Distributors adjust prices

Russian distributors corrected ruble prices due to rising Swiss Franc. Swatch Group plans to raise ruble prices by 25% in February. Past increase (also 25%) took place in the second half of December, when the Russian Ruble simultaneously lost its positions to Dollar and Euro. Despite the increase in the future, the price of the Swatch Group brands will remain relatively low: from the beginning of 2013 franc against the ruble rose by almost 140% - from 32 rubles / chf to 76 rubles / chf.

Independent distributors are planning to change the price after the Swatch Group. Protime Rus rises price since February, but in different ways for different brands. Ruble prices for Frederique Constant will be calculated at the rate of 63.4 rubles per franc, and from 44 to 52 rubles per franc for other brands. Changes in prices are also planned by LPI Rus - distributor of Raymond Weil, Maurice Lacroix, Luminox and a number of other brands. However, the final figures remain unknown: they say that it will depend on the outcome of negotiations with producers.

In determining the new prices, some companies use sophisticated methods of calculation, taking into account not only the FOB price, but also including the competitive position of each specific model. For example, TBN Time Distribution company does so. According to its director Vyacheslav Voskresensky, the final price varies not only for different brands but also for different models of one brand.

Since the end of December ruble prices for Richemont brands are based on the rate of 75 rubles per euro, which roughly corresponds to the real one. The price for Ulysse Nardin was set in the end of 2014 also roughly correspond to the prices in Swiss shops.

Twofold changes in exchange rates has led to major changes in the Russian market. Everyone understands that brands which will show loyalty and be able to keep prices at a reasonable level, will get the maximum attention of the customers and will be able to influence the market competitors. Therefore, distributors are negotiating with manufacturers on the establishment of special prices for Russia. Many brands are working with the US or European countries fix prices in the currency of the buyer - dollars and Euros respectively. If they really want to sell their products in Russia, why do not they fix ruble prices in our country or find another way to support local partners?