Learn more about jewelry in both the US and the rest of the world.A new trend in jewelry sales
Spring is finally here and as we finish off the second part of the semester, not only are temperatures rising but so are jewelry sales. A recent poll indicated jewelry sales tend to mirror clothing industry sales, based on research of clothing trends over the past 30 years. However, jewelry sales are rising at a much faster pace through internationalization, the growth of branded jewelry and consumer consumption through multiple channels.
Annual global jewelry sales of 148 billion (euros) are expected to grow five to six percent each year, reaching 250 billion (euros) by the year 2020. Jewelry retailers need to be aware of global sales projections or they risk falling behind in this quickly internationalizing industry.
In the apparel industry, Zara and H&M have mastered internationalization by being able to quickly assess new trends, manufacture products, send the products to stores and sell them, all within a matter of weeks. Local jewelry retailers need to foresee the role international companies could have on their sales and act quickly to use technology and internationalization to their advantage.
The jewelry industry is primarily locally based, with the ten largest jewelers attaining 12 percent of the international market – only two of which, Tiffany & Co. and Cartier, are ranked as part of Interbrand’s top 100 brands. Jewelry retailers expect that successful regional or national brands, such as Swarovski and Pandora, will join the ranks by 2020. Some suspect that the largest jewelry retailers will double their sales by 2020 and most will do so through collaboration with local jewelers.
Today, branded jewelry accounts for 60 percent of sales in the watch market and 20 percent in the jewelry market, overall. Consumers driving branded jewelry are those who have new money and want to show it off, those who are emerging in the marketplace and look to brands for inspiration and young consumers who want to express themselves. Branded jewelry sales are especially projected to grow in major fashion houses such as Chanel and Dior, who want to increase sales by turning to jewelry and producing new lines. Though this will slightly hurt smaller jewelers, they can turn to distribute through companies like Cadenzza, which is a chain of stores, owned by Swarovski, that sells several brands of jewelry.
As brick-and-mortar sales continue to be replaced by e-commerce, industries have found a large portion of their sales derive from their online presence. Creating and maintaining a strong social media and online selling presence is critical to increasing sales in this technology age. In the UK, the apparel industry’s online sales increased from one percent in 2003 to 14 percent, today. Although online jewelry sales currently account for roughly four to five percent of the market, fine jewelry sales will rise to 10 percent by 2020 and plateau, while fashion jewelry will rise to about 15 percent and continue to grow. Most assume fine jewelry sales will not grow beyond a certain point, online, because consumers like to try on and see a major purchase rather than take their chances online.
Overall, jewelry sales are steadily rising and will continue to do so based on the 2020 predictions and beyond. Consumers of different ages and income levels have different preferences for brands and styles, yet mixing of high end and low end branded items is being encouraged in the industry.
Internationalization plays a major role in increased jewelry sales, which are expected to grow at a higher rate than apparel sales. Branded jewelry will continue to rise in popularity through consumers who want to make a statement of self-expression or show off their newly acquired money. Finally, e-commerce continues to grow in jewelry sales, with a higher expected growth rate in fashion over fine jewelry.
