The entire team and ourselves are pleased to introduce the Schmittgall Group and our corporate project.
Present in France, Europe and Asia, our group is today a leading French player in the creation, manufacture, trading and distribution of mid and high-end jewellery. Since 2013, it is the fruit of the successful alliance between two complementary Houses of Excellence:
- Schmittgall, French leader in cultured pearls since 20 years, created in 1926;
- Thien Po, founded in 1959 and with a unique and recognized know-how in jewellery and fine jewellery.
With more than 12,000 SKU (1), we offer the broadest range of the European market to a portfolio of first-rate, loyal and diversified BtoB customers: more than 2,000 independent jewellers and jewellers, and most major retailers.
Delegate of the state hallmark and customs operator, we have a perfect mastery of the value chain on jewellery and fine jewellery: creation, sourcing, manufacturing, and distribution. The Group has always had a strong entrepreneurial culture based on innovation, quality of execution, agility and creativity, four values that drive it on a daily basis.
Creator of the brand Pacôma Paris, our collections address the most promising segments of jewellery and high jewellery. Internationally renowned, the French luxury industry enjoys dynamic growth and the levers are solid to ensure its continuation: the global luxury market is structurally promising for demographic, sociological and economic reasons and should reach 320 billion euros in 2025 (2), which represents an annual increase of 3 to 5% from 2018. The increase in the contribution of emerging countries (China, India, Africa, Brazil, Indonesia, Thailand, Brazil, Australia, ...) and classes of wealthy consumers such as wealthy individuals, the rise of the upper middle class and the arrival of generations Y and Z, the development of distribution channels such as outlets, travel retail stores or e- especially benefit the segments of "affordable luxury" on which our brand Pacôma Paris is positioned.
In 2018, this market, in the consolidation phase, represented 18 billion euros worldwide and showed a 7% increase driven by Asian demand, the rejuvenation of the customer base, and the growth of the brands market share.
Boosted by occasional collaborations on limited series with brands, developments in the La Fayette showroom, and the opening of the Matsuya corner in Tokyo, the pursuit of our strategy in the medium to long term is based on three priority areas of development: export and Pacôma Paris. The opening of additional corners and flagships, in France and internationally, and the signing of creation contracts with international chains of stores (China, Germany), coupled with the development of the Pacôma Paris brand and our private showroom allows us to aim for an average annual growth of about 9% by 2024, and a turnover of 13 million euros. The internalisation already in progress of our Parisian workshop, and the development of our information systems will further strengthen our positions on the BtoB, especially with jewelers partners on exclusive lines.
It is to this business project that we propose to take part today, becoming a shareholder of Groupe Schmittgall (3).
We thank you for your trust and hope to have the pleasure of soon counting you among our shareholders.
Chairman and Chief Executive Officer
CHHOA, Deputy Chief Executive Officer
(1): SKU : Stock Keeping Unit
(2): Source: Altagamma & Bain & Cie Study "Bain Luxury Study - Altagamma Worldwide Market Monitor" - December 2018.
(3): To facilitate the purchase and resale of your Schmittgall shares according to your convenience, we make available to you free of charge a liquidity instrument set up and monitored by CIIB.
Growth of emerging countries
Cultural opening of new populations to global brands
Growing use of new technologies
Shares to be conquered: the 10 largest brands represent only 15% of the market:
A GROWING AND STRUCTURALLY PROMISING LUXURY MARKET
A growth reservoir for many reasons:
Distribution of the world luxury market by geographical area in 2018e (€ bn)
A privileged position for French luxury brands, especially in emerging countries:
Evolution of the luxury market (2016-2019e) in €bn and outlooks for 2025e
8 top markets (turnover in € bn)
JEWELERY AND FINE JEWELERY: THE MOST PROFITABLE SEGMENTS OF THE "AFFORDABLE" LUXURY MARKET
A global market of € 18 billion in 2018, up 7%:
Constant growth in market share for brands:
Growth driven by two strong levers:
- Growth of the upper middle class, especially Chinese: by 2022, China's upper middle class should represent 54% of urban households and 56% of private consumption in urban areas (compared to 14% and 20% respectively in 2012);
- A growing population of wealthy individuals
- Increased contribution from emerging economies: India, Brazil, Indonesia, Africa, Thailand + Australia
New consumption patterns
- Arrival on the market of the Y & Z Generations: having contributed to the full market growth in 2018, they are expected to represent 55% of the total market by 2025 compared to around 32% in 2018;
- Outlets, travel retail;
- E-commerce: editorial content, online marketing, social media, online shopping, internet of things, mobile payment, virtual reality. Estimated 25% of the digitized market in 2025, compared to 12% in 2018.
Etude Altagamma & Bain & Cie « Bain Luxury Study – Altagamma Worldwide Market Monitor » - dec. 2018
Source : McKinsey projection in ‘A multifaceted future: The jewellery industry in 2020’ – february 2014
WHY BECOME A SHAREHOLDER OF GROUPE SCHMITTGALL ?
1. A FRENCH LEADER IN THE LUXURY MARKET
- Une parfaite maîtrise de la chaîne de valeur sur la perle de culture, la joaillerie et la haute joaillerie : sourcing, création, fabrication, distribution BtoB et BtoC
- Un quasi-monopole sur les principales enseignes de la grande distribution, les bijoutiers & joailliers indépendants et les marques
- Une distribution multi-réseaux et multi-formats, en France et à l'étranger, un portefeuille clients de premier ordre
2. A DYNAMIC GROWTH, ATTRACTIVE SEGMENTS
3. PACÔMA PARIS : AN EXCEPTIONAL BRAND, MARRYING PEARL AND STONE, TO CONQUER THE MARKET SHARES ON THE BTOC
4. AN EXPERIENCED MANAGEMENT FOR A CLEAR AND AMBITIOUS STRATEGY : BECOMING A LEADING BRAND IN JEWELLERY
2 ADDITIONAL REASONS TO BECOME A SHAREHOLDER OF GROUPE SCHMITTGALL
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Get 60% discount on retail price on all our jewellery from
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BU Manager - XEROX (1991-2000)
Managing Director of GROUPE SCHMITTGALL since 2002
Chief Executive Officer since 2005
Board Member of UFBJOP (French Jewelery Association)
Deputy Managing Director
SKEMA BS - University of Hong Kong
Financial Analyst - CHRISTIAN DIOR/LYRECO (HK-Chine)
Managing Director of THIEN PO since 2003
Deputy Managing Director of GROUPE SCHMITTGALL since 2013
Deputy Managing Director
Tél. : 01 42 46 11 73