The jewellery market - United Kingdom

1.1 Definition and presentation

The jewelry sector identifies the set of production processes that lead to the creation of accessories and precious ornaments. In fact, in ancient times, the jewel had a symbolic value, often religious or spiritual, and was represented mostly by amulets or good luck charms. A meaning that, over time, has changed radically, but that continues to identify the jewel as a symbol of beauty and status, meanings not too far from its original value.

The jewelry industry is mainly driven by certain product categories:

• Bracelets
• Necklaces
• Rings
• Earrings
• Pendants

The years preceding 2020 have demonstrated strong growth in the UK jewelry market; necklaces grew the most between 2014 and 2018 (10%), whilst watches grew at the slowest rate (2%). A strong value driver has been the increased spending by women.

Large retailers include for example Pandora, HSamuel, Accessorize, Watchshop. The UK jewelry market is highly fragmented with around 100 retailers. [salience]

Demand for jewelry is positively correlated to economic growth and inflation. Factors such as an increasing proportion of HNWIs and a soaring urban population also contributes to positive growth. Moreover, since foreign consumers make up a large fraction of the revenue of jewelers in the UK, the value of the pound matters; the recent growth in the industry has been party driven by a weak pound in times of uncertainty around Brexit.