The choice of jewelery is increasingly online

How is the jewelry sector in Italy? The question is answered by the analysis of the 2023 data from the Jewelery Observatory conducted by Format Research, presented during Oroarezzo. In two meetings Federpreziosi Confcommercio invited operators to reflect on the state of the Italian gold retail sector and on the realistic prospects. Result: revenues increase, the number of jewelery stores decreases. Below is the Observatory’s analysis.

The jewelry sector
There are approximately 716 thousand retail companies active in Italy. Of these, 12,771 are companies in the retail trade of watches, jewelery and silverware. Over 40% of jewelery shops in Italy are concentrated in the regions of Campania, Lombardy and Lazio.
There are 33,879 people employed in the retail trade of watches, jewelery and silverware. The number of employed people is almost unchanged compared to last year but lower than that of pre-pandemic years.
In recent years there has been a decrease in the number of active jewelery shops in Italy and in parallel with a decrease in the number of people employed in the sector. Since 2013, companies have lost 24 basis points while employees have lost only 14 points.
In the North East there are 15.6% of Italian jewelers, but 25.8% of the total employees in the sector. Furthermore, 22.6% of Italian jewelery shops are present in the North West and they account for 42.3% of the total turnover of Italian jewelery shops. Large companies (>249 employees) are 0.1% of Italian jewelery stores and generate 15.6% of total turnover.
The overall turnover of jewelery stores in Italy in the first half of 2023 is estimated at approximately 6.2 billion euros. Turnover is growing compared to 2022 by 10.2%.

Consumers: consumption choices
In the last three years, 72.5% of Italian consumers have entered a jewelry store at least once and purchased jewelry (both in jewelry stores and online). The percentage drops to 20.5% for those who entered the jewelry store but did not make any purchases.
Gold jewelery (49%), silver (47%) and stone jewelery (32%) are the types most purchased by Italian consumers in the last three years.
41.1% of consumers who purchased a jewel had a precise idea of the purchase to make, while almost 59% had only a vague idea of what to buy. This percentage is up 19% compared to 2022.
Around 60% of those who had a vague idea of the jewel to buy went to the jewelery shop to get the jeweller’s advice. However, the percentage of those who first get information online and then subsequently go to the jewelery store is increasing compared to the previous year.
Over 48% of consumers identified the jewel to buy thanks to the jeweller’s suggestion. The percentage of those who identified the jewel online increased compared to 2022 (+8.2% compared to the previous year).
The shape, lines, design (54.2%) and the quality/price ratio of the jewel (52.6%) determined the choice of the jewel purchased. Attention to jewelery materials and handcrafting has increased compared to the previous year.
Almost 7 out of 10 consumers believe that jewelery stores are in step with the times and capable of grasping new consumer trends. The percentage is growing compared to the previous year (+7.9%).
89.6% of consumers purchased the jewel in question in a jewelery shop (physical store). Those who purchased the jewel online increased compared to the year 2022: in 2023 they were 10.4%.

The advantageous price compared to the physical store (55.9%) and the greater breadth of the online offer (45%) are the main reasons why consumers buy jewelery online.
The possibility of “touching” the jewel (48.3%) and the added value of the jeweler (39.5%) are the main reasons why consumers purchase jewels and valuables in traditional jewelery stores.

Economic performance
In the fourth quarter of 2023, 25% of jewelers believe that the performance of their business has improved compared to the previous quarter. 29.4% believe they have increased their revenues and the figure is destined to remain almost unchanged in the next quarter. 88.2% of Italian jewelery stores are present online. Of these, almost 62% have a website and a profile on social networks.
Jewelery shops use the website mainly for the online sale of the same products sold in the jewelery shop and as a “showcase”, i.e. to display some products that can only be purchased in the jewelery shop.
In the last year (2023) 85% of jewels were sold in the physical store, i.e. in the jewelery shop. The remaining 15% was sold online.

Comments
The data highlights an estimated turnover growth of 10.2% in 2023 compared to 2022. Faced with a decrease in active jewelery shops in Italy, the number of people employed in the sector is decreasing in parallel, although to a proportionally lower extent. Since 2013, businesses have lost 24 basis points, while employees have lost only 14 points. Opportunities were missed, action was not taken in a sufficiently incisive manner; now lost time and opportunities will be difficult to recover; greater commitment, greater vision, greater ability to innovate will be required also through a ruthless self-analysis of the resources that one is realistically able to dispose of. However, the possibilities, not only to survive, but also to successfully establish your company, are still there.
Steven Tranquilli, director of Federpreziosi Confcommercio

In addition to a focus on the state of health of jewelery stores in Italy, the research highlighted how the physical store is still a fundamental element of attractiveness for the customer. The numbers show that compared to 15% sold online, 85% of jewels were sold in jewelery stores, an increase compared to the previous year. 69.5% of customers believe that sales points are up to date, capable of transmitting in-depth information, providing complete assistance and advice. In short, you trust the jeweler. I believe that this is the most important lever on which to work with maximum commitment to ensure that our stores can not only remain active, but choose to invest to grow and innovate. This is an inestimable wealth, and all the surveys on consumer attitudes confirm it, a real keystone for our future as entrepreneurs.
Stefano Andreis, president of Federpreziosi Confcommercio Nazionale

Communication will play an important role. These are skills on which to focus to enhance the high-quality knowledge present among our entrepreneurs. We have a great responsibility, that of informing customers correctly and in the most transparent way possible. We must have the courage to do it with ever greater energy so that these values are visible at every stage of the customer’s purchasing journey, even before they enter the store.
Elena Spanò, jeweler and president of Federpreziosi Confcommercio Florence Arezzo

The issue of generational transition continues to be a very delicate element for the reality of the sector. The need to innovate through more structured and managerial approaches and the courage to follow new paths without neglecting the experience of those who preceded us, are strategic aspects of development that can no longer be postponed and in Italy, in particular, we are experiencing a very heavy delay.
Simone Haddad, jeweler and vice president of Federpreziosi Confcommercio Rome

Gloria Belloni, owner of Studio EffeErre in Milan, particularly active in the field of gold communication, focused attention on the fact that the physical store must and can work as best as possible to become a brand itself, focusing on the values of uniqueness, skills and on modular investments, therefore accessible, but essential and how today, despite the increasingly complex scenario, there are all the tools to achieve this.