Editor’s Note
This acquisition highlights the growing cross-border investment activity in the luxury sector, with a notable Chinese private equity firm participating in a major Japanese brand deal.
Recently, Asian investment fund FountainVest Partners and Japanese fund Unison Capital have acquired the renowned Japanese jewelry brand TASAKI. According to data from Tianyancha, the total value of this acquisition is estimated to reach 100 billion yen.
One of the buyers participating in this acquisition of TASAKI, FountainVest Partners, is registered in Shanghai, China. Tianyancha indicates that it “focuses on Chinese growth opportunities and invests in companies growing alongside China. It currently manages four US dollar funds and one RMB fund. Its investment strategy has long focused on industries benefiting from long-term demand growth and meeting the needs of China’s expanding middle class, with key investment areas including consumer, media and technology, healthcare, industrial, and financial services.”
FountainVest Partners has previously invested in projects such as Zhaopin, Zuoyebang, Maoyan Entertainment, Lao Bai Xing Pharmacy, and Amer Sports, the parent company of Arc’teryx.
As a representative of famous Japanese jewelry brands, TASAKI has been known for its youthful and avant-garde designs. Since its founding in 1954, TASAKI’s pearl creations have been highly favored by the public. It owns its own farms in Japan and the Andaman Sea of the Indian Ocean. The Akoya and South Sea pearls it sells are of quite high quality. It has also opened an official flagship store on Taobao, and its Balance collection has become a brand classic. This is not the first time TASAKI has been acquired. In 2017, Asian private equity fund MBK acquired and delisted it for 31.5 billion yen. After seven years, the company’s value has more than tripled.
It is reported that through this transaction, TASAKI plans to further increase its overseas stores in the future to expand its revenue and market influence. After the transaction is completed, TASAKI’s existing management will continue to stay and hold shares. Does this acquisition signify FountainVest Partners and Unison Capital’s recognition of the jewelry retail market? Can the brand maintain its original operational strategy and corporate culture while leveraging the resources and support of new shareholders to accelerate internationalization and enhance the brand’s competitiveness in the global market? All this remains to be tested by the market.
High-end brand pearls enjoy a high reputation in the jewelry world for their excellent quality and high brand value. However, due to the particularity of pearls, their quality can degrade over time and depending on storage conditions. In the second-hand market, organic jewelry places more emphasis on the quality of the item itself, and brand premium is often significantly discounted in second-hand transactions.
A search by reporters on Xianyu and social media found that the selling price of second-hand pearls is not high, mostly between 30% to 60% of the original price.
After the疯狂上涨 (frenzied surge) of 2023, pearl market prices have become more rational this year. Except for the highest quality goods maintaining high prices, the prices of other mid-to-low-grade goods have continued to fall. However, as the year-end approaches, consumer demand has increased, and some categories have even shown signs of rebounding.
At the Hong Kong International Jewellery Show which ended in early December, the pearl area remained the most popular spot. A Fu, a Hangzhou jeweler specializing in pearls who deals with Japanese pearl manufacturers year-round, also uses international exhibitions as one of his sourcing channels:
A Fu told Chao News reporters:
The situation for Akoya pearls this year is quite awkward. As another leader among saltwater pearls, Australian white pearl prices have dropped, gradually narrowing the price gap with Akoya pearls. Consumers who prefer high quality are转而选择 (turning to choose) Australian whites with larger sizes, thicker nacre, and longer-lasting luster. Consumers pursuing cost-effectiveness are increasingly choosing the “affordable alternative” to saltwater pearls—’Aurora’ freshwater pearls. Therefore, Akoya’s price reduction is understandable.
A Fu offered this candid advice.
– **Australian White (“Ao Bai”)**: White pearls produced by the Pinctada maxima oyster, mostly from the South Pacific. Commonly known as Australian South Sea white pearls, abbreviated as “Ao Bai.” They are the king of saltwater pearls, expensive, with large individual sizes and thick nacre. Commercial names include Venus, Phoenix, etc.
– **South Sea Golden Pearls**: Belong to the same Pinctada maxima oyster as Australian whites but produce golden colors. Commercial names include Tea Gold, Rich Gold, Cream Gold, Dried Rose, etc. The richer the color and better the luster, the more expensive.
– **Akoya**: Pearls produced by the Pinctada fucata martensii oyster, a specialty of Japan. The produced diameters are smaller. The white, blue, and yellow color systems each have their own exclusive commercial names. The best whites are特选 (Tokusen), 天女 (Tennyo), 花珠 (Hanadama). The silver-blue system has commercial names like真多麻 (Madama), 蓝玫瑰 (Blue Rose). The yellow system has极光女皇 (Aurora Queen), 极光金 (Aurora Gold). Prices are largely controlled by Japanese merchants.
– **Tahitian**: Colorful pearls from the black-lipped oyster (Pinctada margaritifera). Individual size is slightly smaller than Pinctada maxima. Commercial names include Lagoon, Peacock, Black Pearl Queen, South Pacific Floating Island, Platinum Grey, Blue Ocean, etc.
The most widely recognized grading certificate for saltwater pearls in the market is Japan’s Pearl Science Laboratory (真科研, PSL) certificate. The Japan Pearl Classification and Identification Institute (真综研) and GIA’s Gemological Institute of America (Gübelin) certificates are also recognized.