Editor’s Note
This article, originally published on 28 Sep 2022, has been reviewed for accuracy and clarity. Minor updates have been made to reflect current context.
28 Sep 2022 14:38
Burcu Danei
Contrary to cross-industry export declines, the jewelry and watch industry is booming. ©shutterstock
Contrary to negative retail expectations, the jewelry and watch sector impresses with strong import and export figures. However, due to an uncertain future, this success is no reason to rest on one’s laurels.
Energy crisis, inflation, and supply bottlenecks. No one can escape these (ongoing) issues lately. The resulting discontent is directly reflected in the ifo Business Climate Index. As of September 2022, it has fallen broadly, dropping to 84.3 points in September—the lowest level since May 2020.
Companies rated their current business situation clearly worse. Pessimism regarding the coming months has increased significantly. Rising prices force consumers to tighten their already tight belts even further. This fact has driven retail expectations to a historic low.
The Business Climate Index fell to 84.3 points in September—the lowest level since May 2020. ©ifo Institute
As Blickpunkt Juwelier reported in early September, imports of jewelry and watches into Germany rose sharply—a clear indicator of the successful economic activity of jewelers and specialist retailers. This is now confirmed by the BVSU, the Federal Association for Jewelry and Watches. Current statistics show that the German jewelry and watch industry can look back on a profitable first half of the year, with an upward trend.
Particularly in the jewelry industry, product exports show a strong upward trend, with figures rising continuously so far. While products worth €652.8 million were exported in Q1 2022, this figure reached €746.5 million in Q2. Overall, jewelry goods worth €1.399 billion were exported in the first half of 2022.
Source: Federal Statistical Office; Foreign Trade (as of August 2022) ©BVSU
This upward trend is also evident for watches and watch parts. In Q1 2022, products worth €381 million were exported, and in Q2 the value stood at €409.8 million. Thus, goods totaling €790.8 million were exported in the first half of 2022.
However, this positive development in the watch and jewelry sector should be viewed with caution. The enormous rise in inflation has prompted numerous investors to invest in risk-safe currencies. The goal is to counteract the loss of value of hard-earned savings. Besides gold and gemstones, high-quality luxury watches are also popular investment assets. However, it remains to be seen how long this trend will last.
Nearly half of jewelry and watch retailers worry about supply. 47.5% of retailers in the “watches, jewelry” sector complain about delivery problems, according to an analysis by the ifo Institute for Blickpunkt Juwelier.
Strong plus in imports and exports of jewelry and watches. Imports of jewelry and watches into Germany are rising significantly—ultimately a gauge of what jewelers and…
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