Bulgari Announces A 20% Price Reduction At Points Of Sale In Switzerland

On January 21, 2015, Bulgari announced that the price for Swiss watch customers had been adjusted to the same level as before the Swiss National Bank’s cancellation of the Swiss franc-linked euro exchange rate. The move aims to protect the economic interests of local Swiss retailers, and it is bound to attract a large number of tourists to Switzerland to buy quality watches as the Chinese New Year is approaching.
   ‘Bulgari wants to safeguard the interests of retailers in Switzerland, especially at such a special moment, or they may choose to buy watches from other parts of Europe,’ said Bulgari President Jean-Christophe Babin. Gree and its parent company LVMH Group’s assessment of the market situation, the brand’s protection measures have been set for a period of at least three months, which will undoubtedly give Swiss local retailers valuable breathing space to smoothly adapt to the new Economic situation.
   ‘The current market situation is too volatile to judge,’ Mr. Babin explained. ‘Perhaps soon we will worry about the company’s profit, and the price will be a double-edged sword in any case. Yes, it will be profitable. Of course, we need to consider it, but the high price will keep potential customers out. This is also very attractive for Swiss residents, who no longer need to go to the border euro zone to buy Swiss watches. ‘
   The Swiss watch market relies heavily on the spending power of Chinese tourists, but tourists travel throughout Europe and stay in Switzerland for only a short period of time (most of them are specialized in purchasing watches). Therefore, the exchange rate movement between the Swiss franc and the euro still constitutes a real market risk, and the potential economic losses are considerable.
   According to Bulgari’s safeguard measures, at any Bulgari brand point of sale in Switzerland, the Swiss central bank canceled the Swiss franc linked to the euro exchange rate before the price of 4,000 Swiss francs watches, after that will continue to be 4,000 Swiss francs sell. According to the current purchasing power parity calculation, the price of the same watch is actually close to 5,000 Swiss francs, so this measure is equivalent to a 20% price reduction (in euros) and applies to all watches in stock.
   The LVMH Group has confirmed the authenticity of this decision, and other watch brands of the Group have not yet responded to this. Starting next Monday, all Bulgari points of sale in Switzerland will be marked with special signs (English and Mandarin Chinese) to remind customers of this new preferential measure.