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Better known for retailing watches across Europe and the United States, Switzerland-headquartered Bucherer — which has just been bought by Rolex — has in the past year developed a new strategic focus: high jewellery. In October, it opened its first high jewellery boutique in Frankfurt, and, in July, it presented Inner Fire, its most ambitious high jewellery collection so far, featuring rare diamonds and pieces priced between $80,000 and $1 million.
“The whole industry is moving up, and we already have the expertise,” says Robert Ambord, Bucherer’s global director of jewellery, referring to the company’s in-house atelier, which has been making custom-made pieces since its founding in 1888. Yet, Ambord is clear that the new venture is meant to keep Bucherer attractive as a retailer that still sees itself as a valuable partner to the other brands it carries. “Their success is our success,” he says when speaking of Bucherer’s brand portfolio.
Bucherer is not alone. More retailers are reinventing themselves, eyeing an opportunity to push further into the high jewellery sector with their own labels, following the footsteps of the fashion brands that have launched lucrative collections in the category. In the last few years, fellow Swiss retailer Gübelin launched a high jewellery collection, as did German chain Wempe. In the US, Jared, owned by chain Signet Jewelers, introduced Jared Atelier last year; in Canada, Maison Birks has pushed upmarket with a range of products priced above $15,000. Jewellery retailers have historically offered some fine jewellery pieces made in house, but high jewellery — with prices north of $100,000 — is a different business.
In the $280 billion market of fine jewellery, which is 80 per cent unbranded, the entrance of retailers is a big shake-up. This is particularly significant for smaller jewellery brands, which rely on such retailers and are presently squeezed between jewellery giants including Cartier, Tiffany, Bulgari and Van Cleef Arpels that dominate the branded market, and fashion brands such as Dior, Louis Vuitton, Dolce Gabbana and Gucci, which are investing in the category with their powerful marketing machines fuelling their presence.
Retailers with big footprints have the ability to tailor their brand launches to the countries they specialise in. “We have international brands, we have upcoming brands, and then we have local heroes, such as Wellendorff, a German brand that performs well in Germany,” says Bucherer’s Ambord, pointing out how the portfolio adapts to different countries.
Anja Heiden, CEO of the jewellery division at Wempe, echoes that sentiment. “Not every brand makes sense in every city, then comes the brand awareness and desirability, an opportunity to attract new and different customers, including international ones, as well as avoiding any conflicts with our own brands or other third-party brands.”
Retailers’ relationships with brands remain healthy — a critical factor in this strategic pivot. Retailers need global jewellery brands to attract clients, and jewellers with a turnover lower than €500 million need retailers for their expansion.
Piaget, whose turnover is estimated by Morgan Stanley senior analyst Edouard Aubin at $525 million in 2022, is distributed at both Wempe and Bucherer. The brand values retailers’ contribution to Piaget’s development, says retail director Jérôme Metzger. “Our retail partners want Piaget for its bold creation and signature style, while the maison is looking for their certified clients and a healthy competition in the market,” he says, adding that having a local retail partner is crucial in some countries. “In Vietnam, where the country is now opening its wings, it is key for us to work with an expert on-site like Tamson; the same logic applies when the maison decided to open a boutique in Bodrum with Entropia.”
Parisian brand Messika Jewellery, which, according to Aubin, recorded sales of $234 million in 2022 (up from $140 million in 2018), has grown exponentially through its retail partners, reaching a total of 600 points of sale worldwide, including 70 boutiques — from 400 and 15 respectively from 2019. Messika’s upcoming store in London, scheduled to open in October, will be operated by Bucherer.
Sarah Willersdorf, BCG’s global head of luxury, believes keeping a healthy relationship between retailers and brands is paramount. “Sharing insights and analytics with brands helps to develop better products, promotions and marketing that will be mutually beneficial,” she says.
While brands have achieved a clear brand identity and are focusing on storytelling, retailers are still trying to figure out their products. One of Ambord’s priorities at Bucherer is reorganising the assortment across various price points. “Product is king; a brand needs to be led by the product, not the marketing, and we are building our brand through product,” he says.
“If the retailer truly comes with something unique, it can elevate every stakeholder’s experience,” says Laurent François, managing partner of 180 Consulting, mentioning former Parisian retailer Colette’s products as a successful example. François adds that private labels have become almost a necessity. “If retailers just remain multi-brand platforms, there is a growing risk for them to become obsolete versus any search query on Google.”
Yet, research conducted by luxury and brand strategy firm Équité shows that customers “buy into brand stories rather than products”. Daniel Langer, the company’s chief executive and professor of luxury strategy at Pepperdine University in Malibu, California, says that if retailers launch products to fill gaps in their assortment without focusing on storytelling, “results will be disappointing and the potential limited”. Indeed, retailers across various product categories are trimming their private labels.
However, Laurent François is convinced that retailers have multiple advantages, such as solid customer knowledge and overview of the market. “When you distribute multiple brands, train your staff, host events, you know the trade intelligence and some of the secrets of the best brands,” he said.
In a way, high-end jewellery retailers are like start-up designers that have learned the trade from the best brands, have financial means, customers and, as Ambord says, “stores in the best locations one could wish for”.
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