Swiss watchmaker Patek Philippe has cut the prices of some products in Hong Kong following the recent currency fluctuations in the foreign exchange markets.
The luxury brand has cut the retail prices of older models by 20 percent from Feb. 10, the Hong Kong Economic Journal reported, citing a retailer.
Stores are offering the usual 10 percent discount on top of the price cut, which came after a surge in the exchange rate of the Swiss franc after it was de-pegged from the euro last month.
The end of the peg has led the franc to gain 9.3 percent against the US dollar. As Swiss products effectively became more expensive for foreign buyers, companies have been forced to adjust their prices in order to protect their sales.
Prince Jewellery & Watch Co. chairman and chief executive Jimmy Tang was quoted as saying that a couple of other top brands may follow the path of Patek Philippe and cut their prices.
The price cuts will deter potential rise in parallel trade amid the forex market fluctuation.
The last time the market saw large-scale price cuts was a decade ago, according to Tang.
“But it’s only a short-term measure that probably will be readjusted very soon,” he added.
Translation by Vey Wong
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