Luxury Vintage Jewelry: Trends

  • Diamonds are constantly in demand “because everyone understands them” – The report expects diamond jewelry market to grow at a CAGR of 3% and exceed USD 93 billion globally by 2019.
  • A high demand for better precision knowledge of gemstones because prices have gone up tremendously and buyers need the confidence they are genuine antiques, not reproductions – Joseph DuMouchelle – Joseph DuMonchelle Auctioneers
  • High demand of enamel: Modern takes on enamel provide unexpected pops of color.
  • Pearl Explode! High demand in Pearls (natural) –> need of laboratory certification
  • High demand of old jewelry: “You get more for your money, a bigger, more attractive choice that will hold its value better, if you go for older pieces.” – Jonathan Edwards, a jewellery specialist for Salisbury-based Woolley & Wallis / “Many women prefer antiques because they have more character or a romantic history.” Antique jewellery must date back 100 years – to 1914 or before. That covers the Edwardian belle époque era when jewelers innovated the use of platinum in very pretty pieces with swags and bows that are always popular.”
  • No one wants to wear brooches, and it’s sad to see pieces 200 years old selling for scrap value and going straight to the melting pot.
  • Buying from a reputable auction house
  • Rise in online sales of diamond jewelry: Buying online (The internet has revolutionized the business): It used to be a golden rule not to buy jewellery unless you had a good look at it, but the quality of online images are so good that has changed. Now you can bring the auction to your sitting room
  • Gold is x2 the value of 10 years ago
  • In China, the country’s appetite for gold is waning as gold jewelry demand fell 22 percent to 141.5 tons, as gold prices reached its highest level since 2013. + Gold jewelry is competing with the rising popularity of travel and experiences among Chinese.
  • Rising preference for branded jewelry: Recognition of the importance of brand has led companies to promote their brands more actively through a range of channels, including franchising, celebrity endorsements and media. / Branded items already account for 60 percent of sales in the watch market. While branded jewelry accounts for only 20 percent of the overall jewelry market today, its share has doubled since 2003 (Exhibit 1). All executives we interviewed believe branded jewelry will claim a higher share of the market by 2020, but their views differ on how quickly this shift will occur. Most expect that the branded segment will account for 30 to 40 percent of the market in 2020.
  • Rise of non-jewelry players: In the past, most of the growth in branded jewelry came from the expansion of established jewelry brands, such as Cartier and Tiffany & Co., and new entrants such as Pandora and David Yurman. By contrast, future growth in branded jewelry is likely to come from nonjewelry players in adjacent categories such as high-end apparel or leather goods—companies like Dior, Hermès, and Louis Vuitton—introducing jewelry collections or expanding their assortment.
  • France recently introduced a 9k gold segment
  • Emerging market for men’s diamond jewelry

  • Rise of Apparel jewelry & Polarisation and “hybrid” consumption : The apparel industry is about ten times the size of the jewelry industry as measured in annual sales, but the average M&A deal value in apparel (€12 billion) is almost 20 times that in jewelry (€700 million). / In apparel, both the high and low end of the market are growing—while the middle market stagnates. High-end apparel players have been able to create a substantial premium: our analysis shows that a Gucci suit that cost €1,200 in 2000 now sells for €1,700, rather than the €1,300 one would expect based on inflation. At the same time, mass-market prices have dropped: an H&M suit that cost €106 in 2000 now sells for €103, not the €119 that inflation rates would lead us to expect. Furthermore, the previously clear-cut boundaries between fine jewelry (characterized by the use of precious metals and stones) and fashion jewelry (typically made of plated alloys and crystal stones) are starting to blur. For example, fine jewelry used to be almost exclusively a gift purchase, but today’s consumers are buying higher-end items for themselves. Some fine jewelry is available at bargain prices: Tchibo in Germany sells gold diamond rings starting at €99. On the flip side, brands such as Lanvin and Roberto Cavalli sell fashion jewelry for thousands of euros.
  • Rise of Private Jewelry manufacturers: Jewelry manufacturers can use digital media as a platform for conveying information, shaping brand identity, and building customer relationships.
  • Telling stories to sell jewelry: Sales with interesting provenance or backstories are making the biggest difference in the market. We find that telling a story with the item seems to better engage people
  • Rise of Collectors: Collectors are looking for pieces that they can connect to; objects that have contextual meaning. They want to know where they were made, who made them, who used them, and how they were used. Being able to understand and convey these attributes is essential to these pieces reaching their full potential at auction. – Jeffrey Evans – Jeffrey & Evans & Associates
  • Rise of demand of Chinese traditional Jewelry in the Western European market

 

–> Rising demand for vintage diamond jewelry

Connoisseurs are attracted by vintage jewelry and are willing to pay higher prices for such collections. Some players like Estate Diamond Jewelry and Single Stone are focusing on this segment and manufacture antique and vintage diamond jewelry collections.

How to grow business?

  • Open another location
  • Offer your business as a franchise or business opportunity
  • License your product
  • Form an alliance
  • Diversify products
  • Target other markets
  • Win a government contract
  • Merge with or acquire another business
  • Expand globally
  • Expand to the internet

New target

  • “new money” consumers who wear branded jewelry to show off their newly acquired wealth (in contrast to “old money” consumers, who prefer heirlooms or estate jewelry)
  • emerging-market consumers, for whom established brands inspire trust and the sense of an upgraded lifestyle—a purchasing factor quoted by 80 percent of our interviewees
  • young consumers who turn to brands as a means of self-expression and self-realization

 

Reference

Bridget Galton, 1 JUNE 2015 • 4:00PM. Discover hidden gems: a guide to buying jewellery. [online ] Available at: http://www.telegraph.co.uk/art/barnebys-auctions/buying-jewellery-guide/. [Accessed 08-02-2017].

JANUARY 14, 2016. Specialists Speak: 2016 Trends & Predictions in Collecting. [online ] Available at: http://www.invaluable.com/blog/specialists-speak-2016-trends-and-predictions-in-collecting/. [Accessed 08-02-2017].

Linda Dauriz, Nathalie Remy, and Thomas Tochtermann, February 2014. A multifaceted future: The jewelry industry in 2020. [online ] Available at: http://www.mckinsey.com/industries/retail/our-insights/a-multifaceted-future-the-jewelry-industry-in-2020. [Accessed 08-02-2017].

BDI Contributor, Feb 24, 2016. Top 5 trends influencing global diamond jewelry market. [online ] Available at: https://betterdiamondinitiative.org/top-5-trends-influencing-global-diamond-jewelry-market/. [Accessed 08-02-2017].

Victoria Gomelsky , December 19, 2016. 7 Jewelry Trends That Will Define 2017. [online ] Available at: http://www.jckonline.com/blogs/chain/2016/12/18/7-jewelry-trends-will-define-2017. [Accessed 08-02-2017].

Anthony DeMarco , NOV 8, 2016 @ 10:35 AM. Global Gold Jewelry Demand Falls 21% In Q3. [online ] Available at: http://www.forbes.com/sites/anthonydemarco/2016/11/08/global-gold-jewelry-demand-falls-21-in-q3/#16b8c59e63f8. [Accessed 08-02-2017].

Anthony DeMarco , NOV 8, 2016 @ 10:35 AM. Global Gold Jewelry Demand Falls 21% In Q3. [online ] Available at: http://www.forbes.com/sites/anthonydemarco/2016/11/08/global-gold-jewelry-demand-falls-21-in-q3/#16b8c59e63f8. [Accessed 08-02-2017].

https://www.estatediamondjewelry.com/product-category/vintage-engagement-rings/

https://www.singlestone.com/vintage_c3/

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