Jewelry (Russian market)

Main article: Jewelry (global market)

2023

Gold jewelry production in Russia increased by 18% over the year, to 55.5 tons

The production of gold jewelry in Russia in 2023 showed an increase of 18%. This became known on October 29, 2024. According to the Federal Test Chamber, during the specified period, 30.8 million gold products were branded in the country, the total mass of which amounted to 55.5 tons. For comparison, in 2022, 26 million gold jewelry weighing 48.5 tons was stigmatized.

According to the Ministry of Finance of the Russian Federation, the positive dynamics in the field of jewelry production is explained, among other things, by the recovery in demand for precious metals and an increase in the share of the legal market. Experts note that the introduction of mandatory registration in the State Information System of Precious Metals and Precious Stones (GIIS DMDK) made it possible to track the turnover and number of products that are not previously subject to branding. This factor made a significant contribution to the increase in production and brought to the market products that previously bypassed the certification procedure.

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Freepik

A positive trend is also observed in the silver jewelry market. For 2023, the total volume of branded silver products, including imported and domestic ones, amounted to 56.7 million pieces, which is 28.9 million more than a year earlier. Products of domestic production demonstrate special growth - their total number reached 43.7 million units. The increase in the turnover of silver jewelry more than doubled compared to the level of 2018-2019 was also the result of the legalization and mandatory registration of products in GIIS DMDK, where all jewelry is now taken into account, regardless of whether they are subject to mandatory branding.

The data also indicate changes in the number of participants in the precious metals market. In the fourth quarter of 2022, 22,722 entities were registered with the Federal Test Chamber, and in the fourth quarter of 2023 this number decreased to 22,049. However, according to the Ministry of Finance of the Russian Federation, in the second half of 2023, the number of new participants exceeded the number of those who left the market - 1,393 against 957, which indicates the stabilization and strengthening of the sector.^[1]

Reduction in sales of expensive jewelry in 2 years by 80%

In 2023, sales of premium jewelry in Russia amounted to 12.74 thousand pieces. For comparison, in 2021, 62.39 thousand such products were sold. Thus, over two years, a fall of 80% was recorded, which is primarily due to the deteriorating geopolitical situation. This is stated in the materials of BusinesStat, published on February 20, 2024.

Expensive jewelry in the review includes all goods whose price is over 100 thousand rubles. The criterion of premium can be original production technology, limited batch, exclusive design, etc. Among the leading players in the domestic market are named "Jeweler," "Moscow Jewelry Plant," "1 Jewelry Network," "Kostroma Jewelry Plant" Karatov "and" Bronnitsky Jewelry Plant. "

According to estimates, in 2019, approximately 41.51 thousand expensive jewelry were sold in Russia. In 2020 and 2021, an increase of 10.3% and 36.3% followed, respectively, to 45.79 and 62.39 thousand units. But in 2022, sales collapsed by 63.4% on an annualized basis - to 22.81 thousand units. In 2023, a decline of another 44.1% was recorded.

The study notes that until 2022, the share of imports in the premium jewelry market in Russia was more than 80%. However, in the context of the sanctions crisis, most countries from where expensive branded products were supplied in the Russian Federation imposed a ban on the sale of products on the Russian market. Domestic manufacturers are not able to cover the offer in a short time. Moreover, BusinesStat emphasizes that in general it is not possible to fully replace branded products. In such a situation, Russian jewelers began to create more replicas and copies of jewelry of foreign brands.^[2]

Growth in sales of silver products by 20% to 62.3 million units

In 2023, sales of silver jewelry in Russia reached 62.3 million units. For comparison, a year earlier, approximately 52.1 million such jewelry were sold in the country. Thus, demand rose by almost 20%. The corresponding indicators are reflected in the BusinesStat report, published in mid-February 2024.

Analysts note that the positive dynamics is associated with a change in fashion trends. For many years, only gold jewelry was considered prestigious, but then preferences began to shift in favor of silver products. This trend is especially noticeable among young people, which is explained, among other things, by the relative availability of silver jewelry. As of the end of 2023, about 70% of the Russian silver jewelry market is occupied by domestic products, the competition of which is primarily goods from China.

According to estimates, in 2019, about 50.5 million silver jewelry was sold on the Russian market. A year later, sales fell by 8.2 to 46.3 million units. The fall is explained by the restrictions imposed in the context of the COVID-19 pandemic. Due to the self-isolation of citizens, demand decreased, and the maintenance of many retail space turned out to be unprofitable. It was possible to avoid a more significant decline thanks to Internet commerce.

In 2021, the recovery of the industry began: the demand for silver jewelry in the Russian market rose by 4.7% - to 48.5 million pieces. In 2022, an increase of another 7.4% followed with a final result of 52.1 million units. Most major jewelry chains have launched their own online stores. In addition, sales began to be carried out through marketplaces. At the same time, in 2023, imports from China and Hong Kong increased immediately by 6.2 million silver jewelry, which is almost comparable to the growth in production at Russian enterprises.^[3]

Market growth by 18% to 365.6 billion rubles

The volume of the Russian jewelry market in 2023 reached 365.6 billion rubles, an increase of 18% compared to 2022. Such data at the end of January 2024 was published by the analytical center of the jewelry company Sokolov.

