Interface News reporter | Huang Shan
Interface News Editor | Lou Zhanqin
In the three months ending March 31, 2024PacmangamemachineSwitzerland's Richemont Group Richemont achieved revenue of 4.8 billion euros.Pacmangamemachine.52 billion yuan), down 1% at the current exchange rate compared with the same period last year.
Richemont Group is the parent company of Cartier, Van Cleef and Arbor, Vacheron Constantin, Langer and other well-known brands. Excluding the impact of the continued strength of the Swiss franc and the euro, the group's sales grew by 2% year-on-year at fixed exchange rates during the reporting period, although the growth rate was still significantly slower than the 8% growth in the same period in 2023.
This is due to the poor performance of the Asia-Pacific region, where the Chinese market is located, in the quarter. "our sales performance in the Asia-Pacific region was weak in the fourth quarter." "as we previously predicted, a sustained rebound in Chinese consumer demand will take some time to be seen," Richemont said in its latest fiscal fourth quarter and 2024 results, KuaiBao. "
Richemont Group's professional watchmaking business, which has always relied on the Chinese market, has been the most affected. The group did not release specific sales growth or decline figures for its professional watchmaking division in the fourth quarter, but comparing the exports of the entire Swiss watchmaking industry gives a glimpse of the severity of the market in that quarter.
According to the Swiss watch industry association, total Swiss watch exports fell 6.3 per cent in the first three months of 2024, as exports of Swiss watches to mainland China and the Hong Kong Special Administrative region plummeted during this period. In March 2024, for example, Swiss watch exports to the mainland of China and the Hong Kong Special Administrative region plummeted by 41.5% and 44.2% respectively, and their global share was even surpassed by the Japanese market.
Exports of Swiss watches from mainland China and the Hong Kong Special Administrative region in 2023 also reached 7.6% and 23.4%, respectively. However, combined with the industry report released by Morgan Stanley in 2023, the market share of high-end watches is further occupied by Rolex, and other independent head watchmaking brands continue to consolidate their original share. on the other hand, Cartier watches and Omega both face the challenge of sluggish growth.
Taken together, the professional watchmaking division recorded a 3 per cent year-on-year decline in sales, which accounts for 18.7 per cent of revenue in Richemont. "growth in the Asia-Pacific region (excluding mainland China), Japan and the Middle East and Africa was offset by declines in other regions," the group said. " In other words, the watchmaking business, which includes Langer, IWC, Jaeger and Vacheron Constantin, showed negative revenue growth in mainland China the previous year.
Despite the poor performance of the watchmaking business throughout the year, Richemont achieved a 3 per cent year-on-year increase in sales at current exchange rates for the entire 2024 fiscal year and 8 per cent to 20.616 billion euros (162.157 billion yuan) at fixed exchange rates. It is also the first time that Richemont has exceeded 20 billion euros, thanks in large part to the excellent performance of its jewelry business.
Richemont Group Jewelry Business Section has three high-end jewelry brands: Cartier, Van Cleef & Arbor and Buccellati. For the whole year, the division's revenue grew 6% year-on-year to more than 14 billion euros (110.118 billion yuan), accounting for nearly 68% of the group's revenue. In 2023, Richemont's jewelry business accounted for 50% of revenue.
This is due to the outstanding performance of jewelry brands in the Greater China market-in sharp contrast to the weak performance of their professional watchmaking brands in China. Richemont said in its financial report that sales in the Asia-Pacific region, which accounts for 40 per cent of its global jewelry business, rose 10 per cent year-on-year for the whole year.
The jewelry business of all countries or regions in the Asia-Pacific region grew throughout the year. Among them, China's Hong Kong SAR and Macao SAR achieved double-digit sales growth for the whole year. After the full liberalization of international tourism in 2023, some mainland Chinese guests purchased jewelry from Hong Kong and Macao.
It is also worth noting that Chinese tourists are also on a jewelry buying spree in Japan, contributing to the growth of the region. Its jewellery business in Japan grew 20% year-on-year for the whole year, according to Richemont. "the strong performance reflects an increase in tourist spending, especially from Chinese guests, which is partly due to the impact of a weaker yen."
Richemont Chairman Johann Rupert is well aware that the peak of the Haute Horlogerie industry is over and it is the jewellery business that will ensure the group's continued growth in the new cycle. At the same time as the 2024 results were released, Richemont also said that on the basis of its expansion, it would shift to a model centered on retail channels and jewelry.
To this end, Richemont's board of directors decided to reinstate the post of Group Chief Executive Officer, and the current CEO of Van Cleveland & Arbor Nicolas Bos will be promoted to this position, which will take effect from June 1, 2024. At that time, Nicolas Bos will also join the Senior Executive Committee of Richemont Group.
Nicolas Bos will directly and indirectly supervise all brands, functions and regional markets, especially jewelry brands, finance and human resources. The chief operating officer, J é r ô me Lambert, will report to Bos.
Promotion to Nicolas Bos is undoubtedly a high recognition of Van Cleef and Arbor's achievements over the past decade.
Although no specific financial data for individual brands have been released, at the earnings meeting in the third quarter of fiscal year 2023 to 24 (the fourth quarter of 2023), Richemont Chief Financial Officer Burkhart Grund mentioned that Cartier and Van Cleef & Arpels have further expanded the global market share of fine jewelry. On the one hand, the two brands have eaten up the market share of competitors, but also some of the market share of non-brand jewelry market.
The chairman of LVMH Group, which owns Bulgari and Tiffany, also made no secret of the leading position of the other two brands in the global high-end jewelry market in a conference call at the end of 2023.
L'É COLE Jewelry Art Center (Shanghai) is located in Lifeng Twin Villa, Central Huaihai Road, Shanghai.
Since it was acquired by Johann Rupert in 1999, it has taken Van Cleveland and Arbor a decade to turn a profit. And Nicolas Bos almost participates in the whole process of the brand from small scale to big brand.
Van Cleef & Arpels' success is largely due to its unique marketing strategy and highly identifiable jewelry products, which gives the brand a unique style.
Unlike Cartier, Bulgari, and Tiffany, Van Cleef and Arpels does not use spokesperson strategies and keeps a distance from celebrities, celebrities, Internet celebrities, etc. It tours antique jewelry exhibitions and high-end jewelry watch exhibitions around the world to tell the story of the brand's ancient history, traditional craftsmanship and style inheritance.
At the same time, Van Cleef and Arpels has invested heavily in jewelry education and wholly sponsored L'ÉCOLE Jewelry Art School to expand its territory around the world. Currently, it has opened four permanent centers in Paris, Hong Kong, Shanghai and Dubai, aiming to popularize jewelry cultural knowledge to the public. Years of accumulation have allowed Van Cleef and Arpels 'jewelry education to flourish in many places around the world, virtually establishing an excellent reputation for the brand in the industry. At the same time, it has also gathered a large number of reserved talents to prepare for subsequent expansion and development.
Richemont Group acquires Italian jewelry brand Vhernier
Richemont is copying its successful experience in operating Cartier and Van Cleef and Arpels to other jewelry brands. Financial reports show that Buccellati, acquired five years ago, achieved high double-digit growth for individual brands in 2024. Just in early May 2024, Richemont Group announced that it had acquired another jewelry brand called Vhernier, headquartered in Milan, Italy.