Swiss luxury group Richemont is preparing to expand its Italian jewelry label Vhernier into Asia, with a new boutique set to open in Hong Kong later this year.

Vhernier will make its Hong Kong debut at The Peninsula, the iconic luxury hotel located in the Tsim Sha Tsui district. A spokesperson for Hongkong & Shanghai Hotels Ltd., which owns the property, confirmed the upcoming opening. According to a source familiar with the matter, the boutique is expected to open in the fourth quarter. The source requested anonymity as the information is not yet public.

The arrival of a high-end foreign brand is seen as a potential boost for Hong Kong’s struggling retail market. According to real estate consultancy Jones Lang LaSalle Inc., vacancy rates in prime shopping centres hit a record 10.5% in the first half of the year. Rents are projected to decline by as much as 10% in 2025.

A slowdown in mainland China’s economy has dampened luxury sales in Hong Kong, which has traditionally attracted affluent shoppers from the region. The total value of jewelry and watch sales in the city fell by 6% in the first half of the year, despite a 12% increase in visitor arrivals during the same period, according to official data.

Still, luxury jewelry remains one of the more resilient segments in the broader high-end goods sector. According to Bloomberg Intelligence, jewelry has outperformed categories such as watches and apparel. Branded jewelry sales are expected to grow by approximately 6% annually, driven by geographic expansion, increased online penetration and broader appeal across generations.

Richemont acquired Vhernier last year in a move to strengthen its portfolio in the jewelry category. The brand, founded in 1984 in Valenza, Italy, and now based in Milan, is known for its sculptural, handmade pieces that blend modern design with traditional craftsmanship. Vhernier currently operates boutiques primarily across Europe and the United States, according to its website. Richemont declined to comment.