Red Luxury buys US brand The M Jewelers.
Red Luxury has taken another risky move. When the market for watches and jewelry is changing quickly, The French company’s goal is to shake up its traditional model by investing in new and directional brands. Thus, the acquisition of the majority stake with US personalized jewelry company The M Jewelers.
Mark Shami founded the M Jewelers in New York’s Diamond District in 2013. It pioneered the introduction of personalized jewelry on Instagram and was an industry leader, with annual revenue of 12 million (approximately EUR11.2 million) in 2023. It is a favorite of many famous people, including Bella Hadid. The brand is expanding and has opened an exclusive store at the number 204 Mulberry Street in New York on the 8th of January in 2023. The brand new, 111 square meters store has black lighting fixtures and an exclusive viewing area that allows customers to customize the jewelry they’ve purchased. Since the store’s opening, there have been fifty or so customers waiting to be allowed into the shop on Saturdays.
Red Luxury aims to double the M Jewelers’ revenues in the next two years and pursue growth online while also expanding the company’s distribution footprint by opening new stores in the USA and overseas, such as with concessions within Europe.
Red Luxury was founded by Romain Benichou and David-Emmanuel Cohen back in 2012. The company has a portfolio of licensing agreements with Zadig & Voltaire, Christian Lacroix, Opex, and Rochas. But more than 70% of its revenue comes from its jewelry brands, including Ginette NY, Pamela Love, Reminiscence, and Maison Montignac, all created, manufactured, and sold across the globe via Red Luxury itself. Based on the growth of these brands and expansion, by 2023, Red Luxury expects to generate sales of EUR40 million and is aiming for EUR100 million in 2027. Red Luxury is an expert in e-commerce, and it anticipates earning 30 percent of its total revenues on the internet.
Red Luxury is positioning itself as a significant player within the market and is determined to “wake up the sleeping beauties.” As an accelerator for specialist jewelry brands, the company has joined forces with emerging talent and designers to create and promote their brands on an international, multi-channel platform. Benichou Cohen and Benichou Cohen are convinced of a healthy balance in the mix of B2B in addition to B2C operations, with the latter using both digital and physical retail.
A strategy that has paid dividends for the brands the group has purchased. For instance, since being acquired through Red Luxury in 2017, Ginette NY has grown 300 percent. Similar is the case in the case of Pamela Love, whose revenue has grown by 500 percent since it was acquired in the year 2019. Additionally, Red Luxury is preparing to launch the second Pamela Love store in Brooklyn and the eighth Ginette NY store located in Strasbourg, France.