A Brief History of Richemont
Panerai Luminor, from one of Richemont’s most recognizable brands
From low paid workers at Walmart and Amazon, to privacy concerns at Facebook and Google; big companies have been under fire lately. And, with news that Swatch may stop delivering ETA movements to brands outside of the group; watch groups have been no exception. But what about the world’s second biggest watch company, Richemont?
The story of Richemont goes back to the founder’s father, Anton Rupert, who founded his own tobacco and industrial conglomerate in the 1940s. His son would graduate from university in South Africa and work in banking in New York before joining his father’s business. Compagnie Financière Richemont was founded in 1988 when Johann Rupert spun off several of his father’s Rembrandt Group holdings into the newly formed company. The Richemont of 1988 had holdings in Cartier Monde, Rothmans International, dunhill, Montblanc, and Chloé. Richemont seperated its luxury goods and tobacco businesses into two separate entities in 1993, and Vendôme Luxury Group, Richemont’s luxury goods subsidiary, acquired Vacheron Constantin in 1996; and Jaeger-LeCoultre, IWC, and A. Lange & Söhne in 2000. At this point, Richemont had already been one of the biggest luxury groups for some time, far removed from Anton Rupert’s small-scale cigarette operation. In 2003, Richemont bought the last of the Lange family’s shares in A. Lange & Söhne and continued ahead; acquiring Minerva and 20% of Greubel Forsey in 2006.
Finally, seeing a slow down in acquiring watch brands, Richemont has started to look to the digital world, with acquisitions of Net-A-Porter and Watchfinder & Co. Despite its short life, Richemont has already had a greater impact on the watch industry than most large brands, and with its recent acquisitions in the online space, its future is looking ever brighter. Although, we mustn’t forget the valid concerns of consumers, often raised against groups like Richemont; can companies of such size and structure be innovative? Can they resist profits over creativity for the good of horology? I guess we’ll have to wait and see.