In order to curb the surge in the Swiss franc rose on the erosion of profit margins, the Swiss luxury goods company Richemont Group decided to raise the euro zone watches and jewelry products 5%. background Last week the Swiss central bank canceled the Swiss franc against the euro ceiling, pushing the Swiss franc exchange rate soared nearly 30%. The competitiveness of Swiss companies is at risk of declining, with exports, overseas tourist sales and profitability affected. Cartier, the world leader in the field of watches, jewelery and accessories, contributes more than 60% of Richemont profits with other brands such as Van Cleef & Arpels, Earl and Montblanc. Eurozone sales account for about 20% of Cartier's total sales, which is closer to 25% for Richemont as a whole. The surge in the Swiss franc will result in a reduction in Eurozone revenue as a result of the conversion. From a cost perspective, some analysts think Richemont costs about 50% in Swiss francs. "The surge in the Swiss franc led to a surge in domestic costs." Analysts lowered their earnings and stock prices expectations for Richemont and Swatch Group. Richemont responded quietly to the surge in the Swiss franc while Swatch Group, another Swiss luxury goods company, expressed strong dissatisfaction with Swatch CEO Nick Hayek saying the SNB created a tsunami. Cartier raise prices According to Reuters, Cartier CEO Stanislas de Quercize said in an interview at this week's Geneva International Advanced Watch Fair that "we plan to raise the price of the euro area watches and jewelery by 5%, but will keep the Swiss market The price is stable. "Quercize also said he does not rule out the possibility of further price increases in the future. Richemont executives say Cartier will raise prices by as much as 5% to 7% as analysts expected. But even raising the price may not be able to fully compensate for the damage done to the profit margin by the appreciation of the Swiss franc. Cartier expects 2015 China's anti-corruption campaign gives Cartier watch business a big blow, and delay the launch of the new series also raised investor concerns. But with the launch of new products and increased demand in the European market, Quercize, the world's chief executive, said he is confident of Cartier's performance this year: "We were doing very well in Europe at the end of last year." At this watch show, Cartier introduced the new watch collection for the first time since introducing Ballon Bleu's Blue Balloon Collection eight years ago, under the name Clé. This series features a new round case, Roman numerals and automatic movement, each priced between 13,000 to 825,000 euros. Quercize said the new series has been well received and is expected to boost sales growth in 2015. (Pictured above is a new series released by Cartier Clé) How watchmakers see 2015 Although Quercize is optimistic about the development of Cartier in 2015, other watchmakers have reservations about their own brands. Julien Marchenoir, Vacheron Constantin, director of marketing for the Richemont brand, said the luxury goods industry is going through a period of volatility. He believes that the terrorist attacks in Paris will lead many tourists to give up their travel plans due to fear. Francois-Henry Bennahmias, CEO of Audemars Piguet, one of the world's top three watch brands Looking forward to a bit pessimistic in 2015, many of our peers also think: "The brand was supposed to have a better performance in 2015. But now we Really uncertain. " Jean-Marc Jacot, head of Parmigiani Fleurier, Switzerland's leading independent watchmaking brand, said "2015 will not be a difficult year, but it will be more complicated than we expected."