Written by Paula Grineri - Monday, April 3, 2017
The Comité France Éclat* presented on February 21st the evolution of the watchmaking and jewelry market (HBJO) in France for the year 2016. An opportunity for us to analyze the trends in this sector and to raise the major issues for the years to come.
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Along with the uncertainty caused by an election period, the market has suffered the decline of businesses in town centers, which, in addition to the security issues posed by the attacks, have experiences a sharp loss in competitiveness. Consumers travel across the Channel or even to Japan to take advantage of prices, which have become attractive due to currency devaluations. In addition, the major competitors; the Swiss, Germans or Japanese, do not have the same restrictions regarding the limitations on cash payments which deprive us of certain purchases made by customers, French or foreign, on our territory.
Specialized circuits in shopping arcades as well as costume jewelry continue to progress for the second consecutive year. These brands have been able to adapt to the changing consumer behavior by offering highly publicized product lines as well as silver jewelry. Internet sales remain dynamic, in particular for watches, for which distanced sales represent 7.6% of sales in 2016.
After record years, consumer purchases slowed down in 2016 to reach 1.77 billion euros against 1.87 billion euros in 2015, with a sharp drop in the sale of luxury watches (>1000 EUR).
The first concerns the drop in the volume of purchases of watches in France observed for several years. Some experts argue that younger generations have lost interest in watches to the detriment of other devices that perform the same functions, such as the cell phone. However, the craze for fashion accessories remains the same, these consumers are being strongly influences by communication on social networks. It is products without a strong product identity and added value that suffer most from this phenomenon.
Then, there is the arrival of connected watches on the market, which raise questions about technological breakthrough, but also towards the evolution of a multi-use, multi-measurement tool. However, we have not yet witnessed the probable wave announced of questions linked to the autonomy and obsolescence of these devices.
Finally, the luxury watches industry are paying the price for its excessive dependence of the Asian market, whose demand fell sharply after the implementation of protectionist anti-corruption laws, another symptom of a global trend.
The results of the study show that the jewelry market has stabilized after three years of decline from 2011 to 2013.
All-grade gold jewelry still represents the largest share of sales but it should be noted that there is good progression in the sales of silver jewelry, especially thanks to the success of customizable jewelry; bracelets, charms and beads, whose purchases have jumped by more than 10% compared to last year.
Consumers, in jewelry but also in the watch segment, neglect generic and unbranded products.
The trend for personalization is not just about silver bracelets; watches with interchangeable straps are very successful (
The most dynamic segment is "accessible luxury" for which studies show that consumers express their interest in brands. Finally, several indicators also suggest that silver rings have beautiful perspectives.
• The training of the younger generation is essential, for creation, management and communication.
• It is important to invest and develop in design and innovation, to imagine new ways of conceiving and wearing jewelry.
• Communication is essential whether is it collective around materials (gold, for example) or to promote the emergence of new brands, in particular the use of social networks.
• A proactive policy to reduce the obstacles weighing on the jewelry trade (reception, facilitating the tax-free process, etc.) as well as the evolution of the laws which penalize artisans and tradespeople (administrative and fiscal simplification, expansion of opening hours, etc.) will allow us to regain competitiveness on our territory and with foreign customers.
Beyond the loss of attractiveness linked to the 2015 attacks, this study demonstrates the need to review our model of commerce in cities by introducing more luxurious shopping malls, for example.
On the other hand, it also reveals the urgency of stimulating demand in our internal market by drawing inspiration from the measures taken by several competing countries. Thus Switzerland, England and Japan have pursued proactive policies in terms of reception, security, tariffs and other tax-free facilities. It is about putting French distributors on the same level as competitors.
In parallel, it is necessary for watchmakers to clearly define their position, in particular in the medium ranges, without neglecting the contribution of new technologies. Providing new store concepts, relying on social networks and investing in brand communication can boost generational renewal in the jewelry sector.
For those willing to listen…
* Professional comity for the development of Watches, Jewelry, High Jewelry, Goldsmithing and Table Wear (Horlogerie, Bijouterie, Joaillerie, Orfèvrerie, Arts de la Table).
** Source Panel 5 Study, estimated based on market modeling carried out by extrapolating purchases made by consumers from distributors and brands on the basis of 30 million purchases recorded by the Comité France Eclat and monthly sales statistics transmitted by 2,000 partner sales locations. Fine jewelry is not covered by this study. These sales figures relate to purchases of HBJO for their own use; they do not include purchases by the French abroad, re-exported parts or purchases for gratification.