Will Luxury Watches Increase In China?

Switzerland shopping 20%

Rolex Japan raises 8%

In January 15th, Switzerland abolished Euro 1.20 against Swiss franc.

The lower limit.

The Swiss Franc jumped 40% against the euro that day, and surged 27% against the US dollar, rising by more than 20% against the 16 main currencies.

This means that the RMB needed for the exchange of 100 Swiss francs will rise from about 610 yuan to 727 yuan, and the Swiss Franc will appreciate about 20% against the renminbi.

In terms of price, the purchase of Swiss goods in Renminbi will be more than two times in the past.

This has led directly to the rise of Swiss watches in other countries.

It has been reported recently that Rolex (Rolex) has increased its price in Japan by about 8% since February 1st, the first time that Rolex has raised its price since November 2013.

Beijing Business Daily reporter noted that the price of Rolex watches in the majority of 50 thousand -80 million, the increase of 8% will mean more than 4000-6.4 million yuan.

Cartire, which belongs to Richemont, the world's second largest luxury group, also announced that the price of jewelry and watches in the euro area increased by 5%. (Cartier)

The average price of Cartire watches is between 20 thousand -50 yuan and 5% yuan, which means more than 1000-2.5 million yuan.

Another Swiss luxury watch brand, Patek Philippe (Patek Philippe), also said it was considering adjusting the pricing of the Japanese market, saying that the price increase would be between 4%-5% and the final decision was made at the end of January.

The rise in the Japanese market has made many people worry that Swiss watches are also rising in China.

Watch inventory in China

For the Chinese market, luxury group is facing the first negative growth since entering China, and the performance pressure is obvious to all.

Rising prices do not seem to be very difficult.

Take the peak group of Switzerland's leading wrist watch luxury group as an example. Its three quarter financial report released 2014 months ago showed that the Asia Pacific region, the largest market in China, was the largest in the world, with a drop of 12% compared to the same period last year.

Aiming at the question of price adjustment in China, Lin Rui, deputy propaganda manager of Lefeng group, told the Beijing Commercial Daily reporter, "the group pays close attention to the trend of the foreign exchange market, but at the moment, the price of wrist watches in China will not be substantially raised".

Zhou Ting, Dean of the Institute of wealth and quality, said, "I don't think Swiss watch will increase its price in China in 2015".

She said that in recent years, the import growth rate of watches in China has been very low, and the main problem of the brand is "going to stock". Under such circumstances, even if the foreign exchange market is in turmoil, Rui table brand can not make a big decision to raise the price.

Sun Hongjiao, deputy manager of Beijing Qiao Fu Fang Mei shopping center, told the Beijing Commercial Daily reporter that from the sale of watches in the high-end shopping malls in Beijing, the sales of gift watches at the middle end price dropped significantly, and the sophisticated watches with a complex price and between 1 million -200 yuan were favored by more buyers. This part of purchasing power will not be affected by price fluctuations.

Even if the price rises, the brand will maintain the consumer's original price recognition by giving back the whole family Swiss tour.

Shop slows down

Self use and collection level

"At present, Ruitai brand takes a wait-and-see attitude in Huapu, and the speed of opening stores is slowing down."

Sun Hongjiao said that at present, influenced by the anti-corruption policy, the middle end watch brand is sinking products to two or three line cities, and those consumers are willing to purchase such watches instead of giving gifts.

In the first tier cities, the collection of watches with precision technology is mainly developed, and the market demand can not be underestimated.

It is understood that the collection watches such as IWC, Jaeger-LeCoultre, Jaeger Le Coulter and other brands will be shipped directly to Beijing and Shanghai stores when they are exhibited at the Geneva exhibition.

According to the insiders, the buyers of the watch collection type are stable but the number is small. Whether the Swiss Franc will rise after the price rises is a difficult problem for the watch brand.

Zhou Ting believes that under the new situation, the professional watch brand should pay attention to the investment in training new consumers, increase the marketing and promotion efforts of the brand, and cultivate self employed consumers and new fans, so as to stabilize the development of the original consumer group.