Editor’s Note
Shinsegae Department Store is strengthening its diamond business through a new strategic partnership with global wholesaler A.A. Rachminov, aiming to secure a stable supply chain for its luxury jewelry brand Addir amid strong category growth.
Shinsegae Department Store is expanding its diamond business.
On Thursday, September 12, Shinsegae signed a strategic partnership (MOU) with A.A. Rachminov, a global diamond wholesaler.
Founded in 1940 and specializing in rough diamond wholesale and cutting for two generations, A.A. Rachminov generates over 60% of its revenue from transactions with global luxury jewelry brands, earning recognition for its high quality.
While the luxury market’s growth has slowed post-pandemic, Shinsegae Department Store’s luxury jewelry category has shown remarkable growth, with an 18.4% increase from January to August this year.
Shinsegae plans to directly source diamonds for its own luxury jewelry brand ‘Addir’ through this global wholesale specialist, establishing a stable supply chain and securing a growth foundation in the luxury jewelry market.
In particular, Shinsegae plans to learn from A.A. Rachminov’s expertise in rough stone purchasing, processing, and wholesale business operations, paving the way for Shinsegae’s direct entry into the diamond wholesale business.
This is also expected to significantly enhance the product competitiveness of luxury jewelry brand Addir.
Launched in 2017 as the industry’s first luxury jewelry brand by Shinsegae Department Store, Addir is a proprietary brand where Shinsegae directly participates in all processes from product planning and design to direct purchase of rough stones, manufacturing, sales, and branding.
Despite offering product quality and diamond quality comparable to existing overseas luxury jewelry brands, Addir’s prices are set up to 40% lower than foreign brands, attracting a wide range of customers from newlyweds to the general public.
Shinsegae Department Store’s luxury jewelry brand Addir is available at Shinsegae Department Store Gangnam Branch, Daegu Shinsegae, and the Boon the Shop Cheongdam specialty store.