Kering has taken a new decisive step in its structural realignment. The French luxury group has formalized the acquisition of a 20 percent stake in the Raselli Franco group, a leading independent jewelry manufacturer in Europe, for a valuation of 115 million euros. This transaction, first announced in December 2025, paves the way for a majority stake planned for 2032.
Although this move may initially seem like a simple industrial rationalization with one supplier, it reflects a profound overhaul of Kering’s operating model. The group is accelerating its expansion in real jewelry while consolidating its control over the value chain.
From brand prestige to industrial sovereignty
For decades, the luxury industry thrived on a binary model that separated the creative aura of its houses from an outsourced and fragmented supply chain. This paradigm is now outdated.
The gradual acquisition of a stake in Raselli Franco confirms a fundamental trend in the luxury sector: vertical integration. Direct competitors LVMH and Richemont have already internalized their production capacity to a large extent, particularly in the jewelry and watch sectors.
This economic logic corresponds 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 to ensure the traceability of precious metals throughout the chain.
As US management consultancy Bain & Company analyzes in its latest report on the luxury market, sovereign control of the supply chain has become a “critical competitive advantage for players committed to a resilient and sustainable growth path”.
In the jewelry sector, this issue is even more fundamental. Unlike fashion, which is better suited to flexible outsourcing, real jewelry requires exceptional technical expertise, millimeter precision, and strict sourcing protocols.
A critical industrial asset for the Kering Jewelry Division
This acquisition is a cornerstone for the Kering Jewelry Division. The unit, which brings together renowned houses such as Boucheron, Pomellato, Dodo and Qeelin, is intended to establish itself as a strong growth engine and complement the fashion and leather goods pillars.
The integration of Raselli Franco realizes this ambition. With over 500 employees, the Italian manufacturer has an annual production of 300,000 pieces and holds over four million gemstones per year. It provides Kering with immediate industrial strength and recognized technical expertise. Beyond volumetric capacity, it is about anchoring fundamental capabilities at the heart of the group’s ecosystem. This will promote improved synergy between the design, prototyping and manufacturing phases.
Diversifying and reducing risk through Gucci
This tactical move also addresses a portfolio diversification problem: the concentration of risk on the house of Gucci. Historically, the Italian brand has generated a predominant share of group sales and operational profitability. A slowdown in growth momentum had an immediate impact on consolidated performance, a risk that has long been highlighted by the financial world. According to the international news agency Reuters, Gucci contributed over 50 percent of operating profit in recent financial years.
In this regard, jewelry proves to be an effective lever for diversification. In contrast to fashion, this segment has longer product cycles; lower seasonal volatility; attractive unit margins; and an intrinsic value as a cultural heritage. As consulting firm McKinsey notes, luxury jewelry is “structurally more resilient to economic cycles thanks to its emotional dimension and investment status.” By strengthening its assets in this market, Kering is carefully rebalancing its revenue streams.
A race for critical mass against the industry leaders
Kering’s offensive in jewelry is a response to a compelling competitive imperative. Richemont maintains its dominance through the prestige of Cartier and Van Cleef & Arpels, while LVMH has significantly consolidated its position through the integration of Tiffany & Co. and the development of Bulgari. In the face of these hegemonic players, Kering retains a more modest market share.
By establishing the Kering Jewelry Division, coupled with the gradual acquisition of a stake in Raselli Franco, the group appears to want to close the gap and achieve the necessary critical mass. However, simply accumulating assets is not enough. The sustainable competitive advantage of the leading companies lies in the combination of brand desirability, excellent retail and industrial mastery. On this last strategic pillar, Raselli Franco acts as a performance accelerator.
Securing supplies in a tense environment
Beyond growth constraints, this transaction responds to the growing regulatory and ethical constraints of the luxury industry. Jewelry production is subject to unprecedented demands for traceability and sustainable sourcing.
Raselli Franco is certified by the Responsible Jewelery Council (RJC), the industry benchmark. This commitment is in line with Kering’s sustainable development policy. As the World Gold Council emphasizes, transparency and responsible sourcing are now non-negotiable criteria for luxury consumers. Keeping part of the manufacturing facility in-house gives Kering greater control over these reputational and operational issues and reduces its reliance on third parties.
A long-term industrial venture
The structure of the transaction reveals a cautious approach. Instead of an immediate and full takeover, Kering has opted for a phased integration plan, scheduled to be completed in 2032.
This choice reflects the desire to manage the integration gradually to ensure operational continuity and long-term alignment of stakeholder interests. It also confirms that Kering sees this transaction as a structuring investment for the coming decade and not just a tactical adjustment. In the luxury world, industrial alignment takes time to align cultures, processes and expertise. Through the phased acquisition, the group reduces execution risks while reinforcing its industrial vision.
Redefining the corporate architecture
The takeover of Raselli Franco goes beyond the scope of a one-off transaction. It is part of a global redesign of Kering’s business model. The group is trying to reduce its vulnerability to fashion volatility, strengthen its positions in more resilient segments and bring value back in-house through control of its industrial assets.
Jewelry, with sales of 935 million euros in 2025, is emerging as a credible growth pillar in this new architecture. If successfully implemented, this integration dynamic could reshape the group’s financial and operational balance. This would limit its vulnerability to fashion cycles and create a more stable, sustainable and value-adding growth model.
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