Editor’s Note
This article highlights Shinsegae Department Store’s strategic move to strengthen its diamond business through a partnership with renowned global wholesaler A.A Rachminov. The collaboration aims to leverage Rachminov’s established reputation and supply chain to enhance Shinsegae’s offerings in the competitive luxury market.
Shinsegae Department Store is expanding its diamond business.
On the 12th, Shinsegae announced that it has signed a strategic partnership (MOU) with A.A Rachminov, a global diamond wholesaler.
Founded in 1940 and specializing in diamond rough wholesale and cutting across two generations, Rachminov is recognized for its high-quality standards, with over 60% of its sales coming from transactions with global luxury jewelry brands.
While the growth of the luxury market has slowed since the pandemic, Shinsegae Department Store’s luxury jewelry segment has shown clear growth, with an 18.4% increase from January to August this year.
Shinsegae plans to establish a stable supply chain and a foothold for growth in the luxury jewelry market by directly sourcing diamonds for its own luxury jewelry brand ‘Addir’ through a world-class wholesale specialist.
In particular, it plans to learn from Rachminov’s expertise in rough stone procurement, processing, and wholesale business operations, thereby creating a direct bridgehead for Shinsegae’s diamond wholesale business.
This is also expected to significantly boost the product competitiveness of the luxury jewelry brand Addir.
Addir, the luxury jewelry brand first introduced by Shinsegae Department Store in 2017 as an industry first, is an in-house brand where Shinsegae is directly involved in the entire process, from product planning and design to purchasing rough stones, manufacturing, sales, and branding.
Despite having product power and diamond quality comparable to existing overseas luxury jewelry brands, its prices are set up to about 40% lower than those of foreign brands, attracting interest from a diverse customer base ranging from newlyweds preparing for marriage to the general public.
Shinsegae Department Store’s luxury jewelry brand Addir can be found at Shinsegae Department Store Gangnam, Daegu Shinsegae, and the Bunder Shop Cheongdam Specialized Store.