Luxury Jewellery in Hong Kong, China

PROSPECTS

Economic improvement supports sales

According to government data published in August 2018, jewellery has been one of the key drivers of growth in terms of retail sales of goods. After a difficult period earlier in the review period in which luxury jewellery registered a decline, the category returned to growth in 2017, with this continuing in 2018.

Younger audience influences luxury jewellery designs

Some luxury jewellery brands are beginning to target the younger population by launching product lines with more approachable prices and simpler and more fashionable designs. For example, Swarovski endorsed Seoul actress Park Shin Hye as the global face for its 2018 S/S collection.

Arrivals from China key to growth

Growth in arrivals from Mainland China has had a big impact on category sales in 2017 and 2018, with these consumers accounting for a large share of sales thanks to jewellery being tariff-free under CEPA. According to a survey by Hong Kong Tourism Board, in 2017 15% of shopping purchases by overnight visitors from Mainland China were accounted for by jewellery.

COMPETITIVE LANDSCAPE

Cartier shines in improving market

Luxury jewellery became increasingly consolidated in 2017 with the three leading players – Cartier, Tiffany & Co and Bvlgari – all seeing significant increases in their respective value shares. Cartier saw the biggest increase in value share in 2017 with it benefiting from returning consumer confidence among its loyal customer base.

New stores appear off the back of economic recovery

Thanks to the improving economy, Hong Kong has seen new store openings in 2017/2018. For example, in 2018 Italian luxury jewellery house Buccellati, which has Chinese owners, returned to Hong Kong with it opening a store in Harbour City’s Gateway Arcade.

New sales channels provide boost to Gucci and Hermès

Although a relatively small player in luxury jewellery, Gucci witnessed the most dynamic growth in percentage terms in 2017. The brand benefited from the launch of its online store, with it taking an omnichannel approach in Hong Kong.

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