The watchmaking division of LVMH, the world leader in luxury, is expected to grow by about 2% in 2015, according to comments made on Sunday by its CEO, Jean-Claude Biver.
With the overall watch industry expected to grow by between 1 and 3%, “My personal goal is to do better than the market to the tune of half a percentage point, at least,” said Jean-Claude Biver in an interview with SonntagsZeitung.
Referring to the effects of the Swiss National Bank’s decision to abandon the cap on the Swiss franc’s value against the euro, Jean-Claude Biver indicated that the fluctuation in exchange rates has since been partially digested, and that prices have adapted. In the euro zone, LVMH will increase them by 5 to 7%.
As a major international group, LVMH can also buy advertising in cheaper currency areas. “Or we pay our brand ambassadors in euros instead of Swiss francs,” said the executive.