We are talking about sales of jewelry in all retail in the Russian Federation, and not only in Sokolov salons. According to experts, the average check for the purchase of jewelry in 2023 increased by 16% compared to the value of a year ago - up to 7552 rubles.

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Average market retail prices for jewelry, according to Rosstat, began to grow from August 2023 and in December turned out to be 22% higher compared to December 2022. Price dynamics have set an increase in the value of gold in rubles by 40% since the beginning of the year, the study says.

Analysts cited a number of factors as reasons for the growth of the jewelry market in Russia. However, the main ones were the general rise in prices for jewelry on the Russian market. Experts considered another important driver of the growth of the industry's turnover to increase the interest of citizens in online purchases.

The share of Internet sales, as noted by the head of the Sokolov analytical center Alina Kolpakov, in the overall market structure is already 24% in 2023 against 19% in 2022. Obviously, the demand in the retail jewelry market is shifting online, agrees Mikhail Burmistrov, CEO of INFOLine Analytics. At the end of 2023, INFOLine-Analytics tentatively estimates the growth of online sales of jewelry by at least 40.8%, to 85 billion rubles. The volume of the entire jewelry market in INFOLine-Analytics was estimated at 360 billion rubles, which is 16% more than in 2022.

According to the forecasts of Sokolov experts, in 2024 the total turnover of the Russian jewelry market may reach 380 billion rubles "in the absence of any shock factors."^[4]

2022

Precious metals production in Russia increased by 10.3%

In 2022, the extraction of precious metals in Russia reached 3 thousand tons, which is 10.3% more than a year earlier. This is evidenced by the data of the analytical company BusinesStat, which were released in June 2023.

According to the researchers, the military special operation of the Russian Federation in Ukraine led to negative consequences for subsoil users - the costs in the industry increased significantly. The cost of geological exploration, as well as the price of raw materials, materials and fuel, increased to the greatest extent. Difficulties with the supply of spare parts for imported equipment also lead to an increase in costs. As a result, the cost of a cubic meter of mining in Russia by 2022 was estimated at almost 1.5 times higher than the average in the world.

At the same time, the strengthening of the ruble in 2022 reduced the revenues of the mining industry. Ruble revenue from sales of a gram of precious metals fell by almost 30%. This led to the termination of the activities of small enterprises, especially those operating on placers.

On the domestic market, the Central Bank of the Russian Federation stopped buying gold at world prices and introduced a large discount. At the same time, the sanctions significantly limited the export market for domestic precious metals. Commercial Russian banks also fell under the sanctions. Thus, the export of precious metals has become sharply difficult due to problems with logistics and calculations.

Some mining companies were able to enter new export channels by building new logistics and settlement chains. The main buyers of precious metals from Russia were China, India and the countries of the Arab region.

According to the study, in 2022, against the backdrop of a new crisis, imports of precious metal concentrates to Russia decreased by 15.8% compared to 2021 and amounted to 68.2 thousand tons. Supplies of precious metal concentrates from Greece decreased most significantly (by 12.8 thousand tons).^[5]

Sales of jewelry in Russia decreased by 29% over 5 years - up to 65 million pieces

In 2022, 65 million jewelry was sold in Russia, which is 29% less than in 2018, when the market volume was measured at 92 million units. This is evidenced by the data of the analytical agency BusinesStat. The report was released in May 2023.

According to the study, in the first half of 2022, the sale of jewelry grew. After the start of the military special operation of the Russian Federation in Ukraine, the sharp collapse of the ruble and general uncertainty, many Russians began to buy jewelry as an investment. One of the traditional ways to invest in Russia is coins made of precious metals. The purchase of such coins is not subject to VAT. High demand for coins and bullion remained for a couple of months, in the future, an increase in unemployment and a drop in the purchasing power of the population led to a weakening of demand. The departure from the Russian market of luxury brands, including the Cartier jewelry house, also affected the sales of jewelry, analysts say.

Another negative trend in 2022 was the reduction in the number of jewelry outlets due to business optimization. Buyers are increasingly preferring online shopping due to discounts and an expanded range of products, which negatively affects offline trading. The share of online sales increased from 17% in 2021 to 19% in 2022, with marketplaces accounting for 30% of the online market. The situation is aggravated by the introduction of an automated state system in the field of control over the turnover of precious metals, precious stones and products from them (GIIS DMDK). Due to the introduction of the jewelry labeling system, sales companies had to expand the staff of commodity experts. For a small business, this is a significant financial burden, which entailed the closure of more than 10 thousand enterprises by the end of 2022.^[6]

Market decline by 9% to 301 billion rubles

Sales of jewelry in Russia in 2022 reached 301 billion rubles, down 9% compared to 2021. Such data on February 17, 2023 were cited in the Sokolov holding, which at the same time previously estimated the market volume for 2021 at the same 301 billion rubles.

