International Demand for Jewelry
We live in a global economy that’s hard to keep up with. Seemingly every week you hear contradicting theories about how various countries are handling the world’s ever-changing financial landscape. In a recent blog post, I dissected articles postulating a false uncertainty in the American jewelry marketplace.
This week I aim to shed some light on jewelry and luxury goods marketplaces around the globe.
When it comes to global marketplaces, jewelry may be one of the more complex ones – it consists of handmade pieces from artisan jewelers, a complicated network of gemstone imports, large-scale manufacturing and overseas distribution and retail brick and mortar operations set up abroad. Needless to say, for any given piece of jewelry there can be a multitude of factors at play or individuals involved.
One thing that does seem constant, however, is that regardless of the country being analyzed, a large majority of domestic demand for jewelry is imported. The U.S. and Asian jewelry markets work in close cooperation and imports and exports are exchanged frequently; one’s demand for jewelry goods is often times filled by the other.
With many foreign countries’ economies on the rise, especially Asian and Pacific countries, increasing wealth means more demand for imported jewelry.
This increase in demand for jewelry is being recognized and attended too. For instance, a recent report divulges that China is considering a consumer tax overhaul and reforms are being accelerated to help speed the shift toward a more consumption-led economy.
The report also claims that, “changes are needed to keep up with shifting consumption trends as products once seen as luxury goods are now every day items for China’s rapidly expanding middle class”.
In a recent interview conducted with the head of one of the world’s largest diamond companies, this opportunity was taken note of - “the growth outlook for China and India is the key focus in the long to medium term, and [our company] is focusing on increased marketing to help drive sales amongst new and wealthy aspiring customers”.
Additionally, countries like Myanmar are also seeing a large increase in their upper and middle classes. With this increase in wealth, many citizens are searching for previously unavailable luxury goods.
This growing overseas market also happens to be presenting itself as the jewelry industry makes a major shift towards e-commerce, making the demand for foreign pieces of jewelry even easier to fill.
Globally, consumers are searching for luxury goods for any number of reasons. The consumer inclination towards uniqueness, however, is universal.
In response to this, one publication found that, “the number one tactic for big retailers…to help them stand apart from their competition is to carry local artisan goods and rare global products” and that:
“Consumers want to purchase items that are unique, represent some form of history, and have profound stories to tell” .
In conclusion, the global economy is on the rise, foreign markets are poised for growth, and luxury goods are in demand. Where the demand for foreign jewelry is supplied from, however, is largely up to manufacturers and how they choose to market their products. The growing number of manufacturers of luxury goods across emerging countries is expected to propel the global market and as new middle and upper classes emerge abroad, luxury goods will be sought out more often to mark the occasion.
If you enjoyed this article, check out our list of favorite pieces of upcycled jewelry!