The jewelry industry seems poised for a glittering future. Annual Global sales of €148 billion are expected to grow at a healthy clip of 5 -6 percent each year, totaling €250 billion by 2020. Continued Growth of global brands with opportunities in fine jewelry are the key predictions for the jewelry industry, according to an international report.
In 80’s, National apparel brands were the clear leaders in their respective markets. Today, many national brands have been outpaced by international brands. Some industry observers project that the ten largest jewelry houses will double their market share by 2020, primarily by acquiring local players.
Growth of Branded Jewelry:
Branded items already account for 60% of sales in the watch market. While branded jewelry accounts for only 20% of overall jewelry market today, it’s share has doubled since 2003. Most of the industry experts believe that branded jewelry will claim a higher share of the market by 2020, but their views differ on how quickly this shift will occur. Most expect that the branded segment will account for 30-40 % of the market in 2020.
By analyzing trends in other industries, jewelry suppliers are able to obtain some valuable advice and lessons. The growth of online sales has been significant in apparel, for example, but predominantly in the lower price bracket items.
Affordable branded jewelry, where the consumer is aware of exactly what they will be getting, is likely be the biggest growth area for online sales. Jewelers that are looking to increase online sales may want to concentrate on standardized affordable brands, while in-store retailers should look to high-ticket and unique items, and support the product with a quality experience for the consumer.
It was also noted that consumers were more likely than ever to research items online prior to any purchase and so a web presence was recommended.