The Jewelry Market Remains One of the Most Flexible

In 2006-2010, according to BusinesStat estimates, supply of jewelry increased annually. Only in 2009 the supply volume of jewelry in Russia went down by 10.9 % due to the global financial crisis and boom in prices for precious metals.

One of the most important factors, holding increase in prices for domestic production of jewelry is the competition from the cheap imported produce, delivered from the Asian countries (China, Turkey, and Thailand).

The supply dynamics repeats the demand dynamics. During 2006-2008 demand for jewelry in Russia was steadily increasing and by 2008 it had reached 39.2 million items. In 2009, demand for jewelry went down by 22.2 %, compared to 2008. The reason for decrease was the global financial crisis, due to which the purchasing power dropped and the prices for precious metals shot up. The jewelry market remains one of the most flexible, i.e. decrease in customer incomes immediately leads to the sales slump.