Cartier warns of “overheating” in the luxury sector | Economie

head of the french CartierCyrille Vigneron warns of “hyperactivity” in the luxury sector, due to the strong recovery of the economy in some markets and the slow resumption of production.

Vigneron noted in an interview published in Le Journal du Dimanche that the “very strong and rapid” recovery in demand “surprised us”, with periods of exhaustion last summer “until today”.

Vigneron especially highlights the recovery, after the lockdowns imposed by the epidemic, which were “very strong” in China and “very fast” at first in the United States, then in almost all countries.

He acknowledges that they, like other sectors of the economy, are affected by the tensions in the supply of raw materials, and their effect on the slow production process, such as those of his company.

However, he maintains that the supply chain is currently more affected by questions about what is “acceptable or acceptable” in environmental or ethical matters.

For example, he states that 95% of the gold he consumes comes from recycling in Europe (and will soon reach 99%), because the extraction of this metal is “very polluting”.

However, it highlights that they continue to support mines whose extractive activities and social conditions are “certified by independent bodies, as in the case of Peru”, just as in the case of diamonds, they only work with countries that participate in the Kimberley Process.

Cartier is part of the Swiss-based Richemont group of luxury products, which includes brands such as Van Cleef, Montblanc, IWC or Piaget. In the financial year ending March 31, the group recorded a turnover of €13,144 million (-8%) and a profit of €1.289 million (+38%).