Jewelry Industry – What could be the Future?
Jewelry Industry – What could be the Future?
Jewelry is like a biography, a story that tells many chapters of our lives. Hence, the gems and jewelry industry or sector plays a significant role in our life as well as in the Economy. Being quite a dynamic and fast-growing industry, consequential changes in the jewelry industry are underway, both in consumer behavior and in the industry itself. In the coming years, the development of large retailers/ brands would largely contribute to the growth of the gems and jewelry industry or sector. Established brands are guiding the organized market and opening opportunities to grow.
The global jewellery market has seen continuous growth in the past few years and is projected to reach $480.5 billion by 2025. The jewelry industry has become one of the fastest-growing divisions in the luxury sector, prompting LVMH’s largest purchase yet: the $16.2bn acquisition of tiffany in 2019. It contributes 7% to India’s GDP and 15% to India’s total merchandise export. It employs over 4.64 million people, which is expected to reach 8.23 million by 2022. Annual global sales of $179 billion are expected to grow at a healthy clip of 5-6% each year, totaling $302.48 billion by 2020. But the jewelry industry is still primarily local. The ten biggest jewelry groups capture a mere 12% of the worldwide market. Only two— carrier and Tiffany & Co. —are in Interbrand’s ranking of the top 100 global brands. The rest of the market consists of strong national retail brands, like Christ in Germany, Chow Tai Fook in China, and small or midsize enterprises that operate single-branch stores.
Factors & Challenges in Jewelry Industry:
The jewelry market industrial trends research process includes various factors such as government policy, competitive landscape, market environment, present trends of the market, upcoming technological innovation, market risks and barriers, market opportunities and challenges, a growing number of digital buyers, an increasing female population, an increasing middle-class population, and growing tourism. Cash Your Jewellery is one of the best Gold buyers in Delhi. The typical challenges would be in the form of declining rough-diamond mine supplies, e-Commerce fraud, and even delayed marriages.
As per the research, four types of consumers driving the growth of branded jewelry are identified:
- “New money” consumers who wear branded jewelry to show off their newly acquired wealth and maintain a social strata
- “Old money” consumers, who prefer heirlooms or estate jewelry
- Emerging-market consumers, for whom established brands inspire trust and the sense of an upgraded lifestyle—a purchasing factor quoted by 80% of them.
- Young working consumers who turn to brands as a means of self-expression and self-realization
Upcoming Trends in the Jewelry Industry:
Fashion Jewelry
To redefine the future of this industry, heavy jewelry is to be replaced with lightweight and sleek options. In upcoming times, industry manufacturers will focus on more sleek and simple designs, ranging between Rs 5000-25000. For example, the most famous Indian jewelry brand Tanishq has come up with ‘Mia by Tanishq’. It is fashioned for the working woman who looks to jewelry to express herself. The charming collections are elegant and exciting, powerful and playful, trendy and tasteful, and fine and fun. Their necklaces, bangles, rings, pendants, earrings, and bracelets are all made to mirror the woman who asserts herself in every sphere of her life, and looks great while balancing all aspects of her life – personal & professional together; for the woman of today who is always on the move, hence Mia- Me In Action.
In light of this trend, fine jewelers might consider introducing new product lines at affordable prices to entice younger or less affluent consumers, giving them an entry point into the brand. Alternatively, they could decide to play exclusively in the high-end and communicate that message strongly through its advertising, in-store experience, and customer service, like the brand crafts ethereal designs with diamonds having supreme cut and clarity.
Due to the high soaring prices of gold and diamond, artificial jewelry is in more demand and has a great potential to prosper. It is more affordable and convenient to embrace. Also, the concept of renting artificial and stoned jewelry is expanding as customers tend to rent heavy bridal jewelry for the occasion and return it as they are of one-day use. The celebratory mindset of our returning customers looking to celebrate personal milestones will also add to the demand.
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