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Red Luxury: Founders Discuss Their Successful Global Expansion July 19, 2023 (0 comments)


Paris, France--Launching in 2012, Red Luxury, spearheaded by Romain Bénichou and David-Emmanuel Cohen, sought to disrupt the traditional jewelry and watch industry. This French-American brand accelerator’s core mission is to stimulate growth for burgeoning luxury brands across the globe by partnering with extraordinary talent.

[Image via Pexels Commons]

During an insightful discussion with Newfund's CMO Vera, both founders elucidated Red Luxury's strategic methodology in building a global brand, its foray into the U.S. market, and its plans for the firm.

In the interview, David-Emmanuel Cohen explained their well-devised international expansion strategy was rooted in comprehensive market research. He mentioned this research involved analyzing consumer preferences, potential markets, and regional competition, thereby allowing them to identify target markets offering promising growth opportunities in the luxury jewelry sector.

Romain Bénichou emphasized the importance of their early focus on global expansion, attributing their business growth to a diversified customer base and reduced market dependence. The strategy, he claims, has yielded remarkable results, with Red Luxury boasting an impressive average annual revenue growth rate of 30% in the past five years, with international sales now comprising 55% of their total revenue.

When asked about their U.S. market penetration in the interview, Bénichou referred to it as a "strategic no-brainer." The U.S. luxury jewelry market's massive customer base and prestige have bolstered its global reputation, driving up U.S. revenue by 200% from the previous year.

In the interview David-Emmanuel further detailed how they adapted their brand strategy for different markets, tailoring their offerings to resonate with diverse consumer preferences.

Despite the success, Bénichou admitted encountering challenges such as cultural differences, local regulations, and supply chain management. They addressed these issues by forming strong alliances with local retailers and distributors in each market.

Looking ahead, David-Emmanuel revealed that Red Luxury plans to target markets in Asia and the Middle East, driven by these regions' growing affluent consumer base. By 2028, the company projects international sales to make up 70% of its total revenue, with an ambitious target of €100 million.

Learn more in the entire interview on Newfund.

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