Global Jewelry sales up by 5% in Q2
Alrosa
presented the results of its
Global luxury and jewelry market research
In
Q2 of 2018, sales of decorative jewelry increased in all of the world's key
regions, except for India. The average global growth rate was some 5% higher
than during the same period last year.
Notably,
in the Asia Pacific, the figures were as high as 17%. The positive dynamics
resulted from the continuing expansion of various local players, made possible
by the mounting demand for diamond-based jewelry in continental China. Another
factor that made sales more stable was the improvement of tourist traffic in
Hong Kong and Macao.
In
other key regions (North America, Europe, and Japan) the sales boost fluctuated
between 3% and 5%. It bears pointing out that the rise of diamond jewelry sales
in North America and Japan (+5% and +3% respectively) has been accompanied by
significant demand spikes among the local population, which drive most of the
sales.
In
India, jewelry sales (in dollar terms) have decreased. Today, major Indian
players are focusing most of their effort on restoring their reputation and
regaining the customers' trust and confidence that the jewelry they buy is
genuine. Furthermore, Indian sales dropped due to the new Goods and Service Tax
(GST), introduced in July 2017.
The
tax created a high base effect when making a comparison between the
corresponding periods this year and the year before. "Today, the shares of
the Indian market are being redistributed among the stakeholders, with large
retailers encroaching upon their smaller competitors.
Nevertheless,
despite all of the major players' efforts, most sales are still ensured by
smaller retailers," notes Dmitry Klimenko, head of the analytics
department at Alrosa’s Strategic Projects and Analytics Center.
Overall,
the luxury commodities market is experiencing positive dynamics. The figures of
Q2 of 2018 show that, in terms of monetary value, worldwide sales of luxury
items have increased by 11% if compared to the corresponding period last year.
The
highest growth rate has been exhibited by the Asia Pacific countries*, where
the sales of luxury commodities increased by 19%. Sales in Europe, Japan, and
America** have also shown significant improvement (+10%, +9%, and +5% respectively).
"When
finalizing our analysis, we discovered that the sales of diamond-based
decorative jewelry are continuing their upward trend. In some countries, we are
seeing the rise of the Omnichannel sales model, as people are showing
increasing preference towards buying jewelry and other luxuries over the
Internet," Dmitry Klimenko summarizes.
He
also points out that the weakening of national currencies versus the US dollar,
typical of Q2 this year, may have a negative impact on the consumers' purchasing
power, as well as affect tourist flows.
*In
this context, the Asia Pacific region includes South East Asia and India
**
The figures for America include the sales of jewelry in North America and the
sales of luxury items in North and South America.
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