Trends in the Jewelry Market 2019 and Beyond

The jewelry market has a glittering future as the consumer appetite for jewelry related to the apparel and costume increased tremendously in recent years. In 2020, the jewelry industry is poised to cross $250 billion, which is almost 40 percent increase in sales compared to the last six to seven years.

According to experts, the growth in the sector can also be attributed to changes in the apparel, garments, and clothing industry where new trends have forced designers to continue innovation by offering matching jewelry designs.silver Tungsten Rings men

Factors of Change

In recent years, the pace of development is specifically attributed to the internationalization and consolidation of products, which has made it easier for new trends from around the world to proliferate the sector.

The growth of branded products is yet another reason for the development as brands are able to replicate and produce visionary designs that have attracted consumers who were not brand conscious. The reconfigured channels landscape, where online products have seen double-digit growth, is also boosting sales.

Similarly, hybrid consumption of jewelry has reduced the overall price increasing the buying power of consumers; whereas, fast-changing fashion trends have given impetus to price wars.
Jewelry and gemstone industry is still characterized by the dominance of local players and large national brands. This is evident by Christ in Germany and Chow Tai Fook in China, which are key players in their respective countries. However, these so-called local players are also consolidating their positions in the global market by integrating small local specialized chains. For instance, Tiffany & Co. and Cartier have made tremendous progress by buying shares of local companies or acquiring them outright.

Other well-known international brands such as Zara and H&M are also penetrating worldwide markets to capture sales channels. The pace of internationalization and consolidation will continue to grow in the coming years because this is an effective strategy that has also worked for related apparel and garments industry.

Already smaller players are feeling the heat as major brands are taking over Asian markets because large companies can easily get loans to expand their business, and they can access consumers through online channels. For instance, the share of large well-known Jewelry companies in India rose from a mere 5 percent to almost 35 percent in 2020, according to World Gold Council estimates.

Branded Jewelry

Branded jewelry is quickly becoming one of the most sought-after products in the market. According to McKinsey & Co. analysis, the share of branded jewelry was a mere 10 percent in 2003, which is expected to rise between 335 and 40 percent by 2020.

The newly acquired wealth in Asia has prompted consumers to acquire branded jewelry. Experts believe that a significant portion of consumers in the emerging markets are attracted to the brand because it shows their new wealth deposits. Apart from the “Show-off”, consumers in emerging markets are also interested in the brand because it generates trust and a sense of upgraded lifestyle. On the other hand, branded jewelry in North American and Europe owes its success to many young consumers who seek branded jewelry to enhance their sense of self-expression and self-realization.

In the past, brands such as Pandora and Tiffany & Co. made inroads into the jewelry sector; however, companies local brands such as Hermes and Dior are also taking charge due to the assortment of products and jewelry design. The trend indicates that consumers are also looking for new designs instead of just trusting the global brand.

For local artisans and jewelry makers, the impetus of branded jewelry is a bad omen because local artisans don’t have the muscles to challenge large companies. Still, savvy locals are partnering with companies such as Cadenza and Swarovski’s to showcase their designs. These companies offer curated multi-brand jewelry for their consumers making it a win-win situation for the consumer and the local artisans.

Reconfigured Sales Channels

New sales channels such as the Internet, mono-brand stores, and multi-brand boutique jewelry outlets are thriving in the face of the dynamic landscape. Online sales of jewelry segment will continue to increase in the coming years. The increase will be led by standardized affordable branded jewelry products because customers think that they understand the product without feeling it, which makes it easier to buy such products online.

Despite the emergence of online channels, most customers still prefer to feel the product by walking into a jewelry store because the sale of jewelry is a sensory experience. A lot of consumers also consult online stores and social media before purchasing the item from a brick-and-mortar store.

Monobrands stores such as Pandora have also gained market share as these stores rely on offering streamlined customer experience. Most customers will prefer mono-brand because it gives them a chance to get a more personalized experience and control over their buying patterns. Similarly, small multi-brand stores such as Cadenza and Swarovski’s are also providing a refined touch by concentrating on offering an assortment of unique jewelry from multiple brands.