Jewellery Shines Brighter Than Watches as the Luxury Market Thrives
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Jewellery has emerged as a standout in the global luxury market, according to a recent report by Bain & Co., a leading global consultancy.
The report highlights that the global luxury market reached a record €1.5 trillion (£1.3 trillion) last year, showcasing remarkable stability despite geopolitical and economic challenges.
Currently, jewellery is outpacing watches in growth, displaying strength across both high-end and entry-level luxury segments. Consumers are making investment-driven purchases, favouring jewellery over other luxury items.
In parallel, aspirational consumers are redirecting their spending towards makeup, fragrances, and eyewear, which are seen as affordable indulgences.
Additionally, apparel has surpassed accessories through a strategy focused on attracting top-tier customers, while shoes are experiencing a slowdown among aspirational buyers.
“A dual strategy centred on the allure of high-end clients and the appeal of affordable luxury treats is driving growth at both ends of the price spectrum,” said Federica Levat, partner at Bain & Co. and leader of the firm’s EMEA Luxury Goods and Fashion practice.
“However, brands must remain vigilant. To navigate the market turbulence, the successful brands will be those that rethink their value propositions across multiple price points and touchpoints, expanding their reach while fostering customer loyalty,” added Levat.
As brands continue to face uncertain times, they will need to invest in growth enablers, protect core business elements, maintain decision-making agility, and optimize stock management to respond efficiently to market demand, according to Levat.
Bain & Co. also noted that a resurgence in luxury travel and a strong US holiday season in the fourth quarter contributed significantly to last year’s growth in the global luxury market.
