Home Luxury brand Luxury watch brand LVMH Hublot to raise prices

Luxury watch brand LVMH Hublot to raise prices

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Swiss watchmaker Hublot has confirmed it will raise prices as the luxury brand feels the effects of rising supply chain costs.

Hublot CEO Ricardo Guadalupe said in a Bloomberg interview that rising commodity costs for gold and diamonds will drive price increases of 3-4% in April or May.

The average price of a Hublot watch is 20,000 francs, but more luxury watchmakers are expected to raise their prices. “Almost all of our suppliers are raising prices,” Guadalupe said, noting that steel and titanium costs are also rising. Diamond suppliers have raised prices by 10-15%, he told Bloomberg. “The main problem is production and the supply chain. We have to do it anyway, and since everyone is doing it, it’s okay.

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

Swiss watch exports reached their highest level ever in 2021, reaching 22.3 billion Swiss francs (about $24 billion), a jump of 31.2% compared to the pandemic year 2020, according to the annual statistics compiled by the Federation of the Swiss Watch Industry (FHS) .

Article source: Bloomberg