Trends that shaped the apparel industry over the past 30 years are becoming evident in the jewellery industry at a much faster pace, according to a recent research conducted by McKinsey & Company.
The research indicates five jewellery trends for 2020 including internalization, the growth of branded jewellery, sales channel reconfiguration, hybrid consumption and fast fashion.
International brands such as Zara and H&M have outpaced national brands in the fashion market; and the trend will be seen in the jewellery industry by 2020 when more and more national and regional brands will join the ranks of top global brands. It is observed that the 10 largest jewellery houses will double their market share by the year, primarily by acquiring local players.
Branded jewellery is accounting for only 20 percent of the overall jewellery market nowadays, said the research which foresees the branded segment will account for 30 to 40 percent of the market in 2020. Behind the trend are three types of consumers: consumers who wear branded jewellery to show off their newly acquired wealth; consumers from emerging markets who consider brands trustworthy; young consumers who turn to brands as a means of self-expression. “Every jewellery company should seek to strengthen and differentiate its brands through unique, distinctive designs,” said the research.
Online jewellery sales are occupying only 4 to 5 percent of the market today, and the number is believed to reach 10 percent by 2020. Though brick-and-mortar stores are perceived as more reliable, digital media can be used as a platform for conveying information, shaping brand identity and building customer relationship.
The previous clear-cut boundaries between fine jewellery and fashion jewellery are starting to blur, the research noted. “Fine jewellers might consider introducing new product lines at affordable prices to entice younger or less affluent consumers, giving them an entry point into the brand.”
The fast-fashion trend has revolutionized the apparel industry over the last two decades. Although fine jewellery can so far be immune to its effects, fashion jewellery is believed to follow the apparel template by reacting to trends quickly and reduce the product-development cycle times.
“The jewellery market of 2020 will be highly dynamic, truly globalized, and intensely competitive. Those jewellery companies that can best anticipate and capitalize on industry-changing trends – particularly the five described above – will shine brighter than the rest,” concluded the research.
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