Richemont escalates anti-superfake offensive to protect Cartier and VCA margins
Bottom Line Impact
A swift, visible crackdown on high-end superfakes should protect Cartier and VCA price premiums, sustain 100-200 bps gross margin in the Americas, and reinforce leadership equity while deterring premium imitators.
Key Facts
5- Filing date and venue: July 30, Southern District of New York; defendants alleged to sell high-priced look-alikes that compete at similar price points
- Focus: Cartier and Van Cleef & Arpels iconic lines; icons are estimated to contribute 50-60% of Jewelry Maisons revenue
- Americas exposure: approximately 22% of Richemont group sales in FY24, making US enforcement financially material
- Legal timeline: preliminary injunction motion typically heard within 30-60 days of filing, with potential injunction effective immediately upon grant
- Remedies sought likely include permanent injunction and disgorgement; damages in US IP cases can reach 1-3x infringer profits depending on findings
Time Horizons
Executive Summary
Richemont has filed an SDNY complaint on July 30 targeting Malidani Jewelry Corp for high-priced look-alikes of Cartier and Van Cleef & Arpels icons, signaling a shift from low-end counterfeits to direct competitors. Expect a fast bid for a preliminary injunction and a broader playbook to harden design IP, aiming to defend pricing power and brand equity in the Americas, which represent roughly 22% of group sales.
Actionable Insights
Immediate Actions (Next 30-90 days)
Publicly reinforce zero-tolerance on high-end look-alikes and align all Maisons on a unified anti-superfake stance in the Americas
Rationale: A visible posture increases deterrence and supports price integrity across Cartier and VCA during peak gifting quarters
Role affected:CEO
Urgency level:immediate
File for preliminary injunction within 14 days, pursue expedited discovery, and concurrently expand US design patent and trade dress filings for top 20 SKUs
Rationale: Fast injunctive relief limits revenue diversion now, while stronger IP coverage reduces future litigation burden and increases win probability
Role affected:GC
Urgency level:immediate
Short-term Actions (6-12 months)
Launch client-facing authenticity and design-codes education with store and digital toolkits; deploy serialized authenticity cards on icons in the US
Rationale: Reduces client confusion and protects NPS while reinforcing willingness to pay a premium on Cartier and VCA signatures
Role affected:CMO
Urgency level:short-term
Ring-fence a litigation and brand protection budget of 0.2-0.4% of Americas sales and implement ROI tracking linking enforcement to ASP and gross margin preservation
Rationale: Quantifies payback from enforcement and ensures sustained funding to deter high-end imitators
Role affected:CFO
Urgency level:short-term
Risks & Opportunities
Primary Risks
- Adverse or delayed injunction could embolden other premium imitators and prolong ASP pressure
- Discovery reveals limited consumer confusion, weakening trade dress claims and narrowing remedies
- Retailer backlash if enforcement sweeps implicate multi-brand partners carrying look-alikes
Primary Opportunities
- Successful injunction deters imitators and sustains 100-200 bps gross margin on icons in the Americas
- Precedent enables faster, lower-cost actions against additional targets across key US cities
- Stronger IP perimeter supports selective price increases of 3-5% on Cartier and VCA icons in 2025-2026