The Business of Fashion and McKinsey & Company released its first special edition report dedicated to watches and jewellery saying that the jewellery sector will be influenced by the necessity to be sustainable, environmentally friendly and ethical in sourcing its supplies.
During the 1990s, the blood diamond scandal hit the diamond and jewellery industries, with the spotlight on the industry’s negative impact on the communities and countries that powered the supply chain with its limited traceability and accountability, the report said.
Though the diamond market tried to set right the negative reputation in the form of the Kimberley Process, diamond sales from conflict areas forged ahead; and so did the fine jewellery industry being slow in implementing changes in terms of sustainability to mitigate scandals.
However, jewellery buyers’ thoughts are now changing and it’s time for the jewellery industry to look beyond sustainability as a factor in risk mitigation. It should embrace it as an opportunity to build brand equity by effectively changing business practices.
The future will see buyers of fine jewellery influenced by sustainability considerations. By 2025, an estimated 20 to 30 per cent of global fine jewellery sales will be influenced by sustainability considerations from environmental impact to ethical sourcing practices.
Market leaders say that understanding the changing trends, companies should view ethically and environmentally sound practices as a business opportunity.
Given the timing of the opportunity, operating in a more sustainable manner should be seen as a source of competitive advantage in the post-crisis future … as the world’s economy bounces back.
Meanwhile calls for the fine jewellery industry to act more responsibly in terms of environmental and social impact are growing louder, the report said.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
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