Richemont Korea's Sales Surge by 1 Trillion Won in Four Years
Jewelry Consumption Rises as Shoppers Shift from Luxury Bags and Apparel
Jewelry Brands Raise Prices Twice in the First Half of This Year
Korean Market Expected to See Another Record Performance This Year
Swiss luxury group Richemont has achieved its highest-ever performance in the Korean market. With steady growth in demand for high-end jewelry and watches such as Cartier and Van Cleef & Arpels, Richemont Korea's annual sales have approached 1.8 trillion won. This figure represents an increase of approximately 1 trillion won compared to four years ago.
According to the audit report submitted by Richemont Korea on June 24 (covering the period from April 1, 2024, to March 31, 2025), sales during this period reached 1.7952 trillion won, up about 300 billion won (16.4%) from the previous year’s 1.5014 trillion won. Operating profit was 130.2 billion won, an increase of 30 billion won from the previous year, and net profit stood at 81.6 billion won.
Richemont Korea is the Korean subsidiary of the Richemont Group. It operates luxury fashion and jewelry brands such as Cartier, Van Cleef & Arpels, Buccellati, Delvaux, and Chlo?, as well as luxury watch brands including IWC, Jaeger-LeCoultre, Piaget, and Vacheron Constantin in the domestic market. Richemont Group is considered one of the world’s top three watch and jewelry groups, alongside Switzerland’s Swatch Group and France’s Louis Vuitton Moet Hennessy (LVMH).
Richemont Korea has set new record-high results every year since the COVID-19 pandemic. After posting sales of 864 billion won in 2020, the company recorded 1.186 trillion won in 2021, 1.3979 trillion won in 2022, and 1.5014 trillion won in 2023. Last year, it is believed that the double-digit sales growth was driven by more customers seeking jewelry, which can be used for a long time, instead of luxury bags.
As sales increased, the dividends sent to headquarters also rose. While the previous year’s dividend to headquarters was 53.46 billion won, this year it surged by 38% to 73.8 billion won. However, donations slightly decreased from 570 million won to 499 million won.
Other luxury jewelry brands that announced their annual results last year, such as Tiffany and Bulgari, also posted record-high sales in the Korean market. Tiffany Korea recorded 378 billion won in sales last year, a 7% increase from the previous year. Bulgari Korea saw its sales jump 23% to 419.1 billion won during the same period. The Korean subsidiary of Swiss luxury watch brand Rolex posted sales of 342.6 billion won last year, a 16% increase.
The increase in sales of luxury watch and jewelry brands is due to a growing preference for luxury jewelry and watches. In the past, many people sought luxury goods in categories such as bags, shoes, and clothing, but recently, more consumers are choosing jewelry that can be used for a lifetime. Oh Dongjun, head of Damiani Group’s Korean branch, explained, "In the case of bags, which used to drive luxury consumption, there is the disadvantage that new products are constantly released and they wear out. The consumer trend has shifted to jewelry and watches, which can be worn every day like a tattoo."
Ongoing price increases also contributed to the rise in performance. Brands cite the rising price of gold, a key raw material, as the reason for price hikes. Last year, Rolex raised prices twice for the first time, in January and June. Cartier increased prices in May and October last year, and Bulgari did so in April and October. In addition, Van Cleef & Arpels (May) and Tiffany & Co. (January, October) also raised their prices. The rate of increase was around 5-10%. However, as demand for luxury jewelry continued to rise, news of price hikes often led to "open run" lines at department stores.
The upward trend in performance for luxury jewelry and watch brands is expected to continue this year. This is because price hikes are being announced more quickly, while demand for luxury jewelry and watches remains strong. Cartier raised prices in February and May this year. Bulgari also increased prices in April and June. Tiffany & Co. raised prices twice, in February and May, and Van Cleef & Arpels did so in January and April. Watch brand IWC also raised prices this month, following an increase in March.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
