By Armin Wittman

In 2009, the German jewellery market continued to be generally positive. Despite the ongoing economical crisis and strong insecurity at the beginning of the year, German consumers exhibited a consistently positive purchasing behavior – which is remarkable when compared to other countries where the effects of the economic down-turn were more visible.

In a survey taken in the third quarter of 2009:

• 43 % of German jewellers rated the current situation in jewellery and watch retail as excellent to good;
• 25 % believe that the situation would improve;
• 57 % estimated it would remain the same;
• 76 % of jewellers stated that the number of same customer visits to their stores had increased compared to the previous year.

At the close of 2009, the jewellery market in Germany is expected achieved a total sales volume of close to €3 billion. Watches will account for a total sales volume of about €1.3 billion.

Watch and jewellery sales were as follows:

• Revenues derived from jewellery sales remained at a high level with a rate of 55.3 % (data from August 2009)
• Sales of watches declined compared to the summer of 2008. The decrease was 34.9 % in June and 29.3 % in August (data from August 2009).

In 2008, Germany's jewellery sector market results were:

• Production: €853 million (manufacturers' pricing)
• Import: €1.018 billion (idem)
• Export: €998 million (idem)

In 2008, the watch market in Germany performed as follows:

• Production: €286 million (manufacturer’s pricing)
• Import: €1.055 billion (idem)
• Export: €860 million (idem)

German watch and jewellery retailers reported that the market continued to grow as 57 % rated the order situation for their own companies as good to excellent.

Retailers who upgraded their service levels to personalized, VIP-type of sales service reported that these steps had enabled them to attract new customers. Some 88 % of jewellers polled rated personalized sales consultations as extremely important to their company's performance and success.

Brands play an increasingly important role in purchasing decisions, to a higher degree for watches than for jewellery, as 44 % of jewellers declared that the jewellery brand plays an important role in sales, while in the watch segment, 88 % indicated the same.

The lower and mid-range price categories of watches and jewellery registered the majority of sales, representing 92 % of all watch and jewellery retail sales in Germany - 54 % in the lower and 38 % in the mid-range price segment.

For this fall and winter these trends have been observed for jewellery :

• XL sizes: chains with large links, oversized circular pendants or wide bracelets and ringsl
• Individuality is hot: variety is in demand – reflected in particular in shapes and materials;
• Colors: dark, warm colors continue to be in demand; red and bronze shades in metals;
• Also very popular are black and white contrasts;
• “New Opulence”: generous ornaments and over-embellishment with gemstones;
• Diamonds retain their high degree of popularity; though designs with large coloured gemstones are also becoming increasingly trendy;
• There is a strong demand for gold jewellery set with diamonds in the earring and ring segments; as well as increasing demand for stainless steel jewellery set with diamonds;

inhorgenta europe continues to be one of the most highly frequented and most important international trade fair for German jewellery  and watch retailers of whom 49 % polled attended the 2009 edition of inhorgenta europe – compared to 19 % at Baselworld – while 54 % stated they will probably or highly likely return to inhorgenta europe 2010.