Arab Today, arab today swiss watchmakers mull price hike on surging franc
Last Updated : GMT 10:17:09
Arab Today, arab today
Arab Today, arab today

Swiss watchmakers mull price hike on surging franc

Arab Today, arab today

Arab Today, arab today Swiss watchmakers mull price hike on surging franc

Luxury watch show in Geneva
Geneva - AFP

Switzerland's luxury watchmakers are considering raising prices on their timepieces in the eurozone by up to seven percent due to the ballooning franc, but they are in no rush, industry insiders hinted Tuesday.
Watchmakers gathered at a luxury watch show in Geneva this week were eager in public to put on a strong face after the Swiss central bank's shock decision on Thursday to let the franc float.
"We will find a way to adapt," said Swiss luxury group Richemont, which counts Cartier and Piaget among its 16 luxury watch brands.
The industry, which exports nearly 95 percent of its pricey products to areas where they are paid for in euros or dollars, is especially exposed to the impact of the swelling franc.
The Swiss central bank stunned the world Thursday by abandoning its bid to hold down the value of the Swiss franc, scrapping the minimum rate of 1.20 francs against the euro. On Tuesday the franc was trading around parity with the European common currency.
If watchmakers adjust their prices to the new reality, the price tag on their goods in countries using the euro would leap 15-20 percent overnight.
Executives from the big brands were reluctant to talk about the issue or to discuss what measures they might be forced to take.
Behind the cover of anonymity, some however acknowledged estimates that prices in the neighbouring eurozone should be raised 5.0-7.0 percent.
But all insisted it was too early to act, and that they would wait and see how the exchange rate evolved.
That would be good news for retailers gathered at the Geneva trade show, where many stock up on luxury timepieces for the year to come.
"We haven't yet decided if we need to cut back on the number of watches we buy, because (the franc surge) was not expected. We'll have to see what the final prices look like," said Rossi Bruna, the owner of an Italian watch store.
Analysts meanwhile expect Swiss watchmakers to raise their euro prices by around five percent due to the impact the currency change will inevitably have on their margins.
This "will impact the demand side. We accordingly no longer expect Swiss watch exports to rise in 2015," Vontobel said in a note.
The firm, which had previously forecasted four percent market growth, said it now expected a "flat trend, which would already be a good achievement."
Richemont, which makes most of its sales in the less-affected US currency, will not be as affected as others, one executive said on condition of anonymity.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swiss watchmakers mull price hike on surging franc Arab Today, arab today swiss watchmakers mull price hike on surging franc

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:57 2017 Sunday ,26 February

Huawei wins MRM Business Innovation Award

GMT 08:49 2017 Saturday ,25 February

Shell plans $300 mn investment in Argentina shale

GMT 05:40 2017 Saturday ,25 February

British Airways owner reports profit

GMT 15:19 2017 Thursday ,23 February

Companies' commitment to Bahrainisation quotas praised

GMT 14:48 2017 Thursday ,23 February

Etihad Airways Engineering signs deal with Kenya Airways

GMT 12:25 2017 Thursday ,23 February

Bharti Airtel buys Telenor's India operations

GMT 10:47 2017 Thursday ,23 February

Saudi Aramco may offer discounted shares to citizens
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday