The Appreciation Of The Franc Has Led To A Rise In The Price Of Luxury Goods.

Rolex Rolex spokesman said that the price of its products would rise by about 8% from February 1st, the first price increase since November 2013.

However, the spokesman denied that the increase was related to the soaring exchange rate of the Swiss franc, but because the yen continued to weaken.

The Swiss Franc has increased 17% against the yen since last Thursday.

Compagnie, Financi re re Richemont SA (CFR.VX), the flagship brand of the world's second largest luxury group, also announced that the price of jewelry and watches in the euro area rose by 5%. Cartire Cartier CEO Stanislas de Quercize said that the prices of related products will remain stable in Switzerland.

In addition, other brands of watches and jewellery will also follow the price increase in the euro area, or within 5%-7%, according to the Richemont SA CEO.

Cartier Cartire has about 20% of its revenue from the euro zone, and the group as a whole is close to 25%.

Another Swiss luxury watch brand Patek Philippe Philippe also said it was considering adjusting the pricing of the Japanese market. Brand Japanese director Izumi Otsuka said that the price increase would be between 4%-5% and the final decision would be made at the end of the month depending on the exchange rate trend.

Dependence in recent years

And China's growth as a driving force in the last two years, as the central government cracked down on corruption and political and economic turmoil around the country affected the demand for luxury goods, export growth slowed significantly.

In 2010, the total export volume of the Swiss watch rose by 22%, reaching 11 in the first 11 months of 2014.

Last week, Richemont SA, the peak group, also announced that it was dragged down by Hongkong's "occupy the central" demonstration and China's anti-corruption campaign, and stagnated in the three quarter of December 31, 2014, the worst performance in six years.

Now that the Swiss Franc has risen sharply and the slogan "made in Switzerland" has become a burden from selling points, the export of Swiss watches is likely to slide this year.

The Swiss central bank released the "black swan" the same day, the Compagnie Financi re Richemont SA (CFR.VX), the peak group's share price fell 16%, the largest single day decline in the past 20 years, and its competitor Swatch Group SA (UHR.VX), Swatch group, has fallen 21.4% since last week four.

Analysts have cut target prices and earnings forecasts for the two stocks.

JPMorgan Chase & Co (NYSE:JPM): Morgan Chase has lowered the target price of Compagnie Financi Richemont re Richemont SA (CFR.VX) by 16% to 80.

The stock rose 0.14% to 73.30 Swiss francs late Tuesday and has fallen 17.3% since Thursday.

Swatch Group SA (UHR.VX), chief executive of Swatch group, Hayek Hayek, the chief executive of the Swatch group, likened the decision of the SNB to "tsunami". In the face of this man-made calamity, the Swiss watch brand has only two choices, not to raise prices, or to reduce profits.

The world's largest luxury group LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA) MOET & CHANDON Hennessy LV group watches department chairman Jean-Claude Biver Jian pointed out that its brand can not suddenly rise 10% or 15%, he had to use "accident", "shock" and other words to describe his mood.

LVMH owns TAG Heuer, Heuer, Zenith, and Heuer.

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Barclays PLC (BARC.L) barclays bank analyst Helen Brand Brand estimated that the Swiss Franc increased by 10%, while Richemont SA's annual profits will drop by 9%, and Swatch Group SA (UHR.VX) Swatch group will reduce by 18%.

In view of the weakening demand, in order to protect profit margins, Cartier Cartire began to reduce production indefinitely at the end of last year. Specific measures were taken to reduce the working hours of 230 workers in a tabulation workshop in Villars-sur-Glane, Switzerland, every Thursday.

In addition, Tag Heuer partially has taken the same measures, cutting 46 management and production positions and placing 49 employees in partial unemployment (partially).

At the time of the deadline, Compagnie Financi re Richemont SA (CFR.VX) was slightly increased by 0.14% to 73.30 Swiss francs on Tuesday, which has fallen 17.3% since Thursday.

Swatch Group SA (UHR.VX) ended at 359.80 francs, down 0.96%.