How can refund be taken when it is not in the policy of the company

I bought one luxury watch of Rolex premium stuff .in site which later I came to know it's a mirror image of the original watch. I received the package on 7th jun and found that the locking mechanism is not working properly . I called up on helpline no and immediately sent mail to there support department and request for refund. I was told that by there rep that it's not a major issues will replace it. I said it's not required give me refund of give s me different product which is not available with them . They say refund is not in there policy .Only they can do is replacement. I am fixed I said I want only refund because you never know the product may damaged again. Hence plz guide on the subject.