"Shock price": Perm jewelers note an increase in prices for products

Russians, seeking to save money during the crisis, first of all cut back on spending on jewelry. Since March, the traffic of specialty stores has declined markedly, and the turnover of retailers selling inexpensive jewelry has fallen by a third. In addition, prices have also risen. On average, since February, jewelry has risen in price by 36%, including due to problems with logistics.

According to representatives of the Permian jewelry business, over the past few months, prices for silver jewelry in their stores have increased by an average of 20%. At the same time, market players note that almost all manufacturers have held back price growth over the past few years, despite the increase in the cost of the metal and the cost of expenses when introducing labeling in the jewelry sector.

According to the owner of the Grani jewelry store, which specializes exclusively in silver jewelry, demand began to decline from the end of February. Sales fell to the level of the first half of the corona crisis. At the same time, in her opinion, the main problem now is not even so much a drop in demand, but changes in legislation that will affect all jewelers starting from January 1, 2023.

“In connection with recent events, the state has canceled VAT on the purchase of gold bars for individuals, and all special tax regimes for the entire jewelry sector were canceled by the same decree from January 1, 2023. This means that only the OSNO, the most complex and expensive system, will remain for everyone. This will entail costs for small companies: additional costs for an accountant, 20% VAT and 20% income tax. And this means that if nothing changes, a huge part of jewelry workshops, small and medium-sized jewelry stores will close, ”says Victoria Guryeva, owner of the Grani jewelry store in Perm.

According to the marketer of the oldest network of salons "Amethyst", which has been on the Perm market for more than 70 years, since the beginning of March, gold prices have risen almost 2.5 times. However, now the price tag is gradually returning to normal, so it becomes easier to develop a business than at the beginning of the crisis, when prices simply shocked buyers. In addition, the network specializes in the segment of luxury jewelry, the demand for which, on the contrary, has doubled. Therefore, now the business feels quite comfortable, without loss of profit.

“The fact is that, naturally, the demand for jewelry has fallen. Probably for extras, the so-called - these are jewelry with a scattering of diamonds. These are jewelry with cubic zirconias, with semi-precious stones. Oddly enough, we have greatly increased the demand for jewelry in the luxury segment - these are jewelry with large and good diamonds, these are jewelry with precious stones, ”says Maria Isakova, marketer of the Amethyst jewelry stores chain.

Market players attribute this activity to the fact that buyers have become more selective in their approach to buying jewelry. They often prefer to save up, but to make a good investment in the future.

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