Luxury Goods
YOUNG COUPLES PUT A RING ON IT As more millennials and Gen Zers
tie the knot, they’re ushering in a surge in jewelry sales and changing up the diamond supply chain, prioritizing lab-grown gems and sustainable practices, says a CNBC report. Highlights from the report reveal: • More marriages : Young consumers will splurge not only on engagement rings, but also on wedding bands and other accessories. In a four-decade high, 2022 is expected to bring about 2.5 million nuptials. • Resilience : Consumers are looking for ways to show appreciation toward a loved one during the pandemic, and jewelry is one way to do that. Although jewelry sales dropped 4.3% last holiday season, the category outperformed apparel retailers and department stores. • Pandemic savings : Some consumers did not spend on travel and experiences during the pandemic, and were able to save up for aspirational purchases such as engagement rings. • Sustainability : Young consumers prioritize sustainability, fueling the growth of lab-grown diamonds. More jewelry companies, such as De Beers and Brilliant Earth, have added eco-friendly options with this in mind, fueling growth in the industry. • Social media : Jewelry chain Brilliant Earth says 87% of its active consumer base is either millennial or Gen Z, who find the brand primarily through social media platforms and make purchases via its website, which offers virtual appointments. JEWELRY MARKET SHINES ON Manufacturing innovations, increased demand for seasonal gifts, and online shopping surges are driving the growth of the jewelry e-commerce market in North America. Trends include: • The global online jewelry market will grow by $19.9 billion between 2019 and 2024 as demand for fine and fashionable jewelry among millennial women increases. • Increased availability of online jewelry collections fuels demand for newer designs, which are priced higher. Brands are widening their range of jewelry collections. • Integration of technology, such as 3D printing, into manufacturing processes has increased, enabling jewelry companies to innovate in terms of design, check the purity of precious metals and stones, and differentiate their products. • Increased demand for fine jewelry for special occasions, such as Valentine's Day and Mother’s Day, drives growth in the segment. • At $23.9 billion, 2022 is the second-highest spending year on record for Valentine’s Day. • Shoppers were able to place same-day or advanced flower deliveries through Doordash for Valentine’s Day, with the chance to win free diamonds from Kay Jewelers. The promotion aimed to capture consumers looking for last-minute gifts.
Dolce & Gabbana joins several other luxury fashion brands in banning fur from all future collections starting in 2022. It will continue to work with fur artisans in its supply chain to incorporate into its designs sustainable faux fur made from recycled materials, the fashion house says. The company has used fox, mink, and rabbit fur in previous designs, but recently opted for synthetic fabrics such as polyester and acrylic. Dolce & Gabbana is the second luxury fashion brand to announce a ban on fur in 2022; outerwear brand Moncler has also decided to go fur-free. The company says it will no longer use fur by 2024. Many brands were already fur-free, including Gucci, Balenciaga, and Alexander McQueen. Prada, Burberry, Oscar de la Renta, and Chanel have also recently committed to not using fur. Fur bans are not limited to fashion. Italy's senate recently approved an amendment to a budget law that permanently bans the farming of fur- bearing animals. If approved, the law would close down the country’s remaining fur farms by June 2022, adding Italy to a growing list of countries including France, Hungary, and the Netherlands, that are passing fur bans. SHEDDING ANIMAL MATERIALS FUR GOOD
14 Inbound Logistics • February 2022
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