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RETURNING HEALTH: JEWELRY MARKETS’ IMMUNE RESPONSE TO THE VIRUS By Lukas KIKŪNAS ● 8
KEY TAKEAWAYS
41 –2022
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B A LT I C J E W E L L E R Y N E W S
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Percentage-wise, only
8.1% of global
jewelry sales were made through the e-commerce channel in 2018. In 2021 that number was
12.9%, having fallen a mere
0.4% from the previous year despite the
vaccine rollouts and consequent reductions in quarantine measures worldwide.
In 2021, the jewelry industry made headway, recovering some of the losses brought on by the COVID-19 pandemic. Although travel restrictions continue to take their toll, growth is the new normal once again. Consumer sentiment is recovering worldwide with the greatest net changes observable in Europe. E-commerce has flourished during the pandemic, which was especially felt by retailers of costume and demi-fine jewelry. The reopening of physical stores had done little to turn back the tide of digitization in the jewelry markets that was accelerated by lockdowns. Driven largely by generational change, ethical considerations are already an increasingly important factor in shaping purchasing decisions. The second-hand market, particularly for fine jewelry, has grown substantially over the last few years.
JUST WHAT THE DOCTOR ORDERED Although the recovery of the jewelry markets is still somewhat subdued by the slow reopening of international travel (which is especially true in geographical markets, which are more tourist-oriented), it’s safe to say that it is well underway. Last year, the global jewelry market rose by 9.2 percentage points and is poised to continue its climb to prepandemic levels and beyond. Much of the jewelry sales slump that began with the COVID19 pandemic has been due to the postponement of purchases. This was especially true of fine jewelry, which fared worse than its cheaper alternatives. Such caution implies that consumers still prefer to pay for more expensive pieces in-store, where they can inspect and try them on in person. Postponement is not the same as dissipation though. The foregone purchases constitute pent-up demand, which we are now seeing being released in many geographic markets. Not incidentally, the fine jewelry segment is forecast to outpace costume jewelry in growth over the coming years. Consumer sentiment regarding economic recovery and reported intent to buy jewelry is also improving. The change
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