Store closures as a result of COVID-19 lockdowns in Australia had a significant negative impact on sales of luxury jewellery in the first half of 2020 and the second half of 2021. However, the pandemic also led many consumers to re-evaluate and prioritise their spending patterns, with more people opting for investment pieces, thus limiting revenue losses.
Luxury players have been experimenting with concepts such as flagship stores in luxury retail precincts, e-commerce, pop-up stores and exclusive capsule collections to compete locally, whilst also supporting new product launches or special seasonal products. Between 2020 and 2021, brands such as Kenzo, Gucci, Balenciaga, Tory Burch and Burberry opened new flagship stores in Australia, whilst Cartier, Dior, Louis Vuitton and Tiffany opened pop-up stores, with all players looking to tap into the opportunities presented by local customers.
Retailers invested significantly in their e-commerce capabilities, but also in the development of better experiential retail experiences through new concept stores that combined both physical and digital experiences. For example, Dior opened a pop-up experience store from May to June 2021, which was later followed by the launch of its first dedicated online store in Australia, an online fashion boutique, in an effort to broaden its reach to consumers at home.
E-commerce is expected to continue to grow in the forecast period and become a more prominent channel in the distribution of luxury jewellery. This will be the case especially for lower-priced luxury costume jewellery from popular brands such as Gucci.
The move to digital currency is a notable development underway in jewellery. The markedly changed market conditions resulting from the COVID-19 crisis encouraged many companies to be open to new ways of doing business, including adopting digital currency.
As most Australian states have been gradually lifting restrictions at the end of 2021, it is likely that this will kick-start consumers’ discretionary spending on luxury jewellery. Whether purchasing luxury jewellery for gifting purposes, as an investment or for occasion-based wear, luxury jewellery consumers are likely to regain the confidence to start spending on these big-ticket items once again in the next five years.
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Understand the latest market trends and future growth opportunities for the Luxury Jewellery industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This is the aggregation of luxury fine jewellery and luxury costume jewellery.See All of Our Definitions
This report originates from Passport, our Luxury Jewellery research and analysis database.
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