Gaza war causes concerns in the jewelry and watch industry
The war in the Gaza Strip is also causing problems for the German jewelry and watch industry. "Since October 7, everything in the Middle East has been on hold," Guido Grohmann, Managing Director of the German Jewelry, Watches, Silverware and Allied Industries Association, told the German Press Agency. Sales had almost come to a standstill. "And on a scale that a slightly better Christmas trade in Germany could not compensate for," said Grohmann. "That worries us." According to the information, German manufacturers usually export mainly jewelry to the region, and watches to a lesser extent.
This poses major planning challenges for companies in 2024, said Grohmann. Peace is not in sight in the near future. Whether and when a kind of habituation effect will set in - like after the start of the Russian war of aggression against Ukraine - is difficult to predict.
The Pforzheim-based association recently reported declining trade figures for the industry as a whole. By the end of the third quarter, jewelry worth 2.14 billion euros had been exported - a decline of 2.9 percent compared to the same period last year. Watches and watch parts fell by 2.4 percent to 1.22 billion euros. In the first nine months of the year, imports of jewelry fell by 8.4 percent to 1.51 billion euros, which was more than the 5.2 percent drop in imports of watches and watch parts to 1.71 billion euros.
Nevertheless, Grohmann was confident, as 2022 was an "exorbitantly good year". In comparison, cuts were to be expected. The current figures are above those of 2021, "so this is still a very high level." And even then, business was better than in 2019.
Due to the coronavirus pandemic, people had not been able to travel as much, the Managing Director explained. And they hadn't parked their money in bank accounts because there was no interest at the time. That was good for the industry. "The war in Ukraine has led to people investing in sustainable assets." It is unclear whether the conflict in Israel will have a similar effect. Christmas business is therefore difficult to predict.
Sustainability was a major topic at the end of the year, for example recycled gold. There is also hype surrounding synthetic, i.e. artificially produced diamonds. "This is not as huge here as in Asia, the Middle East and the USA," said Grohmann. However, the attention is also increasing interest in this country.
In its trend report for this year, the association also focused on men's jewelry, among other things. Grohmann said that men are now more frequently seen wearing bracelets and necklaces, sometimes several at once, especially in the trend and fashion jewelry segment.
However, the trend has not been confirmed in the real jewelry sector. Men wear a maximum of three pieces of jewelry: a watch, no matter how expensive, perhaps a wedding ring and sometimes cufflinks. "But then it stops," said Grohmann. "That doesn't change."
- The disruption in the Middle East due to the Gaza conflict also impacts the trade of consumer goods, as many German companies export consumer goods such as fashion items to the region.
- The ongoing conflicts in different parts of the world, including the Gaza Strip and Ukraine, have led to a shift in consumer behavior towards investing in sustainable assets, which could potentially influence the demand for consumer goods like fashion items.
- At the turn of the year, industry associations like the German Jewelry, Watches, Silverware and Allied Industries Association, focus on trends in the consumer goods industry, such as the increasing popularity of men's jewelry and synthetic diamonds, which may influence the production and marketing of consumer goods.
Source: www.dpa.com
