Sales Strategy

Richemont’s Focus on High-End Jewelry Pays Off, But Watch Strategy Needs Rethink May 30, 2025 (0 comments)

New York, NY--Richemont’s selective sales strategy—focusing on high-end jewelry brands like Cartier, Van Cleef & Arpels, and Buccellati—has paid off. As reported by CNBC, the Swiss group’s fiscal Q4 sales exceeded expectations, with its Jewellery Maisons division growing 11%. Full-year jewelry sales rose 8%, cementing the category as Richemont’s strongest segment.

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According to Luca Solca, sector head for global luxury goods at Bernstein, Richemont’s jewelry brands are “at the top of consumer desirability,” outpacing competitors like LVMH. Johann Rupert, Richemont’s chairman, emphasized during an earnings call that the company is gaining market share across both branded and non-branded jewelry segments.

The strategy stands out in a slowing luxury market. According to the article, competitors such as LVMH, Kering, and Burberry reported weaker sales during the same period. Richemont’s focus on high-end jewelry, rather than broad luxury, appears to be driving stronger consumer loyalty and repeat purchases.

Watch Sales Decline, Exposing Strategy Gaps

While Richemont’s jewelry strategy is delivering results, its watch division tells a different story. CNBC reports that Richemont’s Specialist Watchmakers unit, which includes brands such as Piaget and Roger Dubuis, saw a 13% decline in sales in 2024, primarily due to weaker demand in China.

Solca explained that the watch market—where products are often positioned as lifetime purchases—is slower to rebound. “Everybody and their dog has bought a watch out of Covid-19, and that will take a while to digest,” he told CNBC.

The article notes that Richemont’s exposure to watches contrasts with opaque data from competitors like Rolex and Patek Philippe, which are privately held. However, Richemont’s reported decline suggests the need for a recalibrated watch strategy, potentially shifting focus or rethinking product positioning in key markets.

Pricing and Currency Headwinds: The Next Challenge

Looking ahead, Richemont’s ability to sustain its jewelry-led growth may be tested by external pressures. CNBC highlights challenges, including a strong Swiss franc, rising gold prices, and tariffs.

Rupert stated the company would avoid price hikes that risk alienating customers, a contrast to other luxury players warning of potential increases. However, Russ Mould, investment director at AJ Bell, cautioned that Richemont’s reliance on jewelry makes it vulnerable if demand shifts.

 

Read the article by CNBC here.