Richemont's acquisition strategy: the acquisition of Jaeger-LeCoultre

The luxury sector, synonymous with exclusivity, craftsmanship, and timeless appeal, has become a fertile ground for mergers and acquisitions due to growing global demand, along with the need of staying competitive in a rapidly evolving market. Major conglomerates like LVMH and Richemont use M&A strategies to expand, strengthen their portfolios, and tackle challenges such as inflation and supply chain complexities. In 2022, the sector recorded a peak of 292 M&A deals, with notable activity in the apparel and accessories segment. This thesis focuses on Richemont, a Swiss luxury goods holding company known for brands like Cartier, Montblanc, and Jaeger-LeCoultre. Through strategic acquisitions (including Vacheron Constantin, Panerai, Van Cleef & Arpels, and A. Lange & Söhne), Richemont has solidified its global market position. The research aims to analyze the motivations behind Richemont’s acquisitions, particularly the case of Jaeger-LeCoultre, exploring how M&A activities influence brand identity, market positioning, and financial performance, while maintaining a delicate balance between commercial success and the preservation of traditional craftsmanship.