1.1 Definition and presentation

Costume jewelry - from the French word bijouterie - is identified as a sub-segment of the wider jewelry market. To be classified as imitation jewelry for costume purposes, these articles may not contain more than only small amounts of precious metals. They must be made primarily of base metal or non-precious materials (such as wood, glass, or plastic). The broader category of imitation jewelry, which presents the characteristics just mentioned, comprehends three sub-categories which, within the scope of this study, will be treated as one under the denomination of "costume jewelry" since they present the same structural characteristics and differ only in the purpose of their use:

Bigiotteria di Imitazione: reproduction of jewels with non-precious metals and stones. The term first came into existence around the year 1930s when Hollywood started to prefer to step out in imitations, rather than actual precious jewelry mainly for security concerns. This type of jewelry has, however, existed for a much longer time, ever since the 1700s when the world of luxury started to be democratized and imitation jewelry allowed less wealthy individuals to access it.
Bigiotteria di Marca: also known as fashion jewelry, it can still be considered imitation jewelry but is more connected to fashion's latest trends and is often used to make bold statements about one's sense of style without having to spend an excessive amount of money.
Bigiotteria di Fantasia: these accessories are realized with different types of metals and stones such as resins, glass, wood, mother-of-pearl, etc.

Accessories that are part of the custom and fashion jewelry world can be divided according to the type of product and among the most relevant are:

Necklaces
Bracelets
Earrings
Rings

Globally, the custom jewelry market is experiencing an extremely prosperous period, driven more by a growing focus on fashion and its trends. The market is extremely competitive and has few barriers to entry, being essentially based on the production of jewelry that is not precious and thus not made with expensive raw materials, but aesthetically attractive.

In Italy, a country where jewelry and craftsmanship have a really important historical significance, families are spending more on average on costume jewelry than they did in the past, reflecting the global trend towards more affordable jewelry and amplifying it with the Italians' passion for hand-made pieces. The number of employees of enterprises active in the jewelry and costume jewelry sector in this country has consequently increased to represent in 2020 almost a quarter of the total occupation of the same sector in the European Union [Eurostat].

The costume jewelry segment in Italy seems to be driven mainly by the growing impact of social media on purchasing choices and thus to the evolution of the online distribution channels, as well as by the emergence of new styles and preferences such as personalization and by the increasing price of gold and silver.

The main players in the sector who sell exclusively costume jewelry are "CA&LOU", a young company specialized in the creation of swarovskate bijoux, and "Angela Caputi Giuggiù" by Angela Caputi, a designer specialized in the creation of scenographic and artistic jewels made of plastic. However, this segment is also composed of increasingly important players which sell both precious and costume jewels and come both from the world of fast fashion and the world of large online wholesalers.

1.2 The Booming Global Market for Custom Jewelry

The global jewelry market is strong and is expected to remain so in the coming years. The market was estimated at *** billion dollars in **** and is expected to reach *** billion dollars by ****, growing at a CAGR of *.*% during the same period [***].

The sub-sector of the costume jewelry market is also likely ...

1.3 The Italian Market for Costume Jewelry

In Italy, in ****, the annual sales of the jewelry industry totaled around *.* billion euros. The turnover of the manufacturing of costume jewelry and related articles represented the *.*% of total sales for the same year.

Breakdown of the Annual Sales of the Jewelry Industry, by sector Italy, ****, in % Source: ****

Even if the ...

1.4 Imports and Exports in the Non-precious Stones and Costume Jewelry Sector

Exports, Imports and Trade Balance of the Market for Jewels and Costume jewels Italy, ****-****, in billion euros Source: ****

Imports saw a significant increase going from **** to **** growing by **.*% as is also visible from the decease in foriegn trade coverage ratio.

Using the ATECO **** code **.*, Istat listed the most important costumer ...

1.5 COVID-19 Impact

Global manufacturing has been hit by the shock produced by the pandemic after recording the lowest rate of expansion of industrial activity in the last decade. According to expectations, none of the main industrialized areas of the planet were able to avoid a strong contraction in added value in ****, except for ...

2.1 Demand and Customer's Characteristics

Demand for imitation jewelry and all of its sub-categories can be defined as relatively elastic as the customers of these types of accessories are usually price sensitive, being the lower prices of these pieces one of the determinants of demand for this sector in the first place. Moreover, this market can ...

2.2 Relevant Trends in Demand

The jewelry industry demand, once based on product uniqueness, ostentatious value, purity and rarity of the materials has evolved and is now more heterogeneous. The cause of this shift has to be found in the emergence of new needs (***) satisfied by imitation jewelry which introduced less valuable materials, but within reach ...

3.1 Market Structure

Within the Italian jewelry sector, both luxury and non-luxury, it is possible to distinguish four categories of operators: micro, small, medium and large companies. A further distribution is based on the two main phases of the supply chain, creating two classes: production and distribution. The vast majority of companies in Italy ...

3.2 Competition and Strategy

Historically, the Italian jewelry sector has developed itself following the typical dynamics of industrial districts. The term "industrial district", coined by Alfred Marshall in the second half of the nineteenth century, identifies a socio-economic entity formed from a set of enterprises that are part of the same productive system that is ...

3.3 Distribution Channels

The main distribution channels active in the jewelry and costume jewelry market in Italy are:

Traditional Roadside Jewelry Shops: The traditional jewelry store is identified with the figure of the jeweler and remains one of the most popular places to buy jewelry, watches and silverware. Within a jewelry store you can ...

4.1 The Composition of the Product Offer

Costume jewelry often incorporates the following metals and materials:

Non-precious metals: brass, steel, zinc casting, tin casting, vermeil; Semi-precious metals: sterling silver, gold- or silver-plated brass and other alloys; Non-metal materials: leather, textile, resins, cords, natural wood, coconut chips, dyed or engraved or cracked shells, etc.; Non- or semi-precious stones, including ...

4.2 Pricing of the Main Categories of Jewels and Costume Jewels

It is evident that the market is mainly divided into two segments: high-end jewelry - precious jewelry - and costume jewelry. Between the two, we can identify an intermediate segment, called "Bridge Jewelry", which includes jewelry products made of silver and semi-precious materials.

Source: ****

For what concerns the Free on Board ...

4.2 CPI and Prices Evolution for the Sector

The Harmonized Index of Consumer Prices category "Jewelry, Clocks, and Watches (***)" is a classification of durable goods that includes precious stones and metals and jewelry fashioned out of such stones and metals; costume jewelry, cuff-links and tie-pins, clocks, watches, stop-watches, alarm clocks, travel clocks, and repair of such articles.

We can ...

5.1 Market Regulatory Framework

The Codice del Consumo (***) harmonizes and reorganizes the regulations concerning purchasing and consumption processes, in order to ensure a high level of protection for consumers and users in compliance with the Constitution and in accordance with the principles of European Union law.

Safety, composition and quality of the products constitute the ...