Jewel Hub -Germany

Overview

Germany is one of the most powerful industrial countries in the world located at the center of Europe, and is bordered with Poland, Czech Republic, Austria, Switzerland, France, Belgium, the Netherlands and Denmark. It has one of the highest standards of living worldwide, is the largest economy in Europe and the fourth largest in the world (after the United States, Japan and China).

Jewellery Industry
“Made in Germany”, originally a mark of origin, is known worldwide as a Symbol of German quality, which applies to most products and especially to jewellery, silverware and gemstones. Quality in this sector is based on extensive education, a high level of technology and many years of experience. That is why German jewellery and silverware is valued so highly in over 160 export markets around the world. Although the main export markets are located in Europe, in which about 70 per cent of the business is carried out, the German jewellery and silverware industry has increasingly turned to the Far East countries in recent years and especially to Hong Kong as the gateway to the Asian market.

Jewellery Making and Gemstone Cutting Centres
The centre of the German jewellery industry is situated in Pforzheim on the outskirts of the Black Forest, where approx. 70 per cent of jewellery is produced. Located in the state of Baden-Württemberg, Pforzheim’s flourishing jewellery and watch-making industry has earned the town its nickname “Goldstadt” or Golden City. The companies in Pforzheim make great efforts every year to coordinate their collections to the taste of individual sales regions abroad. This is undoubtedly the main reason why this industrial sector has been so successful in assuming a leading position and maintaining this until the present day.

Pforzheim is also home to the world’s only museum devoted to the history of jewellery with exhibits that span over 5,000 years, as well as the internationally renowned School of Design and the Institute of Jewellery Technology at Pforzheim University. In addition to the jewellery centre of Pforzheim there is the gemstone cutting centre of Idar- Oberstein. This international trading place has its origin in the rough stones that were once mined there.

Today the term “Idar-cut” stands all over the world for superior cutting, innovative gem design and distinguished qualities. In a field of strong international competition Idar-Oberstein has been able to maintain its place as one of the top gem centres of the world.

Well-known Brands
Meissen, Atelier Zobel, Schreiner Fine Jewellery, Wellendorff, CADA, Atelier Munsteiner, Christ, Thomas Sabo, Wempe, Niessing, Hellmuth and Bijou Brigitte are some of the famous jewellery brands from Germany.

Schreiner Fine Jewellery’s Gerhard Schreiner’s fascination with precious stones moved him to immerse himself in the world of jewels. His endeavours led him to Colombia in 1988, the land of emeralds, where the extraordinary successstory of Gerhard Schreiner began. Today, there are 300 employees working in Schreiner’s enterprise, which has its headquarters in Germany. Designers in Italy as well as Spain are producing Schreiners “haute joaillerie”. His name represents, throughout the world, the highest luxury imaginable, the absolutely highest standards of quality and the highest demands.And today one can find jewellery from the Schreiner Collection in the treasure chests of numerous noble residences throughout the world.

Wellendorff is known for their Wellendorff rope, a necklace, in which gold feels as smooth as silk. The secret of this smoothness is perfect craftsmanship: each necklace is woven by hand from a waverthin 18 carat strand of gold. Further classics include the Wellendorff rings, which, with their colour Wellendorff enamel designs, creative patterns, ornamentation and diamonds, have proven to be real eyecatchers. The inner rings of these pieces of jewellery can be playfully turned around and are further evidence of the outstanding craftsmanship of the Wellendorff goldsmiths. Niessing is one of the world’s leading names in contemporary jewellery design. Niessing was established in 1873 in the town of Vreden, in the German region of Westphalia, near Dutch border. At that time, Niessing primarily produced religious objects, such as crosses and other symbols used for praying and in church. Wedding rings, however, have always been one of Niessing’s mainstays. In the 1950s, Niessing advanced to one of Germany’s leading wedding ring producers. The seamless wedding ring, forged from a solid piece of precious metal, was developed by Niessing in the early 20th century. Even today, it is one of the most beautiful symbols for eternal love, without beginning or end.

Trends
According to Euromonitor, jewellery value sales recorded further growth in 2016 showinga positive development for costume jewellery and fine jewellery alike. Main drivers for growth were the increased demand for premium and luxury products, precious materials including gold and diamonds and individualised or customisable products. The knowledge of owning an exclusive or even unique piece of jewellery, often with a special message or meaning integrated in the design, created enough added value for German consumers to accept higher average unit prices. Value sales especially of fine jewellery therefore registered another year of decent growth in 2016.

Competitive Landscape
According to Euromonitor, the competitive landscape registered some movement within jewellery in Germany in 2015. With strong growth in outlet numbers and even higher focus on consumer demands and new product launches, Pandora Jewelry GmbH was able to grow by 44 per cent to reach an overall value share of 6 per cent and rise to first position. The company has not only surpassed Douglas Holding’s Christ and Cartier on the way to the top, but also registered the fastest value growth compared to its competitors in German jewellery.

Prospects

Far more moderate development is predicted by many members of the jewellery trade organisation for volume and value sales in Germany in the future. The main issue envisaged by many of them is a reduction of consumer traffic for retailers, which of course impacts sales opportunities and potential growth of jewellery specialists. Customer frequency in shopping centres and city centres decreased significantly over the review period and is expected to continue to decline. As jewellery sales are still mostly store-based, often spontaneously, the impact is noticeable and expected to intensify over the forecast period.