Is fashion jewelry profitable?
Fashion jewelry is a lucrative market, especially for online buyers. While buyers tend to visit physical shops when purchasing fine jewelry, fashion jewelry buyers prefer online purchases. Research estimates that more than 29 million people shop for jewelry daily, with costume jewelry taking a significant portion of the market.
This is enough to establish the rising fashion jewelry market trend, making it a reliable investment. The research makes sense considering jewelry is an open market incorporating people from various races, social statuses, ages, cultures, and gender. It is not a market confined by people from specific categories.
Thus, you’ll never find a shortage of consumers to market your product to.
What is fashion jewelry?
People buy fashion jewelry to complement their outfits, and increased consumer demands dictate the production of cheaper and more vibrant jewelry variations that are not necessarily of better quality. Fashion jewelry pieces may rank lower than fine jewelry variants; however, this is not why buyers choose to purchase them.
Fashion jewelry pieces are less costly and have significantly boosted the fashion jewelry niche, making it quite profitable. People living in mature economies like Canada, the USA, and Germany have adapted to fashion jewelry, while those from emerging economies like India and Brazil are quickly catching up.
Statistics: Fashion Jewelry
2019’s valuation of the fashion jewelry market put it at $32.9 billion, and estimations predict that it could reach $59.7 billion in 2027. The female gender segment was responsible for over half of 2019’s sales. Financial analysts expect it to grow at a 7.60% CAGR by 2027, increasing the niche’s profitability to an all-time high.
What makes fashion jewelry profitable?
Low production costs
Fashion jewelry is low-cost because manufacturers make it from less expensive materials. Fashion jewelry is made from plastic, brass, copper, aluminum, stones, etc. These materials significantly reduce production costs providing sellers with a huge profit margin.
Additionally, low production costs incurred when manufacturing fashion jewelry allow manufacturers to design and produce many jewelry pieces at reduced costs. This will enable them to keep up with market trends where sellers can design and sell various products. This increases the business’ profit margin significantly.
Wide range of designs
There is a steady increase in customer demands regarding jewelry designs. For instance, some customers prefer vintage designs, while others prefer purchasing newer variants. Fashion jewelry manufacturers find it easier to keep up with such trends because they incur low costs when making their products.
Additionally, fashion jewelry doesn’t hold a similar quality demand from customers as those in the fine jewelry niche. Thus, sellers and manufacturers can produce more, less detailed designs at a cheaper cost. Doing this attracts more customers, helps them stay relevant, and encourages multiple purchases.
Impulse purchases
Most customers purchase fashion jewelry because they cost less than fine jewelry. Often, such customers may engage in impulsive purchasing behavior for various reasons. Some of the reasons include product variety, cost-friendly prices, and appeal.
Companies in the fashion jewelry niche benefit more from impulse purchases than those selling fine jewelry in similar jewelry niches. This factor makes the niche quite profitable, especially if businesses add other products whose price point is higher in addition to an already high markup.
Wide audience
As mentioned earlier, fashion jewelry can reach a wider audience than fine jewelry. Most people who buy fashion jewelry don’t like fine jewelry and don’t consider them a wise investment. This significantly increases fashion jewelry’s potential market, increasing sales and profits.
Additionally, companies can use other marketing strategies like influencer marketing to get more customers and profits. Influencers, blogs, and paid advertisements on various social media platforms are another great strategy to accumulate more customers. Often, selling the product is easy, making logistics the only challenging part of the sale.
Conclusion: Is fashion jewelry profitable?
Fashion jewelry is profitable because the products practically sell themselves. All sellers have to do is present their products to relevant customers. However, entities looking to start this business should be aware of the competition they’ll face. There are lots of companies selling fashion jewelry, and new businesses will have to look for factors that’ll set them apart if they want to make a profit.
