Over all, the luxury jewelry market is expected to reach $37.8 billion in 2017, and grow by an average of 2.1 percent annually over the next four years, according to the market research firm Euromonitor International.
One key growth factor, Mr. Timelin said, is a projected surge in the number of millionaires to 56 million in 2025, from 25 million in 2015. âA large chunk will come in the U.S.,â he said.
As a result of the optimism fueled by such forecasts, the high-end jewelry business â which remains largely unorganized and therefore ripe for brand consolidation â is attracting newcomers enchanted with its potential.
The Mumbai-based Nirav Modi introduced his high-jewelry brand in 2010 and now has eight boutiques around the world, including stores on luxury main streets in New York, Hong Kong and London. In 2017, Mr. Modi said, he plans to open 10 more boutiques in markets where he sees promise, including India, greater China, the United States and Europe. He has vowed to have 100 stores by 2025.
Mr. Modi says that while sales of one-of-a-kind jewels are fueling his growth, so, too, are midprice jewels (which cost from $10,000 to $50,000), a point echoed by many of his peers in fine jewelry.
âThe jewelry that is increasing its performance is the accessible jewelry, in terms of number of pieces but also in terms of sales,â said Karl-Friedrich Scheufele, co-president of Chopard, a luxury watch and jewelry brand based in Geneva. âJewelry pieces are conceived not as once-in-a-lifetime investments or special-occasions gifts but more like expensive fashion accessories.â
To understand that phenomenon, consider…