Luxury Jewellery in Malaysia

2021 DEVELOPMENTS

Slow recovery of luxury jewellery in 2021 due to the ongoing pandemic

Due to restrictions imposed to curb the spread of COVID-19, sales of luxury jewellery in Malaysia were restricted in 2020. For example, during the country lockdown between 18 March and 4 May 2020, non-essential stores were required to cease operations, including jewellery specialist retailers.

Discounting employed for entry level brands while fine jewellery players focus on exclusivity and product differentiation

In 2020 and 2021, players responded to the pandemic with different strategies. Entry-level luxury jewellery brands such as Tiffany & Co, Coach, Tory Burch, and Swarovski actively engaged in price promotion strategies to attract consumers.

International luxury jewellery players remain highly active in new product launches and the facilitation of walk-in store appointments with e-commerce the reserve of entry-level brands

International luxury jewellery brands characterised the category’s performance in 2021 with active new launches. For example, Van Cleef & Arpels unveiled it’s Between the Finger ring collection.

PROSPECTS AND OPPORTUNITIES

Growth in e-commerce for entry-level luxury jewellery and luxury costume jewellery while luxury fine jewellery remains in the domain of offline

The expansion of e-commerce will continue to be important in the forecast period, although it will be subject to the type of luxury jewellery offered. The e-commerce channel will be more applicable to entry-level luxury jewellery brands rather than exclusive brands such as Piaget, Cartier, and Chanel with consumers more comfortable with the online experience for brands such as Tiffany & Co, Swarovski which have much lower price points than fine jewellery.

Brands develop and further employ home delivery and concierge services even after the pandemic recedes thanks to ongoing consumer demand

Many international luxury fine jewellery brands will compete to reach more consumers during the pandemic by offering home delivery services as part of concierge services. Examples of brands offering home delivery services in 2021 included Tiffany & Co, which is connecting its customers directly to a Sales Professional (SP) and enabling browsing and the showcasing of new collections and signature pieces.

Positive outlook for luxury jewellery as international tourists return and luxury shopping centres reopen

While luxury jewellery returned to positive growth territory in 2021, it remained relatively slow in current retail value terms. However, from 2022 growth is expected to return to stronger rates, only intensifying through the remainder of the forecast period.