Editor’s Note
This article highlights a key trend within the luxury sector: the resilience of high-end accessories, particularly jewelry, even as broader demand softens. The shift toward ultra-premium products and value-driven spending underscores a changing consumer landscape.
Bain & Company states, “While the luxury sector is in a downturn, jewelry is different.”
The luxury industry’s atmosphere is not as robust as before, due to the global economic slowdown and delayed recovery in Chinese consumption. Young customers prefer smart spending, while high-income customers favor only specific ultra-high-end brands, leading to increasing polarization.
While the performance of major companies reflects this trend, Swiss luxury group Richemont (operator of Cartier) is an exception. It recently recorded its highest-ever quarterly performance. This is the result of growth in its jewelry brands. There is an assessment that jewelry is surviving because it is recognized more as an ‘art piece’ compared to other luxury categories.
Richemont Group announced its Q3 FY2026 (Oct-Dec 2025) results on January 15. Revenue reached €6.399 billion (approx. KRW 11 trillion), an 11% increase year-on-year, surpassing the consensus estimate of €6.28 billion. By region, growth was recorded as follows: Europe 8%, Asia 6%, the US 14%, Japan 17%, and the Middle East & Africa 20%.
The core of this performance is ‘Jewelry’. Jewelry business sales were €4.785 billion, a 14% increase year-on-year, driving the overall performance improvement. The watch business division, which includes Piaget, Jaeger-LeCoultre, Vacheron Constantin, and Panerai, also recorded €872 million, a 7% growth year-on-year.
The company explained, “All four major jewelry brands—Buccellati, Cartier, Van Cleef & Arpels, and Vhernier—performed well.”
Richemont’s results highlight the restructuring of the luxury industry around jewelry. This is because the jewelry business division achieved strong results despite negative factors such as US tariffs, exchange rate fluctuations, and rising raw material prices like gold. The industry evaluated this as “proof of strong global demand for jewelry.”
Global investment bank Bernstein analyzed, “The jewelry market is enjoying a boom, and the Richemont Group is dominating the market through its own brands.”
The shift in luxury consumption towards a jewelry-centric focus is evident in the performance of industry leader LVMH. LVMH’s cumulative sales for Q1-Q3 this year were €58.09 billion, a 4% decrease year-on-year. Notably, the Fashion & Leather Goods division recorded €27.611 billion, an 8% decrease year-on-year.
Global investment bank Morgan Stanley downgraded its investment opinion on LVMH from ‘Overweight’ to ‘Equal Weight’. The reasons are the slow recovery in key markets like China and the belief that luxury demand has peaked. The slowing sales growth in LVMH’s Fashion & Leather Goods division, which accounts for most of its revenue, is also a key factor.
Amid this, jewelry is the only sector with a positive outlook. Consulting firm Bain & Company explained, “The global luxury market has entered a downturn marked by instability and confusion, but jewelry is different.”
This means high-priced jewelry products are leading the growth of the overall luxury market.
The jewelry market size this year is projected to grow over 6% compared to the previous year. Bain & Company stated, “Jewelry has become the most stable segment within the core luxury categories,” and added, “Compared to categories like luxury watches, which are showing a 5-7% decline year-on-year due to waning consumer interest, the mood is positive.”