The Wealthy and Their Jewelry Obsession
In Milan, Italy, a shopper casually strolls by a dazzling jewelry display at a Van Cleef & Arpels luxury store, owned by Cie. Richemont SA. The window showcases a diamond-encrusted ring and a rare gemstone necklace, tempting the world’s elite to indulge in the finest jewelry pieces. While the broader luxury market may be scaling back, the wealthiest individuals remain dedicated to adorning themselves with only the best of the best.
Swiss luxury group Richemont, home to renowned brands like Van Cleef & Arpels, Buccellati, and Cartier, is reaping the rewards of the super-rich’s discerning tastes. According to Luca Solca, a luxury goods expert at Bernstein, Richemont’s jewelry brands hold unmatched desirability among consumers. Despite efforts from competitors like LVMH, Richemont continues to lead the pack in the luxury jewelry market, leaving other brands trailing behind.
The latest reports from Richemont are nothing short of impressive, with the Jewellery Maisons division seeing an 11% sales increase in the fiscal fourth quarter, surpassing expectations. Jewelry emerged as the group’s strongest segment for the full year, experiencing an 8% growth. This success comes at a time when other luxury giants, from LVHM to Kering and Burberry, are facing a slowdown in sales, signaling ongoing challenges in the industry. Despite the overall positive trend in jewelry sales, Richemont’s Specialist Watchmakers division, featuring brands like Piaget and Roger Dubuis, faced a 13% decline in watch sales in 2024, mainly due to weak demand in China. While the jewelry market thrives, the watch market struggles to regain momentum post-pandemic, with high-end watches taking a backseat to more frequent jewelry purchases.
Market analysts foresee potential obstacles for Richemont, including the impact of a strong Swiss franc, rising gold prices, and the looming threat of tariffs. However, the company remains optimistic about its jewelry arm’s ability to sustain its growth trajectory. With a focus on maintaining brand strength in the jewelry sector, Richemont aims to navigate through uncertainties and maintain its market dominance. The luxury industry’s landscape is ever-evolving, and only time will tell how Richemont navigates through the challenges ahead.
