Jewellery and Watch Market Data, the Circular Economy of Jewellery and Timepiece Innovations
19 Mar 2022
The third day of Vicenzaoro, the international trade show of reference for the world of gold and jewellery, organised by IEG - Italian Exhibition Group and ongoing in Vicenza, included jewellery trends, in-depth studies on gems and a complete journey through the universe of timepieces with VO'Clock, the contemporary watchmaking event open to the public today and tomorrow.
Until Monday 21st March, technological innovation is also featured at T.Gold, the international exhibition of machinery and technology for the jewellery industry.
An Overview of the Gold Market in the Qualitative Survey by Club Degli Orafi-Intesa Sanpaolo
Club degli Orafi and Intesa Sanpaolo confirm the excellent results of the Italian gold and jewellery industry: almost 60% of those interviewed declared no drops in turnover in 2020 or a full recovery in 2021.
This morning, at Vicenzaoro, Giorgio Villa, President of Club degli Orafi, Augusto Ungarelli, President of Lombardi srl, Stefania Trenti, Head of the Industry Office from Intesa Sanpaolo’s Studies and Research Department, presented a survey conducted among the jewellery companies in the Club degli Orafi.
The ISTAT turnover index shows that fine and costume jewellery grew by more than 50% in 2021 (+17% compared to 2019), exceeding the manufacturing average (+9%) and the other fashion sectors.
Competitiveness on international markets is crucial: exports reached an all-time high of 8.5 billion euros for fine and costume jewellery and 7.5 billion for gold jewellery alone, thanks to the excellent results achieved on all markets, especially the United States, which is strengthening its role as the leading outlet.
Against a backdrop of widespread optimism, with over 73% of companies expecting further growth in turnover in 2022, in January the survey highlighted raw material prices and delays in supplies as the main critical issues, difficulties which have been amplified by the Russian invasion of Ukraine.
The ability to react, based on a high propensity to invest, has been significant: 30% of companies said they were considering organisational changes and reviewing supply channels, price lists and sales channels. 60% said they had increased investments in the last two years, particularly in training and human capital, which they considered as a priority, followed by production digitalisation, research and development, and brand enhancement.
Watchmaking on the Increase: New Challenges for Engaging Enthusiasts
The total turnover regarding wristwatches in Italy in 2021 amounted to about 1.86 billion Euro. The signs of domestic market resilience are clear along with a +23% recovery of the sector compared to 2020 (€1.51bn). These were the figures presented yesterday at VO’Clock by Mario Peserico, President of Assorologi, a preview of GFK’s elaboration of the annual GFK Panel survey, GFK Retail Point of sales tracking, as well as other data from ISTAT (wristwatch imports in Italy), and the Fédération de l'industrie horlogère suisse FH. Performances that are part of an overall recovery in the luxury sector.
According to Bain & Company, after a sharp drop in 2020, the luxury personal goods sector quickly regained ground with 29% growth at current exchange rates, to touch on €283 billion. A trend that is destined to grow to a volume of €360-380 billion by 2025. In the face of such intense growth, it is essential to understand the main ongoing dynamics and the buying habits of consumers, starting with Generation Z, the protagonists of a wave of change with the boom in second-hand goods, a trend that is useful for diversifying one's portfolio where watches and jewellery account for over 75% of this market. In this scenario, in recent weeks a new challenge has arisen for the luxury markets that is still to be played out and is linked to Russian consumers that account for about 2-3% of the total luxury goods market (about 7 billion Euros), with a similar impact on the personal luxury goods segment (accessories, clothing, hard luxury and beauty).
Circular Vision as a Strategic Paradigm for Jewellery
Design Thinking and the transition to the circular economy, in other words, the recycling and re-use of materials and ideas, given that today's consumer is much more sensitive to the wellbeing of the individual and the environment. The concept of sustainability in the world of jewellery was explored in a talk by Trendvision Jewellery + Forecasting, IEG's first observatory on jewellery trends. Co-founder Paola De Luca illustrated some of the trends: Connection, which connects with others; Biophila, a perennial search for the energy of nature; Youthtopia, which describes feeling young as a state of mind rather than a physical aspect.
Patricia Inonge Mweene, founder of Inonge Zita Zambian Gemostones, who lives between Denmark and Zambia, highlighted how sustainability must include profitability in an approach that remains “human-centred”. Live-streamed from London, Isabella Yani, journalist and founder of Art meets Jewellery, illustrated the difference in approach between Western Europe and the East. Donatella Zappieri, a Jewellery Business Consultant, provided a snapshot of Vintage, the quintessential example of circularity, a trend increasingly chosen by today's consumers in its various definitions of Antique (over 100 years old), Vintage (between 50 and 100 years), Second Hand/Wrist or Pre-owned (even just 10 years old): Second Hand boasts a turnover of 33 billion Euros, of which 21 refer to watches, with a 65% growth from 2017 to 2021. A technical-industrial interpretation of circularity in jewellery was given through the experience of Enrico Peruffo, CEO of Fratelli Bovo, with a genderless brand that is the result of in-depth research and experimentation under the banner of sustainability and reuse, and Corso Balboni, General Manager of Legor, a leading company in technological solutions to reduce the sector’s environmental impact.
The Latest Innovations in the World of Watch Hands
Innovation, a key element in producing creations that combine aesthetics with high performance, with passion as the bonding agent, has, particularly in recent years, encouraged collaboration between different manufacturers. This was the theme of today's conversation at VO'Clock entitled “The latest innovations in watchmaking” between Ugo Pancani, lecturer in mechanical and electronic watchmaking at the Fondation de la Haute Horlogerie, master watchmaker Vincent Calabrese, co-founder of Académie Holrogère des Créateurs Indépendants, and Carlo Maria Creppi, director of Officine Panerai, moderated by journalist and writer Michele Mengoli.
Among the most significant innovations mentioned were technical aspects such as movements (from “solo time” to complications) and new materials, but also trendy colours, the quest for quality and consumers’ increasingly green awareness, while the sales channel is also evolving. The most significant trends include: the success of contemporary iconic brands-products with a strong identity in every price bracket, and the extraordinary development of the second-wrist and vintage segment - including the records set by auction houses that specialise in watches -, with a focus on issues of product transparency and certification.
Image: Vo’Clock Privé
Live Performance at Vo’Clock Privé: Sante Castignani Makes a Watch in 3 Days
Turning an idea into execution, taking styles from the past that deserve to be handed down and combining them with contemporary style. At VO'Clock Privé, the live performance by master watchmaker Sante Castignani continued. In the three days of the event, he is striving to create a watch under the attentive gaze of a public of enthusiasts. In the Vicenza Expo Centre foyer, visitors can watch a live demonstration of the various phases and technical operations in the construction of a unique and irreproducible piece.
Starting from a 1940s’ watch, Castignani is busy handcrafting the case, designing and constructing the dial engraved with a delicate and refined guilloché technique, choosing and assembling the crown, hands and strap. The result will be a square-shaped watch with a retro flavour, paying homage to Made in Italy and Oisa mechanics and featuring extreme attention to detail in the slow workmanship of the lugs and lancet, to arrive at a handcrafted work with and timeless style.
Source: IEG/Vicenzaoro 2022