LVMH luxury watch brand Hublot to raise prices

Swiss watchmaker Hublot confirmed it will raise its prices as the luxury brand feels the pinch from increased supply chain costs.

Hublot Chief Executive Officer Ricardo Guadalupe said in an interview with Bloomberg that rising raw material costs for gold and diamonds will lead to price increases of 3 percent to 4 percent in April or May.

The average price of a Hublot watch is 20,000 francs, however more luxury watchmakers are expected to raise prices. “Almost all our suppliers are increasing prices,” Guadalupe stated, noting that costs for steel and titanium are also increasing. Diamond suppliers have raised prices by 10 percent to 15 percent, he told Bloomberg. “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.”

Last week LVMH held the third edition of its Watch Week event, which saw the latest creations from its portfolio watch brands Bulgari, Hublot, TAG Heuer and Zenith.

Swiss watch exports reached their highest level ever in 2021, hitting 22.3 billion Swiss francs (approximately 24 billion dollars), a 31.2 percent jump from the pandemic year 2020, according to the annual statistics compiled by the Federation of the Swiss Watch Industry (FHS).

Article source: Bloomberg