The jewelry industry is rapidly growing, and its future looks bright. Total global annual sales reach an incredible €148 billion, and with an estimated growth potential of 5 to 6 percent per year, sales could total up to €250 billion by 2020. The jewel industry may have taken a slight blow with the global recession, but modern consumers are more hungry for expensive stones than ever before.
Although the apparel industry is about ten times the size of the jewelry industry, the average value of jewelry is on the rise. For example, worldwide jewelry sales saw a compound annual growth of 9 percent between 1997 and 2012, while apparel sales only reached a 5 percent increase. This is pretty astonishing information, considering that the apparel industry has been the leader in the fashion marketplace since the 1980s, and even takes the top slot today. Apparel has become a global business, so it’s not surprising that the jewelry industry is expected to fall right in its footsteps. As McKinsey & Company puts it, “Some industry observers project that the ten largest jewelry houses will double their market share by 2020, primarily by acquiring local players. And if the apparel industry does indeed hold any lessons for the jewelry industry, incumbent jewelry houses will soon be fighting bidding wars against private-equity players with deep pockets.”
One of the greatest benefits to industry in the modern world is, undoubtedly, the internet. ECommerce of jewelry items and watches makes shopping easier than ever before, thus boosting sales dramatically. This is especially true during winter months when most buyers would rather shop for jewelry online than have to get out in the freezing weather and holiday traffic. Another facet that is specific to jewelry that has boosted its worldwide sales is the fact that jewelry does not necessarily have to be “tried on” the way that clothing items do. All you have to do is order a ring in your size, and it will be sure to fit you. The purchase of bracelets and necklaces is even more risk free. Even if sizes vary in small degrees, rings can be easily resized at a much cheaper price than designer clothing can.
According to IBIS World, “The Online Jewelry and Watch Sales industry performed well over the past five years due to consumers’ mounting affinity for quick and easy online shopping. As disposable incomes rebounded, industry revenue has grown more strongly. With the economy continuing along its upward trajectory, consumer demand for discretionary items like jewelry will grow steadily.” This is great news for the jewelry industry, as well as for jewelry fanatics and collectors. The ease at which we can find, access, and purchase jewels is more accessible than ever before.