Italian Gemstones Market Report
Key Issues in the Global Jewelry MarketThe main dynamics shaping the global jewelry market
The same trends that have influenced the global jewelry market are now affecting Italian production. Here are some brief insights into these dynamics:
Jewelry Production TodayIn this period of uncertainty and instability, colored and fancy gemstones are less attractive compared to diamonds, rubies, emeralds, and sapphires.Despite this, every design brand seeks new tones, materials, and shapes to make their collections unique. Unfortunately, the quest for novelty often results in using affordable and easily sourced materials to ensure larger productions and higher profits.In Italy, the most worked materials today include mother-of-pearl, type C jade, malachite, onyx, carnelian, pink opal, and lapis lazuli. Some brands still use turquoise, coral, blue chalcedony, chrysoprase, amethyst, and London Blue topaz. Other gems, like peridot, garnet, tourmaline, beryl, and topaz, are only used for special projects or high-end jewelry. Most brands avoid using fancy-colored gemstones in their collections.At present, there are no plans to recruit colored gemstones for substantial productions. Surprisingly, even major brands are using colored pastes, enamels, dyed materials (like jade and mother-of-pearl), quartzites, chalcedony, and doublets and triplets to achieve unusual patterns and shades.
The Valenza DistrictIn 2016, jewelry exports experienced a contraction of about -4%, with a loss of approximately €300 million, reflecting the decline in global jewelry demand.There was a drop in nearly all countries (e.g., -15% in the EU, -6.7% in Switzerland, -10.6% in France, -9.1% in Hong Kong), except for the United States (+15%) and United Kingdom (+30%). Fortunately, after years, the domestic market saw a +6.7% increase.Italy boasts an ancient and well-established goldsmithing tradition, developed in manufacturing districts like Vicenza, Arezzo, Naples, Milan, and Rome. Among these, only Valenza meets the global jewelry brands’ needs for variety of services, manufacturing quality, technical know-how, and innovation.Valenza’s goldsmithing tradition dates back to 1840, and before World War I, over 40 companies were active. By 1945, after World War II, the number had risen to over 300.Today, after challenging years, there are still around 800 businesses, involving 4,700 operators, and an export rate nearing €2 billion.Technical and professional expertise, a high degree of specialization, interconnected entrepreneurial networks, competitive prices, and the ability to adapt to new market demands are reasons many brands continue to invest here.Recent examples include BULGARI’s new factory, the largest in Europe, expected to reach 700 employees by this year. Cartier, with its acquisition of three factories (in Turin, Valenza, and Milan), has formed the PGI group.A new trend sees some companies, which previously produced in Thailand or China, returning to Valenza to benefit from logistical advantages, smaller cost differences, and growing demand for “Made in Italy” products.
Expectations for 2017While official data seems slightly negative, export forecasts for 2017 are relatively optimistic. However, the demand for colored gemstones in Italy remains slow in production and almost stagnant in retail.Store demand is very low, and the production area is undergoing a significant downgrade in value, using lower-quality materials.The drop in sales during the latest Basel fair is an additional worrying sign of the global market contraction.In Italy, the perception is that gemstones are sold only upon specific request, while no one is willing to buy for stock. In this scenario, logistics and services like production advice, delivery times, immediate availability, cutting and recutting, or payment terms become crucial to maintaining market position.
- Growing dominance of large financial groups: These players can afford massive investments in global communication strategies and distribution, a phenomenon becoming increasingly evident.
- Vertical integration of various production stages: This process is eroding traditional professional roles. For instance, gemstone producers acquiring jewelry brands, chain retailers cutting raw stones directly, or jewelry manufacturers opening their own stores or selling directly online to end consumers.
- Gem price instability: Caused by precarious extraction, high variability in demand, and rapid changes in fashion trends.
- Conflicting perceptions of jewelry: Seen both as a temporary fashion accessory and as a durable luxury good and investment. This has led to a significant decline in the mid-market segment.
- Rising prices for exceptional, certified gems: This trend puts more common gems at a disadvantage.
- Discrepancy between vintage and modern jewelry: Vintage pieces, offered at competitive prices, are experiencing growing sales in fairs and auctions. Conversely, modern jewelry producers bear the costs of the entire production and sales cycle.
- Changing use of gemstones: No longer just the centerpiece of a jewel but an integrated part of the design. The quality of cutting and customization is becoming increasingly important.
Jewelry Production TodayIn this period of uncertainty and instability, colored and fancy gemstones are less attractive compared to diamonds, rubies, emeralds, and sapphires.Despite this, every design brand seeks new tones, materials, and shapes to make their collections unique. Unfortunately, the quest for novelty often results in using affordable and easily sourced materials to ensure larger productions and higher profits.In Italy, the most worked materials today include mother-of-pearl, type C jade, malachite, onyx, carnelian, pink opal, and lapis lazuli. Some brands still use turquoise, coral, blue chalcedony, chrysoprase, amethyst, and London Blue topaz. Other gems, like peridot, garnet, tourmaline, beryl, and topaz, are only used for special projects or high-end jewelry. Most brands avoid using fancy-colored gemstones in their collections.At present, there are no plans to recruit colored gemstones for substantial productions. Surprisingly, even major brands are using colored pastes, enamels, dyed materials (like jade and mother-of-pearl), quartzites, chalcedony, and doublets and triplets to achieve unusual patterns and shades.
The Valenza DistrictIn 2016, jewelry exports experienced a contraction of about -4%, with a loss of approximately €300 million, reflecting the decline in global jewelry demand.There was a drop in nearly all countries (e.g., -15% in the EU, -6.7% in Switzerland, -10.6% in France, -9.1% in Hong Kong), except for the United States (+15%) and United Kingdom (+30%). Fortunately, after years, the domestic market saw a +6.7% increase.Italy boasts an ancient and well-established goldsmithing tradition, developed in manufacturing districts like Vicenza, Arezzo, Naples, Milan, and Rome. Among these, only Valenza meets the global jewelry brands’ needs for variety of services, manufacturing quality, technical know-how, and innovation.Valenza’s goldsmithing tradition dates back to 1840, and before World War I, over 40 companies were active. By 1945, after World War II, the number had risen to over 300.Today, after challenging years, there are still around 800 businesses, involving 4,700 operators, and an export rate nearing €2 billion.Technical and professional expertise, a high degree of specialization, interconnected entrepreneurial networks, competitive prices, and the ability to adapt to new market demands are reasons many brands continue to invest here.Recent examples include BULGARI’s new factory, the largest in Europe, expected to reach 700 employees by this year. Cartier, with its acquisition of three factories (in Turin, Valenza, and Milan), has formed the PGI group.A new trend sees some companies, which previously produced in Thailand or China, returning to Valenza to benefit from logistical advantages, smaller cost differences, and growing demand for “Made in Italy” products.
Expectations for 2017While official data seems slightly negative, export forecasts for 2017 are relatively optimistic. However, the demand for colored gemstones in Italy remains slow in production and almost stagnant in retail.Store demand is very low, and the production area is undergoing a significant downgrade in value, using lower-quality materials.The drop in sales during the latest Basel fair is an additional worrying sign of the global market contraction.In Italy, the perception is that gemstones are sold only upon specific request, while no one is willing to buy for stock. In this scenario, logistics and services like production advice, delivery times, immediate availability, cutting and recutting, or payment terms become crucial to maintaining market position.