Economic Boom To Raise The Demand For Luxury Jewellery By Russians-Ken Research

Imported brands have a great participation in luxury jewellery in Russia. Cartier, Chanet and Chopard are the international brands for which luxury jewellery is famous and it has a good reputation among Russian consumers. In 2015, there was a fall in sales of luxury jewellery by 23% and a decline by 4% in 2016. The reason behind the fall was the economic recession, which took place in the country.

In 2016, impact of recession was seen on the development of luxury jewellery. Some consumers shifted from gold to silver, due to low disposable income in the year. The crises of silver remained the same before and after the economic crises but the price of gold fluctuated and shown a increase during the crises. Therefore, the demand for silver was doubled in 2015, which has followed in 2016 as well. Silver jewellery is considered swanky as it sometimes looks like white gold jewellery.

After the crises in Russia, people again started choosing gold jewellery and a hollow construction of a layer with diamond gilt, which is considered by low prices and less weight. It also became very popular between low class and middle class people. In 2016, the people with higher income did not show any change in behavior and preference in the purchase of luxury goods at the time of economic crises. They continued to spend money on luxury jewellery. Therefore, the effect on economic crises and devaluation of national currency was not suffered by luxury jewellery. To maintain their wealth, spending of luxury jewellery was considered as investment tool under more challenging condition of the economic downturn in Russia.

According to the market research report “Luxury Jewellery in Russia“, in 2015, the leading player of luxury jewellery was Sokolov OOO a domestic company in Russia, with a retail value of 7%. Through the continuous enhanced product portfolio, the company aimed to collect all types of consumer segment ambitiously. Utilization of precious metals and up-to-date design are the features offered by the product of Sokolov OOO. In 2015, the company witnessed the largest growth because of the offers of silver items.

Luxury jewellery is expected to show growth of 2% at constant 2016 prices in future years. It was expected that people would tend to demand cheaper option because of lower disposable income in future as well. However, in 2018 it is expected that the economic situation will be restored and will boost up the demand for luxury jewellery.

Axnoff Jewellery, Alchemia, Markin Fine Jewellery, Gourji and Yana Raskovalona are the top five Russian brands, which are gaining popularity and recognition worldwide. The luxury jewellery manufacturers seek out the global best practices, technology in Russia. There are more luxury jewellery brands, which have become successful in Russia like- Alena Gorchakova Jewellery, Chapurinrwady to wear Jewellery, Gaydamak Jewellery, Clvex Jewellery, Faberge Jewellery, etc.

It is not only a stereotype but data has also shown that the brands, which offer “bling” to meet Russian taste, will succeed in the Russian jewellery market. Not only people with higher income spend money on luxury jewellery but also the middle class people tend to buy luxury jewellery for investment and future benefits. In addition, after the Soviet Union adaptation buying luxury goods became a trend, as there was sudden increase in purchasing power.

Topics Covered in The Report