Insight:
- Vietnam’s jewelry market shows a strong recovery and is forecasted to increase more.
- Consumers prefer high-end, personalized, and culturally significant jewelry. Businesses must adapt quickly to capitalize on these trends for successful operations.
Despite economic fluctuations, the global jewelry market is steadily recovering. In Vietnam, jewelry holds historical and traditional value. As such, it carries profound meaning for Vietnamese people, representing a wealth of significance across various important occasions. This enduring passion for jewelry has been a driving force behind its robust growth in the country.
Market Overview
The Vietnamese jewelry sector continues to develop at a moderate pace attributable to the value attached to jewelry in culture, increasing purchasing power, and growing appetite for more quality and stylish jewelry.
The market value of this segment reached USD 1.09 billion in 2023, with a further projection of 4.39 % compound annual growth between the 2023 and 2026 period, above the growth rate of the industry in the region.
This market includes various products such as necklaces, rings, earrings, and bracelets. Of all these categories, gold is still the most favored material; platinum, diamonds, and customized jewelry are rising.
The market spans widely as it provides products for men, women, and even children through different means, including owned showrooms, buying jewelry over the internet, and department stores.
Export potential of Vietnam jewelry market
Many factors boost the market increase. One of the highlighted factors:
- Economic growth: The economy of Vietnam has experienced continuous growth, leading to an increase in the disposable income of its citizens. The consumers in Vietnam are also more inclined towards purchasing expensive things such as ornaments.
- Cultural significance: In Vietnamese culture, jewelry has a special meaning. These are gifts during important life events, including weddings and engagements. This tradition remains a strong influence on the ongoing demand for jewelry.
- Flourishing tourism: Vietnam attracts visitors from around the world. Tourists enjoy buying local jewelry as souvenirs. It helps the market boost sales.
- Gold investment: In Vietnam, gold is a highly recommended investment. Many individuals prefer to invest in gold jewelry as a property.
- Product expansion: Jewelry retailers have broadened their product portfolios to cater to diverse tastes and budgets. Consumers have many choices, from traditional designs to contemporary and bespoke pieces.
- E-commerce increasing: The e-commerce platforms and digital marketing have updated, making it simpler for consumers to find and purchase jewelry online. This has widened jewelry sellers’ reach and improved market access.
- Government support policies: The Vietnamese government has rolled out tax reductions on gold and jewelry to enhance the jewelry industry. These steps foster domestic production while minimizing the reliance on imported pieces.
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The market trends of jewelry
The Vietnamese jewelry market is growing, driven by cultural, economic, and global trends. Some key trends shaping the market:
- High-end jewelry demand is on the rise: The rise of the middle class, coupled with higher disposable incomes, has led to a growing interest among Vietnamese consumers in quality branded jewelry. Brands like Pamela, Cartier, and Swarovski are taking major steps to cater to the luxury market and the demand for personalized pieces.
- Cultural importance is a focus: The jewelry industry is leveraging digital technology to meet the needs of tech-savvy shoppers. More brands are investing in e-commerce platforms that offer features such as virtual.
- Sustainability focus: Consumers are becoming increasingly aware of the environmental and social impacts of the jewelry industry. In response, brands adopt transparent sourcing practices and provide eco-friendly jewelry options.
- Expanded production and foreign investment: Vietnam is emerging as a global jewelry manufacturing hub. This development boosts local employment and enhances Vietnam’s export potential.
- Personalized and fashion jewelry: Younger consumers are showing a strong interest in fashion jewelry that mirrors their style. Contemporary rings, earrings, and bracelets are on the rise in popularity. The personalization trend also allows buyers to design unique pieces that reflect their identity.
E-commerce jewelry buying trends
In 2024, the value of the jewelry market via e-commerce in Vietnam will reach USD 282.7 million, representing 74.0% of the total jewelry and watches e-commerce retail. This trend is expected to strengthen further in the next years.
The ensuing four years (2024-2028) bear the predictions of recording a Compound Annual Growth Rate (CAGR) of 10.5 %, and it is forecasted that this market will attain a worth of USD 422.1 million in 2028.
The expanding Jewelry e-commerce market is a segment of the overall Jewelry & Watches sector. This category includes various sub-categories, such as Other Jewelry & Watches and Watches.
Website selling jewelry is increasing in Vietnam. Businesses understand the market, adapt to trends, fight off competition, and seize the chances provided by the market. Therefore, this sales channel is projected to be successful for online jewel businesses.
Conclusion
There is rapid growth in the Vietnamese Jewelry Market due to several factors such as cultural orientation, an increase in spendable income, foreign partnership, and a shift towards digitalization. The target market offers a bright new chance for both domestic and foreign players to thrive, though not without issues such as the nurture of human capital and sustainability, which need to be addressed to take advantage of this growth opportunity fully.
