Luxury Jewellery in the United Arab Emirates

2021 DEVELOPMENTS

Resumption of events creates opportunities for recovery

With a further easing of restrictions in the United Arab Emirates, gatherings and events are now permitted in 2021, including weddings, corporate exhibitions and even large-scale events such as Expo 2020. This has been possible due to strong COVID-19 prevention measures applied in the country such as high vaccination rates, strict mask wearing and testing.

Pre-loved items continue to pose threat to luxury jewellery

Being a hard luxury item with less wear and tear, luxury jewellery continues to see competition from pre-loved or second-hand jewellery sellers and products. Many pre-loved luxury players such as The Luxury Closet, continue to sell original pieces and older editions at more affordable prices.

Digitalisation to enhance luxury jewellery shopping experience

Luxury jewellery has also joined the e-commerce landscape and is slowly but surely gaining share by offering a wider range of products, greater access to information and options of buying online, in-store and via phone as part of an omnichannel approach. Brand presence through social media apps and websites also gives access to consumers, while providing regular campaign information.

PROSPECTS AND OPPORTUNITIES

Consumers to view luxury jewellery as investment pieces

Hard luxury goods such as luxury jewellery continue to be viewed as investment pieces in the United Arab Emirates, which could be sold in the future or passed on to future generations, with minimum wear and tear. Consumers are likely to purchase luxury jewellery with a specific purpose in mind, for special occasions such as weddings and events, statement pieces for daily wear, selling or even exchanging them in the pre-loved market.

Strong vaccination campaign to boost recovery

While residents have mostly contributed towards the tentative recovery of luxury jewellery in the last half of 2020 and into early 2021 as stores opened up, during the forecast period a further boost is expected from the rebound of domestic and international tourism. This will be supported by the high level of vaccinations in the United Arab Emirates, boosting confidence amongst tourists visiting the country.

Consumers to become more attentive towards sustainability issues

The pandemic has resulted in consumers becoming increasingly aware of their health and wellness as well as of their wider environment. Hence, themes of holistic sustainability which involves ethical mining of resources, treating workers and employees fairly, considering the environment, repurposing or recycling materials are gaining in prominence will be considered by corporates and stakeholders over the forecast period as part of new product development strategies.