The Swiss Bank announced last week ending the link between the Swiss Franc and the Euro – a capping mechanism to maintain a ratio of no more than 1.2. This is has been met with uproar in many sectors and saw the Swiss Franc initially rise around 30%. It now seems to have returned to more regular levels. Should the Euro suffer in value over as QE is brought in however, the Swiss Franc is free to rise. Although more price adjustments may follow, the Swiss watch industry tends to set prices annually and allow for subsequent fluctuations.
Referring only to the Euro-zone, it is assumed the UK will be unaffected – the current rises of GBP Sterling are equivalent in any case.
“We are going to raise prices by 5 percent in the euro zone. This applies to both jewellery and watches, but we are keeping prices in Switzerland stable,” Cartier chief executive Stanislas de Quercize told Reuters in an interview at SIHH in Geneva.
Audemars Piguet CEO Francois-Henry Bennahmias told reporters : “We cannot make a decision overnight obviously, we have to wait and see what’s going to happen, but, yes, at one point, we’ll have to adjust prices, one way or the other, in Europe, obviously, prices will go up.”
Cartier watches can be found online at www.lovewatches.co.uk/watch-brands/cartier