While the industry continues to debate the future of branded goods, a new report predicts this sector of the market will continue to soar.
According to a report published by British marketplace OnBuy.com, today branded jewellery (whether high-end or fashion) only accounts for 20% of the overall market, but this looks set to rise to 30-40% by 2020.
The report says: “Industry insiders believe branded jewellery will claim a higher share of the market by 2020, though views differ on how quickly this shift will occur. Most expect that the branded sector will account for 30-40% of the market by 2020.”
Three types of consumers have been identified as the ones to be responsible for driving this growth:
- New Money – those who wear branded jewellery to show off their newly acquired wealth.
- Emerging Market – whereby established brands inspire trust and a sense of an upgraded lifestyle.
- The Young – who increasingly turn to brands as a means of self-expression and self-realisation.
Previously, growth in branded jewellery came from established brands such as Cartier and Tiffany and Co, along with new entrants like Pandora and Swarovski.
Moving forward, it is expected growth will stem from lesser-known names on the market today who introduce jewellery collections as a way of expanding their assortment.
The reports adds: “It is therefore crucial for those in the business to strengthen and differentiate their product through unique, distinctive designs, which can be especially challenging for small artisans who do not have the marketing prowess to compete.”
OnBuy.com was inspired to research the market following a report by Mckinsey titled: A Multifaceted Future: The Jewellery Industry in 2020, which revealed annual global sales of €148 billion (approximately £132 billion/$173 billion) are expected to grow at a healthy clip of 5 to 6% each year, totalling €250 billion (approximately £223 billion/$292 billion) by 2020.