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Expand B2B Operations by Going Where the Customers Are

The lingering effects of inflation, low consumer confidence, reduced luxury spending, and a shrinking middle class in the US are all cause for concern in the American economy. Even luxury jewelry, once a sector that could power through any economic downturn, is feeling the effects of this economic uncertainty.

While the whole world is feeling similar effects, there are still growing middle classes and growing luxury markets out there waiting to be tapped. China, India, Southeast Asia, and Latin America all have a growing luxury class waiting to be served. If you can’t operate a physical location in these areas, you can access the world jewelry market through jewelry supplier apps.

The Numbers by Region

China

While China’s GDP grew 5.2% in 2023, its economy is not without its problems. Many of these will be familiar to Americans: inflation, a crisis of confidence, a lack of suitable employment for college graduates, rising housing costs. On top of that, the country’s working-age population is in decline, thanks to an aging population and the one-child policy, which only ended in 2016.

Despite these challenges, experts predict that the luxury market in China will experience moderate growth in the coming years. By 2025, China could account for 25% of worldwide luxury sales. Some of this growth can be attributed to the end of the COVID-19 pandemic. While the US jewelry market soared during the pandemic because luxury consumers couldn’t spend on cars, vacations, cruises, and restaurants, strict lockdowns in China had the opposite effect of slowing down luxury spending across the board. As the country comes out of the pandemic, the highest income brackets in China have not been particularly affected by the country’s economic struggles and have disposable income to spend. Just like their American counterparts, their tastes lean toward the “quiet luxury” aesthetic.

India

Almost since the beginning of recorded history, India has been at the forefront of jewelry and gemstone production. Now, a growing middle class means more luxury jewelry consumers within this rapidly developing nation. India ranks third in number of billionaires and 15th in number of millionaires, and these numbers are growing rapidly. Belgaluru and Hyderabad alone have two of the fastest-growing millionaire populations in the world.

Southeast Asia

Vogue Business predicts that the next luxury market boom would happen in Southeast Asia, the region of Asia containing Brunei, Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Vogue points to growing economies, higher personal incomes, tourism, and tech entrepreneurship as the factors that will drive a luxury goods boom. The region’s growth is set to outpace that of Eastern Europe and Latin America. Whereas year-on-year luxury sales reached 20-30% in the US, Europe, and Japan in 2022, luxury sales in Southeast Asia grew 70% over the same period. Facing a lack of local retail options, luxury consumers are turning more and more to ecommerce for their high-dollar purchases.

Latin America

Latin America is emerging as a major market for luxury goods. Many Latin American nations, including Ecuador, Peru, and the soon-to-be oil-rich Guyana, are all experiencing rapid growth.

In Brazil alone, the luxury market grew 18% in 2022 and is expected to double in size by 2030. As in China, Brazil is experiencing a post-pandemic increase in consumption when other nations are seeing consumption slow down. Millennials and Gen Z account for half of all luxury spending.

Find Customers Worldwide

While wealthy Americans seem to be curtailing their luxury spending, this is not the case in many other parts of the world. Luxury consumers have money to spend, and if local suppliers cannot offer the products these consumers want, make sure you have the technology to do business with retailers all over the world. It might be difficult for American entities to operate in some of these countries, given the legal, cultural, and linguistic barriers, but technology should not be a barrier to entry into the world jewelry market. VDB has the jewelry technology solutions that make selling your inventory worldwide easy and affordable.