ**: That statistic doesn’t surprise me. For buyers seeking rare or vintage pieces, the assurance and quality of Rolex’s pre-owned offerings justify a premium price. When investing in a significant watch intended to be cherished across generations, buyers naturally prefer guaranteed quality.
**WATCHPRO**: You maintain a strong relationship with Richemont, but no Cartier presence in Austin yet?
**JZ**: While there isn’t one currently, a Cartier boutique is set to launch in 2026 nearby.
**WATCHPRO**: How have you navigated fluctuations in the watch market due to tariff changes on Swiss imports?
**JZ**: When the initial tariff hike was announced, it overshadowed our excitement at Watches and Wonders in Geneva. We anticipated some adjustments, but subsequent escalations genuinely raised concerns about brand responses and consumer reactions.
Tariffs were only one aspect; the increasing gold prices and currency fluctuations compounded the situation. Some brands proactively imported stock in anticipation of tariff hikes, mitigating potential disruptions.
**WATCHPRO**: The recent agreement capping Swiss watch tariffs at 15% must offer some relief.
**JZ**: The 15% tariff cap is a mixed yet manageable outcome for us. While any additional costs require careful consideration, the clarity of this agreement promotes better planning and collaboration with our Swiss partners. Our commitment remains to provide authentic Swiss watches and exceptional customer service.
