Luxury Jewellery in the US

PROSPECTS

Men’s newfound interest helps drive luxury jewellery growth

Bucking the trend towards spending on goods over experiences, luxury jewellery recorded a second consecutive year of growth in 2019. As consumers become increasingly value-orientated, fine jewellery’s ability to appreciate in value over time made it appear to be a smarter investment for consumers than costume jewellery, causing the subcategory’s growth to be driven by men’s and women’s luxury fine jewellery over luxury costume jewellery.

Societal trends drive self-purchasing and increased wear occasions

Social movements including casualisation and female empowerment have helped to lift women’s luxury fine jewellery and luxury costume jewellery back to growth in recent years as women find more opportunities to both obtain and wear jewellery. As a result of the casualisation of dress codes in work and social spaces alike, many consumers no longer feel the need to restrict jewellery wear to formal occasions, increasingly choosing to wear luxury jewellery as an everyday accessory.

Lab-grown diamonds poised to disrupt luxury fine jewellery

As consumers increasingly demand ethically and sustainably-made products, lab-grown diamonds are gaining popularity in the market as an environmentally and socially conscious, as well as cost-effective, alternative to mined diamonds. As a result, a multitude of jewellery players have begun to sell lab-grown diamonds in the US with varying marketing messages aimed at disrupting specific niches within the fine jewellery space.

COMPETITIVE LANDSCAPE

Tiffany & Co becomes acquisition target as it leads luxury fine jewellery

New York-based Tiffany & Co continued to be the clear leader in luxury jewellery in 2018 as the brand saw success in its efforts to revitalise its domestic business by courting younger consumers. Activities including the debut of new product lines, the refreshing of existing ones, and the “Believe” advertising campaigns, which featured interracial and same-sex couples as well as younger celebrities including Elle Fanning and Zoë Kravitz, all helped to attract new customers to the storied brand while retaining the existing.

Transparency demands influence brand strategies

Jewellery makers are increasingly communicating the origins of their products and materials to consumers, in response to both mounting consumer demand for ethical and sustainable business practices as well as increased pressure from government regulators. At the end of 2018, De Beers Group launched Tracr, an end-to-end diamond industry blockchain traceability platform which can be used to trace a diamond from mine to retailer, stating that the new model will establish provenance, authenticity and traceability throughout the entire supply chain.

E-commerce grows at stores’ expense

E-commerce continued to be the fastest growing sales channel for luxury jewellery, as brands and retailers alike expanded their e-commerce product assortments in accordance with consumers’ increasing comfort purchasing high-valued items online. While still the largest channel for luxury jewellery, albeit slightly, mixed retailers, which includes department stores, saw a decline in 2019 as declining foot traffic to shopping centres and retail corridors, due in large part to the rise of e-commerce, continued to squeeze the store-based channel.

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