What is the future of jewelry? Analysts from McKinsey, one of the world’s largest consulting firms, respond. Spoiler: the sector will be booming.
According to McKinsey analysts, however, a distinction must be made. The medium-level jewelry will run the show. In short, the gold and precious stone jewels that constitute the heart of the sector. Prospects are good for high jewelery, but there remains a niche for those who can afford to spend six-zero figures for a ring or a necklace. The State of Fashion: Watches & Jewelery report predicts a double-digit increase for at least the next three to four years. But it will not be the same for everyone. For example, brands that have been able to combine the material value of jewelery with the moral values of sustainability and the environment will have a better game: 20-30% of jewelery sales will be increasingly conditioned by the perception that consumers will have regarding ethical aspects. Who knows if that’s true.
Another driver for sales concerns geographic positioning: China is the place where luxury, including jewelry, is most likely to develop. For some time, not surprisingly, the largest Maison have been organizing the presentation of some high jewelery collections, or exhibitions of their historical jewels in Shanghai or Beijing. Asia now concentrates 45% of global jewelry sales (50% of watches), but McKinsey expects further growth of 10-14% for fine jewelry and 4% for watches.
A surprising aspect, for those who do not follow the events of the jewelry market, concerns the presence of the brands. In fact, eight out of ten jewels sold worldwide are unbranded or with unqualified brands. According to the consulting firm, this could allow large players to conquer more space, with an increase between 8% and 12%. But beware: this also means greater competition, with new brands ready to enter this market segment.
Finally, one last aspect is interesting for those who work in the world of jewelry, even if it is not a novelty: the online sales of rings, necklaces, bracelets and earrings are great. Also according to the report, sales through the web could rise again by 13-21%, provided you know how to do them. In short, jewelers must offer a sales service that does not make one regret the one in boutiques.
