Surveys

Jewelry a Top Performer in ‘Stalled’ Luxury Market, Says Bain & Co.

SurveysJun 25, 2024

Jewelry a Top Performer in ‘Stalled’ Luxury Market, Says Bain & Co.

Its recent report dives into the current dilemma facing luxury brands.

Allurez drop earrings
A pair of 14-karat yellow gold multicolor gemstone pavé drop earrings ($3,228) by Allurez. Bain & Company released the new “Luxury Goods Worldwide Market Study,” delving into what’s behind the recent slowdown and how luxury brands can better serve their customers.
Milan—Bain & Company’s “Luxury Goods Worldwide Market Study,” released last week in collaboration with Altagamma, shines a light on the state of the luxury industry.

The global luxury market had a record-breaking performance in 2023 in spite of geopolitical and economic issues, reaching more than €1.5 trillion ($1.6 trillion) in sales.

The growth was spurred by the resurgence of luxury travel as well as a strong U.S. holiday season in Q4.

However, macroeconomic pressures have led to a slowdown across most regions in the first quarter of 2024, said the study.

The “stalled” luxury goods market is facing a dilemma of catering to its big spenders versus reaching new audiences, it said.

Here are a few key insights from the study, including how jewelry is performing and what retailers should do to combat the slowdown.

Jewelry is a top performer, alongside other small luxuries.

Jewelry was a standout, said the study, with shoppers making investment-led purchase decisions.

Sales growth in the category outpaced watches, with strength seen in both entry-level jewelry as well as the most high-end pieces. 

Aspirational shoppers are spending on “small indulgences,” including makeup, fragrances, and eyewear.

At the same time, growth in apparel has outpaced accessories, with the shoe category losing favor among aspirational shoppers.

“A dual strategy, framed around the allure of top-tier clientele and the appeal of smaller luxury indulgences, is driving growth at both ends of the price spectrum,” said report co-author Federica Levato, partner at Bain & Company and leader of the firm’s EMEA Luxury Goods and Fashion practice.

“But now is not the time for brands to rest on their laurels. As brands continue to face turbulence in the market, the winners will be those that rethink the way they craft and deliver their value propositions across multiple price points and touchpoints, growing their reach while building advocacy and loyalty among their customers.”

The report suggested that brands “invest in growth enablers, defend core business elements, maintain agility in decision-making, and optimize stock management to ensure efficiency and responsiveness to market demand.”

 Related stories will be right here … 

The goods versus services battle continues.

The report highlighted the trend of shoppers preferring experiences over physical goods.

Growing demand for immersive experiences and a recovering tourism industry are driving this growth, said the study.

It noted steady growth in spending on hospitality, gourmet food, and fine dining.

As for travel, shoppers are becoming more interested in “smaller, intimate” luxury cruises rather than the traditional cruise experience, as well as in private jets and yachts.

There is a slowdown in the fine arts auction market due to artwork shortages and economic uncertainty, the report said.

Gen Z is falling behind while Gen X and baby boomers spend on luxury goods.

Brands are having to adopt a “dichotomous customer strategy” due to the difference in spending ability among generations, said the report.

“Facing rising unemployment levels and weakening future outlooks, younger generations are delaying spending on luxury goods,” said the report.

In contrast, Gen X and baby boomer shoppers have accrued wealth over time, spending more and capturing the attention of high-end brands.

“Many brands are taking a dichotomous approach, focusing on top clients, with an emphasis on large-scale one-to-many events, while investing to expand their reach by engaging in conversations in new territories, including sports,” said the report.

Sporting events have long been a branding opportunity for luxury goods, with the 2024 Summer Olympics in Paris expected to be no different.

These events  provide a platform for reaching new audiences as well as reaching out to existing customers in a new way.

Recently, brands have expanded into new sports, including racing, football, and padel, which is described as a mix between tennis and squash.

Luxury brands need to rethink value.

The personal luxury goods market saw a slight decline in Q1 of 2024.

The key to holding onto stable growth will be how luxury brands handle rising prices and balance the price-value equation for consumers.

“As a narrative of resurgence and resilience emerges, luxury brands must rethink the way they build their value proposition to prioritize trust and connection with consumers,” said study lead author Claudia D’Arpizio, a Bain & Company partner and head of the company’s global Luxury Goods and Fashion practice.

“Many are navigating a momentary crisis, driven by macroeconomic pressures and a polarized customer base. This presents a unique moment to define a new way forward for their brands, fostering a more personal connection with their customers. Purpose and love will be the North Star for brands that thrive in this increasingly competitive market landscape.”

Wealthy shoppers are feeling “luxury shame.”

The luxury market in China is facing two issues: the return of outbound tourism and a weakening local demand due to economic uncertainties.

These economic issues are hurting middle-class consumer confidence, leading to what is known as “luxury shame.”

Similar to the “quiet luxury” trend, well-to-do shoppers are opting out of overly flashy, label-heavy goods in times of economic turmoil.

The report noted the U.S. experienced something similar during the 2008-2009 financial crisis.

The U.S. is also facing continued macroeconomic pressures, noted the report, in spite of signs of gradual improvement in GDP and consumer confidence.

Europe and Japan saw “notable resilience” said the report, noting an influx of tourists in the first quarter of 2024.

The Latest

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

gia-topimage 0325.jpg
Brought to you by
A Brilliant Future Is Here

Get online education from GIA experts.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

Athena Calderone x John Hardy Collection
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired Collection

Interior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.

Movado Connect 2.0 watches
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs Impact

During a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy