Richemont plans to buy stake in Italian jewellers Buccellati

Italy: Cartier owner Richemont is in exclusive talks with the local equity firm Clessidra to buy a controlling stake in the Italian jewellers Buccellati. Clessidra owns 67% stake in Buccellati, which is famous for lace like jewels and ornate. Buccellati had reported a sale of 41 million euros in year 2015, and this deal would make Buccellati as latest Italian high end jewellery house to be snapped up as a foreign takeover.

Richemont is a popular name in designing, manufacturing and selling premium watches, jewellery, clothing, accessories, leather goods and writing instruments whereas Buccellati is an Italian jewellery and watches company. In 2015, Buccellati has also launched its exclusive art collection where the art works was inspired by the Impressionist and Post-Impressionist artworks and displays five one-of-a kind pieces. Richemont is struggling with the slowing sales in its watch business and negotiating with Buccellati over the deal.

According to TechSci Research, the growing presence of organised retailers is going to boost the performance of the industry. Branded players are partnering with the traditional players and expanding their reach and designing the products which suits the local needs across the globe. In order to boost the sales organised players are coming up with the financing schemes and variety of products and designs will drive the demand for Gems and jewellery across the globe.

According to a recent report published by TechSci Research, “Global Gems & Jewelry Market Forecast & Opportunities, 2020”, the global market for gems & jewelry is projected to grow at a CAGR of around 6% during 2015-20. In 2014, the gold jewelry segment dominated the global gems & jewelry market, followed by diamond and platinum jewelry. Demand for precious gem stones has also been growing due to changing preferences of younger generation from gold to colored gemstone, platinum and palladium jewelry. Growing brand consciousness is also boosting sales of branded jewelry in developed as well as developing economies, and this trend is expected to gain strengthen over the next five years. Few of the major branded gems & jewelry companies with operations spread across the globe include Tiffany & Co., Gitanjali, Signet, LVMH, Chow Tai Fook, and Richemont.