'Ultra-High or Ultra-Low' Segmented Jewelry Market

Established Mid-Range Brands Struggle Amid Sharp Sales Decline

[Asia Economy Reporter Yujin Cho] Since the outbreak of the novel coronavirus infection (COVID-19), the domestic jewelry market has been reorganized with emerging brands leading the ultra-luxury and ultra-low-price segments. Established jewelry brands operated by domestic fashion companies are experiencing a sharp decline in sales.

According to industry sources on the 8th, jewelry sales of domestic fashion companies such as Didier Nubo and Lloyd recorded negative growth compared to the same period last year from January to early September this year. As sales of established jewelry brands, which have grown mainly through traditional channels such as offline department stores, duty-free shops, and home shopping, have worsened, GS Home Shopping reduced jewelry product broadcast scheduling by about 30% during this period.

A representative from Sejeong’s Didier Nubo said, "We have grown with department stores and duty-free shops as our main sales channels, but sales have significantly decreased due to a decline in offline visitors," adding, "We are responding to market changes by strengthening online channels." Domestic fashion companies, which started with clothing, have expanded into accessories such as jewelry, bags, and shoes, but have struggled as demand sharply declined after COVID-19. This is because consumer purchasing behavior has polarized into ultra-luxury and ultra-low-price segments, rapidly changing the market landscape.

Luxury jewelry brand Ierrolor recorded a 10% sales growth rate this year (as of early September). This is due to the recent rise in gold prices combined with the autumn wedding season, which has sharply increased demand.

The growth of emerging brands that have declared ultra-low prices is also remarkable. Online edit shops continue to show love calls for emerging brands that started with online as their main distribution channel, including 'Bunk,' newly launched by CEO Seok Jeong-hye, who launched the bag brand 'Couronne' and sold it to Kolon Industries FnC division for 90 billion won in 2010, as well as 'Luevre,' 'August Harmony,' and 'Hey.'

An industry insider said, "Recently, celebrities and influencers are choosing nameless brand products instead of luxury goods, leading the trend in the ultra-low-price jewelry market. Unlike bags or shoes, the ultra-low-price jewelry market has no major players, low market entry barriers, and brand value is not prominently displayed, so it is expected to have high long-term growth potential."

This content was produced with the assistance of AI translation services.