Latest news with #LVMH-owned
Hindustan Times
2 days ago
- Business
- Hindustan Times
240-year-old Swiss watchmaker's race to beat Trump's 39% tariff deadline
As a US tariff deadline neared this week, Swiss watch manufacturer DuBois et fils rushed to ship five high-end watches worth thousands of dollars each to the United States. By Wednesday the firm had blocked orders on its US website. Now CEO Thomas Steinemann is calculating the price hikes he'll need to make. DuBois et fils, founded in 1785, accelerated shipments on Monday from its factory in Muttenz, near Basel, to get through customs before the US tariff on imports from Switzerland came into force.(via REUTERS) The whipsaw week for the Swiss horologist, as US President Donald Trump slapped a surprise 39% trade tariff on imports from the European country, underscores how businesses big and small are being forced to adapt and rejig operations under pressure. DuBois et fils, founded in 1785, accelerated shipments on Monday from its factory in Muttenz, near Basel, to get through customs before the US tariff on imports from Switzerland came into force. The 39% rate - up from the baseline tariff rate of 10% since April - took effect at 0400 GMT on Thursday after the Swiss president came back from an emergency trip to Washington without a deal. "For the watch industry it's a huge disaster," said Steinemann, who explained that he'd blocked US. orders because prices would need to be recalculated to account for tariffs. The firm would not soak up the hit, he said. "The US was a big driver in the last two years. Now this kills a lot of the business." His US prices were going to rise, he added. The DuBois DBF008 watch, for example, would likely go up to $14,500, from $10,800. The United States accounts for around 15% of the global sales of DuBois, which sells directly to US consumers. The wider Swiss watch industry is feeling the pinch, planning price hikes, pausing US orders, and looking for alternative markets for its expensive, hand-made timepieces. The country is home to brands such as Rolex, Patek Philippe, LVMH-owned Tag Heuer, Swatch-owned Omega and IWC Schaffhausen, owned by Richemont. The US accounted for 17% of Switzerland's total 26 billion Swiss francs ($32 billion) of watch exports last year, according to the Federation of the Swiss Watch Industry. Exports to the U.S. surged in April as watchmakers frontloaded shipments ahead of a first tariff deadline. 'LOSS FOR THE UNITED STATES' Combined with a weaker dollar against the Swiss franc, the tariff hike will make Swiss watches some 65% more expensive on average for US consumers, estimated Amarildo Pilo, owner of Pilo & Co watchmakers. He said that many brands had already shipped some product to the US in advance, but warned this was not a long-term solution. The United States had been a market that everyone was focusing on recently and wanted to develop, he added. "My personal opinion is that what's going to happen is that Americans will no longer buy watches in the United States," said Pilo, who is also founder of the Swiss Independent Watchmakers Pavilion, which represents 28 independent brands. "But those who want them and who like watches will buy them elsewhere. So honestly, it's a loss for the United States." The tariff hit is a wider broadside against Switzerland, even if talks are continuing with the hope of eventually striking a deal. Trump argues that tariffs are needed to undo trade distortions and bring manufacturing back to the United States. "The impact could be very strong on the Swiss economy," said John Plassard, partner and head of investment strategy at Cite Gestion Private Bank. Analysts estimate the tariffs could knock between 0.3% to 0.6% off Swiss GDP growth over the next year. "It will cut the potential growth in half, I would say. So the indirect impact could be more unemployment in the Swiss economy," said Plassard. 'GAME OVER NUMBER' In Sacha Davidoff's vintage watch boutique in Geneva, there was a sense of shock. Many in the country had expected a deal similar to or better than the 15% that will be levied on most imports from the European Union. Switzerland is outside the bloc. "Right now we're living the nightmare that we had hoped wouldn't come to be. You kind of like wake up in the morning and you're like, 'no, that wasn't real'," Davidoff told Reuters, saying that 39% was a hammer blow for exports. "(It) is kind of a 'game over' number for us. It basically cuts the US market as a possibility for export of vintage watches entirely." He hoped, however, that the situation would be resolved eventually. "I think that this is just going to be a difficult period where we're basically going to have to put the American market kind of on pause and focus on domestic sales," he said. ($1 = 0.8070 Swiss francs)
Business Times
2 days ago
- Business
- Business Times
A 240-year-old Swiss watchmaker's race to beat Trump's tariff deadline
