Luxury investments have long been a popular choice for those looking to diversify their portfolio and invest in assets that hold their value over time. One particular area that has seen a rise in interest in recent years is fine jewellery, especially in light of the growing "she economy." The she economy, a term coined by Chinese journalist Helen Wang, refers to the growing economic power of women. Women are now the driving force behind luxury consumption, with their purchasing power and influence shaping the industry.
Here, we'll explore how investing in luxury jewellery has changed in the wake of this trend, and what you need to know if you're considering it as an investment option.
The world of investing in luxury has experienced a major shift in recent years due to the rise of the she economy. Women have been taking on more significant roles in the business world, and this has led to an increase in their purchasing power.
The Rise of the She Economy
The she economy is a term that refers to the increasing economic power of women. Women are not only becoming more financially independent, but they are also taking on more significant roles in the business world. According to the Harvard Business Review, women control $20 trillion in consumer spending worldwide, and this figure is expected to rise to $28 trillion by 2023. Additionally, women make up 40% of the global workforce and are expected to account for 60% of the world's wealth by 2025. With this increase in wealth comes increased purchasing power, and women are increasingly using their financial clout to buy luxury goods.
The impact on the luxury goods market
In 2020, the global luxury goods market was worth $320 billion, with jewellery accounting for 29% of the market share. Women are the primary consumers of luxury goods, and they are becoming more discerning in their choices. A study by McKinsey & Company found that 76% of women who buy luxury goods are self-purchasers, and they prioritize quality, design, and uniqueness over brand name or logo.
The rise of the she economy has also led to an increase in the demand for ethical and sustainable luxury goods. A study by Bain & Company found that 85% of luxury consumers prefer sustainable and ethical products, and they are willing to pay a premium for them. This has led to an increase in the use of ethically sourced materials and responsible manufacturing practices in the luxury goods industry.
The Impact on Fine Jewellery Investing
According to the Luxury Institute's Wealth and Luxury Trends report, women are increasingly buying luxury goods for themselves, rather than relying on men to make these purchases for them. The report states that 62% of women bought luxury goods for themselves in 2019, up from 40% in 2008.
A trend driving the rise of the 'she economy' is a growing interest in investing in assets that hold their value over time. Fine jewellery, especially pieces from well-known brands, has traditionally been a good investment option due to its durability and the enduring appeal of luxury goods. According to the Bain & Company Luxury Study, women now account for 40% of global luxury jewellery purchases, up from 30% a decade ago. The same study found that the fine jewellery market is expected to grow by 6% to 8% per year, with female self-purchasers driving this growth.
Tips for Investing in Fine Jewellery:
If you're considering investing in fine jewellery, here are some tips to keep in mind:
Do your research: Before making any investment, it's important to research the market thoroughly. Look for reputable jewellery brands and study market trends.
Choose quality over quantity: When investing in fine jewellery, choosing quality over quantity is essential. Look for pieces made from high-quality materials and crafted with attention to detail.
Consider resale value: Fine jewellery is an investment, so it's important to consider the potential resale value of the piece. Look for pieces that are likely to hold their value or even appreciate over time.
Look for unique pieces: Unique pieces are more likely to hold their value over time. Look for pieces that are one-of-a-kind or limited edition.
Buy from reputable sources: When making any investment, it's essential to buy from reputable sources. Look for well-established jewellery stores with a good reputation.
in conclusion
The rise of the 'she economy' has had a significant impact on investing in luxury goods, particularly fine jewellery. Women now account for a growing percentage of global luxury jewellery purchases, and the fine jewellery market is expected to continue to grow.
If you're considering investing in fine jewellery, it's essential to do your research, choose quality over quantity, consider resale value, look for unique pieces, and buy from reputable sources. By following these tips, you can make a smart investment in a piece of fine jewellery that will last a lifetime.
