Inflation also attacks the luxury goods market: the famous brand of

Hublot Big Bang watch. Photo source: Hublot.

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The luxury Big Bang watch of the well-known Swiss brand Hublot, a piece worn, among others, by global stars such as Usain Bolt or Jay-Z, will soon become more expensive, announced the company’s CEO, Ricardo Guadalupe, quoted by Bloomberg.

The Swiss watchmaker will increase prices for all watches in its portfolio, according to Guadalupe, as the measure is taken to increase the cost of essential raw materials, such as gold and diamonds. Thus, the basic prices will increase by 3-4% starting from April or May, he specified. The average price of watches under the Hublot brand is around 20,000 Swiss francs.

“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% to 15%, according to the head of Hublot.

The company’s decision is a testament to the way even the luxury industry is facing inflation, amid rising commodity prices and supply chain problems caused by the pandemic. At the same time, hands-on consumers, who reduced their spending during lockdowns, are now starting to buy state-of-the-art luxury goods, including Swiss watches, causing demand to rise.

“The main issue is production and the supply chain,” Guadalupe said, adding that almost all competitors in the Swiss luxury watch market are considering a similar measure to increase prices.

“It simply came to our notice then. In addition, since everyone does it, it becomes acceptable. “

In an interview with Bloomberg last month, Dior brand CEO Pietro Beccari also said that the brand will have to increase prices in order to adapt to the increase in production and acquisition costs.

Multi-billionaire Arnault: we will be “reasonable” and we will respect our customers

“It’s clear: desirable products are priced right,” said Bernard Arnault, the French multi-billionaire who runs the luxury industry conglomerate LVMH, owner of the Hublot brand, last Thursday during a presentation of the company’s annual results.

Arnault has promised that the group he leads will be “reasonable” and will “respect” its customers in terms of price increases. On the other hand, he acknowledged that some of the group’s products have a very special profile, referring to a Nautilus watch model launched by Tiffany, in collaboration with Patek Philippe. Its retail price in store chains was $ 52,635, but it was well overdue last month when a copy was sold at a charity auction for more than $ 6.5 million.

Another luxury brand, Chanel, recently announced, in turn, the increase in the prices of some of the best-selling bag models with percentages that have far exceeded the inflation rates of the last two years.

Hublot CEO Ricardo Guadalupe said the dramatic return to demand in 2021 laid the groundwork for a record year of sales. Instead, for this year, it expects an increase in its production of single-digit watches.

“Right now, we have a production issue rather than a sales issue,” he said.

Stocks of Hublot watches at retailers and in its own network of stores have decreased by 30-40% in 2021, according to the company’s CEO.

“The last three months have been incredible in terms of sales,” he said.

Swiss watch exports returned to record highs in 2021 amid accelerating US sales and an increase in demand for watches worth more than 5,000 Swiss francs. It should be noted that the watches in the entry-level segment of Hublot cost about 6,000 Swiss francs.

News about the Novak Djokovic case

Chief Hublot, one of the major sponsors of world professional tennis circuit leader Novak Djoković, said the incidents brought the Serb to the fore after he was forced to leave Australia without being able to compete in the Australian Open for that he was not vaccinated, they did not produce any change in the relationship between the two parties.

“For the time being, we support him, because he is our ambassador. If he can’t play anymore, that could be a problem, but we’ll see, “he said.

Guadalupe added that Hublot has been in contact with the Serbian athlete following his departure from Australia and expects him to make new statements in the future about his future in tennis.