Louis Vuitton in the Diamond Sky The fashion house has acquired in an unprecedented move the largest diamond found in the last 100 years, and now stands in its flagship store in Paris, a stone worth tens of millions of dollars. Along with buying the Tiffany chain for $ 16 billion, the goal is clear: to signal to its competitors that it intends to quickly and aggressively take over the jewelry market Illit Minmar 08: 1528.01.20 Tags: diamond jewelry In the luxury jewelry and gemstone market. The largest diamond found since 1905 worth 1,758 carats is not only notable because of its size or because it is only the second time a diamond of this size has been found, but also because of the surprising identity of the buyer: Louis Vuitton, the longtime French luxury brand known for its logo bags. In precious stones. Read more in Calcalist: Bnei Landa: "The next diamond production plant will be built in Israel, but it depends on regulation" In its raw form in the brand store in Place Vendome in Paris, home to the largest luxury jewelry brands in the world. "There are less than ten people in the world who know what to do with a stone like this or how to cut it, let alone how to put the money for it on the table," Marcel Perver, former president of the Antwerp Diamond Exchange and now CEO of a strategic economic consulting firm, told The New York Times. "" Whoever buys such a diamond immediately gains credibility, "added Jeffrey Post, treasurer of gems at the Smithsonian Museum. The giant diamond at the Louis Vuitton store in Vendome Square." There are less than ten people in the world who know what to make of such a stone. "The giant diamond in the Louis Vuitton store in Vendome Square. "There are less than ten people in the world who know what to do with a stone like this" Photo: AFP in Wheaton refuses to name the price they paid for the "Swallow" - a rare find in the Staswana language in Botswana. According to the Financial Times, high-quality diamonds were previously sold According to experts, the value of the swallow is lower and ranges from 6.5 to 19.5 million dollars. Wheaton admits that they took a certain risk, because until they cut the large stone, they will not know what its real value is and how many polished diamonds can be produced from it - but its form The raw material is a precedent in the luxury jewelry market and has brought Wheaton immense publicity. LVMH Chairman Bernard Arno. Tiffany was his biggest acquisition chairman of LVMH Bernard Arno. Tiffany was his biggest acquisition Photo: AFP This seems to be the real intention: this is an unmistakable statement by the Louis Vuitton House that his goal is to take over the luxury jewelry market and become To one of its key players. On the way to achieving its goal, LVMH, the luxury group's parent group, recently acquired the renowned American jewelry brand Tiffany for $ 16.2 billion. The acquisition of Tiffany is the largest in the 32 years of the 70-year-old Bernard Arno, now " R. LVMH. The empire of Arno, the richest man in Europe, is valued at 215 billion euros, and includes 75 brands such as Louis Vuitton and housing in the field of luxury fashion, Dom Perignon and Hennessy in the field of alcohol, Garlan and Sapporo in the field of cosmetics and more. "No one expected us to put such an emphasis on luxury jewelry," Michael Burke, chairman of Louis Vuitton, told the New York Times. The move also reflects the change in the luxury jewelry market - currently valued at $ 270 billion: in the 20th century the market was dominated by cartels such as De Beers, which set the price and supply of diamonds and gemstones in the world. But in years The latter have entered the field one by one the big fashion brands, with their inflated marketing budgets and millions of followers on social media: In July last year Gucci presented a luxury jewelry collection, as did Giorgio Armani, Prada, Dolce & Gabbana and Hermes. Gucci. Super brands also want a share of the profitable jewelry market Gucci bracelet. Super brands also want a share of the profitable jewelry market Photo: net-a-porter.com The millennial generation - the majority of buyers today - do not want to buy instead That his parents bought and are looking for less conservative brands.Instead of jewelry for a special occasion that has been bought in a particular store for generations, such as Tiffany, young women prefer jewelry from brands For sellers and attach greater importance to the originality of the design and its origin, and less to the size and quality of the stone. "What was once considered a fashion for the rich only, a true status symbol, has become a public domain and a room for the younger generation," says Eldad Tamir, CEO of Tamir Fishman Investment House. "Today, most jewelry buyers are in the age category of up to 35, and this audience is not characterized by loyalty to the brand, but by buying in accordance with trends." Tiffany has struggled to maintain its independence in a world where more and more luxury companies are enjoying the corporate umbrella, whether of LVMH or its competitors (for example the Richmond Group which owns the jewelry brands Cartier Van Cliff & Arples). In 2017, Reid Krakowf, who is responsible for turning the Coach handbag brand into a multi-billion dollar business, was appointed Tiffany's artistic director in an attempt to attract a younger audience and stop the decline in sales. In the same year, a fourth-floor cafe was also opened in the flagship store on Fifth Avenue in New York, with the aim of attracting an audience "to an experiential space for the renewed Tiffany"; Last year, actress Al Fanning was selected for Tiffany Shalva's campaign in the song "Moon River" from the acclaimed movie "Breakfast at Tiffany's" this time in a remix by rapper A $ AP Ferg. Kendall Jenner, with 119 million followers, was also recruited for the cause, and was chosen to present the company's summer collection. But the slowdown in sales continued: In the first half of 2019, Tiffany's sales worldwide fell by 3% to $ 2.1 billion. According to Tamir, the current acquisition strengthens the company's strength over competitors. “What is special about this corporate structure is the ability of companies to unite resources and manpower, while maintaining the individuality that sets each one apart. In this way, the companies also enjoy access to markets and raw materials under the conditions of an incorporated body that reduces costs. ” Bernard Arno recognizes the tremendous advantage inherent in belonging to a huge corporation. In 2011, the luxury conglomerate he led bought the Bulgarian jewelry brand for $ 5.2 billion. According to the BBC, since then sales have doubled and operating profit has grown from 8% to 25%. Unlike the Bulgarian, Tiffany has a wider target audience, and also caters to those who cannot afford very expensive items. Silver coins for about $ 200 and ending with diamond rings that cost between $ 1,800 and $ 56,000. The expectation is that the corporation will revive the brand as it did in the case of Bulgari, take care to rebrand it, adapt it to the spirit of the times and global changes, refresh the designs, and actually succeed in doing what Tiffany was unable to do on its own.
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