French luxury group LVMH, betting on Bulgari, has provoked considerable excitement not only in the Italian jewelry industry, but also in the luxury sector around the world.
The Italian jewelry sector is made up of about 10,000 companies, mostly small and family-owned, meaning a wide choice for foreign investors.
Making another important and strategic addition to its expansion into the international arena Richline Group has bought three Italian jewelry brands. A unit of U.S. billionaire investor Warren Buffett's Berkshire Hathaway has acquired the rights for such Italian brands as Erz producing children's jewelry, Farinex specialized in earrings and bracelets, and 7AR, which is part of the Rosato jewelry group.
A $650-million private equity fund backed by the world's top luxury retailer LVMH is on the prowl for emerging Asian brands in the hope of transforming them into global names.
According to Bain&Co, the outlook for the luxury goods market has improved significantly in recent months, boosted by a stronger-than-expected rebound in the United States and Europe and surging demand in China.
The market expectations were based on recent sales in such groups as LVMH, Burberry, PPR and Tod's. It was noted that Brazil could well turn into a major engine of growth, but of course not of the same magnitude as China. Brazil's luxury sales totaled $1.8 billion in 2010 and are set to grow 10-15 percent between 2010 and 2013. According to analysts, sales in Russia reached 4.8 billion euros in 2010, and they say that by 2013 these may well grow up to 10%.
Overall, global luxury goods sales were set to reach a record 185 billion Euros this year compared with 172 billion in 2010.
Pomellato SpA plans to sell shares in an initial public offering, Chief Executive Officer Andrea Morante said. Pomellato had sales of 122 million Euros ($175 million) in 2010 and earnings before interest, taxes, depreciation and amortization of 18.6 million Euros.
Due to 48% sales growth in the Asia-Pacific region, Richemont is going to add 800 jobs in Switzerland, in time to help keep up with demand, which is currently outpacing supply. Richemont’s revenue rose 33% to 6.89 billion Euros, which is why today wealthy Chinese consumers own 4 pairs of luxury watches on average.
Pierre Cardin decided to sell his fashion empire. The 88-year-old famous fashion designer and probably the most influential person in the fashion world said he would sell his business for 1 billion Euros or 1.46 billion US dollars.
The renowned couturier said in an interview that he wanted to sell it now because "the work must go on" after he was gone.
Meanwhile, according to market observers, this price is exorbitant. According to bankers’ estimate, the cost of the Pierre Cardin model house may be close to 200 million Euros. As recognized by the fashion designer, he does not know the actual sales of products under the Pierre Cardin brand, in view of the fact that the fashion house has about 400 licensed partners. Experts say that the time to sell is chosen correctly, but they are not sure about such a high price.
One of the most interesting events of in the last month for jewelry lovers was Christie's auction at the Palazzo Clerici in Milan featuring perhaps the most beautiful 100 rings of the Roman fashion house, Bulgari. A ring graced with a white diamond of 12.01 carats cut as an octagon and surrounded by smaller baguette diamonds was estimated between €120 000 and ?200 000. Another ring bearing a 42.45-carat diamond and a Burmese ruby was offered for ?70 000 - ?120 000.
Christie's spring auction in Switzerland has fetched nearly $US200 million in sales of rare jewels, watches and wine - some at world-record prices.
The amount of $US10.9 million was paid for a 56-carat heart-shaped diamond that is internally flawless and $US7.1 million for a 130-carat Burmese sapphire. An intensely pink 11-carat diamond from the mines of India sold for $US10.8 million. Christie's called it their most successful jewelry sale ever in four decades in Geneva.
As a wonderful occasion, the wedding between Prince William and Kate Middleton will be the harbinger to celebrate the next 60 years of the reign of Queen Elizabeth II at Buckingham Palace. For this occasion, in 2012, there will be an exhibition of jewelry from the Royal Collection owned by the oldest British monarchy in the past 200 years of governance. Starting next year, the royal residence in London will be open to the public so that everyone can enjoy the superb treasures. Jewelry has always talked about a particular part of human history, each piece has been defined historical significance, and they have always meant a symbol of power.
However, at the wedding of Prince William there was no excessive jewelry, only Princess Diana's ring with an 18-carat sapphire bordered by 14 diamonds, the platinum tiara by Cartier, which Queen Elizabeth lent for the ceremony, the wedding ring from Wartski, the royal jewelry house, and a stylish pair of diamond earrings from Robinson Pelham.
Swiss jeweler Chopard has once again become the main sponsor of the Cannes Film Festival, where hundreds of celebrities have been wearing luxury branded clothing and accessories. Jewelry as always took the most honored due attention: pieces from Louis Vuitton, Roberto Cavalli, Chanel, Yves Saint Laurent, Elie Saab, Gucci, Van Cleef Arpels and Christian Dior were sparkling drawing the views of all present. Using a unique chance and a brilliant advertisement on the red carpet, many jewelry producers have opened dedicated stores during the festival in nearby hotels Majestic, Martinez and Eden Roc Hotel.
One English company specialized in top prestige goods managed to attract attention in a most brilliant way creating Scotch whiskey in a special bottle made of gold and called Isabella's Islay. The golden decanters stud with 500 diamonds and 300 rubies in two versions are worth $6.2 million. The "diamond” whiskey will be the most exclusive drink intended for luxury connoisseurs.
Veronica Novoselova, Rough&Polished, from Italy
