According to the SOKOLOV Analytical Center, Russia’s retail jewelry market in monetary terms grew by 27% compared to 2020 and reached 301 billion rubles in 2021, the center said in a press release. At the same time, the market grew by only 4% in natural units. Compared to pre-pandemic 2019, the market grew by 22% in terms of money and decreased by 16% in the weight of jewelry produced.
The growth of the market in monetary terms is due to an increase in prices in jewelry retail in 2021 by 22% compared with the previous year and by 45% against 2019. This happened due to a jump of exchange prices for gold at the end of 2020 to a historical maximum. At the same time, the average ticket over the past year increased by only 4%, to 5,625 rubles, due to an 75% increase in sales of inexpensive silver goods.
In the revenue structure of jewelry retailers, 62% is accounted for by gold items, including 28% gained by diamond jewelry, 8% by semi-precious inserts, 17% by jewelry without precious gems or with artificial stones, and 9.5% by chains. Silver jewelry accounts for 33% of revenue, 5% of which is occupied by watches.
Among the Russian regions in terms of jewelry sales, the City of Moscow and the Moscow Province are the leaders (86 billion rubles, market growth of 31%), St. Petersburg and the Leningrad Province are in second place (22.6 billion rubles, market growth of 37%), and third place is taken by the Krasnodar Territory (13 billion rubles, market growth of 40%).
“The key trend in the jewelry market last year was the rapid growth of online sales,” says Artem Sokolov, managing partner of the SOKOLOV jewelry brand. “The share of e-commerce in jewelry retail increased from 9% at the beginning of 2020 to 17% by the end of 2021 and reached 52 billion rubles (69% growth). Effective omnichannel communication with the customer will be, in our opinion, a key competitive advantage in the coming year, along with the growing importance of environmental and social responsibility issues among jewelry manufacturers and sellers.”
According to the expert assessment of the SOKOLOV Analytical Center, the market growth dynamics in 2022 will decrease to 10-15%, and the market volume will reach 330-335 billion rubles.
Source : Rough & Polished