Over the past decade, retail jewellers have increasingly found themselves competing with brands like Bulgari, Cartier, Louis Vuitton, and Tiffany & Company to capture the attention and discretionary income of globe-trotting high-end jewellery consumers.
Lately, a number of regional multi-brand retailers have been entering the game.
High jewellery retail in the Middle East
The Middle East & Africa jewellery market size was valued at $22.24bn in 2021, according to a report by Fortune Business Insights titled Middle East & Africa Jewelry Market Size in 2021. The market is projected to grow from $30.72bn in 2022 to $52.24bn by 2029, exhibiting a CAGR of 7.88 per cent during the forecast period.
The global jewellery market is estimated to be worth around $230bn today, with the UAE accounting for nearly one per cent or $2bn. Despite a decline in gold purchases, the overall jewellery market in the UAE is still poised to grow by seven per cent, thanks to a robust demand for diamonds and gemstones.
While luxury fashion businesses in the region were struggling owing to the pandemic, it seems that fine jewellery performed well on the contrary. The Middle East’s tradition of buying jewellery, be it for Eid al Fitr or weddings, was not impacted by the pandemic.
Jewellery is regarded as a trendy accessory in the Middle East region, hence diamonds and gemstones are in high demand in the area. Gold is regarded as a sign of affluence and wealth in the Middle East culture, which is a significant factor propelling the demand for jewellery in the region.
For Italian jeweller Repossi, their strongest markets have been Saudi Arabia, Qatar, and the UAE last year.
Anne de Vergeron, CEO of Repossi, said: “The way of buying has changed with the pandemic, where customers are making more conscious purchasing and looking for pieces with a higher value,” reports Fashion Trust Arabia.
Montreal-based Birks, one of Canada’s leading jewellery retailers since its founding in 1879, has a similar story. Earlier this month the company introduced a snowflake-inspired high jewellery collection of five pieces — earrings, necklaces, and a ring — ranging from $15,800 to $50,000.
Jean-Christophe Bédos, the company’s chief executive, said in an email to Fashion Trust Arabia: “We wanted to take a signature Canadian symbol, something ephemeral, and immortalize it in the finest materials (18-karat white gold and diamonds) with a unique and intricate design.”
And the growth opportunities extend well beyond the Canadian brand’s southerly neighbour. “Our goal is to continue growing in the U.S. and Europe with our retail partners,” Mr. Bédos said. “We also see great growth opportunities in the Middle East and Asia.”
Middle Eastern countries, such as Saudi Arabia, the UAE, and Bahrain, are considered global shopping destinations for jewels and electronic items.
Tourism in the Middle East has become one of the fastest-growing industries for leisure, social, or business purposes and is expected to grow significantly, which will boost the demand for jewels and gems in the region.
High jewellery retail beyond Mena
Take Jared Atelier, a limited-edition, high-jewellery collection from Jared, the American jewellery chain owned by Signet Jewelers. Signet, based in Akron, Ohio, is the largest jewellery operation in the United States and one of the largest in Britain, with about 2,800 stores in the two countries operating as Kay Jewelers, Zales and other retail jewellery names.
Introduced online and in five select Jared locations in October, the collection features 21 diamond-decked styles in limited quantities of one to three pieces each, at up to $125,000.
Bill Brace, president of Jared and Jewelry Services at Signet, said on a recent video call that the Atelier pieces reflect an intentional move to push up and attract a higher-end customer with products not normally seen in Jared.
In mid-November, Bucherer, the high-end Swiss watch and jewellery retailer, held an event in New York to introduce a high jewellery collection composed of 12 elaborate pieces to celebrate the opening in late October of its first store exclusively dedicated to selling Bucherer high jewellery, on the luxury shopping street Göthestrasse in Frankfurt.
Carina Ertl, chief marketing officer of Bucherer USA, wrote in an email to Fashion Trust Arabia: “The collection further establishes Bucherer fine jewellery’s worldwide presence.”
“We’ve always had a rich history of craftsmanship, design and unique stones and this collection embodies our atelier’s expertise.”
The high jewellery pieces arrived in the midst of a growth spurt for Bucherer. In October, the company announced that it had acquired Leeds & Son, a fine jewellery and watch retailer in Palm Desert, California.
Founded in Lucerne, Switzerland, in 1888, Bucherer embarked on a high-profile expansion in 2018, when it acquired Tourneau, the American watch retailer with 36 U.S. retail locations, including its TimeMachine flagship at 57th Street and Madison Avenue in New York City.
The high jewellery push coincides with a plan to expand Birks’s digital footprint in the United States with the debut of an e-commerce website in April.
