Key Takeaways

• New online fine jewelry market players can expect that sustainability will have "an increasingly important role" in consumers' buying decisions. The preference for sustainability-influenced fine jewelry is expected to continue in the years ahead.
• The global online fine jewelry market share in 2020 is 9.43% of the global jewelry market.
• Demi-fine jewelry has been most popular with the 'luxury hunters' or women who are 20 to 30 years old.

Introduction

I. Growth of the Jewelry E-Commerce Business

Expected to Provide Seamless Connectivity

• Emerging DTC players in the e-commerce fine jewelry market are expected to apply pressure on established players in the market.
• Emerging players in the online fine jewelry market are expected to provide "seamless connectivity between channels" to establish their business.
• Emerging players will have to provide consumers with "the same level of customer service and attention to detail online as they do in stores."
• New online fine jewelry market players can expect that sustainability will have "an increasingly important role" in consumers' buying decisions. The preference for sustainability-influenced fine jewelry is expected to continue in the years ahead.
• A 2021 McKinsey report revealed that sustainability-influenced purchases are expected to triple in the coming years.
• New players will have to "show consumers that they are credible and sincere about driving environmental and social progress." To do this, emerging businesses will have "to establish more traceability and transparency in their supply chains and move beyond the performative marketing that has plagued the industry in the past."

No Specific Length of Time Before Becoming Profitable

• There is no specific length of time before an online fine/demi-fine jewelry business becomes profitable. Profitability in this market depends largely on "the perceived value of the jewelry." Generally, the profit margin ranges from 25 to 75%.
• The online jewelry market is projected to reach a revenue of $19.88 billion by 2024. In addition, only 12% of the global online jewelry market is "dominated by the ten biggest jewelry brands." These are indications that there is still ample space in this market for profitability.
• An emerging player's capacity to grow its market share will vary depending on the marketing strategies employed. The length of time for growth will vary.

II. Market Share of Jewelry E-Commerce Business

Fine Jewelry Market Share

• The US jewelry market's annual revenue in 2021 was $57.965 billion. The US jewelry market is projected to grow at a "CAGR of 1.31% from 2021 to 2026." The market is expected to generate a revenue of $61.868 billion by 2026.
• The online jewelry sales in the US amounted to about $7.6 billion in 2021 and $7.7 billion in 2022.
• The market share of online jewelry sales in the US in 2021 is 13.11% of the US jewelry market.
• US Online Jewelry Market Share Calculation:
• (online jewelry sales in the US/jewelry sales in the US) x 100% = ($7.6 billion/$57.965 billion) x 100% = 13.11% 

 

Source

 

• The global jewelry market in 2020 was valued at $228 billion, while the global online jewelry market was valued at $21.5 billion in 2020. The global online jewelry market was projected to reach $51.5 billion by 2026 at a CAGR of 15.5%.
• The global fine jewelry market had a revenue of $61.9 billion in 2020.
• The global online fine jewelry market share in 2020 is 9.43% of the global jewelry market.
• Global Online Fine Jewelry Market Share Calculation:
• (global online fine jewelry market value/global jewelry market value) x 100% = ($21.5 billion/ $228 billion) x 100% = 9.43% 
• The global online fine jewelry sales are projected to grow "from 13% to 18 to 21% of the total global market by 2025."

Demi-Fine Jewelry Market Share

• The global demi-fine jewelry industry was valued at $178.7 million in 2020. The market is projected to reach $510.5 million by 2026, with a CAGR of 16.0% from 2021 to 2026.
• The global demi-fine jewelry market share in 2020 is 0.78% of the global jewelry market.
• Global Demi-Fine Jewelry Market Share Calculation:
• (global demi-fine jewelry market value/global jewelry market value) x 100% = ($178.7 million/228 billion) x 100% = 0.78% 
• In 2021, the global demi-fine jewelry market for women was valued at $223.61 million.

III. Demographic Profile of Fine/Demi-Fine Jewelry E-Commerce Consumers

Age

• Demi-fine jewelry has been most popular with the 'luxury hunters' or women who are 20 to 30 years old.
• Over 80% of clients of an online fine jewelry store are either millennials or Gen Z.
• However, there are also online fine jewelry buyers who are 35 to 45 years old.
• In Japan, India, and China, those between 30 to 60 years old buy more jewelry than any other age group. However, in the US, most jewelry consumers are younger than 35 years old.

Gender

• Most of the e-commerce consumers of demi-fine jewelry are women.

Income Level

• Online fine jewelry customers have an income level of about $200,000 annually.

Educational Level

• They also have advanced educational degrees and hold managerial positions and professional jobs.
• However, online demi-fine jewelry customers are mostly still in schools. These are Gen Zs who are still in high school or college.

Marital Status

• The online consumers of demi-fine jewelry are generally single. Also, millennial consumers of fine jewelry are still about to get married or engaged. A big part of fine jewelry sales is attributed to engagement rings.
• Once lockdowns eased in 2020, "sales grew by $1billion year over year: in no small part, attributable to engagement rings."

Research Strategy