Jewellery in South Africa

2020 IMPACT

Lockdown measures place particular pressure on fine jewellery with lack of foreign tourism and postponement of weddings

While demand for gold jewellery, which dominates fine jewellery as a metal in South Africa, remained fairly stable due to the bridal market despite a challenging economic climate towards the end of the review period, the strict lockdown measures introduced in response to COVID-19 not only led to the closure of dominant jewellery and watch specialist retailers (the preferred distribution channel for fine jewellery), restricting sales of this category, but also had a profound impact on weddings and therefore wedding bands during this time, with many couples postponing their plans until later in the year whilst some are deciding to reschedule until 2021, when they hope that lockdown measures will have been eased enough to allow for travel for friends and family, and permitted gatherings. In addition, lack of international tourism during the lockdown is also likely to have compounded declining demand for fine jewellery in South Africa, with this demographic contributing to sales of diamonds, particularly 0.

Jewellery remains highly fragmented landscape in 2019 with private label continuing to record strong performance due to price sensitivity amongst lower-income consumers

Jewellery in South Africa remained a highly fragmented landscape in 2019, with local players continuing to face tough competition from imports. Although demand for locally hand-made fine jewellery exists, many consumers continued to opt for imported pieces due to their affordability, despite the fact that smaller players can offer their products at lower prices as they tend to operate their premises outside of shopping centres with lower commercial rent.

Despite initial mining closures, smaller diamond cutters look to creating their own jewellery with positive results

Initial lockdown measures resulted in the halt to the mining of gold and diamonds in South Africa, which is likely to have an impact on production in 2020. This scenario resulted in the Jewellery Council of South Africa making an appeal to the government in May to consider lifting all restrictions on the industry, although under level 4 lockdown measures introduced mid-May, jewellery manufacturers were only permitted to operate at 30% capacity due to social distancing concerns.

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