While the luxury sector slows down, as indicated by the results of the large international groups, the jewelery sector is looking for ways. As in the case of Gismondi 1754, a Genoese company listed on the Euronext Growth Milan list, which voluntarily communicated its second quarter accounts. The period from March to June 2024 is summarized by a decline in demand in established sales channels, but also by a new impulse from Asian markets. In general, in the company’s analysis, in the first half of 2024 there was a decrease in global sales of luxury goods: a particularly marked contraction in Europe and North America, which according to analysts has its origins in the persistence of geopolitical uncertainty worldwide, to which are added exchange rate fluctuations and trade tensions.
But Asian markets, particularly China, have shown relative resilience. In this context, Gismondi has continued to invest in the diversification of sales channels and expansion into emerging markets, strategies that have proven fundamental in addressing current challenges. The first half of the year saw the opening of the new wholesale channel in the Far East, thanks to the multi-year agreement with Ippo Group Limited of Hong Kong, a company founded in 2012 and specialized in the distribution and sale of high-end jewellery. This agreement provides for the opening of a first shop in shop in Tokyo (first order already confirmed and paid for €980,000) by this summer and two subsequent openings in Macau in 2024 and in Cambodia in 2025. The accounts reflect the moment, with a decline of 10% compared to the six months of 2023, with revenues of 7 million euros, which is affected by -24% in Europe compared to the half of the previous year and in the USA (-44%).
At a time when great socio-political uncertainty afflicts Europe and America, and is slowing customers’ propensity to spend, we believed it was essential to continue the growth process by dedicating energy and investments on the one hand to the consolidation of our internal organization (supporting the expected slowdowns in turnover in the American market, caused by the closure of the agency contract in favor of direct management through our American Brach) and on the other, in compensation, with the expansion of our presence in the various markets ( these months marked the beginning of the process of penetrating the Asian market, with the first, comforting, turnover results) – thanks to these actions, we have been able to face the period of global change and contraction with serenity and we can look to the future with confidence .
Massimo Gismondi, CEO of Gismondi 1754
