Supermodel and actress Adriana Lima at the Hublot Big Bang DJ Snake launch.

Supply bottlenecks and rising demand drive watch prices higher

Hublot becomes the latest brand to say it will bump its prices early this year.

Hublot will increase prices by 3% to 4% in April or May, the company’s CEO Ricardo Guadalope said last week.

He says the entire luxury watch industry is facing the same issues of rising commodity prices on raw materials such as gold and diamonds, which is leading to suppliers charging more.

“Almost all our suppliers are increasing prices,” Guadalupe said.

A spokesperson for Hublot stablemate TAG Heuer said last week that every brand would increase prices by 5% to 8% this year.

Costs for steel and titanium are also increasing and diamond suppliers have raised prices by 10% to 15%, he said.

Global commodity prices and logistical challenges come at a time of record demand for luxury Swiss watches.

Swiss watch exports hit an all time-high of over CHF 22 billion in 2021.

“We have more of a production problem today than a sales issue,” Mr Guadalupe told Bloomberg.

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