Global Luxury Jewelry Market – Insights
Global luxury jewelry industry is as dynamic as it is fast growing. Global luxury jewelry market is highly fragmented and mostly driven by consumer behavior and fashion trends. Therefore, jewelry manufacturers need to be focused on changing trends and developments to compete in global and local market. Integration of new technologies such as Computer Aided System (CAD) in the manufacturing of jewelry is expected to aid in growth of the market. CAD technology makes complex designs possible and allows manufacturers to create new jewelry designs, which is otherwise challenging to design manually.
Several companies that manufacture luxury jewelry are adopting various organic and inorganic growth strategies, in order to sustain their market position. Mergers, acquisitions, expansions in various geographies, and new product launches are some of key strategies followed by major players in the market. For instance, in September 2018, Fosun Group, a China-based investment and operating conglomerate, acquired 80% of the International Gemological Institute (IGI). Since 1975, IGI offers gemmological training, diamond grading, and gem and jewelry certification through 23 laboratories and schools worldwide.
High cost of luxury jewelry is a major restraining factor for growth of the market. Demand for luxury jewelry is limited to specific consumers due to high cost. According to Coherent Market Insights, in general, the cost of luxury jewelry falls between US$ 1,500 to US$ 10,000, whereas affordable jewelry costs less than US$ 1,500. Therefore, most of the consumers prefers affordable jewelry which costs less than US$ 1,500. However, the impact of high cost of luxury jewelry is projected to decrease with increasing disposable income of consumers worldwide.
Increasing demand for men’s jewelry represents potential opportunity for growth of the market over the forecast period. Conventionally, women are more inclined than men towards purchasing luxury jewelry. However, this trend is changing, owing to increasing focus of men on self-grooming and on aesthetic appeal. Moreover, increasing influence of social media has led to high adoption of latest fashion trends in men. Such factors are contributing to increasing demand for men luxury jewelry products such as bracelets, rings, necklaces, and others. Therefore, manufacturers could focus on these products to gain an edge in the market.
Europe is the well-established market for luxury jewelry products. Key trends such as jewelry customization, increasing popularity of pop-up stores, and fusion of costume jewelry with trending fashion are boosting growth of the market in Europe. Moreover, rapid adoption of online luxury jewelry marketing is playing crucial role in boosting sales of luxury jewelry. Leading luxury jewelry brands such as David Yurman, Tiffany & Co., and Swarovski are combining online and offline activities to increase product visibility. These brands are continuously active on social media and markets their products through Instagram and Facebook.
According to a study by Coherent Market Insights, the global luxury jewelry market was valued at US$ 53.56 billion in 2017 and is expected to witness a CAGR of 7.3%, in terms of revenue, during the forecast period from 2018 to 2026, to reach US$ 94.72 billion by 2026.
Figure 1. Global Luxury Jewelry Market Share (%), by Material, 2017
Among material, diamond segment held the highest market share in 2017 in the global luxury jewelry market. Growing demand for diamonds in rings is major factor boosting growth of the diamond segment. To cater to this demand, key players are introducing diamond engagement ring collections. For instance, in September 2018, Tiffany & Co. introduced new engagement ring line consisting of diamond rings. In addition to this, different jewelry manufacturers are launching diamond jewelry lines. Furthermore, in January 2018, Fine Group launched a new dazzling diamond jewelry collection.
Figure 2. Global Luxury Jewelry Market Share (%), by Distribution Channel, 2017
Among distribution channel, mono-brand segment accounted for largest market share of 31.0% in global luxury jewelry market in 2017. Mono-brand stores offer products of a particular brand only. The advantage of mono-brand store is that it develops a brand identity and can increase the number of clients that are loyal to the brand and its products. Furthermore, to retain its customers such stores provide offers and discounts specifically designed for its loyal customers.
Major Players in the Global Luxury Jewelry Market -
Some of the major players operating in the global luxury jewelry market include Gucciogucci S.P.A., Harry Winston, Inc., Societe Cartier, Tiffany & Co., Compagnie Financiere Richemont SA, Buccellati Holding Italia SpA, Graff Diamonds Corporation, Bulgari S.p.A, K. Mikimoto & Co., Ltd., and Chopard International SA among others.