Luxury Jewellery in Taiwan

2021 DEVELOPMENTS

Women’s luxury fine jewellery most dynamic thanks to its well-off consumer base

Overall, luxury jewellery is expected to perform relatively well in 2021, with its current value growth rate slowing only slightly. However, the pandemic has resulted in some consumption pattern shifts.

Declining demand for wedding-related luxury jewellery as fewer young couples make purchases for their weddings

The COVID-19 pandemic, which hit Taiwan in March 2020 and was still impacting Taiwanese society throughout much of 2021, including the implementation of a nationwide lockdown in the middle of the year, has seen the postponement of many events. This has included, for example, many couples who were planning to marry postponing their weddings as large gatherings were either not allowed or people were simply afraid to meet up in large numbers.

Bling Empire Netflix show puts jewellery collections in the spotlight

The increasing exposure of luxury jewellery in the media has been having a positive impact on demand in recent years. For example, “Bling Empire”, the reality television drama series, which is available to stream via Netflix, has become increasingly popular in Taiwan.

PROSPECTS AND OPPORTUNITIES

Slower growth as COVID-19 leads to declining international orders

The forecast period current value CAGR is expected to be lower than the review period CAGR, although positive annual growth rates will be seen throughout the 2021-2026 period. Local demand has been impacted to an extent with the government’s attempts to control the spread of the COVID-19 virus having experienced some problems in 2021, resulting in some disruptions in the supply chain.

Brands continue to launch affordable costume jewellery for the growing segment of younger and independent women

Throughout much of the forecast period, increasing demand for luxury costume jewellery is anticipated to be one of the main drivers of growth in the overall category. More and more middle-class younger women are seeking to purchase “light jewellery”, ie affordable jewellery that focuses on a basic, elegant design and is easy to style with daily outfits.

Brands and retailers continue to focus on e-commerce as a way to ensure

consistent sales in the future

Currently, many traditional luxury jewellery brands rely heavily on store-based sales and have very little digital presence. Consumers prefer to visit stores where they can see and even try on the jewellery at the same time as receiving VIP treatment as well as advice from the sales personnel, offering an all-round luxury experience for the consumer.