Think the Jewelry Business Has Reached Its Plateau? Think Again
Once a straightforward category, industry insiders say the sector has gone though a transformation with still more room to grow.
Much was made during the pandemic about the resiliency of fine jewelry at retail. In the years since, the category has not only maintained growth but continues to evolve, reaching a new diverse, informed customer, and industry insiders see still more room to grow.
According to Statista, the global revenue of the watches and jewelry segment of the accessories market is forecast to continuously increase between 2023 and 2026 by a total of $44.8 billion, or almost 12 percent, to $418.9 billion by the latter date.
Once thought of as straightforward category dedicated to an elite consumer or a one-off purchase meant to mark a special occasion, the sector has gone though a transformation lead by a self-purchasing customer — both women and men — who wants unique pieces to layer up as everyday staples.
“When we think of today's modern jewelry customer, we must acknowledge that they are not a monolith; they exist at many different intersections of culture and class,” said Greenwich St. Jewelers co-owner Jennifer Gandia. “It's essential to look beyond the demographics of top clients for the future of the business. All of that is shifting and will continue to transform in the coming decades.”
Gandia sees a modern jewelry consumer making purchases at all ages, including the twentysomething “who is just starting to purchase demi-fine jewelry and build their collection.”
“They aren't only women, and they have different value factors that we as jewelry retailers have to address, including environmental and financial concerns, which are very real issues they care about,” she said of her customer profile.
Throughout 2023 so far, the independent retailer has seen strong sales in one-of-a-kind colored gemstone jewelry, with toi et moi and cluster rings, in particular, selling out throughout the year. “The sell-through has been remarkable,” Gandia said.
Keeping pace with fashion trends, her customer is also leaning into a form of quiet luxury. “They want to know that the provenance and quality of the jewelry they are buying will be lasting,” she said.
Jennifer Shanker, founder and chief executive officer of New York boutique Muse, echoed that the awareness of slow fashion is increasing, with her clients being even more inclined to buy fine jewelry now than they were preCOVID-19. “There is a particular longevity to jewelry in that you can wear it everyday now and for years to come, which is important to clients,“she said of the change.
Once unheard of pre-COVID-19, Shanker, like many retailers, sees a customer firmly comfortable shopping online, noting a “significant uptick” in her online business. This has prompted her team to meet the new normal by “revamping our own website to provide a best-in-class experience since it's clear this change is a permanent one.”
Muse does double duty, also providing showroom services for her tight roster of brands. The CEO said that even if people are buying jewelry that is meant to be worn often, ”it doesn't necessarily mean simple pieces,” adding nuance the the conversation around what is deemed an everyday piece. “We're seeing a lot of interest for special jewelry that makes people feel good every time they put it on,” she said.
Gandia also championed the idea of seasonless creations that “wow”; her customer is “looking beyond trend” and “for jewelry that will stand the test of time in both design and material.”
Once quietly tucked away in vaults or behind glass windows on Fifth Avenue, today hard luxury brands and creative directors have social media accounts with followers nearing the millions.
Vice president and divisional merchandise manager of jewelry at Saks Fifth Avenue Marta Nowakowski sees the social media dialogue as a game changer for the growth of the category, “especially as bigger brands invest more on branding and marketing opportunities in the category. Top jewelry brands including Bulgari, Chanel and Chopard are very active on social media, and they are setting the tone for the industry as a whole,” she said, adding that overall brand awareness has become increasingly important in the jewelry category. “We are seeing both heritage brands and younger designers such as Anita Ko and Spinelli Kilcollin focus on social media and digital marketing to help register their names among luxury customers,” Nowakowski said.
The digital revolution may have been slow to come to hard luxury prepandemic, but it caught up quickly born out necessity. Today it influences a savvy customer who develops a deep understanding of the market before even stepping foot in a store, particularly with diamonds. “We are seeing a lot of customers who know exactly what they want in terms of color and clarity when they come to Saks to make a purchase,” she said.
Gandia pointed to Gen Z as a prime example. As “the first digitally native generation they are also the most informed. We have to expect that they are shopping around, comparing prices and also that they can and will research before purchasing,” she said, adding that her team is considering all of this as they create new product lines and train staff “for the next wave of jewelry clients.”
All three executives agreed that there is no plateau in sight for the business, with several categories under the jewelry umbrella still proving to be in the early stages of development, like genderless or male-focused jewelry. “As the world shifts away from a gender binary, I anticipate that the jewelry space will adapt even more in terms of both design offering and marketing,” Shanker said.