Swiss watchmakers warn that they are planning to raise price tags of their merchandise in the near future. Manufacturers have to introduce this desperate measure to make up for higher costs of raw materials such as gold, diamonds, and titanium. Those who want to purchase posh watches by legendary manufactures would rather hurry up to visit a store when they are still available at current prices. The ongoing rally of precious metals has left its imprint on the watch industry. Watchmakers have to adjust their retail prices in tune with the developments in the commodity market. LVMH luxury watch brand Hublot confirmed it would raise prices by 3-4% in April – May. Hublot Chief Executive Officer Ricardo Guadalupe said that all luxury watchmakers would follow suit. “Almost all our suppliers are increasing prices,” Guadalupe stated. “The main problem is the production and the supply chain. We have to do it anyway, and since everybody is doing it, it is acceptable.”
French billionaire Bernard Arnault, President and CEO of LVMH Moët Hennessy Louis Vuitton that is a parent company of Hublot, explained that the company would make a well-grounded decision on raising retail prices, respecting its clients. The average price of a Hublot watch is now 20,000 francs ($21,739).
According to the annual statistics compiled by the Federation of the Swiss Watch Industry (FHS), Swiss watch exports hit an all-time record in 2021, driven by buoyant sales in the US and high demand for first-rate items worth more than 5,000 francs (approximately $5,434). The overall annual sales expanded by 31% last year following a 22% plunge in 2020.
