Despite the recession, the popularity of luxury jewelry continues to rise.
According to data obtained by ChosunBiz on the 30th, the total sales of six global luxury jewelry brands (Cartier, Bulgari, Van Cleef & Arpels, Tiffany, Boucheron, and Chanel Jewelry) sold in domestic department stores last year amounted to 1.778 trillion won, representing a 19% increase from the previous year.
The highest sales were recorded by the French luxury jewelry brand Cartier, which achieved sales of 577.1 billion won across 12 domestic stores, including its flagship store, marking a 23% increase compared to the previous year. Bulgari reported sales of 354.8 billion won, a 24% increase, while Van Cleef & Arpels saw sales of 352.6 billion won, a 22% increase. Tiffany (6%), Boucheron (19%), and Chanel Jewelry (11%) also experienced growth in sales.
This contrasts sharply with major luxury brands like Chanel (-4%), Gucci (-26%), and Dior (-18%), which recorded negative growth last year. It seems that consumers who previously splurged on bags or shoes have shifted their spending to jewelry and other accessories.
This trend is global. The French jewelry group Richemont, which owns Cartier and Van Cleef & Arpels, reported unprecedented sales of 6.15 billion euros (approximately 9.7075 trillion won) for the third quarter of the fiscal year ending Dec. 31, 2024, a 10% increase from the previous year. The growth was driven by the jewelry institutional sector, which saw sales rise by 14% to 4.5 billion euros (approximately 7.1031 trillion won). During the same period, Louis Vuitton Moët Hennessy (LVMH) only reported a 1% increase in sales.
What stands out is the sales figure from South Korea. While Richemont saw sales increases in the Americas (22%), Europe (19%), Japan (15%), and the Middle East and Africa (21%), the Asian region experienced a 7% decline in sales due to the slump in the Chinese market. In contrast, South Korea recorded double-digit growth.
Industry insiders attribute the popularity of luxury jewelry to the effects of the recession. Jewelry is perceived as less susceptible to trends compared to bags or clothing, and its relative rarity makes it a valuable investment.
High demand for wedding gifts is also cited as a factor for growth. Consequently, it has become an annual event for luxury brands to raise prices in early years in anticipation of the wedding season. Earlier this year, Cartier, Fred, Boucheron, and Damiani raised prices due to increases in gold prices and foreign exchange rates. It is analyzed that the increase in demand and price hikes supported the growth of luxury jewelry.
Department stores are making every effort to secure luxury jewelry spaces. Lotte Department Store opened simultaneous stores for Van Cleef & Arpels and Graff on the first floor of its main branch on the 21st. Last year, it also welcomed Italian luxury jewelry brands Pop of Italy and Marco Bicego. Lotte Department Store's luxury jewelry sales increased by more than 20% last year, with a growth rate of 35% this year (January to March).
Hyundai Department Store plans to introduce the first Van Cleef & Arpels store in the southwestern part of Seoul at The Hyundai Seoul in July. According to the industry, Cartier is also reportedly considering opening its first café-style store in this department store. Last year, Hyundai Department Store's watch and jewelry institutional sector sales increased by 24%, and this year (January to March) saw a 44% increase.
Shinsegae Department Store recently renovated its Myeongdong main branch's new building, increasing the number of luxury jewelry brands like Pomellato and Messika to more than double. The Galleria luxury hall plans to unveil the first domestic store for Swiss luxury watch brand Moser & Cie and German jewelry brand Bellen d' Or in Apgujeong during the first half of this year. The jewelry and watch institutional sector accounted for 15% of Galleria Department Store's total sales, nearly doubling from 8% in 2019.