Why Kering is gradually taking control of luxury jewellery specialist Raselli Franco

Kering has marked a new decisive step in its structural repositioning. The French luxury leader has formalised the acquisition of a 20 percent stake in the Raselli Franco group, a leading independent jewellery manufacturer in Europe, for a valuation of 115 million euros. This transaction, first announced in December 2025, paves the way for a majority stake scheduled for 2032.

While this move may initially seem like a simple industrial rationalisation with a supplier, it reflects a profound overhaul of Kering's operational model. The group is accelerating its expansion into fine jewellery while consolidating its control over the value chain.

From brand prestige to industrial sovereignty

For decades, the luxury industry thrived on a binary model, separating the creative aura of its houses from an outsourced and fragmented supply chain. This paradigm is now obsolete.

The gradual acquisition of a stake in Raselli Franco confirms a fundamental trend in luxury: vertical integration. The LVMH and Richemont groups have already extensively internalised their production capabilities, particularly in jewellery and watchmaking.

This economic logic responds to specific needs. Controlling the industrial process helps to guarantee consistent quality, increase market responsiveness and better manage margins. It is also an essential lever for ensuring the traceability of precious materials throughout the chain.

As Bain & Company analyses in its latest report on the luxury market, sovereign control of the supply chain has become a “critical competitive differentiator for players committed to a resilient and sustainable growth trajectory”.

In the jewellery sector, this issue is all the more fundamental. Unlike fashion, which is more suited to flexible outsourcing, fine jewellery requires exceptional technical expertise, millimetric precision and rigorous sourcing protocols.

A critical industrial asset for the Kering Jewellery division

This acquisition is a cornerstone for the Kering Jewellery division. Bringing together prestigious houses such as Boucheron, Pomellato, Dodo and Qeelin, this entity aims to establish itself as a powerful growth driver, complementing the fashion and leather goods pillars.

The integration of Raselli Franco brings this ambition to life. With a workforce of over 500 employees, the Italian manufacturer has an annual production of 300,000 pieces and sets over four million gems per year. It provides Kering with immediate industrial power and recognised technical expertise. Beyond volumetric capacity, the aim is to anchor fundamental skills at the heart of the group's ecosystem. This will foster enhanced synergy between the design, prototyping and manufacturing phases.

Diversification and dilution of Gucci risk exposure

This tactical move also addresses a portfolio diversification issue: the concentration of risk on the Gucci house. Historically, the Italian label has generated a predominant share of the group's turnover and operating profitability. A slowdown in its growth momentum immediately impacted consolidated performance, a risk long highlighted by the financial community. According to Reuters, Gucci contributed over 50 percent of operating income in previous financial years.

In this respect, jewellery is emerging as an effective diversification lever. Unlike fashion, this segment has longer product cycles; less seasonal volatility; attractive unit margins; and intrinsic heritage value. As McKinsey notes, luxury jewellery is “structurally more resilient to economic cycles, thanks to its emotional dimension and investment status”. By strengthening its assets in this market, Kering is prudently rebalancing its revenue streams.

A race for critical mass against sector leaders

Kering's offensive in jewellery responds to a compelling competitive necessity. Richemont asserts its dominance through the prestige of Cartier and Van Cleef & Arpels, while LVMH has significantly consolidated its position with the integration of Tiffany & Co. and the development of Bulgari. Faced with these hegemonic players, Kering retains a more modest market share.

Through the creation of the Kering Jewellery division, coupled with the gradual acquisition of a stake in Raselli Franco, the group seems to want to close the gap and achieve the necessary critical mass. However, the mere accumulation of assets is not enough. The sustainable competitive advantage of the leaders lies in the combination of brand desirability, retail excellence and industrial mastery. It is on this last strategic pillar that Raselli Franco acts as a performance accelerator.

Securing supply in a constrained environment

Beyond growth imperatives, this transaction responds to the growing regulatory and ethical constraints of the luxury industry. Jewellery production is subject to unprecedented traceability and sustainable sourcing requirements.

Raselli Franco is certified by the Responsible Jewellery Council (RJC), the industry benchmark. This commitment aligns with Kering's sustainable development policy. As the World Gold Council points out, transparency and responsible sourcing are now non-negotiable criteria for luxury consumers. Retaining part of the production facility internally gives Kering greater control over these reputational and operational issues and reduces its dependence on third parties.

A long-term industrial gamble

The structure of the transaction reveals a cautious approach. Rather than an immediate and total acquisition, Kering has opted for a gradual integration plan, culminating in 2032.

This choice reflects a desire to manage the integration in stages, ensuring operational continuity and the alignment of stakeholder interests over the long term. It also confirms that Kering sees this transaction as a structuring investment for the coming decade, not just a tactical adjustment. In the luxury world, industrial assimilation takes time to align cultures, processes and expertise. By staggering the acquisition, the group mitigates execution risks while reaffirming its industrial vision.

Redefining the group's architecture

The acquisition of Raselli Franco transcends the scope of a one-off transaction. It is part of a global re-engineering of Kering's business model. The group seeks to dilute its exposure to the volatility of fashion, strengthen its positions in more resilient segments and bring value back in-house by controlling its industrial facilities.

Jewellery, with a turnover of 935 million euros (1,072 million dollars) in 2025, is emerging as a credible growth pillar in this new architecture. If this integration dynamic is successfully carried out, it could reconfigure the group's financial and operational balance, limiting its sensitivity to fashion cycles and building a more stable, sustainable and value-creating growth model.

This article was translated to English using an AI tool.

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