Editor’s Note
This acquisition by FountainVest Partners and Unison Capital, valuing Japanese jeweler Tasaki at approximately 4.8 billion yuan, is seen by industry observers as a significant vote of confidence in the high-end natural diamond and pearl jewelry market.
Recently, Asian investment fund FountainVest Partners and Japanese fund Unison Capital acquired Japanese jewelry retailer Tasaki & Co. Industry insiders believe this investment signifies a deep bet and strong confidence in the natural diamond jewelry market.
The total value of the acquisition is estimated at 100 billion yen, approximately 4.8 billion yuan.
Tasaki & Co. primarily owns the Japanese high-end jewelry brand Tasaki, renowned for its quality pearls and unique designs, as well as the “mini jewelry” brand AHKAH.
Regarding this acquisition, market analysts stated:
In recent years, natural diamonds, as rare and precious natural resources, continue to be favored by consumers for their unique emotional value and investment attributes, especially in the Asian market where demand for high-end jewelry is growing.
This acquisition marks FountainVest Partners’ debut in the Japanese market and is a strategic move by both funds to position themselves in the high-end consumer goods sector, particularly the jewelry industry.
According to informed sources, the two investment institutions have high expectations for Tasaki & Co.’s future development. They plan to elevate this jeweler with a long history and exquisite craftsmanship to new heights through a series of strategic adjustments and business expansions. In the long term, FountainVest and Unison Capital aim to maximize their investment returns through a future IPO or resale, although they have not publicly disclosed a specific timeline or further expansion goals.
Mergers and acquisitions of jewelry brands are nothing new.
Tasaki & Co. was listed on the Tokyo Stock Exchange in 1993. In 2008, Korean private equity fund MBK Partners acquired a controlling stake in the company for 7 billion yen. By 2017, with sluggish growth in its core pearl business in the domestic Japanese market, MBK Partners led the company’s privatization to avoid shareholder dissatisfaction.
Richemont acquired the Italian high-end jewelry brand Buccellati for 230 million euros (approximately 1.79 billion yuan) in 2019. On January 7, 2021, LVMH Group announced on its official website the completion of its acquisition of Tiffany & Co.
In September of this year, Richemont also completed the acquisition of the Italian contemporary high-end jewelry brand Vhernier, purchasing 100% of the brand’s equity from the Italian Traglio family.
Why have some well-known jewelry companies chosen the path of being acquired?
In the view of industry insiders, the jewelry industry is characterized by heavy assets and high barriers to entry, making growth and expansion challenging.
Through M&A, brands can gain more financial support, as well as resources in sales channels and brand promotion.
Despite Tasaki products often costing over ten thousand yuan, consumer preference for the brand remains strong. Reporters have learned that popular pearl products from Tasaki are frequently out of stock at counters. Furthermore, due to the large number of Chinese consumers purchasing Tasaki products, the brand is jokingly called one of the must-buy “local specialties” for trips to Japan.
According to public information, Tasaki currently has over 100 stores globally, with 33 located in the Chinese market.
In recent years, it’s not just Tasaki vying for a share of China’s high-end pearl market. The Japanese brand MIKIMOTO, also famous for its high-quality saltwater pearl jewelry, has been expanding its store network in China. Public data shows that as of December 3, MIKIMOTO has opened 18 boutiques in mainland China.
Industry insiders believe the capital investment in Tasaki & Co. signifies a deep bet and strong confidence in the natural diamond jewelry market.
Beyond diamond jewelry, gold jewelry is also attracting more attention. Since the beginning of this year, several gold jewelers have achieved IPOs.
For example, Lao Pu Gold, hailed as the “Hermès of the gold world,” successfully listed on the Hong Kong stock market in 2024. Its listing further validates the potential within the high-end jewelry market.
A report titled “2024-2029 China Gold, Silver, and Jewelry Market In-depth Research Report” released by China Research Puhua Industry Research Institute shows:
The continuous emergence of jewelry M&A cases undoubtedly sends a strong signal both inside and outside the industry: the jewelry market is still viewed as a safe haven for steady growth, attracting increasing capital attention and investment.