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The brilliant jewelry and semi-jewels market

    The world market for costume jewelry, semi-jewels and jewelry has grown every year. According to the McKinsey Global Institute report, the expectation is for growth of up to 6% a year in the coming years and that annual sales in this sector will reach US$250 billion/year by 2020.

 

   Brazil is responsible for 0.14% of world exports, occupying the 34th position in the world ranking. United States, Argentina, Chile, France and Colombia are the biggest Brazilian importers in this market. The Latin American segment, valued at USD 7.5 billion in 2017, is one of the smallest in the world considering total consumption, second only to the Australasia region (which includes Australia and New Zealand), valued at USD 3.3 billion , demonstrating an openness to development and exploration.

   In Brazil, the costume jewelry sector is very promising. Despite the economic recession that the country has faced in recent years, it was one of the few sectors that continued to grow, being responsible for moving millions of dollars a year. Costume jewelry made from materials such as fabrics, straw, stones have an annual sale of 45 million dollars and gold or silver plated pieces move up to 55 million dollars annually. In relation to the perception of Brazilian products by the international public, there is a fact that stands out: the great differential of national production in the world market is its design.

 

    According to data from the Brazilian Institute of Gems and Precious Metals (IBGM), the country has around three thousand semi-jewels and costume jewelry companies in operation, which together earn around R$ 600 million. As already mentioned, costume jewelry businesses in Brazil have positive prospects for the segment, also due to its growth at the national level. Even with the increase in the cost of living in the country, the sector remains strong for being accessible and attractive products.

   The costume jewelry sector has a very diversified market. Class A, and especially class B, a traditional market in this sector, have been showing interest in exchanging the jewelry market for semi-jewels. In addition, the growth in the purchasing power of classes C, D and E proved to be an important factor in the heating up of this sector. Another change in the consumer market was the increase in sales to the male segment, which is increasingly interested in this type of accessories.

   One of the biggest threats to the sector is competition with producers in eastern countries. These are able to produce parts at a reduced price, due to tax facilitations and more flexible labor laws, in addition to a low-quality material, which allows them to reach a final product with lower value and at the same time with a good profit for the companies. However, in Brazil, there are few public policies to encourage this sector. The market in the Asia-Pacific region, according to a survey carried out by Euromonitor International, represents 53% of the consumption of accessories in the world.

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   As for internationalization, the sector has been approaching, for the most part, the same strategy, disseminated in the field since 2000. This consists of partnerships with local retail stores or department stores for the distribution and sale of the Brazilian product. One of the advantages of this strategy is the non-exclusivity with its partners, allowing greater possibilities in its campaigns and types of products, in addition to guaranteeing a regular volume in demand for its products. But, as already stated, this is one of the many possible aspects involving internationalizing brands, products and services.

   Finally, regarding an analysis in relation to the foreign market, it appears that, for the sector, Portugal, Angola, Italy and Spain are very receptive to Brazilian products. China, another highlight, is the country that consumes the most semi-jewels in the world. The biggest highlight was the United Arab Emirates, as the market for precious and semi-precious stones in the Arab country, located in the Gulf, is over 22 billion dirhams, equivalent to US$ 5.9 billion a year, according to data released by the minister of the country's Economy, Lubna Al Qasimi at a congress of the International Association of Colored Stones, in Dubai.

By Vitória Godoy Costa on 03/14/2019

Sources

https://bit.ly/2TS99P7

https://bit.ly/2UEornN

https://bit.ly/2UEoxf9