Peaks And Swatch Raise Prices

Last week, the Swiss Franc denomination announced a sharp adjustment, the world's two largest luxury watch company Swatch group and the peak group almost adjust their prices at the same time. At the Geneva international advanced watch exhibition held this week, Lifeng group said it would raise the price of euro zone dealers by 5% to 7%, but the price of Swiss francs would remain stable. In addition, Nick Hayek, chief executive of Swatch group, said, "we will adjust the price of some euro zone brands, from 5% to 7%, and possibly increase to 10%." Nick Hayek commented on his visit to Bloomberg, and his spokesman B e atrice Howald subsequently confirmed the statement.

　　 Cartier Quercize, chief executive of the world, expressed confidence in Cartire's performance this year: "at the end of last year, we performed well in the European market."

Last week, the Swiss central bank lifted the lower limit of 1 euro to 1.20 Swiss franc, the Swiss central bank's decision to prompt the Swiss Franc to soar, and the Swiss Franc jumped 41% against the euro. Subsequently, the two major groups immediately made price adjustment decisions.

Its brands include strong brands like Cartire Cartier and Wan Guobiao IWC, as well as professional watchmakers such as Jaeger Le Coulter Jaeger-LeCoultre and Vacheron Constantin Vacheron Constantin. Swatch group includes premium watch brand Breguet and Blancpain, and the best selling brand OMEGA Omega.

The two watch groups said they would give the market according to their local market conditions. brand The discretion to adjust their euro area prices. According to the group, the exact level of price increases will vary according to brand, depending on how their subsidiaries perceive their positioning in different European markets. According to Swatch group, chief executive Nick Hayek said he was "reluctant" to drive up prices, especially through entry-level brands Swatch and Tissot, which were probably afraid of losing market share.

No group has given any instructions to show that the current strong Swiss Franc will mean profit. In the great panic, profits will inevitably be squeezed, just as Europe's currency continues to unrest. It is understood that most of the watches of the two groups are made in Switzerland.

Nick Hayek, chief executive, said there might be some small profits in Swiss francs. But he admits that "it may still have a negative impact on our sales, which I can't really point out at the moment."

stay Eurozone Watch makers will share the pain of the Swiss Franc impact with retailers in the 5% to 7% price range. By pushing the Swiss Franc soaring against the euro, it will crack down on sales and potential market share. But if the euro price is not raised, and the price of Swiss francs will remain stable, this may hurt Swiss retailers, such as ordinary consumers. Many of them, rich foreign tourists, will buy watches during their visit to Switzerland, and use the euro as a currency to buy the same products that are apparently cheaper than their own countries. Watch manufacturers focus on the euro rather than the US dollar. After the initial impact announced last week, as the US dollar expects to grow, the Swiss franc is unfavourable.

Retailers have been waiting to see how Clock Makers react. Like the peak group, Swatch group and the leading independent watch brands, such as Rolex Rolex, before they make their own decisions, they all wait for each other to see how the other party will act.

Fran ois-Henry Bennahmias, chief executive officer of Audemars Pigeut Audemars Piguet, one of the world's three most famous brand names, said, "none of them will be able to fully compensate for the loss of monetary factors. One thing will be affected: profit margins. " Julien Marchenoir, Vacheron Constantin marketing director of its brand, said the luxury industry will experience a period of volatility. But with the launch of new products and the increasing demand from the European market, Cartire Global CEO Quercize has expressed confidence in Cartire's performance this year: "at the end of last year, we performed well in the European market."