Increased demand and rising prices for precious metals support the turnover of the jewelry market. By the end of this year, jewelry sales may increase by 7–10%, to 330–340 billion rubles, returning to 2021 levels. And large Russian chains could benefit from the departure of such popular global brands as Pandora.
Jewelry sales by the end of 2023 may grow by 7–10% year on year, to 330–340 billion rubles, which corresponds to the level of 2021, Infoline predicts. In 2022, according to analysts, market turnover decreased by 6.7% year-on-year, including due to consumer savings. Sokolov CEO Nikolay Polyakov expects that by the end of 2023, sales of jewelry in monetary terms will increase by 12–15%.
At the end of the first half of 2023, according to Infoline, jewelry sales increased by 2% year-on-year, to RUB 155 billion. As noted in the analyst review, three large networks grew faster than the entire market during this period. Thus, the total sales of Sunlight, 585 Zolotoy and Sokolov in January-June 2023 increased by 40.3% year-on-year, to 63.4 billion rubles, and the market share of these networks increased by 11.2 percentage points, up to 40.9%. In particular, according to Infoline, Sunlight’s turnover during this period increased by 60%, to 33.2 billion rubles, “585 Zolotoy” – by 15%, to 16.1 billion rubles, Sokolov – by 34%, to 14 .1 billion rub. General Director of the Association of Jewelers Vadim Serov expects that the share of the three large chains will continue to grow, but regional players will retain some positions, as they better take into account local consumer preferences.
Nikolay Polyakov calls the key factor for market growth in monetary terms an increase in average market retail prices for jewelry. Thus, he says, the discount price for gold set by the Central Bank has increased by 40% since the beginning of the year, and the average receipt for jewelry for January-September compared to the same period in 2022 increased by 15%, to 7.26 thousand rubles. Sunlight associates the positive dynamics in the market with the development of online sales, the share of which, according to Infoline, reached 22.9% by July 2023 against 16.5% a year earlier, the restoration of traffic in shopping centers relative to 2022, as well as the departure from Russia of some global jewelry brands.
According to Infoline, sales declined most noticeably in the first half of the year at the PanClub chain, which until the spring of 2023 operated under the Danish Pandora brand. The latter announced the suspension of business relations with Russia due to military operations in Ukraine. According to analysts, in January-June 2023, PanClub’s revenue decreased by 53% year-on-year, to 0.8 billion rubles, and the network dropped from eighth place among jewelry sellers in Russia to 11th place. As Vadim Serov notes, after the renaming and change of concept, PanClub will have to re-attract consumers. The network did not provide a comment.
In addition, according to Infoline, the Adamas chain reduced sales in January-June by 3% year-on-year, to 3.4 billion rubles. The company told Kommersant that following the results of the first half of the year, the chain’s turnover increased by 7.4% year-on-year, including due to changes in the appearance of stores, the development of online sales, as well as an increase in production volumes, which made it possible to update and expand range.
General Director of Infoline-Analytics Mikhail Burmistrov notes that the growth of jewelry market turnover has accelerated since the third quarter of 2023 due to increased demand and growth in consumer lending. Executive Director of the Guild of Jewelers of Russia Vladimir Zboikov says that some Russians have lost the opportunity to travel abroad and can spend free funds, including on jewelry. Adamas CEO Vladislav Golovkin points out that consumer preferences are shifting to products in the middle and high price segments.