Editor’s Note
This article explores the concept of “silent luxury” and its growing influence in the jewelry and watch sector, a trend emphasizing understated exclusivity. It also highlights a pivotal moment for the industry, marked by LVMH’s Bernard Arnault leading the Forbes rich list.
The rise of silent luxury is closely tied to the goal of recreating that feeling of exclusivity. Furthermore, the luxury industry is undergoing its changes, and for the first time, the sector has placed a person at the top of Forbes’ list of the world’s richest people: Bernard Arnault, CEO of the LVMH group, with a fortune of nearly $214 billion.
Silent luxury refers to high-quality products that lack a characteristic detail making their brand affiliation obvious. Technically, this is the definition that new consumers have adopted for what will be an important concept in many industries, such as jewelry and watches. The introduction of silent luxury is very much about this, aiming to recreate that sensation of exclusivity.
Beyond technicalities, this is not merely the “latest trend” or a whim of younger generations and society at large; the focus is on quality, exclusivity, and the experience evoked by luxury that we had forgotten. But we are not talking precisely, or solely, about premium products, but rather a broader change. A change in the industry, in consumer behavior and their life philosophy, a direct shift in what we have known, until now, as luxury.
If you look at Forbes’ list of the world’s top 10 richest people, you might expect to find a tech magnate or personalities like Elon Musk or Zuckerberg. However,
The same person who may be on the verge of controlling a large part of the luxury jewelry business if he finally acquires the Swiss luxury holding company Richemont. The goal? To strengthen Tiffany & Co.’s position with a special interest in Cartier, which would, as anticipated, lead him to dominate the high-end jewelry segment. Beyond fortunes and empires, jewelry is shining brighter than ever, becoming the perfect aspiration for many luxury players, always in search of growth.
A PwC study based on Euromonitor International data estimates that the luxury jewelry sector will grow to $55 billion in 2023, considering its value of $44 billion in 2018. While its growth was 2% between 2013 and 2018, it should accelerate to +4.6% in the next five years.
At the same time, the jewelry sector became more attractive when price ranges broadened; between costume jewelry and high jewelry, the “semi-fine” category emerged, sparking interest from a younger target audience. This has led to a change in purchasing behavior, driven by the need to mix fashion and luxury, which has consequently allowed jewelry and high jewelry to coexist. The positioning of brands in different segments of the sector paved the way for an acceleration that is clearly real and has resulted in what we are calling silent luxury.
In this way, traditional luxury now aligns with this concept, silent luxury, to create a new lifestyle trend that leads the jewelry and watch sector into a positive cycle. Moreover, growth is obvious. On one hand,
According to Morgan Stanley, Rolex produces one million watches a year and recorded a turnover of nearly eight billion dollars in 2021. On the other hand, Vacheron Constantin, the renowned Genevan brand and the world’s oldest watch manufacturer, landed in Spain on March 1st with its first boutique in the capital. Not to mention, Rabat closed its 2022 fiscal year with a turnover of 132 million euros, 25% more than the previous year. Furthermore, the jewelry company is betting on the domestic customer, who now accounts for over 72% compared to 42% before the pandemic. Indeed, sales to Spanish customers increased by 28% compared to 2021 and are almost double those of 2019.
Another positive indicator is that Libby Page, Market Director at Net-A-Porter, assured another media outlet that
The Kering Group also announced a new store project for the Gucci brand, where nothing would cost less than 40 thousand euros and could even reach 3 million euros for high jewelry; a project based on new ultra-luxury boutiques and a change of direction by the group. Even looking at other industries, for example, there is an 18-month waiting list for new Lamborghinis, the automotive brand that delivered a record 9,233 new vehicles in 2022, a 10% increase from 2021 and the first time the brand delivered over 9,000 units in a year.
Considering that the high-end jewelry and watch segment is an important part of the global economy, how will luxury be in 2023? According to WGSN, consumer trend analysis points towards fine jewelry.