The global jewellery market has been forecast to increase at a compound annual growth rate (CAGR) of approximately 5% over the next five years, to reach a value of nearly $257 billion by the end of 2017.
Over the last few years the global jewellery market has seen steady growth, bouncing back from the worst of the recession, and over the coming years is expected to see a faster growth rate when compared to previous years.
Palladium is expected to establish itself as an alternative metal for jewellery fabrication, while gold and diamond jewellery will continue to dominate the market together, accounting for about 82%. Diamond jewellery will be the slowest growing segment at a CAGR of 3.3%.
So far many jewellery and watches brands are missing an opportunity by not launching into the online space. Consumers are now increasingly willing to buy big ticket items online so brands should change their approach to capitalise on this.
Regionally, Asia-Pacific holds the world's largest jewellery market and is being driven largely by China and India who are the two largest consumers of gold in the world and also hold majority of the processing and manufacturing industry for jewellery
To date, the industry has survived due to the intrinsic attraction of its product, the sporadic marketing push by some incumbents, and the entrepreneurial skills of individuals. However, the threat posed by luxury goods, changing consumer habits, industry's opaque and transactional mode of operation, and various socioeconomic and political forces are fast changing the environment the industry operates in.
It is evident that the survival of the industry (and of individual players) is dependent on their successful reinvention of the category, substantial infusion of capital and talent, and adaptability to change.
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