58 / 90
55
Part of the explanation for this relative weakness
of fine jewellery in consumers’ preference may
be that other luxury and discretionary categories
have continued to compete far more strongly for
consumers’ attention. Share of advertising voice
for fine jewellery within the US luxury segment has
declined over the last seven years (from 21 per cent
in 2007 to 13 per cent in 2013 – see Fig. 34)
35
.
Overall, the fine jewellery category has been growing
at a slower rate than other discretionary and luxury
goods for some time (see Fig. 35). Luxury jewellery
sales grew at a compound annual growth rate of just
below two per cent between 2004 and 2013, well
behind luxury electronic gadgets (14 per cent), fine
wines (11 per cent) and premium beauty/personal
care (eight per cent)
36
.
In addition, a growing number of Americans facing
financial strain in the aftermath of the financial crisis
have resorted to recycling jewellery. The experience
customers sometimes encountered when trying to
sell back their jewellery pieces, especially to non-
specialised businesses, could also have played a role
in impacting upon the product’s relative desirability
(see the ‘Trends to Watch’ box).
FIG. 35:
GROWTH OF LUXURY CATEGORIES IN THE
UNITED STATES
Source: Euromonitor
TOTAL LUXURY MARKET =
3.6
CAGR,
2004-2013
Design apparel
Luxury writing instruments
and stationery
(0.5)
1.8
Luxury jewellery
1.9
Luxury time pieces
2.5
Luxury tobacco
Luxury travel goods
3.1
4.1
Luxury accessories
5.1
Super premium beauty and
personal care
8.3
Fine wines, champagne, spirits
11.2
13.7
Luxury electronic gadgets
Per cent
DIAMOND JEWELLERY RECYCLING
Trading of previously owned diamonds (sellback, trade-up) is a normal part of the lifecycle of
jewellery and forms a growing segment of the diamond jewellery industry. However, this activity
has attracted greater attention in the diamond industry in recent years, as its scale was boosted
not only by the global economic downturn but also by the accompanying appreciation of gold
prices during that period. In many cases, consumers wanted to sell back their gold jewellery,
and diamonds were simply a by-product; on other occasions, the diamond was the main item
being sold back.
Due to the lack of a reliable buy-back offer from traditional retailers, US consumers have
increasingly turned to pawnbrokers and to high-visibility, non-specialised new entrants to sell
back their diamond jewellery. Consumers who have sold diamond jewellery through these
channels have often left dissatisfied, especially due to a perceived lack of transparency and
objectivity in the pricing of their jewellery. Consumers who trade up their diamond jewellery
through specialised channels are generally less dissatisfied with their experience.
The recycling trend could undermine trust in the diamond industry and consumers’ belief in
the diamond dream. The industry will need to continue to work towards offering consumers
expert advice and clear choices when it comes to recycling of diamond jewellery.
TRENDS TO WATCH