According to Sokolov analysts, the average check for jewelry in the Russian Federation in 2022 increased by 20%, to 6880 rubles. At the same time, the average market retail prices for jewelry, according to Rosstat, in December 2022 were 14.2% higher than in December 2022.

The Russian jewelry market for the year sank by 9%

The head of the Sokolov analytical center, Alina Kolpakova, linked the fall of the Russian jewelry market with the departure of global jewelry brands from Russia, especially the luxury segment, which accounted for about 20 billion rubles.

Another factor in the decline in the market was the flow of demand into the more budgetary silver segment. In 2022, the share of silver in sales increased to 35% from 31% in 2021. The average check for silver products does not exceed 2,000 rubles, in the gold segment it is several times higher - about 15,000 rubles, Kolpakova said. According to her, the rise in prices partly sniffed the market contraction along with the growing share of online sales: over the year it grew from 17% to 19%. In 2022, about 30% of online jewelry sales came from Marketplaces.

Kolpakova in mid-February 2023 also said that the growth trend in the share of jewelry e-commerce in the coming years will continue, the share of online sales will grow by an average of 3% percentage points annually, and in monetary terms by 14%. In general, the jewelry market will grow by 2-3% in 2023, and by 5-6% in 2024, Sokolov predicts.

According to Rosstat estimates, in physical terms, the production of gold jewelry in 2022 decreased by 16.7% - from 22.4 million pieces to 18.6 million pieces. At the same time, the production of silver products increased by 7% - from 46.2 million units to 49.3 million units.^[7]

2021: The market volume in monetary terms increased by 27% to 301 billion rubles

According to Sokolov retail jewelry Russia the Analytical Center, in 2021 the market in monetary terms grew by 27% compared to 2020 and reached 301 billion rubles. At the same time, in physical terms, the market grew by only 4%. Compared pandemic to 2019, the market grew by 22% in money and decreased by 16% in the weight of jewelry produced.

The volume of the jewelry market in Russia in 2021 reached 301 billion rubles

The growth of the market in monetary terms is due to an increase in prices in jewelry retail in 2021 by 22% compared to last year and by 45% by 2019. This happened due to a jump to an all-time high in exchange prices for gold at the end of 2020. At the same time, the average check over the past year grew by only 4% to 5625 rubles due to an increase in the share in sales of inexpensive silver products to 75%.

In the revenue structure of jewelry retailers, 62% falls on gold products, including 28% - on products with diamonds, 8% - with semi-precious inserts, 17% - on jewelry without inserts or with artificial stones and 9.5% - on chains. Silver jewelry accounts for 33% of revenue. 5% take hours.

Among the Russian regions, Moscow and the Moscow region are in the lead in terms of jewelry sales (86 billion rubles, market growth - 31%), St. Petersburg and the Leningrad region are in second place (22.6 billion rubles, market growth - 37%), in third place - Krasnodar Territory (13 billion rubles, market growth 40%).

"The key trend of the jewelry market last year was the rapid growth of online sales," said Artem Sokolov, managing partner of the Sokolov jewelry brand. - The share of e-commerce in jewelry retail increased from 9% at the beginning of 2020 to 17% by the end of 2021 and reached 52 billion rubles (an increase of 69%). Effective omnichannel communication with the client will become, in our opinion, a key competitive advantage in the coming year along with the growing importance of environmental and social responsibility of manufacturers and sellers. "

According to the expert assessment of the Sokolov Analytical Center, the market growth dynamics in 2022 will decrease to 10-15%, and the market volume will reach 330-335 billion rubles.

The Sokolov analytical center aggregates information from the Federal Test Chamber (FPP), Rosstat, the Central Bank of the Russian Federation, the Ministry of Economic Development, the IMF, reports from the Sberbank Index on transactions, McKinsey, Euromonitor International, Online Market Intelligence and its own sales research.

2021: The Ministry of Finance of the Russian Federation creates a marketplace for the export of jewelry

In early December 2021, it became known that the Ministry of Finance of the Russian Federation is creating a marketplace for the export of jewelry. We are talking about the project "Digital trade. Jewelry, "which is being sold jointly with the Belarusian Ministry of Finance. Read more here.

2020:50% shadow turnover share

The share of "shadow turnover" in the Russian jewelry market remains consistently high and in 2020 amounted to 50%, the Ministry of Finance reports. In the control zone there are precious metals, stones and products from them with a total value of about 3 trillion rubles.

2019:59% of diamond imports come from Armenia

Diamonds are attached to 70% of gold jewelry. 95% of fixed diamonds are small diamonds, measuring up to 0.30 carats.

The main specialization of Russian border enterprises is the processing of large diamonds with a size of more than 0.50 carats, which is associated with the high cost of cutting in Russia, about $100-180, per carat, in contrast to India and China - the leading countries in the border industry, where the cost of cutting is estimated in the range of $10-50, per car.

The main source of diamond receipts to Russia is imports. In the import structure, the main volume of diamond supplies comes from Armenia (59% of the total volume of diamond imports to the Russian Federation in 2019), where the import duty on diamonds until 2018 was 0%, in 2019 - 3%, in 2020 - 6%.

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