These are not golden times for the jewelry and watch industry. Although some of the key figures in the half-year balance sheet show a plus, the industry explains what needs to be taken into account.
The high price of gold, persistent inflation and people’s modest purchasing mood are causing problems for the jewelry and watch industry. The Federal Association of Jewelry, Watches, Silverware and Related Industries (BVSU) expects a further decline in all areas for the second half of 2024.
“The world is stuck in political crises and wars, with elections looming in the USA and also in Germany next year,” said association director Guido Grohmann, according to the statement. “Especially in the political crisis areas, we have seen no movement for months and no signs of improvement. This will continue to weigh on the mood of the industry, consumer spending and the economy as a whole in the second half of the year.” Companies will have to adapt to this.
Sentiment in the industry deteriorates significantly
According to the information, exports from the jewelry industry were 1.1 percent lower than in the same period last year, at 1.423 billion euros in the first six months of 2024. Imports rose by 3.4 percent to 1.05 billion euros. In the watch segment, there was an increase of 4.9 percent to 846.8 million euros, mainly thanks to the export of finished products, while imports shrank by 5.9 percent to 1.1 billion euros.
For the jewelry and watch retail trade, only figures up to April are available, which paint “more of a picture of a rollercoaster ride than that of a continuous trend,” it said. Since the end of the spring trade fairs, retailers have been significantly more cautious when it comes to purchasing goods.
Adjusted for inflation and the price of gold, the industry recorded a significant loss in all areas, the BVSU announced. “In order to keep up with the two strong previous years of 2022 and 2023, exports in particular would have to show a significantly larger increase in euros.” The member companies are almost without exception worried about the economic future, and the mood in the industry has deteriorated significantly.
Source: Stern
