CrimeMay 03, 2024
Second Suspect Arrested in Murder of Colorado JewelerWheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
MajorsMar 03, 2016
Global luxury market surpasses trillion-dollar mark
A Bain & Company report shows that the global luxury industry has surpassed $1 trillion in retail sales value this year, with the category that includes jewelry and watches seeing slight but positive real growth.
Milan, Italy--The global luxury industry has surpassed $1 trillion in retail sales value this year, with the category that includes jewelry and watches seeing slight but positive real growth.
According to Bain & Company’s Luxury Goods Worldwide Market Monitor report released last week, the $1.120 trillion spent in luxury markets around the globe is a 5 percent year-over-year increase at constant exchange rates.
Spending in the personal luxury goods category--the category that includes jewelry and watches—has reached $253 billion, a 13 percent increase overall but only a 1 to 2 percent improvement at constant exchange rates.
In the report, Bain & Company identified three macro-economic events that hampered growth potential for the global luxury industry this year: the strength of the U.S. dollar, dissuading tourists from visiting the United States and driving Americans to buy their goods in Europe; the Chinese stock crisis impacting consumer confidence in the U.S.; and oil’s price drop reducing the wealth of most exposed economies and its key luxury consumers.
Around the world
In 2015, the strength of the U.S. dollar has continued to weaken luxury consumption in the Americas.
Department stores have suffered because of a slowdown in spending by both tourists and locals and played on promotions to bring in consumers. The off-price channel has become a top performer, with organized trips driving tourists to premium outlet centers and local shoppers looking for bargains while buying online, the report stated.
Canada also has witnessed improved luxury goods sales, as there has been decreased competition from the U.S. due to the strength of the dollar.
When it comes to cities, the report showed that the top luxury goods market in the world are New York, followed by Tokyo, Beijing, Milan, and Paris.
E-commerce
Online also has turned out to be a winner in 2015, as European and American retailers continued to actively respond to customer requests for an omnichannel experience.
Social e-commerce also has begun to pick up steam, the report said, with “buy” buttons transforming the role of social networks from pure referral to a retailer’s website to direct shopping on social platforms.
RELATED CONTENT: More social networks enter e-commerce
Mobile commerce also is becoming a central touchpoint and growing channel, with wearables potentially becoming the “new frontier of mobile,” Bain & Company said.
Off-price shopping
The U.S., Europe and Japan have been trending as the most-penetrated geographies when
it comes to off-price shopping in 2015, meaning that’s where most outlet stores have opened.
RELATED CONTENT: Macy’s gets into the off-price business
The report said luxury brands currently are reconsidering their strategic approach to the off-price channel, with some reducing markdowns in regular stores and instead shuttling slow-moving merchandise to outlet stores.
Jewelry and watches
Bain & Company said hard luxury accessories, which includes jewelry and watches, have had a trend of “polarized performance” in the past two years.
Global watch sales in 2015 have dropped by 6 percent year-over-year at constant exchange rates, impacted by the slowdown of the Asian economies, a trend occurring since 2013 that also has led to the worst Swiss export figures since 2009.
Global jewelry sales, meanwhile, have risen 6 percent at constant exchange rates, with the report stating that this category is evermore perceived as a safe investment in an uncertain economic and financial environment.
Though growing at a “slower” pace, luxury branded jewelry continues to outperform the overall luxury market, as jewelry remains among the top preferred investments thanks to the intrinsic value of the raw materials. What’s more, Bain & Company said global demand for diamonds still is growing, just at a more modest pace.
Additional takeaways from the report include:
--The personal luxury goods market still is a western one, but is being driven by masses of “borderless” consumers, consumers who travel everywhere and spend anywhere;
--Consumers from mature markets are more demanding and detached;
--Retail and mono-brand stores still are the favorite formats in which to invest;
--E-commerce is starting to become disruptive, yet brands still are struggling with it; and
--Growing value awareness and blurred pricing strategies are questioning the luxury value proposition.
“For the last several years, we’ve referenced ‘luxury’s new normal’ with a deceleration of the personal luxury goods market,” said Claudio D’Arpizio, a Bain & Company partner in Milan and lead author of the study. “Now, we are starting to feel the impact of that slowdown. The challenge for luxury brands in this environment is how to successfully navigate through hard-to-predict volatility.”
The complete Luxury Goods Worldwide Market Monitor report can be found here.
More on Majors
The Latest
CollectionsMay 03, 2024
A Sneak Peek Into PGI’s Couture Platinum Spotlight ProgramPGI partnered with four new and seven returning designers for its annual platinum capsule collection.
CollectionsMay 03, 2024
Piece of the Week: A “Bit of LUV” for the DerbyKarina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian FamiliesThe men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
Weekly QuizMay 02, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
FinancialsMay 02, 2024
Pandora Raises Guidance After Strong Q1The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
SurveysMay 01, 2024
Consumer Confidence Falls in AprilConcerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on EmeraldsMay’s birthstone is beloved for its rich green hue and its versatility.
SourcingMay 01, 2024
Opsydia Names New Sales and Marketing Director Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
CrimeMay 01, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
CollectionsApr 30, 2024
12 Otherworldly Pieces From Tiffany & Co.’s 2024 Blue BookThe “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
MajorsApr 30, 2024
Platinum Guild International Appoints New CEOTim Schlick has been promoted from his previous position as COO.
Events & AwardsApr 30, 2024
Canadian Jewellers Association Brings Back the Summit It’s the second year for the event, slated to take place in October in Toronto.
Recorded WebinarsApr 29, 2024
Watch: Diamond Identification and Evaluation - How to Protect your BusinessSupplier Spotlight Sponsored by GIA
SourcingApr 29, 2024
De Beers to Move Auction HQ from Singapore to BotswanaSales will be paused while the relocation takes place over the next few months.
CollectionsApr 29, 2024
Simone I. Smith Mixes Denim and Diamonds in New Collection“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
IndependentsApr 29, 2024
Venus Jewelers Relocating After 45 YearsThe retailer is moving to a newly designed space in the same shopping center.
SurveysApr 29, 2024
Mother’s Day Jewelry Spending to Reach $7B, Says NRFGifts that are unique and thoughtful are top of mind this year, according to the annual survey.
CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
