Luxury Jewellery in the US

2020 IMPACT

Store closures and travel restrictions reduce foot traffic to key retail channels

Sales of luxury jewellery in the US dropped sharply in 2020 as efforts to curb the spread of COVID-19 forced the closure of key store-based retail channels throughout much of the year, as well as led to a severe reduction in travel and subsequent tourist spending. While international retail expenditure typically represents over 30% of total luxury jewellery sales in the US, this fell to just over 20% of a much lower total in 2020 as international and domestic travel restrictions alike prevented wealthy international students and travellers, key drivers of luxury jewellery sales, from visiting large cities and other luxury shopping destinations.

Lack of consumer need amid increased time spent at home weighs on sales

Further reducing demand for luxury jewellery was a lack of consumer need amid not only lockdowns and quarantines, but also throughout the rest of the year as consumers spent significantly more time at home than in typical years. Without an opportunity to show off their luxury jewellery at work or during large social events and gatherings, consumers with discretionary income instead purchased good and services to help make their increased time spent at home more comfortable, such as food and alcohol delivery, furniture, home décor and home entertainment systems, in addition to allocating more of their money to savings.

Postponements of engagements and weddings delay sales for top brands

Leading luxury jewellery players, including Tiffany & Co, and Richemont’s Cartier and Van Cleef & Arpels, the top three selling brands in 2019, respectively, saw their 2020 sales particularly affected by the postponement of engagements and weddings amid the closure of churches and bans on large gatherings as a result of the pandemic. With subsequent sales of luxury jewellery products such as engagement rings, a key product category for the leading brands, also delayed as a result, these and other jewellery players sought to convince consumers to undertake purchases far in advance of future events through digital marketing campaigns on social media and e-commerce sites, while also promoting their other product categories more heavily than in a typical year.

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