Today 4

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 Roles Affected

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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

Strategic Analysis

Over the next 30-90 days, Richemont can seek a preliminary injunction to rapidly halt sales, deterring other premium imitators and stabilizing ASPs on Cartier Love, Juste un Clou, Trinity and VCA Alhambra in North America. Expect near-term communication to retail partners and marketplaces to tighten listings and accelerate takedowns.

Within 6-12 months, sustained enforcement plus expanded design patent and trade dress coverage can preserve 100-200 bps of gross margin on core icons in the Americas and reduce ASP dilution risk from look-alikes. A favorable ruling would strengthen precedent, lowering future enforcement cost per case and supporting price increases in 2026.

Richemont moves ahead of peers by targeting high-end superfakes that erode premium at like-for-like price points, not only low-end counterfeits. This raises the bar for Tiffany and Bulgari to match enforcement intensity and could shift imitators toward lower-risk categories, consolidating jewelry leadership for Cartier and VCA.

Suppliers may adopt enhanced component identifiers and traceability to support courtroom evidence; wholesale partners and marketplaces will face stricter compliance clauses and takedown SLAs; clients receive clearer authenticity education, reducing confusion and returns.

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

Market Context

The action aligns with a broader luxury pivot from battling low-end counterfeits to confronting high-fidelity imitators as social commerce and resale accelerate diffusion of look-alikes. With US demand mixed and China softening, defending hard luxury pricing power is critical; jewelry remains a relative outperformer but is vulnerable when icons are copied at similar price points. Recent US rulings against look-alike and confusion-driving products have improved enforcement odds, pressuring competitors to match Richemont's stance or risk ASP erosion and brand dilution.

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