In a recent article on Solitaire, an B2B gem and jewelry magazine published by India’s Gem and Jewellery Export Promotion Council (GJEPC), diamond analyst Paul Zimnisky discusses how high jewelry has captivated “affluent buyers and driving record sales for renowned brands,” thus becoming “a shining star in the jewelry industry.” Here are several highlights from the analysis.
According to Zimnisky, while there isn’t a universally defined distinction between “high jewelry” and “fine jewelry,” experts in the industry generally concur that the former refers to exclusive and often branded pieces created with exceptional materials and craftsmanship, typically commanding prices that exceed six figures.
Cartier has announced plans to launch its inaugural marketing campaign targeted specifically at high jewelry in July. This move aligns with other prominent luxury brands such as Tiffany & Co., Van Cleef & Arpels, and Bulgari, who have all observed notable growth in the high jewelry segment. The strong performance of high jewelry has contributed to record-breaking jewelry sales in recent quarters for the parent companies Richemont and LVMH, which own these renowned brands.
According to recent statements from the CEOs of Cartier and Tiffany, the surge in demand for high jewelry is being propelled by emerging markets, including Southeast Asia, as well as the expansion of customer bases in well-established markets like Western Europe and the United States. Notable areas experiencing growth in high jewelry sales include South Korea, Thailand, Malaysia, Australia, and even major cities like London, Paris, and New York.
Zimnisky notes that the COVID-19 pandemic, coupled with economic stimulus measures, has resulted in asset prices reaching unprecedented levels, primarily benefiting the wealthiest individuals who possess substantial real estate and stock holdings. He then provides data from the U.S. Federal Reserve Bank which reveals that in 2018, the top 1% of Americans held $30 trillion in wealth. However, by 2022, this figure had surged by more than 50% to $46 trillion. In other words, the proportion of America’s wealth held by the top 1% exceeded 30% as of 2022.
Similar trends, Zimnisky remarks, can be observed worldwide, including in China, where the government has implemented policies to address the wealth disparity. This phenomenon of growing wealth has played a significant role in the recent global surge in high jewelry demand, a trend that has continued to thrive in 2023.
Read the full article here.
