The Luxury Jewellery Industry In 2020
The luxury jewellery industry seems on track for a sparkling future. A dramatic increase in net worth is expected to drive the billion-dollar industry from USD 279 billion to a staggering USD 480.56 billion by 2025, according to a new report by Grand View Research, Inc.
What’s the future hold for luxury retail brands?
Following in a similar suite to the retail industry, the luxury jewellery sector is drawing on consumer behaviours and positioning their products to ‘new money’ consumers. Opening its glitzy doors to a younger audience who favour experiences, trend-led collections and online interactions.
This highly sought-after market can now be represented by admired brands, ordinarily known for their high price tags and quality craftsmanship but for a fraction of the cost of their headline collections.
Cultivating desirability at opposite ends of the price spectrum propelled the branded jewellery market to €21 billion ($23 billion) in 2019, up 133 percent from €9 billion in 2010, according to Bain & Company.
Hybrid consumption strategy
Long considered ‘old-world luxury’ jewellery houses like Tiffany, Cartier and Chopard are now representing a wider audience having released ‘demi-fine’ collections. A long-term, gateway strategy of offering luxury for less.
By introducing more affordable collections or ‘entry products’, brands are welcoming both ends of the price spectrum to champion their brand. With the hopes that the new audience will form a brand connection, embarking on a journey of brand loyalty and a lifetime of branded memories. A strategic balance of desirability and accessibility.
A new flagship store which spotlights “in-store experience that goes beyond just shopping.”
How Tiffany & Co. has revamped the retail experience
Leading the charge in the millennial takeover, Tiffany & Co. new CEO Alessandro Bogliolo has been swift to evolve their brand message, renew the omnichannel customer experience and generate more customer loyalty.
Shifting their “historic perceived branding message” to appeal to millennial and Gen Z shoppers, the brand has restored some of its lost lustre and fuelled significant company momentum.
The heritage brands move to form a more customer-centric experience with a younger demographic has offered up a new flagship store concept among pop-up experiences which spotlights “in-store experience that goes beyond just shopping.” Directing its attention towards a younger audience, Tiffany also enlisted 20-year-old actress Elle Fanning to advertise its dainty new Paper Flowers collection.
Flagship store re-imagined
The Covent Garden flagship store, Tiffany & Co Style Studio offers the brand’s iconic designs alongside a shopper programme to build and personalise jewellery looks. Encouraging customer interaction and creativity, this move speaks to the demand for memorable, tactile, sensory experiences. All of which can be difficult to replicate digitally.
A big leap from the prosaic atmosphere of a conventional luxury jewellery store, the offbeat space features playful displays, #MakeItTiffany personalisation bar, lounge area and Tiffany fragrance vending machine, as part of their while-you-wait services.
Experiential retail—food and beverage features
Harking back to the early days of shopping for pleasure, more and more retail brands are successfully integrating food and beverage within retail spaces, and Tiffany is no exception.
The opportunity to truly experience “Breakfast At Tiffany’s,” much like that of the 1961 movie is now on offer at Tiffany New York flagship store with the unveiling on their Blue Box Café experience. Customers and passers-by can now enjoy breakfast in the iconic Tiffany blue infused café pop-up.
Amidst the café launch and instant success, Tiffany have already begun rolling out The Blue Box Café internationally, including across London, Hong Kong and Europe.
Testing new markets and functions
The brand has expanded their customer net with a pop-up experience to appeal to diamond-curious men in the Tiffany & Co. Men’s Pop-Up Shop.
As a method to reach out to the new market, the pop-up offers Tiffany-branded dog tags and accessories alongside a Tiffany motorcycle, and limited-edition Tiffany x Spalding basketballs. A playful space that generated new hype around an otherwise, female-focused sector.
Cartier art exhibitions and experiences
With the opening of Cartier’s revamped Bond Street store at the end of 2018, the French luxury jeweller had transformed an entire floor into a space that functioned as a lounge, bar and dining room. The space was used to exhibit archival pieces, host talks, art exhibitions and experiences to excite customers and grow a loyal community.
Cartier revealed its exhibition in the palace complex of Forbidden City in central Beijing pulled in more than 100,000 visitors within the first week of its opening, while sales of the “Magnitude” range in London reached record-highs in the first two days.
And it’s with no surprise that competitors are following suit.
Bvlgari cinema-themed pop-up experience
Pulling inspiration from the 1960s Italian theatre, the Bvlgari “Pop (Up) Corn” space features saccharine pink custom displays and a picturesque carousel illuminated by rows of cabaret lights.
The pop-up offered limited-edition Bvlgari handbags and jewellery pieces to shoppers in Singapore’s glamorous ION Orchard mall.
The unique cinematic and animated concept blends the visual code of 60’s cinema and the jewellery house’s colour of audacity, stealing the spotlight and creating a memorable brand experience.
Redefining the retail experience
It’s clear that the days of pretentious and confined jewellery boutiques with a bleak atmosphere are far gone.
Shifting away from the exclusivity and prestige identity and widening the brand offering to appeal to a larger audience is vital to the industry success. While many high-end jewellery brands are starting to break down these barriers by offering better store design and personalised experiences, the store of the future requires even more.
Customers want to immersive themselves, establish a sense of inclusivity and brand loyalty that catalyses its relationship with the brand.
Working with both emerging and established mega jewellers, FormRoom delivers intelligent concept and designs that speaks to your customers’ needs and help transcend your physical space.