Jacob & Co. CEO Benjamin Arabov with his father, founder, Jacob Arabo.
A relatively young watch brand, Jacob & Co. was founded in 1986 by Jacob Arabo, whose mission was to create outrageous jewelry and watches, typically dripping with diamonds. The King of Bling’s creations were soon coveted by celebrities—especially in the hip hop world, where “Jacob the Jeweler” (as he was known) was name-checked in dozens of albums, including songs by Jay-Z and 50 Cent.
Two years ago, Arabo handed the reins of Jacob & Co. over to his son, Benjamin Arabov (who uses an alternate spelling of the family name) and the brand has continued to grow. This week, Jacob & Co. will announce that revenue has grown steadily and dramatically during the past three years, from $81 million in 2020 to $137 million the following year, and $188 million in 2022. Much of that 132% revenue growth since 2020 reflects a significant increase in the company’s watch business.
Arabov, a Forbes 30 Under 30 lister in 2021, says the revenue growth was beyond the brand’s own projections, particularly in the watch sector. He noted that the split between watches and jewelry is approximately a 75/25 percent. “When I joined the business two years ago, this was the vision,” says Arabov. “To reduce the workload from Jacob so he can focus on the global expansion and the creative design. The global expansion we are doing has been beautiful to see unfold with ribbon cuttings, new stores around the world, it’s all exciting.”
He further noted that some of the brand’s most popular watch sales included the $280,000 Bugatti Chiron Tourbillon—of which the brand sold more than 200 in the past few years, and the $350,000 Opera Godfather watches, of which it sold more than 100 pieces in the same time period. There were even a host of sales of the $5o0,000 Opera Godfather created for the 50th anniversary of the movie in 2022.
Jacob & Co. Palatial Classic Date watch
While Jacob & Co. sells a strong number of its high complications, such as the aforementioned Opera Godfather and Bugatti Chiron, as well as the coveted Astronomia in all of its iterations, Arabov says the focus in the past two years has been on the brand’s less expensive watches, such as the Epic X and the Epic X Chronograph, the sales of which have increased nicely over the past two years. Similarly, its Palatial watch, that sells for $7,000, has experienced enormous growth, with $200,000 of that collection sold in 2020 and more than $2 million worth of that collection sold in 2022.
Arabov noted that doubling the company’s business has been both challenging and rewarding, adding that the growth is due to a myriad of factors, including a strong demand for luxury watches in general, and consumer interest in certain product families the brand offers.
Jacob & Co. Bugatti Chiron Sapphire watch, which retails for upwards of $280,000.
Jacob & Co. has also focused on adding more boutiques around the world. The most recent ribbon cutting was last month in Dubai, one of the most important markets for the brand. It was actually a re-opening of the brand’s store in the Dubai Mall—one of the most successful Jacob & Co. boutiques—with an updated look offering a new consumer experience. That opening came days after the brand opened its first store in Istanbul in the Four Seasons Hotel. And 2022, saw store openings shops in Tokyo, Mumbai, New Delhi, London and other major cities around the world.
According to Arabov, 2023 will see the opening of at least another dozen Jacob & Co. stores in countries such as Saudi Arabia (in April), Thailand, Hong Kong, Egypt and more. Arabov also says that in America, where there are boutiques in New York and Bal Harbour, the brand expanded with Watches of Switzerland with a presence in Minnesota and Atlanta in late 2022. “I see a big opportunity in America as we further develop our lower-end/daily-wear timepieces,” Arabov says.
Jacob & Co. Opera Godfather watch celebrating 50 years of the famed movie, with a celebration held … [+]
To continue growing Jacob & Co.’s watch business in 2023, the brand developed some big new releases—by thinking smaller. “Based on the feedback from our clients and retail partners,” Arabov says, “a key point of resistance when people see our watches is the size of the watch. One of my biggest initiatives since I started two years ago was to create watches that were 44mm or less, and this year we are coming out with several models that represent that goal.”
According to Arabov, Jacob & Co. will reveal five new complicated watches this year, including one “world’s first” in Geneva next month during this year’s Watches & Wonders exhibition.
