Luxury brands raise prices in Russia as the Ruble plummets
French jeweler and watch-maker Cartier (Richemont Group) applied, earlier this week, an average price increas of 40 percent to 50 percent to reflect current exchange rates. The popular Trinity ring now sells for 125,000 rubles ($2,040), compared with 78,000 rubles previously. Other Richemont Group brands which also operate directly in Russia may apply similar price hykes. Prada and Louis Vuitton are set to follow suit, however, no formal confirmation has been released by either of the two luxury giants.
Retailers including Apple Inc., Renault SA and McDonald’s Corp. have been raising prices to offset the drop in the value of their sales in rubles. The currency sank beyond 80 per dollar yesterday as panic swept across Moscow’s financial markets after a surprise 650 basis-point interest rate increase failed to stem the world’s worst foreign-exchange rout this year.