Jewelry and watches have remained standout performers in the global personal luxury market, even as overall sales face a significant slowdown.
The personal luxury segment — which includes jewelry, apparel and leather goods — is entering a “reset” phase after years of rapid rebound, according to the latest True-Luxury survey the Boston Consulting Group (BCG) and Italian luxury consultancy Altagamma released Sunday.
Despite these headwinds, fine jewelry and watches have maintained stable momentum and are expected to continue this trend in the near term. The segment drew much of its strength from top-tier clients, who make up only 0.1% of the global population but account for 23% of luxury spending. Over half of these wealthy buyers plan to increase their outlay by 5% to 25% in the next 18 months.
Meanwhile, about 35% of aspirational shoppers — those who desire luxury but face more financial constraints — reported reducing or halting purchases in the past year. Many have redirected funds toward savings, wellness and secondhand alternatives, signaling a cautious approach amid economic uncertainty.
The report also found that jewelry and watches continued to resonate strongly among high-net-worth individuals (HNWIs), with 34% stating they enjoyed investing in these pieces. This underscores the enduring appeal of fine jewelry as a symbol of craftsmanship and personal achievement.
Gen Z consumers present a promising growth engine for the sector. Some 80% of Gen Z respondents indicated plans to purchase premium goods in the coming year, and 70% said they felt represented by luxury brands.
Brands must refocus on core values to retain top-tier clients, prioritizing quality, exclusivity and deep personal relationships, BCG stressed. As a result, many jewelry houses are turning to “clienteling” — a practice that involves building one-on-one relationships and offering tailored services — to strengthen loyalty and maintain brand prestige, it added.
Image: A woman wearing luxury jewelry. (Shutterstock)