According to the report, the branded jewellery segment will continue to drive diamond growth, capturing a larger share of value in diamond jewelry sales! Branded jewelry has been a key driver of global luxury jewelry growth, with 8% CAGR over the last five years compared with a 1% decline for unbranded.
The branded segment will likely capture more than 50% of future revenue from 2024 to 2033. This growth is supported by significant marketing investments from leading brands. For example, the marketing spend of the top four brands as a percentage of sales rose from 8% in 2006 to 12% in 2022.
In addition, there is a growing consumer emphasis on brand and design in jewelry selections. Among Chinese consumers in 2022, for instance, 92% of diamond jewelry acquisitions were branded (based on pieces), with Chinese brands accounting for almost four out of five acquisitions.
In the US, the share of branded jewelry acquisition in 2021 was highest among younger generations: 76% for Gen Z and 72% for millennials versus 64% for Gen X and 38% for baby boomers. The growth of brands is expected to continue driving overall diamond jewelry growth. However, this may affect the diamond content used in jewelry.
To maintain their higher profit margins, brands often use fewer diamonds in their pieces, with diamonds serving as high-end price anchors. To fully capitalize on the preference for branded jewelry, the diamond industry needs to enhance the diamond content of branded offerings, ultimately resulting in higher PWP value as a share of the total diamond jewelry industry.
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Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
