Swiss Franc jumps 30%

Zagato

This can only be bad news for all of us

www.irishtimes.com/business/jump-in-value-of-swiss-franc-to-prompt-rise-in-cost-of-watches-skiing-1.2067158

893bet

As of rolex or omega needed another excuse!

Wibbs

Of the "quartz wars" that nearly killed the Swiss industry back in the 70's, one aspect is often left out; the exchange rates favouring the Yen over the Swiss Franc. Basically the Swiss offerings became much more expensive overseas. This may hit them harder than we think. Not at the high end where "money is no object" and names like Rolex will trundle on, just as they did back in the day, but I could see a producer like Longines get hit hard enough. Their name cache is lesser as are their prices/margins, so they have much less wriggle room to reduce prices at source. Others like Zenith who in one year upped the prices of their range by damn near a third(for the same models) could afford to drop them an equal amount to keep shifting units. Omega could do similar.

Time to make hay for the German makers mind you. They're in that "ohhh should I buy a TAG or a Longines" sweet zone. With a bit of an advertising push they could make real inroads to markets like the US and China. The weak Euro would really help.

EDIT I reckon if it stays like this for a while, watch vintage prices go up.

Eoin

Not to mention Swatch, Tissot, Hamilton where the price point is even more sensitive.

And what about the non-Swiss based companies who use Swiss parts? Could be a big ripple effect

Wibbs

Eoin wrote: »

And what about the non-Swiss based companies who use Swiss parts? Could be a big ripple effect

Aye, good point E. Movement prices are going to be hit.

Lex Luthor

had a look at the exchange rate yesterday and its about 1.20 CHF to the EUR
I was over there 3yrs ago and it was 1.24CHF to the EUR and there in Dec and about 1.21CHF to EUR
What are they expecting it to get to as it doesnt look to have moved much in 3yr?

Anjobe

Lex Luthor wrote: »

had a look at the exchange rate yesterday and its about 1.20 CHF to the EUR
I was over there 3yrs ago and it was 1.24CHF to the EUR and there in Dec and about 1.21CHF to EUR
What are they expecting it to get to as it doesnt look to have moved much in 3yr?

Where did you see that? XE currently has 1.01180 CHF to 1 EUR.

swimming in a sea

This rate I find incredible, because I know first hand about the cost of living in Switzerland and if I was asked to move there I would need my euro wage to at the very very minimum to be X2.5 times increased, so for it to be parity is a joke...

Maybe smarter people than me can make since of it;)

893bet

Wibbs wrote: »

EDIT I reckon if it stays like this for a while, watch vintage prices go up.

When new watch goes up....their vintage equivalent also goes up!

Eoin wrote: »

Not to mention Swatch, Tissot, Hamilton where the price point is even more sensitive.

Even put Tag H in a tricky spot as they are far over priced for their position in the "value chain"


This may even suit the likes omega in one way as it offers an excuse to continue with their massive price increases as they seek to step up the ladder and make it more and more exclusive. Their new grey side of the moon speedmaster as it stands leaves very little change out of 10G's and demand is crazy for it from what I gather online.

Eoin wrote: »

And what about the non-Swiss based companies who use Swiss parts? Could be a big ripple effect

Any one using an eta movement etc is going to have to raise prices or absorb the increase into their margins. So thats raise prices then.

Lex Luthor

Anjobe wrote: »

Where did you see that? XE currently has 1.01180 CHF to 1 EUR.

oanda.com

showing about 1.1 at moment

CarltonBrowne

When I first went to Switzerland the exchange rate was about 2.2 to a GBP. It felt just like paying London prices so, though not cheap, was perfectly manageable. Now, it's just painful and is not dissimilar to paying for pints in Oslo.

Just go vintage - there will be a knock-on effect on service prices but that will take some time to kick-in.

hfallada

Lex Luthor wrote: »

had a look at the exchange rate yesterday and its about 1.20 CHF to the EUR
I was over there 3yrs ago and it was 1.24CHF to the EUR and there in Dec and about 1.21CHF to EUR
What are they expecting it to get to as it doesnt look to have moved much in 3yr?

The swiss bank were buying huge amount of foreign currency and putting negative rates on their savings to keep their currency at 1EUR = 1.2 CHF roughly. Its called a currency peg and China do the same thing pretty much with the dollar. But with all the money flowing from Russia and Euros from the Greek Euro exit fears, the Swiss Bank were sick of buying Euros to stabilise their currency.

So they removed the Euro Peg, which was completely unexpected. 22 Economist were interviewed about the CHF and EUR peg predictions. Not one expected it to be lifted this year and only 3 expected changes next year. So no one expected this massive change at all

Lex Luthor

Latest
1 EUR - 1.005 CHF

893bet

So looking at a 20% rise to maintain margin......

Lex Luthor

Passed Fields jewellers this morning and the Tag & Longines are still at same prices, no increase
I wonder how long it will take to filter down to the high street?

GeraldGenta

Patek went up 10% in Ireland on Thursday to combat the sterling euro battle. But should not go up any further in uk and Ireland. Rest of the world is getting a bigger price increase relating to the franc.

Hong Kong was due a price decease of 8% that's obviously been scraped.

Rolex is only going up 7% on Monday.

rwbug

GeraldGenta wrote: »

Rolex is only going up 7% on Monday.

Rolex go up every Monday it seems

mad m

Was in Weirs inquiring about an Omega Seamaster for my brother in law , asked about discount and sales rep said they were giving 10% before Christmas but because of the Franc they are told only to give 5%

Bateman

mad m wrote: »

Was in Weirs inquiring about an Omega Seamaster for my brother in law , asked about discount and sales rep said they were giving 10% before Christmas but because of the Franc they are told only to give 5%

On Omegas or just in general?

otnomart

Newbe here.
Just read on a non-Irish forum that the Swatch Group has raised prices by 4%-7% (depending on the brand) starting from the 9 February. Excluding Tissot, though.