Cartier, Montblanc ready for price hikes in 2011

Jewellers and watchmakers Cartier and Montblanc are preparing themselves for further price increases in 2011 to reflect rising precious metals prices and currency fluctuations, their heads said on Tuesday.

The two brands, the two biggest within luxury group Richemont, expressed concern about the uncertain global economic outlook even though the year had started well for the luxury goods industry, recovering from a major slump in 2009.

Montblanc, best known for its pens but which is investing in growing its watch and jewellery businesses, said it planned to lift its prices in 2011 following an average increase of 5% in October.

"Certainly, there will be price increases this year," Montblanc Chief Executive Lutz Bethge told Reuters on the fringes of an international watch fair in Geneva. "The price increase of metals such as gold has an impact on our business."