Anyone who wants to buy jewelry or a shiny watch as a Christmas present at the last minute should have good cards. According to the industry, real delivery bottlenecks are not to be feared. The corona crisis has not left the company without a trace, but there is again high spirits, as General Manager Guido Grohmann from the Federal Association of Jewelry, Watches, Silverware and Related Industries in Pforzheim said. “Overall, 2021 was offhand for manufacturers and retailers.” The jewelers are also relaxed. As was the case before the Corona era, there are only waiting lists on the market for luxury watches.
Although the lockdown hit his industry at the beginning of the year, Grohmann said. But there are noticeable catch-up effects. Above all, exports to China, for example, are increasing compared to 2020. People also spend less money on travel, for example. “The budgets in households are distributed differently.” Partly in favor of the jewelry and watch manufacturers: “We have noticed that the average price on the receipts has risen significantly.”
The corona-related 2G and 2G-plus regulations in the Christmas business, which is also important for this industry, do not scare the association. In principle, shortly before the holidays, this is not a good development for retailers. “However, I believe that other retail sectors will be affected more than the jeweler,” said Grohmann. “The alternative to 2G would only be a lockdown.”
Even in the years before Corona, customers were increasingly making “offline purchases” a few days before Christmas. What is then sold is mostly standard goods. “It will be in stock,” said Grohmann. “It only gets difficult with checkered lilies of the valley.”
“We can do a lot” is the motto of the Federal Association of Jewelers, Jewelery and Watch Shops. Especially what is produced locally in Pforzheim, Idar-Oberstein or in the Munich area shouldn’t be a problem, said President Stephan Lindner in Munich. “We don’t have the classic delivery bottlenecks in the IT industry.”
Grohmann admitted that some manufacturers have lower stocks. However, real delivery problems are a minor problem – for example with colored gemstones from Thailand. Refiners that supply gold, too, could “not shoot at all odds to meet the disproportionate demand”. 90 percent of the metals processed on the German jewelry market are recycled.
For luxury watches, lovers and collectors are used to long waiting times, sometimes several years. “Before Christmas some will be disappointed if they want to give their wife a watch,” said Tim Stracke, one of the co-founders and managing directors of the specialized Internet marketplace Chrono24, headquartered in Karlsruhe. “If you are looking for vintage watches, you basically only have a chance online.” Half a million watches from more than 100 countries are traded on its platform. The average price: around 7,000 euros.
Enormous demand from China and the USA
From China and the USA, for example, demand is increasing enormously, said Stracke. This is not least due to the latest technology: “With smartwatches, people are starting to wear watches again,” said the entrepreneur. For some, the particularly sought-after steel specimens from Rolex and Patek Philippe are collectibles and craftsmanship, for others speculative objects. On the Internet, prices could be increased by 50 to 100 percent. The target group are mainly young men.
“The advantage is that it is a globally uniform product,” said Stracke. “It’s small, it’s easy to ship.” Within around ten years, Chrono24 has developed into the dominant marketplace with a company valuation in the billions. Almost 30,000 private and 3,000 professional dealers are represented on the site. “We estimate that every second watch enthusiast worldwide uses Chrono24,” said Stracke. He does not publish business figures. There is speculation in the industry about an IPO.
A spokeswoman for Rolex also admitted that one would have to wait longer for many watches. She cannot give average times because the dealers are free to decide who to sell to. Rolex does not keep the market artificially small, emphasized the spokeswoman. The manufacture of the watches is carefully handcrafted, so you can’t make any compromises in terms of speed.
According to experts, customers do not have to expect higher prices in view of the flourishing jewelry and watch industry and high demand. Gold is an object of speculation – especially in times of crisis, that has an impact on the price, said jeweler boss Lindner. Industry association boss Grohmann said that prices would be calculated in advance. Although these have increased in the higher-quality segment. “But there is no ad hoc jump before Christmas.” (Dpa)