The global jewelry market is likely to exhibit strong growth in the coming years. Some of the commonly used materials for jewelry are gold, silver, and platinum along with combination of pearl, diamond, and other precious gemstones. Rapid urbanization along with improving lifestyle and rising per capital income are one of the primary growth stimulants for the market.
Furthermore, widening base of female workforces is leading to increased purchasing power, which in turn is fueling the demand for these products. Rising demand for costume jewelry is also positively influencing the overall market. These products have high demand among younger population. They are mostly artificial and are aesthetically as pleasing as the counterpart made of precious metals and gems. They are attractive and yet affordable, which is keeping their demand high in the market.
Increasing use of digital platform for marketing and advancements in online marketing are also poised to stoke the growth of the market. Apart from this, surging utilization of advanced technologies and colorful stones for artificial jewelry is projected to augment the market for imitation jewelry.
Growth of e-commerce sales, presence of organized retail channels, and launch of premium products are also encouraging jewelry design business. Online purchasing is considered as a convenient platform for buyers. Various online platforms also offer discounts on products. Young and working populations mostly prefer online purchasing. These platforms are beneficial for retailers as they can save cost of inventory, distribution, and promotion and marketing.
Developments of advanced jewelry making techniques coupled with presence of several certification bodies including Bureau of Indian Standards (BIS) hallmarking and Kimberly Process Certification Scheme are anticipated to work in favor of the market. Additionally, several tools are also available in the market for differentiating original diamond and synthetic diamond. For instance, HRD Antwerp, authority in diamond certification, presented an analysis tool, D-Scope+, for all diamonds and gemstones, at the Hong Kong Jewelry and Gem Fair. Its illumination brings an advanced dark-field lighting technology, which helps users to select between three different colors of light such as very strong white daylight, white light, and yellowish light. These different color-temperatures are perfect for analyzing all types of internal and external characteristics of diamond.
Gold and diamonds are mainly used as a raw material in fine jewelry business. These, raw materials are traded internationally, which creates volatility in their prices. Protean raw material prices are estimated to affect retail prices and sale volumes along with profit margins of distributors and retailers.
The U.S. is one of the leading consumers of diamond jewelry. Asia Pacific is one of the promising destinations for fine jewelry manufacturers. Retailers in the region, particularly from China and India, are likely to experience higher profit margins. India is believed to be a hub of jewelries due to presence of high-skilled labors and low making cost. The country is also one of the largest diamonds cutting and polishing centers. Growing middle class population and improving economic condition in the region are poised to spur market growth in the coming years.
Many players operating in the market are increasingly focusing on designing customized jewelry. Several companies are increasingly accepting omnichannel strategy. Growing preference for branded products among consumers is also projected to create growth opportunity for jewelry retailers across the world.
Consumers opt for branded products, especially diamonds as it avoids the risk of making a wrong purchase. For instance, HRD Antwerp declared that it would be certifying all diamonds sold by Shape of Antwerp. The company’s collection will be retailed on the Alibaba’s Tmall platform called Belgian Diamond Pavilion. The company will certify the diamond sold on this platform to conform color, 4Cs cut, carat weight, and clarity of the product.
Research Support Specialist, USA