Connect with us

Headlines

This $28B Trend Could Be a Huge Growth Opportunity for Jewelry

It’s ‘a potential avenue for luxury brands to reach a new audience and enlarge their customer base.’

mm

Published

on

The secondhand market presents a major opportunity for growth in jewelry and other luxury markets, according to a new report from Bain & Co.

The secondhand market hit 26 billion euros ($28.67 billion) in 2019, according to the global luxury report.

Jewelry showed particularly strong growth of 9 percent at constant exchange rates in 2019. Other outperformers include shoes, leather goods and beauty.

Watches, however, demonstrated sluggish performance, declining by 2 percent at constant exchange rates.

Advertisement

“We see the secondhand market as a potential avenue for luxury brands to reach a new audience and enlarge their customer base,” said Federica Levato, a Bain partner and co-author of the study. “For many customers, this may be their first luxury purchase but luxury brands shouldn’t see this as a threat and should manage it strategically to grasp the full potential of this opportunity.”

Bain anticipates that the luxury customer base will expand to 450 million by 2025, up from 390 million in 2019, mainly thanks to the growing middle-class, especially from Asia. This will further stimulate the entry-price segments, which in 2019 already represent a sizable part of the market (30 percent in the jewelry category), as well as the off-price channel, which grew by 11 percent at current exchange rates in 2019 reaching €36 billion ($39.89 billion).

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at [email protected].

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular