Luxury Jewellery in Hong Kong, China

2020 IMPACT

Fall in demand from both inbound tourists and local consumers

As in other personal luxury categories, luxury jewellery was hit hard by the dramatic decline in inbound tourism due to the COVID-19 crisis in 2020, and especially the marked fall in the number of visitors from Mainland China, a key consumer group across personal luxury. This compounded an already challenging situation resulting from the social unrest sparked by protests about the proposed Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation (Amendment) Bill 2019.

Investment value supports persistent demand for gold

The fall in consumer confidence and purchasing power resulting from moves aimed at containing COVID-19 had a particularly marked impact on the costume jewellery category in 2020. Fine jewellery, meanwhile, proved slightly more resilient because of the robust spending power of its core affluent consumer base, demand from collectors and the fact that such products are seen as an investment.

Luxury jewellery brands turn to digital channels to stay in touch with consumers

With consumers steering clear of physical stores and becoming even more digitally engaged than usual because of spending more time at home, jewellery brands sought to stay connected with consumers via digital channels, especially social media. Tiffany & Co, the largest player in the category, launched an Instagram story filter for its new product range, the T1 series, together with Elle HK, in 2020.

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