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How have the jewelry markets weathered the storm, and what might the future bring
Source: Unsplash
By Lukas KIKUNAS
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KEY TAKEAWAYS
● The global jewelry market has been hit hard by the COVID-19 pandemic, in large part owing to the discretionary nature of jewelry products. As the wave of uncertainty came crashing down on consumer markets, many kept their wallets in their pockets, redirecting expenditures to more essential items, such as groceries and hygiene products. ● The economic shock resulting from the pandemic has reshuffled consumer shopping behaviors, leading many of them to try out new brands as well as to shop more online. ● Despite the temporary upset, the fundamental, long-term growth factors are still in place within the global jewelry market. Forecasts anticipate that it will reach its pre-crisis levels by around mid-2024. Early signs already hint that it will be an uneven recovery, with some geographic markets poised to recover faster than others.
THE STORY BEHIND THE NUMBERS
According to the data of Euromonitor International (a market research company), the global jewelry market contracted by 19.8 % in 2020.
As COVID-19 gathered momentum, more and more events and celebrations started to become postponed. And, as everybody knows, large social gatherings are the perfect occasion to display your new jewelry... To some people, however, this was the least of their worries. Mounting concerns over the coming period of economic instability, reductions of working hours, and fears of lay-offs tipped the scales in favor of saving or focusing on more on essential purchases for consumers.
The paralysis of the tourism sector has also contributed to a reduction in jewelry sales in some countries. An excellent example of this is the case of France, where tourists account for around 60% of jewelry purchases. As could have been expected, the French jewelry market contracted by 21.7% in 2020, outpacing the global slump by almost two percentage points.