[LONDON/GENEVA] As a US tariff deadline neared this week, Swiss watch manufacturer DuBois et fils rushed to ship five high-end watches worth thousands of US dollars each to the United States. By Wednesday (Aug 6), the firm had blocked orders on its US website. Now CEO Thomas Steinemann is calculating the price hikes he'll need to make. The whipsaw week for the Swiss horologist, as US President Donald Trump slapped a surprise 39 per cent trade tariff on imports from the European country, underscores how businesses big and small are being forced to adapt and rejig operations under pressure. DuBois et fils, founded in 1785, accelerated shipments on Monday from its factory in Muttenz, near Basel, to get through customs before the US tariff on imports from Switzerland came into force. The 39 per cent rate, up from the baseline tariff rate of 10 per cent since April, took effect at 0400 GMT on Thursday after the Swiss president came back from an emergency trip to Washington without a deal. 'For the watch industry, it's a huge disaster,' said Steinemann, who explained that he'd blocked US orders because prices would need to be recalculated to account for tariffs. The firm would not soak up the hit, he said. 'The US was a big driver in the last two years. Now this kills a lot of the business.' A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up His US prices were going to rise, he added. The DuBois DBF008 watch, for example, would likely go up to US$14,500, from US$10,800. The United States accounts for around 15 per cent of the global sales of DuBois, which sells directly to US consumers. The wider Swiss watch industry is feeling the pinch, planning price hikes, pausing US orders, and looking for alternative markets for its expensive, hand-made timepieces. The country is home to brands such as Rolex, Patek Philippe, LVMH-owned Tag Heuer, Swatch-owned Omega and IWC Schaffhausen, owned by Richemont. The US accounted for 17 per cent of Switzerland's total 26 billion Swiss francs (S$41 billion) of watch exports last year, according to the Federation of the Swiss Watch Industry. Exports to the US surged in April as watchmakers frontloaded shipments ahead of a first tariff deadline. 'Loss for the United States' Combined with a weaker US dollar against the Swiss franc, the tariff hike will make Swiss watches some 65 per cent more expensive on average for US consumers, estimated Amarildo Pilo, owner of Pilo & Co watchmakers. He said that many brands had already shipped some products to the US in advance, but warned that this was not a long-term solution. The United States had been a market that everyone was focusing on recently and wanted to develop, he added. 'My personal opinion is that what's going to happen is that Americans will no longer buy watches in the United States,' said Pilo, who is also the founder of the Swiss Independent Watchmakers Pavilion, which represents 28 independent brands. 'But those who want them and who like watches will buy them elsewhere. So honestly, it's a loss for the United States.' The tariff hit is a wider broadside against Switzerland, even if talks are continuing with the hope of eventually striking a deal. Trump argues that tariffs are needed to undo trade distortions and bring manufacturing back to the United States. 'The impact could be very strong on the Swiss economy,' said John Plassard, partner and head of investment strategy at Cite Gestion Private Bank. Analysts estimate the tariffs could knock between 0.3 to 0.6 per cent off Swiss GDP growth over the next year. 'It will cut the potential growth in half, I would say. So the indirect impact could be more unemployment in the Swiss economy,' said Plassard. 'Game over number' In Sacha Davidoff's vintage watch boutique in Geneva, there was a sense of shock. Many in the country had expected a deal similar to or better than the 15 per cent that will be levied on most imports from the European Union. Switzerland is outside the bloc. 'Right now, we are living the nightmare that we had hoped would not come to be. You kind of like wake up in the morning and you are like, 'no, that wasn't real',' Davidoff said, saying that 39 per cent was a hammer blow for exports. '(It) is kind of a 'game over' number for us. It basically cuts the US market as a possibility for export of vintage watches entirely.' He hoped, however, that the situation would be resolved eventually. 'I think that this is just going to be a difficult period where we are basically going to have to put the American market kind of on pause and focus on domestic sales,' he said. REUTERS
Express Tribune
7 days ago
- Business
- Express Tribune
Giorgio Armani fined for labour violations
Italy's antitrust regulator has fined fashion group Giorgio Armani and one of its units 3.5 million euros (USD4 million) for alleged unfair commercial practices, it said on Friday. The Giorgio Armani group rejected the accusation and said it would appeal. The regulator said in a statement that the two companies "issued misleading ethical and social responsibility statements in contrast with the actual working conditions found at suppliers and subcontractors". It added that Armani outsourced most of its bag and leather accessory production to these third parties. The authority said that although the group emphasised its attention to sustainability — using it as a marketing instrument — the external suppliers, in turn, subcontracted to other producers, which in some cases employed workers illegally and in poor health and safety conditions. The issue already came up last year with Italian prosecutors, who placed one of Armani's units under judicial administration, a measure which was then lifted in February. In a statement the Giorgio Armani group expressed "disappointment and bitterness" at the regulator's decision, adding it would appeal it before an Italian regional administrative court. "(The group) always operated with the utmost fairness and transparency towards consumers, the market, and stakeholders, as demonstrated by the Group's history," it added. Last year the competition authority opened a similar investigation into LVMH-owned Dior to assess whether it had misled consumers. The French brand agreed on a number of remedies in May to settle the probe, considered by the regulator as appropriate and enough to avoid any sanctions. Earlier this year also cashmere king Loro Piana and a unit of luxury brand Valentino were put under judicial administration in Italy over worker abuses in supply chains.
