Luxury Jewellery in South Africa

PROSPECTS

Consumers continue to defer their purchases amid economic turbulence

International travellers to South Africa represent an important customer base for luxury jewellery. There is the perception that diamonds are sourced from Africa and as such they are more likely to be cheaper when purchased from here.

Offering customisable services is a distinct advantage

The success of players in this niche lies in their ability to have a close relationship with their clientele and offer differentiated products. Players such as Browns offer custom jewellery services, although there is a minimum value requirement for such services.

Locals seek pieces that reflect their African heritage

The majority of products in luxury jewellery in South Africa have a European influence in terms of their design. High-net-worth individuals with African heritage are increasingly looking for African-inspired luxury items, and this trend has been observed across multiple categories.

COMPETITIVE LANDSCAPE

Browns marries culture with class

Browns has a strong reputation thanks to the quality of its diamonds and its guarantee that it only deals with ethically sourced diamonds. Wealthy shoppers are becoming increasingly aware of the importance of ethically sourced diamonds and are becoming more demanding in regard to the relevant certifications before buying luxury jewellery.

Competition enrichens as more mono-brand stores appear

More mono-brand stores are opening locally and stocking a wider collection of items. Brands such as Burberry and Hugo Boss are striving to give the same shopping experience to their African consumers.

High-end luxury costume jewellery creates overlap in customer base

As more luxury players enter the category and offer more diversified product portfolios, including costume jewellery, sales are benefiting, with the overall decline becoming milder in 2019. However, the price of luxury costume jewellery can be as high as entry-level silver or smaller products of lower-carat gold.

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