Luxury Jewellery in Ukraine

PROSPECTS

Ukrainians economise on jewellery

Jewellery, including luxury jewellery, has not been seen as a priority for many Ukrainians in 2018. The economic and political crisis of 2014 and 2015 accompanied by the reduction in the consumer base due to the conflict in Crimea has hit consumption, with people postponing the replacement of their jewellery.

Luxury jewellery loses investment appeal

Many Ukrainians no longer view fine jewellery as an investment object which has also negatively impacted the consumption of luxury jewellery, with consumers instead spending on other luxury goods. Over the forecast period luxury jewellery is expected to continue struggling to recover from the negative effects of the crisis with consumer spending power likely to take a long time to return to pre-crisis levels which would enable more frequent purchases of such products.

Luxury fine jewellery sees strongest performance

Over the review period luxury fine jewellery generated a much larger share of sales than costume jewellery and it also recorded stronger value growth in both actual and percentage terms. In Ukraine, precious metals such as gold and sterling silver are viewed as more suitable for highlighting one’s high status than the alternative materials used in luxury costume jewellery.

COMPETITIVE LANDSCAPE

Renowned international brands lead the rankings

In Ukraine, luxury jewellery is led by such renowned international luxury brands as Cartier (RLG Ukraine TOV) and Swarovski (Swarovski AG). These brands have local branded stores (a number of authorised and partner stores in major cities of Ukraine in the case of Swarovski and a Cartier Boutique in Kiev) and attract consumers with a wide assortment of high quality jewellery.

Competition from local fine jewellery manufacturers

Within luxury jewellery, local fine jewellery manufacturers attract a significant share of consumers. While their brands are not positioned as luxury overall, there is the possibility for Ukrainians to buy very expensive assortments of fine jewellery, including items made from gold and diamonds, for example, on individual order.

Innovations – a driving force in luxury jewellery

Because of the durability of luxury jewellery, with it being less prone to changes than apparel and footwear, for example, innovations are a driving force for encouraging consumers to buy such products. Luxury jewellery companies, apart from ensuring high quality and a supreme level of servicing and personalisation, will need to continue making regular investments in innovations if they are to remain competitive.

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