Forbes
29-07-2025
- Business
- Forbes
Prices To Rise For Prestige European Consumer Products, Making U.S. Brands More Competitive
A "Made in France" label on red acrylic fabric indicating that product is manufactured in france and ... More representing a France map with tricolour flag featuring three vertical bands coloured blue, white, and red. Prices on a wide array of European consumer products are set to rise beginning Aug. 1, now that a EU-U.S. trade deal is in place, including a 15% tariff duty on EU exports to the United States. From food to fashion, watches to wine and autos to appliances, few product categories are spared. What unites them is that European brands carry old-world prestige. These heritage-rich brands have long commanded a price premium, and now that premium will come with an even a higher price tag. On the flip side, it's going to make made-in-USA brands more price competitive, all part of President Trump's America First agenda. Depending upon how much of the 15% price premium is passed along to consumers, it could reset demand for European brands, leading to slower sales in the U.S. What's for certain is that these premium Euro brands can't take their previous high status for granted and must continue to invest in their prestige value to maintain their market position. Tariff Blow To Luxury Fashion Brands Many major European luxury brands learned that lesson after boosting prices on average 33% from 2019 to 2023 with no discernible improvement in quality, according to UBS. After that, Bain reports that some 50 million luxury consumers exited the market and the personal luxury market contracted 2% in 2024. It is facing up to a 5% decline this year, as well. UBS doesn't expect luxury brands to make the same mistake twice. Luxury goods brands are expected to pass along only about a 2% price increase in the U.S. and 1% globally to avoid taking a 3% hit to earnings before interest and taxes. 'Brands are treading carefully with further price hikes to avoid alienating younger and occasional shoppers,' said Digital Luxury Group's managing director Jacques Roizen. European luxury brands hold a 70% global luxury market share and account for some 11.5% of total EU exports, according to an analysis by Bain and the European Cultural and Creative Industries Alliance. Some of the leading EU luxury brands include LVMH-owned Louis Vuitton, Dior, TAG Heuer and Fendi, Kering's Gucci and Saint Laurent, Richemont's Cartier and Van Cleef & Arpels, Swatch Group's Omega, Longines and Harry Winston, Hermès, Chanel, Prada, Moncler, Dolce & Gabbana, Valentino and Giorgio Armani. Further down the fashion food chain, Zara out of Spain, H&M from Sweden and Primark from Ireland are likely to be hit by tariff price increases, as are Germany-based sportswear brands Adidas and Puma. Rejiggering Engineered Products After pharmaceuticals, medications and other medical products, automobiles and motor vehicles are the third largest category of EU exports. And according to the latest Cars Commerce report, U.S. unit sales of new vehicles rose 3.9% from January through June as consumers picked up the pace on purchases ahead of tariff price increases. Leading luxury automobile brands are going to take a big hit as the 15% EU tariffs take hold. According to the European Automobile Manufacturers' Association, some 22% of EU vehicle exports land here. Brands in the crosshairs include BMW, Mercedes-Benz, Volkswagen, Audi, Porsche, Fiat, Volvo and Peugeot. These luxury auto leaders faced a global slowdown from 2023 to 2024, dropping a reported 5%. Automobiles are the luxury market's largest segment, totaling $668 billion last year compared to $419 billion in the personal luxury goods market. Consumer appliance brands are also facing tariff challenges. Bosch, Electrolux, Miele, Philips, Braun and De'Longi are leading brands in this sector. For example, the largest of those brands, Bosch generated some 20% of global sales in the Americas last year and it was the only market that grew, up 5%, while Asia-Pacific (31% of sales) was flat and Europe (49%) fell 5%. Beauty Makeover With $50 billion in sales last year, Paris-based L'Oréal is the world's leading beauty company with 37 brands in its portfolio under four divisions: consumer products (e.g. L'Oréal Paris, Maybelline, Garnier), luxe (Lancôme, Kiehl's, Aësop, IT Cosmetics), dermatological beauty (La Roche-Posay, CeraVe, SkinCeuticals) and professional products (Kératase, Redken, Matrix). And within the luxe division, it is also the beauty partner of numerous luxury brands, including Yves Saint Laurent, Armani, Ralph Lauren, Valentino, Prada and Mui Mui. Last year, some 27% of sales were made in North America, its second largest market after Europe at 33%. In dollar terms, the 15% tariff will hit the higher-end of its range – 36% of sales are in luxe, followed by 16% in dermatological beauty and 11% professional products. However, those brands' more affluent target market may be more