The fine jewellery sector is attracting increasing interest from the luxury industry, with major players in the luxury market focusing on ateliers and fine jewellery houses. This sector has become a significant growth lever for the luxury industry, leading to a surge of rumors and announcements in recent weeks. One notable example is the acquisition of four Parisian workshops and manufacturers by Boucheron, owned by Kering. These workshops have been consolidated into the CG Développement group, specializing in fine jewellery.

According to a study by Bain & Company for Altagamma, the global luxury goods market values the fine jewellery segment at around 28 billion euros. The study also highlights that the sector experienced a remarkable 37% growth between 2019 and 2022. In Italy alone, the market is worth €13.2 billion, with impressive year-on-year growth rates. Italy is one of the leading manufacturers of fine jewellery globally, with exports worth €9 billion.

Recognizing the potential of this booming market, many luxury houses have launched their own lines of fine jewellery. Chanel Group introduced its first collection in 1932 and later established Chanel Joaillerie in 1993. Other brands, such as Christian Dior, Louis Vuitton, Dolce & Gabbana, Giorgio Armani, Gucci, and Fendi, have also made their mark in this niche. Luxury houses have been investing in their supply chains to strengthen their sustainable practices and secure the production chain, similar to what they have done with textiles, clothing, and leather goods.

Securing qualified expertise has become crucial in the high-end jewellery segment. Consequently, luxury labels and major groups’ jewellery houses actively seek to acquire renowned workshops in France and Italy. However, this trend also presents challenges for smaller luxury jewellery brands, as they sometimes struggle to find specialist manufacturers due to acquisitions by luxury giants.

There have been rumors of Kering’s potential interest in Milan-based jeweller Vhernier, although nothing has been confirmed. It appears that suppliers to Vhernier are being closely monitored by Kering, LVMH, and Richemont. LVMH aims to secure its supply chain and acknowledges that, in highly specialized areas, suppliers are often better than the luxury brands themselves. LVMH has made significant acquisitions in the fine jewellery sector, expanding its production capacity in France and supporting Tiffany & Co., which it acquired in 2021.

Luxury giants, such as LVMH and Cartier, are investing in the fine jewellery sector by inaugurating new facilities and expanding their production capacities. These investments reflect the significance and potential of this lucrative market. By acquiring workshops and securing their supply chains, luxury houses are positioning themselves for continued growth and success. This trend not only benefits the luxury brands but also the skilled artisans and craftsmen who are the backbone of the fine jewellery industry. The evolving relationship between luxury brands and fine jewellery will undoubtedly flourish, bringing together heritage, craftsmanship, and creativity to create exquisite pieces that captivate consumers worldwide.

Useful links:
1. Altagamma
2. Bain & Company