The Future of the Jewellery Industry
What we think
The Future of the Jewellery Industry: Trends & Insights
Bas Lustenhouwer, CFO at Nivoda, shares his insights from a recent post on MOF, entitled “The Future of the Jewellery Industry: Trends & Insights” which you can read here.
- Consumers are increasingly comfortable shopping online for jewellery (more so since the pandemic) and much more likely to make high-ticket purchases online than five years ago.
- From 2012 to 2021, online jewellery sales increased by an average of 3.9% each year, with the market expected to reach £21.4 billion in 2022.
- The share of online sales across the US and Western European jewellery sales doubled over 2019 with brick and mortar jewellers now embracing virtual sales to capture their share of the demand.
- Despite the UK industry suffering tough trading conditions on the high street which hasn’t been helped by 2020s lockdowns, the UK still looks to be thriving, largely due to the enduring demand for luxury goods.
- The mid-market jewellery brands and retailers are also suffering from declining footfall.
- In March and April 2020, amid early pandemic store closures, retail jewellery sales in the U.S fell by $3.8billion compared to the same period in 2019. Once lockdowns eased in mid-late summer though, it was a different story. Sales grew by $1billion year over year: in no small part, attributable to engagement rings.
- But with 32% of women would have preferring an alternative engagement ring, some jewellers are offering solutions to ensure that customers find The One.
- Ethical transparency around jewellery production is critical now, especially among millennials who favour products and businesses that have a conscience.
- A recent study concluded that over 80% of customers want conflict-free environmentally friendly safe jewellery, confirming that the 4 Cs will no longer cut it.
- ‘Demi-fine’ is an emerging jewellery category that nestles neatly between fine and costume. Incorporating precious and semi-precious stones, and made from precious metals, it has intrinsic value without the price tag of high or fine jewellery.