Most Richemont brands lower prices: Panerai prices cut for the second consecutive time in three months!

　　Following this May's plunging Swiss watch exports by 8.9%, marking the steepest decline since the financial crisis, brands appear unable to remain calm. Numerous renowned watch brands have chosen to lower prices to attract consumers' attention, whilst the famous Italian watch brand Panerai has reduced its prices twice within three months!

　　This watch price-cutting trend has affected many famous watch brands, including Patek Philippe and Rolex. "Unlike those watch brands that mass-produce millions of pieces annually, Patek Philippe's annual production is limited, remaining basically stable at between 20,000 and 30,000 pieces. Its profit growth comes from price increases rather than expanding sales volume," industry insiders stated. For this "King of Watches" that stands alone in the industry, previous price-cutting strategies may not have had much impact, as it has almost no competitors. Therefore, rather than ineffective price cuts, it is better to raise prices to regain profits.

　　However, for many other brands, the situation is rather different.

　　According to a Swiss watch dealer, Rolex, which has neither increased nor decreased its prices over the past three years, constantly monitors the moves of its competitors and customer reactions. Its recent extended warranty policy may be a competitive bargaining chip against its peer Omega, as the extended warranty period is precisely one year longer than Omega's. In China, Omega sells better than Rolex.

　　Aside from Patek Philippe and Rolex, a number of other Swiss watch brands have made unusual moves this year.

　　For instance, Panerai, a watch brand under Richemont, has cut its prices twice this year. Following a public price reduction announced in 2, it lowered prices again in 5, with reductions of roughly 5%. In addition, Vacheron Constantin, a historically lofty watch brand, has followed the broader luxury goods trend by cutting prices once more, following reductions made last year.

　　Influenced by the broader economic climate, high-end brands face greater sales pressure and tighter cash flow compared to lower-end brands, making them much more eager to adopt strategies such as pricing adjustments to boost sales, industry insiders noted.