RICHEMONT

Analysis of Richemont share price

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Perform relevant analyses of the Swiss Richemont share price using the information you'll find in this article. You'll find a live stock chart, along with a historical analysis of its price over ten years and other important data.

Elements that can influence the price of this asset:

Analysis N°1

First of all, with regard to opportunities, economic spinoffs of the joint venture created with the Polo Ralph Lauren brand are expected.

Analysis N°2

You should also monitor companies that are subsidies of Richemont like the Mont Blanc brand which should continue to gain notoriety and profitability.

Analysis N°3

Finally, the Richemont group could soon increase its efforts to position itself in emerging markets. This objective is obviously one of the priorities of the company for the years to come.

Analysis N°4

With regard to the threats that may weigh on the future of Richemont, there is the increasingly important competition, particularly from the LVMH group, which is banking on its brand image to differentiate itself and gain market share. In response to this aggressive competition, Richemont will have to invest in the promotion of its brand even more in order to maintain its image with the public.

Analysis N°5

Finally, like its competitors, Richemont must find solutions to fight the increasing counterfeit market in the luxury sector, which represents significant losses for the group and can harm its image.

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General presentation of Richemont

The Swiss Richemont group is currently one of the international leaders in the manufacture of luxury goods with luxury watches, jewellery and other luxury items. Richmont operates retail and wholesale distribution activities.

The Richemont group generates most of its turnover in Hong Kong, then in the Asian market, in Europe as well as in North America, Africa and the Middle East. The Swiss market only represents 5.2% of its total turnover.

Analysis of Richemont share price
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The major competitors of Richemont

The Richemont group remains of the big global luxury names today. Although its results are flourishing, and its notoriety remains intact over the years, Richemont is faced with competition from certain large groups that you should know before you start trading its stock on the stock market. Here, you can discover in detail who these competitors are, with the ranking of the largest luxury companies in order of turnover.

LVMH

The French group LVMH is currently the world leader in this sector.

Kering

Also  French, the Kering group, which occupies second place in this world ranking.

Richemont

ranks third.

Luxottica

 Next comes the Italian Luxottica, followed by the Swiss Swatch Group.

Hermès

The rest of the ranking is occupied by the French company Hermès, the American Tiffany & Co, the American Coach Inc. and the Italian Prada.


The major partners of Richemont

To close this article, check out the main partnerships established by Richemont in recent years.

Ralph Lauren

In 2008, Richemont and Ralph Lauren formed a joint venture to design, develop and produce watches and jewellery for Ralph Lauren boutiques and independent watch and jewellery retailers.

Chow Tai Fook

In 2013, the Richemont group entered into a partnership with the Chinese group Chow Tai Fook and created a joint venture which distributes the Baume & Mercier brands in China.

Yoox

In 2015, Richemont also linked up with Yoox as part of the creation of a 50/50 joint venture for an e-commerce platform Net-a-Porter.

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The factors in favour of a rise in the Richemont share price:

First of all, an undeniable strong point is the company's ability to offer and market a wide variety of products including jewellery, watchmaking, high-end accessories such as writing instruments along with fashion and leather goods. As a result, the group can protect itself from sectoral crises more effectively.

Stock market investors also appreciate Richemont's positioning on the Swiss stock market. Richemont is one of the largest stocks in the Swiss index in terms of capitalization, which gives it certain stability and high volatility.

The Richemont group also benefits from a very interesting positioning in its sector of activity and in the world. In fact, it’s the second largest company in the luxury sector internationally and in terms of turnover.

Richemont can also count on some of its segments which are among the most profitable at the present time and the most stable over time with firm resistance regarding the crisis such as jewellery, luxury watches or writing instruments.

The group can rely on a large workforce since it currently employs over 20,000 people, mainly in Europe but also in the rest of the world.

Finally, Richemont has the advantage of owning many popular and prestigious brands such as Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCouture, IWC and even Panerai.

The factors in favour of a drop in the Richemont share price:

First and foremost, in order to sell its merchandise, the Richemont group is obliged to promote its products aggressively, which of course represents significant expenses. The same goes for the marketing of these products which is done through many intermediaries with high margins.

Finally, the second and last weakness of the Richemont Company is its geographical and international positioning. Despite the successful establishment of its luxury brands in most countries of the world, Richemont is still struggling to find a place in emerging markets such as India and China. As a result, it is losing significant market shares to the competition which has succeeded in attracting these new luxury customers.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What is Richemont's positioning on the stock market?

It is interesting to know how the Richemont group positions itself in its sector of activity and on the stock market before taking any position in this stock. We know that the Richemont group is currently the world number two in the luxury sector in terms of turnover and that is positioned just behind the LVMH Company. The company is also the eighth market capitalization on the Swiss Market Index, which is the Swiss benchmark.

When was the Richemont Company created?

The Richemont Company was created in 1988 when the Rupert family separated their foreign assets from their South African assets in an attempt to avoid international sanctions that could hit the apartheid regime. Richemont then got involved in the Cartier Monde SA Company and Rothmans International with minority stakes, which enabled it to obtain stakes in Alfred Dunhill, Montblanc and Chloé.

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