Jewellery Sector's Resilience Amid Economic Challenges and Competition

In a world where luxury markets are experiencing contractions, the jewellery sector demonstrates remarkable resilience, buoyed by strategic pricing and cultural relevance. As of July 2025, global jewellery sales have continued to thrive, particularly among high-end brands, despite numerous challenges, including rising gold prices and new tariffs on imports. According to a report by Morgan Stanley, the jewellery divisions of major luxury conglomerates such as Kering and Richemont recorded growth rates of approximately 4% in 2024, largely due to the appeal of signature pieces that convey investment potential and emotional value (Morgan Stanley, 2025).

The allure of jewellery has been notably strong among affluent consumers, with high-profile figures like Lauren Sánchez Bezos showcasing extravagant diamond pieces, which reinforces the perception of jewellery as a status symbol and investment. "Unlike handbags, jewellery has not priced out aspirational customers," states Federica Levato, partner at Bain & Company. Levato's analysis highlights the unique positioning of jewellery in the luxury market, where consumers view it as a tangible asset rather than merely a fashion accessory (Bain & Company, 2025).

Despite the sector's overall strength, looming threats pose challenges that industry leaders must navigate. The introduction of a 10% baseline import duty by the United States in April 2025, along with reciprocal tariffs for various countries, has raised concerns among manufacturers. For instance, Pandora, the world’s largest jewellery producer by volume, estimates a potential gross annual impact of approximately $168 million from these tariffs (Pandora, 2025). Oliver Müller, founder of LuxeConsult, remarks that the impact of such tariffs is less pronounced in the high-end segment, where buyers are less sensitive to price changes due to the perceived value (LuxeConsult, 2025).

The current economic environment has led many brands to adopt a triad strategy focused on high jewellery, cultural capital, and a range of price points. High jewellery, which represents unique, high-value pieces, has become a key area for growth. Luxury brands are increasingly hosting grand events to showcase these collections, which not only elevate their brand image but also create memorable experiences for clients. For example, Louis Vuitton’s recent unveiling of its high jewellery collection at historic sites in Mallorca illustrates the trend of using cultural events to engage clients (Louis Vuitton, 2025).

Simultaneously, brands are expanding their offerings across all price points to attract a diverse clientele, from entry-level consumers to high-net-worth individuals. Repossi, a luxury jeweller, has emphasized the importance of catering to clients at various budget levels to maintain sales momentum (Repossi, 2025). Furthermore, the rise of Chinese and Indian jewellery brands presents both challenges and opportunities for established Western brands. Chinese label Laopu, for instance, has seen exponential growth, driven by its use of 24-karat gold and a strong cultural narrative that resonates with local consumers (Morgan Stanley, 2025). This shift illustrates a broader trend, where Western brands must adapt to changing consumer preferences and local competition.

The jewellery sector is also grappling with the threat of over-saturation and counterfeits, particularly regarding iconic designs. Iconic products like Cartier’s Love bracelet represent a significant portion of sales but risk losing their allure due to increased ubiquity (Bain & Company, 2025). To mitigate this risk, brands are strategically enhancing their iconic lines with more intricate designs and higher price points while introducing new offerings to maintain exclusivity.

In conclusion, the jewellery industry’s current landscape is characterized by resilience amidst economic challenges. As brands continue to refine their strategies, focusing on high-value pieces, cultural relevance, and price diversity, they position themselves to thrive in an evolving marketplace. The future outlook remains cautiously optimistic, with potential for growth as brands adapt to consumer demands and global market dynamics.