Jewelry To Shine Amidst Luxury Market Gloom

Retail and Consumer Confidence
30/10/2015 10:04

The global market for personal luxury goods is heading for its weakest year since 2009 as a combination of stock market turmoil, a strong dollar and a commodity-price rout curb demand. According to consulting firm Bain & Co., luxury goods sales will rise as little as 1% to 253 billion euros ($280 billion) in 2015. Jewelry, however, is expected to be the exception to this trend. Bloomberg writes that, "Bain expects jewelry to be 2015’s best-performing category, rising 6%, contrasting with a slump in watch sales caused by weakness in Asia. Items such as diamond necklaces are increasingly seen as a safe investment in an uncertain economic and financial environment."

Bain said that China's "slowing economy exacerbates the effect of the government’s anti-extravagance drive, hurting demand for handbags and coats. U.S. growth, meanwhile, has softened as stock market volatility and a strong dollar curb purchases by locals and tourists. Luxury sales will fall for the second straight year in China, while the U.S. won’t grow." A weaker euro is helping, and Chinese consumers are still shopping where the currency is advantageous (Europe & Japan), while "Russians, on the other hand, are conspicuous by their absence", their tax-free shopping in Europe by more than a third.