Despite the three-percent drop in buyers, Baselworld 2015 remained the trendsetting event for the world’s watch and jewellery professionals to unveil and discover novelties that set to lay the foundation of the market direction for the coming year.
Market direction
China, one of the world’s most powerful economies, has recorded a strong growth in diamond jewellery demand.
China’s diamond jewellery demand has grown 110 percent to US$10 billion, a distant second behind the 46 percent market share held by the United States, which saw diamond jewellery sales of US$37 billion in 2014.
The activities in these two markets provide a critical foundation in the analysis for the entire market.
China’s jewellery and watches market faces challenging times, pressured by a slowdown in the economy and a clampdown on corporate gift-giving, but export prospects are looking bright, driven by technological innovations.
The slackening in Chinese economic growth contributed to the softer domestic retail market, combined with Beijing’s austerity drive which hit diamond jewellery sales.
Real GDP growth in China was around seven percent in 2014 – a solid performance by the standards of most countries, but well below the double-digit growth of the recent past.
Analysts noted, however, that the expanding middle class in China will account for increasing luxury watches and jewellery sales in the coming years.
They said the market was becoming more clearly segmented and that branding would take the centre stage.
“China’s jewellery market will usher in a new stage of development, driven by branding,” said Frank Wu of Frank Wu Design and ttf Haute Joaillerie, an exhibitor at Baselworld. “The market is expected to keep growing in 2015, but not more than 10 percent,” he added. Fine jewellery sales in China have performed well despite the moves by the authorities against corporate gift-giving, possibly because jewellery can look less recognisable than a well-known watch brand.
Some clients see investment value in fine jewellery purchases, after exceptional prices achieved by auction houses for older pieces.
Global sales by the leading fine jewellery groups grew in the high single digits in 2014, compared with low single-digit growth in the luxury watch market.
Growth and perception
Growth in the diamond jewellery market in 2015 is pitched at three percent, around the same figure as last year.
As per a De Beers report, India now accounts for 13 percent of the global jewellery sales, just behind China (15 percent) and the United States (40 percent), which have been traditional diamond markets for many years.
With an increased appetite for diamond jewellery in India, sales in the country soared from just about US$750 million six years ago to US$8.49 billion in 2014, also pushed by gold prices skyrocketing and polished diamond prices reducing in the last six years.
In recent years, with regards to diamond consumption, India has actually surpassed China and the UAE.
On the manufacturing side, India’s gem and jewellery exports have seen a remarkable growth over the past 50 years, representing US$34.75 billion in fiscal year 2013/14, according to the latest figures from the Gem and Jewellery Export Promotion Council (GJEPC).
According to De Beers CEO Philippe Mellier, global diamond jewellery demand has grown more than 26 percent since 2009. That year sales were recorded to the tune of US$64 billion.
The global jewellery sale is pegged at US$81 billion per annum.
Brand talk
The notion of ‘entitlement’ is common amongst jewellers who traditionally come from family-owned businesses, where most have been in operation for generations.
The word ‘heritage’ is becoming increasingly important, given the current instability in the world.
Each brand has its own history. Every brand produces jewellery in line with their core DNA, giving the market-place an amalgam of design trends.
With the situation in Europe or China unlikely to improve rapidly, uncertainty about the outlook for the jewellery industry will continue to loom large.
Even if the middle class in China continues to grow, the anti-corruption campaign is affecting the sell-out.
At the moment, everything is available on the market. We have colours or only black-and-white jewellery, nature-inspired or architecture-derived, thus building on a strong brand identity is ever more important.
With a distribution network and a clearly defined customer base, boths brands are emerging from a period of growth.
As consumers’ preference for branded products increases, jewellery houses continue to position their brands in major consumer markets across the world while continuing to grow strongly, particularly in the core markets of China, India, Japan and the United States.
Jeweller brands have restructured their portfolio of store to focus on fast-growing markets – particularly in Asia.
Investment demand growth in the jewellery segment exceeded expectations.
looking at the global economic outlook, uncertainty is likely to persist for the balance of 2015, though encouraging signs of strengthening activities are visible in some key markets.
A diversified product portfolio is seen as key to the growth of jewellery sales in China and other emerging economies, as a more challenging retail climate awaits the industry.
Design trends ruby & emerald
Emeralds and rubies have risen in profile as an investment in recent years because of their short supply and rising demand from fast-growing emerging economies.
Emeralds are fascinating gemstones and have been held in high esteem since ancient times. Paying tribute to this fascinating gemstone, jewellers at Baselworld this year created magnificent jewels combined with white diamonds to highlight the emeralds.
Some investment experts see growing demand for the stones in places such as Asia and the Middle East, where for religious and astrological colour gemstones often have more appeal than diamonds.
The prevalence of green has been rising in the fashion and couture markets.
Emerald’s classic elegance makes for striking and irresistible women’s formal and everyday wear as well as accessories.
Ravishing red ruby makes a strong statement in women’s fashion: casual sportswear and formal evening gowns.
Balanced yet sophisticated, emerald and ruby enliven all colours in the spectrum and will continue to make a statement beyond spring and summer into fall and winter.
Pink gold
Rose gold models are gaining in popularity. Even though many jewellers are already making pieces in rose gold since a couple of years, the trend is still emerging and will become even more popular.
There is definitely a trend for reviving manufacturing and craftsmanship techniques from the past, but the global market is open, more than ever, to any form of inspiration, whether from a particular geographic area or the history of any jewellery brand. Brands such as Chopard, Damiani, de Grisogono, Hulchi Belluni, Antonini, Brumani, Jacob & Co are amongst many others which presented new collections in pink gold at Baselworld this year.
Nature calls
Flora and fauna ranked high with jewellers showcasing innovative garden and flower-themed designs.
New at Baselworld, the Fabergé Secret Garden high jewellery collection is evocative of Russian artist Marc Chagall’s depiction of flowers and rich bouquets.
Statement, asymmetrical earrings and cocktail rings display blossoms of coloured gemstones: multi-coloured sapphires, Gemfields emeralds, opals, spinel and carved nephrite leaves.
Roberto Coin offered new pieces in the Garden Collection inspired by nature. “Garden means beautiful flowers, little insects, frogs, leaves, little birds – it’s a combination of all these things,” explained the Italian designer, adding, “this mixing of nature makes the garden special.”
Colour me
A strong noticeable emerging design trend is where multi-coloured gemstones are being used, mixed together all at once, to create an amalgam of colour in a high jewellery piece. A burst of colour, of joy, to make the wearer experience true Dolce Vita!
Colourful cocktail rings were all the rage, and catch the eye of women looking for luxury accessories that they can identify with, connecting to their lifestyle.
Fancy-coloured diamonds were seen riding the wave of popularity, pink diamonds being the focus.
Rare and beautiful, natural pink diamonds inspire jewelers into designing frenzy and collectors into fierce bidding war. John Glajz, authorised partner of Argyle Pink Diamonds presented stunning jewels at Baselworld this year.
← Back