Luxury Jewellery in Russia

PROSPECTS

Emerging source countries for inbound visitors help to support strengthening performance of luxury jewellery

Luxury jewellery continued to record stronger current value and retail volume growth in Russia 2019, driven by the impressive performance of larger category in volume terms, luxury costume jewellery. The latter carries a much more affordable average unit price compared to luxury fine jewellery, which therefore makes it more of an affordable luxury option to aspiration middle class consumers during a more positive economic environment.

Affluent consumers increasingly search for exclusive luxury fine jewellery that offers unique designs

Several trends were present within luxury fine jewellery towards the end of the review period in Russia. In 2018, many sophisticated affluent consumers opted for classical, simple designs that were more understated and not overly recognisable.

Further rising unit prices expected, although demand will also continue to grow

It is important for many brands of luxury jewellery in Russia to ensure that their prices are aligned with the prices charged on a global level, which subsequently predetermine price increases due to increasing inflation rates. However, with an unstable economy over the review period, unit prices fluctuated and remain volatile, with notable increases experienced for both the luxury costume and luxury fine jewellery categories in 2019, a trend that is predicted to continue into the forecast period.

COMPETITIVE LANDSCAPE

Some positional changes within fairly consolidated competitive landscape

Compared to some luxury goods categories which are marked by high fragmentation, luxury jewellery remained a fairly consolidated competitive landscape in 2018, with dominant value share held by the leading five players of RLG OOO, Bulgari Russia OOO, Swarovski OOO, Mercury Group and Graff Diamonds Ltd. There was some interesting movement amongst the top rankings, with leader RLG OOO (Cartier, Van Cleef & Arpels and Piaget), Swarovski OOO, and Mercury (Chopard, Pasquale Bruni) all losing notable value share, while Bulgari Russia OOO recorded the most impressive performance, gaining strong value share and as a result, moving up to second position, pushing both Swarovski and Mercury down in the rankings.

Hermès aims to attract consumers back to its brand by trading on heritage and classic designs

Luxury accessories and leather goods brand Hermès continued to lose momentum within luxury jewellery, experiencing a fluctuating performance ranging from strong sales growth at the beginning of the review period to several consecutive years of decline in 2017/2018. Therefore, the brand is looking to add some dynamism to its sales by updating its jewellery collection Chaîne d’Ancre.

Collaborations and sponsorships broaden exposure to target audience

As part of their marketing strategies, some brands of luxury jewellery collaborate with or sponsor various high-profile events which guarantee them maximum exposure to an affluent audience. Luxury jewellery and timepiece brand Chopard, for instance, continues to act as the official partner of the Moscow International Film Festival.

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