Market Outline, Future Perspectives

Market Outline, Future Perspectives
The domestic jewelry retail market in 2020 marked 819,500 million yen, 83.2% of the size of the previous year, a severer reduction than at the time of the Lehman’s Fall. Spread of COVID-19 infections harmfully affected the market of jewelry that surely is non-essential and non-urgent merchandise, especially during March and May when the State of Emergency was declared, at which non-essential and non-urgent activities were required to be restrained, and many jewelry shops were forced to temporarily close or to shorten the business hours. Even after the declaration was lifted, no events were able to be held to prevent 3Cs, which deprived jewelry shops of sales opportunities.

The domestic jewelry retail market size for 2021 is forecasted to attain 967,800 million yen. As the COVID-19 infections subdue, jewelry is likely to sell well, celebrating the release from self-restraint purchases. In addition, because the sales of high-end products are expected to grow, partly due to rise of stock price having increased the income of wealthy population, the market is projected to recover, though not able to reach the market size in 2019.

Noteworthy Topic: Demand for Bridal Jewelry Stays Relatively Stable
According to the flash report on Vital Statistics by MHLW, the number of marriages decreased in 2020 because of suspension or postponement of marriages as well as wedding ceremonies. This reduced the bridal jewelry market as a whole, but the market managed to restrain the damage to a minimum, as it was supported by more steadfast demand than fashion jewelry. In particular, some jewelry shops saw some special demands as many couples who needed bridal rings rushed to the shops immediately after the State of Emergency declaration was lifted. There also were some couples who upgraded their bridal rings, while cancelling their wedding ceremonies and honeymoons. This as well as soaring prices of base metals helped the raise of the unit price per purchase.

While the number of married couples is said to have decreased in 2020, some couples are considered to have postponed submission of their marriage notifications to the period during 2021 to 2022, which may substantially increase the number of marriages. Just like when the number of marriages increased in the following year of the Great East Japan Earthquake, the COVID-19 pandemic has brought about an opportunity for people to be grateful once again about having bonds with families and friends, which can further increase the marrying couples. In such a situation, the bridal jewelry market is expected to continue growing.