"},"content":{"rendered":"<\/p>\n
<\/p>\n
An exploding gold price, a growing trade surplus, a luxury industry more dynamic than the mass market: these are some of the main lessons of the latest 2024 study by Franc\u00e9clat<\/b>, which every year provides and analyzes the key figures for the watchmaking and jewelry sectors in France.<\/p>\n
<\/p>\n
Franc\u00e9clat is the professional committee for economic development serving the watchmaking, jewelry and tableware sectors in France<\/b>. Funded by the 14,000 companies in these sectors, its mission is to help them develop in France and around the world, promoting them and supporting them in their transformation.<\/p>\n
<\/p>\n
<\/p>\n
Its latest report thus provides \u201cvaluable insight into the evolution of production, international trade and domestic<\/b> market consumption\u201d for the French jewelry and watchmaking industry in 2024,<\/b> a \u201cyear marked by strong performance, but also by growing contrasts within the industry,\u201d explains Franc\u00e9clat.<\/p>\n<\/p>\n
<\/p>\n
\u201cA French industry with production exceeding 6 billion euros<\/b>, exports<\/b> soaring to over 11 billion euros, a positive trade balance of 2 billion euros<\/b> and an internal market of 6 billion euros<\/b>. This is an impressive performance<\/b> in a turbulent landscape and a year of ups and downs. But a gap is widening within the sector, with production and the domestic market evolving at different rates,\u201d said Herv\u00e9 Buffet, CEO of Franc\u00e9cla<\/b>t.<\/p>\n
<\/p>\n
First lesson: French watchmaking and jewelry production continued to grow last year by 6%<\/b>, thus crossing the 6 billion euro mark.<\/p>\n
<\/p>\n
Although its growth rate has slowed down compared to previous years, the production of jewelry in France has thus increased by 6%<\/b> to 5.7 million euros in 2024. This is a development that Franc\u00e9clat considers \u201cencouraging\u201d, as is the increase in manufacturing staff (+2% to 12,000 people)<\/b>, with the emergence of new sites in Brittany, Pays de la Loire and New Aquitaine, alongside the traditional production regions (Paris, Auvergne-Rh\u00f4ne-Alpes, Bourgogne-Franche-Comt\u00e9 and Grand Est).<\/p>\n
<\/p>\n
<\/p>\n
The growth and volume of the watchmaking industry, up 3%<\/b> to 423 million euros, are more modest. However, the performance of watch manufacturers, which are growing strongly (+15% to almost 100 million euros),<\/b> is all the more welcomed by Franc\u00e9clat in view of \u201cthe stability of components and bracelets\u201d and the \u201ccommercial performance displayed by their mainly Swiss customers, and in domestic and technical timepieces\u201d. The committee considers this progress \u201cpromising for the reindustrialization program currently underway in France\u201d.<\/p>\n
<\/p>\n
More specifically, in jewelry, activity is mixed<\/b>, with a buoyant trend for high-end and a less favorable trend for the mass market. \u201cDriven by the development of Place Vend\u00f4me establishments, overall French jewelry<\/b> production\u201d has thus \u201cmore than doubled between 2019 and 2024<\/b> and increased 3.3-fold over the last ten years\u201d.<\/p>\n
<\/p>\n
<\/p>\n
In 2024, the trend is confirmed with sales up 8% to 5 billion euros for jewelry made of precious metals, gold and silver.<\/b> On the other hand, gold-plated jewelry plunges 18%<\/b>, stones and pearls decline 4% and costume jewelry 2%<\/b>.<\/p>\n
<\/p>\n
Franc\u00e9clat also observes \u201cthe formation of larger industrial units<\/b>\u201d. More than 70% of jewelry production is in fact carried out by companies with more than 20 employees<\/b>, accounting for 57% of the sector’s total workforce. However, while their share of turnover is stable compared to 2019, the percentage of the workforce has increased by 4 points… The craft sector (companies with two employees) is also<\/b> growing, with turnover and workforce up by 5% and 1% respectively. It thus accounts for 13.5% of total production and 26.5% of the total workforce.<\/p>\n
<\/p>\n
<\/p>\n
In terms of foreign trade for both sectors as a whole, the news is also good, with a trade balance \u201cthat has improved even further to almost 2 billion euros\u201d<\/b> with \u201ca positive coverage rate of 117%\u201d.<\/p>\n
<\/p>\n
In fact, there were \u201cdiametrically opposed trends\u201d for exports and imports<\/b> last year. Exports increased by 4% to 11.1 billion euros, while imports fell by the same amount to 9.4 billion euros!<\/p>\n
<\/p>\n
Up to 8.4 billion euros, jewelry now accounts for three-quarters of exports<\/b>. Precious jewelry, up 8%<\/b>, is driving the sector.<\/p>\n
<\/p>\n
In terms of destinations, Switzerland still accounts for 32% of total<\/b> exports, \u201cwhich reflects the close logistical links between France and its Swiss neighbor.\u201d But the United States, up 20% to now 9% of total exports<\/b>, has also been \u201cextremely buoyant.\u201d This should make those involved in the sector all the more attentive to the evolution of customs duties in this country in 2025, while China (down 3%) and Hong Kong (+6%),<\/b> together accounting for 14% of total exports,<\/b> are less dynamic<\/b> than in the past.<\/p>\n
<\/p>\n
<\/p>\n
The uncertainty<\/b>, growing in exports, has also loomed over the French market with a rollercoaster year in 2024<\/b>.<\/p>\n
<\/p>\n
\u201cThe hopes of the first five months were dashed by the slump of the following four months<\/b>, raising fears for the worst in the fourth quarter, a crucial period given the seasonal sales patterns of this market,\u201d explains Franc\u00e9clat. November turned out to be a successful month, fueled by the Black Friday sales. December, however, failed to follow suit and was even negative for many outlets.<\/p>\n
<\/p>\n
However, after this trying year, the market ended slightly up (+1%),<\/b> \u201cstabilizing at a high level in value\u201d, at 5.9 billion euros.<\/b><\/p>\n
<\/p>\n
In terms of distribution channels, the winners were the specialist retailers, which \u201coutperformed the overall market throughout the year<\/b>\u201d. Downtown watch, jewelry and goldsmith stores, including Place Vend\u00f4me, and department stores grew by 2%, watch specialists by 7%, while shopping centers recorded stable sales.<\/p>\n
<\/p>\n
On the other hand, retail sales outside stores,<\/b> both at generalist retailers and pure players, have reversed since the spring, with a 7%<\/b> drop.<\/p>\n
<\/p>\n
<\/p>\n
Finally, Franc\u00e9clat emphasizes that \u201cthe sharp rise in precious metal prices has a significant impact on the sector’s<\/b> figures\u201d, \u201chowever difficult to quantify\u201d.<\/p>\n
<\/p>\n
Market players cannot remain indifferent to the soaring price of gold<\/b> (expressed in euros, it has increased by 50% since the beginning of 2021<\/b> and by a quarter since 2023!) and the price of silver<\/b>, which, even if it \u201cremains much more affordable – has almost doubled in the last five years<\/b>\u201d.<\/p>\n
<\/p>\n
We must therefore adapt to the new situation. \u201cThe luxury sector is exploring new materials and new combinations<\/b>, while the more affordable segments <\/b>are promoting vermeil and even steel<\/b>\u201d.<\/p>\n
<\/p>\n
\n<\/p>\n
<\/p>\n
\n
<\/p>\n