willing to accept a price hike as compared to the 37% of sales in its more affordable consumer products range. Other EU beauty brands under pressure include Beiersdorf (Nivia, Eucerin and La Prairie), Clarins, Yves Roche, Chanel and Dior. Gourmands Will Pay More American consumers, who've acquired a taste for more premium European foods, wine and spirits, are likely to suffer sticker shock the most as tariffs push prices above previous levels. Statista reports high-quality, artisanal European food imports have grown from $16.5 billion in 2021 to $20 billion in 2023, a 21% increase. Popular EU brands include sparkling water (Evian Perrier, Pellegrino brands), chocolates (Ferrero Rocher, Lindt, Godiva, Toblerone, Nestlé), Lavazza coffee, Barilla pastas and sauces and Goya Foods. Specialty regional-specific olive oils, cheeses, wine and spirits brands will also take a hit. LVMH's wine and spirits segment is already 8% underwater in the first half of 2025, and it can ill afford having its brands' already premium prices go up another 15% in the U.S., the business group's largest market, accounting for 35% of revenues. The Italian Unione Italiana Vini winemaker's trade association figures the 15% tariff will cost exporters $371 million, noting that a bottle of Italian wine that previously retailed for $11.50 per bottle will cost $15 going forward. American Consumers To Reconsider Place Of Origin Whether Americans will be both willing and able to absorb the growing premium on European imports is an open question. What is likely is that consumer demand will cool, making the U.S. a less attractive trading partner for many brands. And with falling demand, the 15% tariff price hike will ultimately have less impact on inflation. At the same time, with no shortage of domestic alternatives, American-based brands are well-positioned to capitalize on the change. As shoppers prioritize price/value over prestige, it could give U.S. brands a much-welcomed competitive edge and much-needed boost. See also:
Daily Mail
24-07-2025
- Entertainment
- Daily Mail
Camila Cabello admits she is 'falling in love' with her billionaire beau as they go Instagram official in Ibiza
has gone Instagram official with her boyfriend of seven months, Lebanese businessman Henry Junior Chalhoub, 38. The songbird from Cuba shared a photo of the two of them holding hands during their vacation in Ibiza. Most telling is the ex of Shawn Mendes said in her caption that she was 'falling in love' as she nibbled on cherries while in a black top. The 28-year-old star added that she was, 'Reading fiction for hours, practicing guitar, eating every color of tomatoes, putting my hand out in the car, playing with the wind.' Cabello's pals Kendall Jenner, Emily Ratajkowski, Jessica Alba and Elle Fanning all hit the like button. This comes after Cabello and Chalhoub were seen kissing while in their swimsuits during a dip in the Balearic Sea in Ibiza, an island in Spain. The songbird from Cuba shared a photo of the two of them holding hands during their vacation in Ibiza The singer's new love Chalhoub is believed to be a member of the wealthy Chalhoub family, known for founding the Dubai-based luxury fashion company, Chalhoub Group. Before their trip to Ibiza, the couple were seen in Monaco at the Formula 1 races. Cabello and Chalhoub were first linked in November 2024 at an Elie Saab fashion show afterparty in Saudi Arabia. They sparked romance rumors when they were seen packing on the PDA as they frolicked in the ocean in St. Barts in January. The couple went to the pre-BAFTA Nominees party on February 15 in London. They also piled on the PDA while sitting in the front row of Chanel's 2025 Fall/Winter fashion show on March 11 in Paris. They were playfully holding hands before the fashion show started until Chalhoub saw someone filming them and hid his face behind Camila's shoulder. Chalhoub comes from a very wealthy family who owns Dubai-based luxury fashion distribution company Chalhoub Group. The 28-year-old star added that she was, 'Reading fiction for hours, practicing guitar, eating every color of tomatoes, putting my hand out in the car, playing with the wind' The company works with Versace, Jimmy Choo, Jacquemus and several LVMH-owned brands. The mission of the company is to be a partner and creator of luxury experiences in the Middle East,' per their official website. Chalhoub's grandfather Michel and family were worth $1.7 billion as of 2019. Cabello has been open about wanting to keep her private life out of the public eye and uses caution when speaking about her love life. 'I get why people are interested in my love life, but I don't want to give people that piece of me because it is the most important part,' she told Latina magazine. Cabello went on to outline her 'dream life': 'I want to make songs and have incredible experiences with people. 'I don't want to be locked up in a hotel room and just do press and red carpets. That's not the kind of life I want to live.'
