High jewelry is bucking the broader downturn in the luxury market, showing remarkable resilience and growth. HSBC's Erwan Rambourg notes that while the general luxury market is cautious, jewelry, especially at the high end, is performing exceptionally well. This is partly due to the intrinsic value of precious metals, with rising gold prices reinforcing jewelry's investment appeal. Rambourg highlights that jewelry brands have been more restrained with price increases compared to handbag companies, offering a better value proposition.
The sector is benefiting from strong demand, with artistic directors like Victoire de Castellane of Dior Joaillerie seeing jewelry as a "refuge, a haven" in uncertain times. Younger clients are also contributing to this trend, mixing fine and high jewelry in a fashion-forward way. Major luxury groups like Richemont and LVMH have observed robust sales in their high jewelry divisions, with Richemont reporting a 3% increase in sales to $20.6 billion for the year ending March 31, 2024, driven significantly by jewelry maisons such as Cartier, Buccellati, and Van Cleef & Arpels. Bulgari's average high jewelry ticket price increased, and the brand doubled its sales of pieces over $1 million.
High-net-worth individuals, largely isolated from short-term economic stress due to their accumulated wealth, are driving this demand. These clients are becoming more global, younger, and increasingly discerning, seeking authenticity, quality, and timelessness. The events surrounding high jewelry launches have also become more elaborate and high-profile, attracting new consumers. Experts like Cyrille Vigneron of Cartier emphasize that high jewelry is one of the fastest-growing segments, while others note a trend towards more expensive and extraordinary pieces, with clients often purchasing multiple items at launches.
