According to Bain & Company (The Global Diamond Report 2019), the global jewellery market in 2019 was estimated at approximately $330 bn. Diamond jewellery sales are estimated at $80 bn, and its luxury segment accounts for about 10% (~$8 bn) of the sum.
For comparison, the luxury watch market is at $39 bn over the same period, leather goods at $57 bn, and the apparel market at $64 bn (Luxury Goods Worldwide Market Study, Fall-Winter 2019).
The fashion market accounts for about a quarter of the total luxury goods market. According to the experts from the McKinsey agency (A multifaceted future: The jewelry industry in 2020), the jewellery market should develop following the luxury apparel market and go through the following stages on its way:
Internationalization of brands
While in the 1980s, the companies producing luxury (and not only luxury) clothing sold it in certain countries, but almost all of them have entered the international level by now. For example, the share of Hugo Boss brand sales outside Germany has grown from 50% in the 1990s up to 80% in the 2010s. The main jewellery market is currently provided by large national retail brands (such as Chow Tai Fook in China or Christ in Germany) as well as by small and medium-sized businesses. Ten largest jewellery groups account for only 12% of the global market, and only two of them – Cartier and Tiffany & Co. – are in the Interbrand rating of the top 100 global brands.
Jewellery branding
In the wristwatch market, the branded goods accounted for about 60% of sales, while the share of branded jewellery is only 20% of the total volume. However, it has doubled since 2003. The main consumers of the branded jewellery are affluent buyers from the emerging markets, for whom the well-known brands are a way to show off their material status. According to experts at McKinsey, while in the past, the branded jewellery growth was provided by such world-renowned brands as Cartier and Tiffany & Co. as well as some new market players (Pandora and David Yurman), in the future, the main role will be played by the companies producing luxury clothing and leather accessories like Dior, Hermès and Louis Vuitton that also offer their jewellery collections.
Photo © Harry Winston.
