In a jewelry sector already dominated by iconic brands, renowned luxury houses and local brands have strategically expanded their activities into Haute Joaillerie in recent years. This diversification puts them in direct competition with traditional jewelers, despite their flexibility in shaping their identity with contemporary values.
In the jewelry industry, where many iconic brands are already present, there always seems to be an opportunity for new entries. Over the past five or six years, renowned luxury houses and fashion brands have deliberately expanded their scope of activity.
But why are brands that have been present in the luxury industry for decades, even centuries, suddenly showing an interest in the precious jewelry market? According to a McKinsey report, this market is expected to reach a retail value of $340-360 billion by 2025.
Currently, branded jewelry represents a minority share of the global fine jewelry market, despite the popularity of iconic brands such as Tiffany’s and De Beers. However, the McKinsey report predicts that the market share of branded jewelry could reach 25-30% by 2025, generating between $80 and $100 billion. This represents a compound annual growth rate (CAGR) of 8-12%.
According to another report recently published by Bain & Company and Altagamma, luxury jewelry is set to experience exceptional demand, particularly for extremely sophisticated pieces. The study estimates this global market at nearly $29.98 billion in 2022.
Towards new sectors
Expanding into areas other than Haute Couture is common practice for renowned fashion houses such as Balmain and Saint Laurent. The success of a fashion brand with a rich heritage rests more on its ability to interpret recognizable house codes in a coherent universe than on its ability to create quality garments.
However, non-clothing products such as lipsticks, perfumes and even coffees enable individuals who couldn’t afford designer bags or dresses to acquire a piece of the brand. Fine jewelry, on the other hand, runs counter to this logic: those who save up to buy a Prada nylon bag for 1,000 euros are not necessarily interested in acquiring a cuff bracelet for 57,500 euros!
For Louis Vuitton, which launched its first jewelry line in 2001, fine jewelry has been one of the fastest-growing categories in its luxury business. Growing demand has prompted other major fashion houses to exploit their brand value in the jewelry market. Prada, the Italian brand founded in 1913, launched its first high jewelry line in 2022, focusing on sustainability to appeal to Generation Z and millennials. Gucci opened its first fine jewelry boutique in 2019 and Balmain presented its first jewelry collection in 2022, highlighting the use of recycled and ethical gold. Saint Laurent, meanwhile, launched its first fine jewelry line last May, offering a collection ranging from 690 euros for a ring to 45,000 euros for a yellow gold bracelet.
New arrivals
Perfumer Byredo is also expanding its range, unveiling its own fine jewelry collection in early November. Having explored make-up and even leather goods, Byredo ventures into new creative territory with this line comprising necklaces, bracelets, rings and earrings. Entitled “Virassat,” meaning “heritage” in Indian, this first collection is inspired in part by the legacy of founder Ben Gorham. The idea is to explore individual ornamentation and self-expression.
At the heart of this new range are totemically designed pieces, blending gold and silver, where the softness of pearls contrasts with more graphic lines. These genuine precious amulets unite these two central motifs in signature creations. Handcrafted in Italy, this line of fine jewelry offers Byredo a new way of expressing individuality and appealing to a broader clientele in search of innovation.
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Read also>BOUCHERON ACQUIRES HAUTE JOAILLERIE WORKSHOP
Featured photo : ©Prada
