Written by Paula Grineri - Friday, May 13, 2022
For the jewelry & watches industry, 2021 has been a record year. Since 2016, French production has doubled, reaching €3.9 bn – a 32% increase compared to 2019, according to Francéclat’s latest report. Supported by the dynamism of its exports, "made in France" production also benefits from a strong demand from its local market. Deprived of their leisure time during the pandemic, French consumers have allocated their budget to the purchase of watches and jewelry, acting as a pleasure purchase and a safe investment.
The French jewelry & watches market has increased by more than 20% in 2021 compared to the previous year and by 2% compared to 2019. Despite administrative closures, the French have been buying watches and jewelry. Major stores, whether specialty retailers or Place Vendôme brands, have benefited from this renewed interest with a 10% sales growth compared to 2019. Conversely, department stores have suffered from the absence of international tourists with a 40% drop in sales compared to their pre-pandemic level.
Online sales have increased by 23% compared to 2019, similarly to discounters with a 14% growth over the period, thus confirming the
Whether it is a catch-up effect or consumers’ renewed interest in jewelry, several phenomena seem to explain the market's dynamism.
The market is turning “phygital” and consumers are becoming more and more informed prior to making their purchases. To meet the need to seek meaning and durability, they are turning to "heritage" brands, which offer customizable pieces that can be kept and passed on from one generation to the next.
Domestic demand has likely been boosted by the upturn in weddings in 2021, with 220,000 marriages celebrated – 40% more than in 2020 according to INSEE. The outlook for 2022 is just as optimistic, according to Anaïs Cesto, spokesperson for the mariages.net website.
No wonder the "business of forever", as described by Sally Morrison , Director of PR Natural Diamonds at DeBeers Group, is doing well, with a 29% growth for diamond jewelry in 2021 compared to the previous year (source: Bain & Company). According to Mina El Hadraoui, Director – France of the
The French have also shown a preference for "made in France" products: The share of products of French origin released for consumption in France has increased between 2019 and 2021. It rose from 1.3% in 2019 to 2.0% in 2021 for watches and from 18.1% to 23.0% for gold jewelry and from 28.7% to 32.4% for costume jewelry over the same period, according to Francéclat.
French production is driven by jewelry, which has reached €3.5 bn in 2021 – a growth of 36% compared to 2019. Most of the activity is carried out by precious metal jewelry (€3.2 bn, up 40% compared to 2019), with costume jewelry achieving €346 m in sales, up 11% compared to 2019. According to Francéclat, "French jewelry production is experiencing a golden age: it has simply doubled since 2016."
"Made in France" products continue to attract international customers, with production boosted by jewelry exports as well. The industry's contribution to France's trade balance continues to be positive, with an overall cover rate of 113%, which is especially growing in jewelry, with +147% for precious metal jewelry.
Internationally, our exports are driven by the Chinese market, making France its main supplier of precious jewelry. Middle Eastern countries also appreciate the know-how of French jewelers. France is the second largest supplier to Saudi Arabia, third to Qatar and Kuwait, and fourth to the United Arab Emirates (source: Trade Data Monitor).
For watches, French production has been stable in 2021 and amounts to 341 million euros, slightly down from the peak reached in 2019. France exports 80% of its watch production, more than half of which goes to Europe (Switzerland, Germany, Italy and Spain).
The industry now employs over 12,700 people in France to ensure the production of watches and jewelry, contributing to the both economic and cultural influence of the luxury industry.