Conversely, fine jewelry purchases regarded as luxury items for many are more prevalent among middle- and high-income earners, with Australia’s high-income earners accounting for almost half of all fine jewelry purchases in 2023. Several factors continue to influence jewelry demand across Australia, including consumer sentiment, fashion trends, household disposable income, and fluctuating crude marriage rates – the latter affecting engagement ring and wedding band demand. With jewelry being a non-essential item, retailers must continuously keep up with changing consumer preferences to survive in a competitive landscape with shrinking store numbers.
Fine versus fashion jewelry retailers
Small independent stores and fine jewelry chains, such as Prouds, Michael Hill, and Pandora, dominate Australia’s jewelry retail landscape. Independent jewelers accounted for over half of the country’s 3,501 jewelry stores in operation at the end of 2023, with New South Wales the epicenter for the country’s independent stores. Fine jewelry chain stores are the next most prevalent, operating under entities such as the James Pascoe Group, which owns three leading Australian jewelry brands, Prouds, Goldmark, and Angus & Coote. Just behind Prouds, Australia’s second biggest fine jewelry player was Michael Hill, with its Australia segment retail revenue amounting to over 330 million Australian dollars in financial year 2023.Excluding Lovisa Holdings, an Australian fashion jewelry chain with owned and franchised stores across the globe, Australia’s fashion jewelry chains have found less success. The takeover of fine jewelry has led to the collapse of several fashion chains over the past decade, such as Diva, Equip Accessories, and Emma & Roe. While brand-only stores are still small in numbers, they have expanded significantly over the years, with Swarovski, one of Austria’s most valuable corporations, and local brand Secrets Shhh at the forefront of Australia’s brand-only segment. To stay afloat, fashion brands are increasingly recreating fine jewelry pieces using cheaper materials, hoping to encourage consumers to opt for the same style for less money.
