As a universal symbol of hope, gratitude and deep meaning, jewellery is proving itself to be a priority purchase even in uncertain times. As we continue to witness new opportunities opening up at every stage of the supply chain, the following industry observations reveal that NOW is the time to level up your positioning and power up your offering.
Jewellery as an emotional outlet
Consumers are connecting to the sentimental, emotional nature of jewellery now more than ever. (Women’s Wear Daily, business journal for the fashion industry.)
A trend towards big diamonds during the lockdown was attributed simply to the ‘joy’ they bring to wearers at home. (Sotheby’s, one of the world’s largest brokers of fine jewellery.)
Seeking a mood boost, shoppers are selecting colourful and novelty styles more than usual.
(Luxury Jewellery Brand The Last Line.)
Luxury is no longer just about material value, it is also about emotion and the values that consumers want to reflect; such as ‘how does this represent who I am?’
(Federica Imperiali, Head of New Product Development, Forevermark speaking to Vogue India.)
The shift to fewer, better things that will last forever is becoming more evident.
Consumers are now more likely to consider the community and environmental impact of their jewellery purchases. (Vogue India)
Jewellery as an investment
Couples prevented from travelling during the pandemic could be seen investing more in diamond rings.
(Jamie Singleton, President, Kay Jewelers and Zales, part of the world’s largest retailer of diamond jewellery.)
During the pandemic Macy’s customers were reported to “gravitate toward the jewellery category, in part because it retains its value.”
Halfway through 2020 online luxury fashion retailer Moda Operandi reported a 35% upsurge in fine jewellery sales compared to the same period in 2019.
In August 2020 US fine jewellery sales were up 10% year on year according to both Edahn Golan Diamond Research & Data and Signet Jewellers (SIG) the world’s largest retailer of diamond jewellery.
Online collectible jewellery sales held during the pandemic saw 92% of every lot sold with 61% exceeding revenue expectations. Items of good quality performed not just well, but better than they would have done pre-pandemic. (Sotheby’s)
Though the ‘sports luxe’ aesthetic of 2020 was gaining momentum even before the pandemic, research has shown that fine jewellery represents an “investment” that retains long-term value, which is why people can be seen shopping for it in an uncertain economy.
(Moda Operandi, online luxury fashion retailer.)
Latest Spending patterns
A 2021 consumer Survey has revealed three promising factors among consumers: greater confidence for spending, a stronger appetite for precious jewellery, and increasing market demand driven by non-bridal jewellery. (2021 survey by Platinum Guild International (PGI) interviewing over 2,000 jewellery buyers and wearers aged 18 to 65 around the world.)
The purchase of non-bridal jewellery remains strong for China, India and the US, with more than half of respondents having purchased such items in the past year. (PGI)
Within the non-bridal category, self-purchase is driven by women aged 18-45 while gifting is driven by men aged 31-45. (PGI)
Demand for gold bars and coins continued to witness a surge during the first quarter of 2021 especially in India and China, due to an improving economic scenario, fall in gold prices and festivities. (Motilal Oswal, one of India’s leading financial services firms.)
Global consumer demand for gold jewellery rose 52 per cent annually in the first quarter of 2021, marking a “strong improvement” as bullion prices dropped and economies around the world recover from the coronavirus pandemic. (World Gold Council.)
Demand for rough diamonds in Q1 2021 recovered to pre-Covid-19 levels. This reflects the replenishment of the depleted midstream (companies who convert rough diamonds into finished jewellery pieces) and renewed confidence by the midstream in response to consumer demand for diamond jewellery returning in the US and China in the second half of 2020. (De Beers Group.)