Recent acquisitions and brand product extensions show a growing attitude of luxury brands towards jewellery.
Jewelry could indeed be positioned as the next big thing for luxury brands for a few reasons:
- Growing Market: While it was sleeping for a while in mature markets, the global jewelry market has been steadily growing, with increasing demand from emerging economies, especially China and India. As the middle class grows, so does their purchasing power and appetite for luxury goods.
- Investment Opportunity: High-end jewelry and watches, particularly pieces featuring precious metals or gemstone, can be used as a form of investment. The sales growth during the pandemic shows that it could be an alternative investment option.
- Personalization and Storytelling: Emotional stories are linked to jewels. They become can opportunity for luxury brands to personalise and create unique stories for their purchasers. They will give additional emotional value to the product intrinsic quality.
- Status Symbol: The democratisation of luxury has diminished the seduction impact of luxury products to the ‘old money customers’. Owning and wearing prestigious jewelry can signal one’s success and affluence, making it a timeless status symbol.
- Experiential Retail: While digital is becoming an integrated part of the journey, luxury brands are investing in designing and creating immersive retail experiences. Brick & mortar stores can provide customers with a sense of distinctiveness, offering opportunities to engage with the brand in a unique way. Exclusive events are organised periodically to ensure the highest level of experience to top customers.
- Cultural relevance: Jewelry often have an important cultural significance. They are a part of rituals and traditions in several regions of the world for ceremonies or celebrations.
- Resilience in Economic Turmoil: In general, luxury goods, including jewelry, have shown higher resilience during economic downturns. While people tend to cut general expenses during difficult times, they often continue to invest in high-quality items that represent an economic or an emotional investment.
In conclusion, jewelry has a great appeal for luxury brands as it can involve a wide range of clients, from the aspirational ones to the historical brand fans. For the new consumers it’s a way to affirm their belonging to an elevate group in the society. For the traditional luxury customers it’s a way to re-affirm their status and exclusivity.
