Strong demand for Cartier, Van Cleef & Arpels and other high-end jewellers is reshaping an industry challenged by expensive handbags, cautious consumers and weakening appetite for traditional fashion

Jewellery is emerging as the strongest part of the global luxury market, offering major brands a rare source of reliable growth as consumers become increasingly reluctant to spend heavily on designer clothing, shoes and leather handbags.

The shift was highlighted by the latest results from Richemont, the Swiss luxury group behind Cartier, Van Cleef & Arpels, Buccellati and Vhernier. Its jewellery houses recorded a combined 24% increase in sales during the quarter ending June 30, marking a seventh consecutive quarter of double-digit growth. Total group sales rose by 20% at constant exchange rates to €6.33 billion.

The figures stand out in a luxury industry still struggling with cautious consumer spending, economic uncertainty and disruption linked to conflict in the Middle East. Traditional fashion categories have been affected particularly heavily, leaving jewellery positioned to determine which luxury groups outperform their rivals during the sector’s uneven recovery.

For years, leather handbags functioned as the principal profit engine of many luxury houses. They were highly recognisable, relatively easy to manufacture at scale and capable of generating strong margins. Price increases also allowed brands to produce considerable revenue growth without necessarily selling more products.

That strategy is becoming harder to sustain. Repeated price rises have left some consumers questioning whether handbags and other fashion accessories still provide sufficient value. Bain has warned that aggressive increases have alienated shoppers, even as the global luxury industry is expected to return to modest growth during 2026.

Younger customers appear especially resistant to products that seem expensive primarily because of a prominent logo. Many are mixing vintage, premium and mass-market clothing rather than purchasing an entire designer look. Others are turning to resale platforms, where secondhand luxury goods may offer greater individuality at a lower price.

Fine jewellery occupies a different psychological and commercial position. A ring, necklace or bracelet can be regarded not only as an accessory but also as a durable personal possession, a family heirloom or, in some cases, a store of value. Rising gold prices have reinforced the perception that precious-metal jewellery retains an underlying worth that fashion products may lack.

Jewellery also offers a clearer connection to craftsmanship. Consumers may be more willing to accept a high price when a product involves precious materials, gemstones and specialist techniques rather than fabric or leather whose production cost appears disconnected from the retail price.

That distinction has become increasingly important as luxury shoppers demand evidence of quality and permanence. In a period of economic uncertainty, a recognisable jewellery design may feel less vulnerable to changing fashion trends than a seasonal handbag or pair of shoes.

Richemont is currently the clearest beneficiary. Jewellery accounted for approximately €4.7 billion of its quarterly sales, supported by strong demand in Asia and the Americas. Cartier and Van Cleef & Arpels have developed broad product ranges that include highly exclusive pieces as well as more accessible designs intended to attract first-time luxury buyers.

Some of their most successful products have remained recognisable for decades. Designs such as Cartier’s Love bracelet and Van Cleef & Arpels’ Alhambra collection offer visual continuity, allowing customers to purchase products associated with a stable identity rather than a short-lived seasonal trend.

The performance has encouraged other groups to increase their exposure to the category. Kering, whose fashion business includes Gucci, Saint Laurent and Balenciaga, created a dedicated jewellery division in March. The new structure brings together Boucheron, Pomellato, Dodo and Qeelin under centralised leadership, signalling that jewellery will play a larger role in the group’s attempted recovery.

The decision is particularly significant because Kering has been heavily dependent on Gucci, a brand closely associated with fashion and leather goods. Its first-quarter revenue fell by 6% on a reported basis, demonstrating the pressure facing companies whose fortunes remain tied to weaker clothing and handbag demand.

LVMH is also seeking growth through jewellery and watches, supported by brands including Tiffany & Co., Bulgari, Chaumet and Fred. Analysts have raised their 2026 growth expectations for the group’s watches and jewellery division from 7% to 8%, contrasting with more restrained forecasts for fashion and leather goods.

The jewellery boom does not mean that every product or brand will succeed. Watches have experienced their own difficulties, particularly in China, and high gold prices can increase production costs. Jewellery houses must also maintain exclusivity while expanding sales, a delicate balance for businesses whose desirability partly depends on scarcity.

There is also a risk that brands will overuse familiar motifs. Luxury jewellery relies heavily on recognisable symbols, but excessive production can turn an exclusive design into something that appears commonplace. Companies must therefore introduce new materials, variations and craftsmanship without weakening the identity of their best-known collections.

Nevertheless, the category offers several advantages that are increasingly difficult to reproduce in fashion. Jewellery is less seasonal, carries fewer sizing complications and generally has a longer commercial life. A successful design can remain in stores for decades rather than being replaced after a single collection.

This longevity supports profitability and reduces dependence on constant creative reinvention. Fashion houses must repeatedly produce collections capable of attracting attention, generating media coverage and motivating consumers to replace items they already own. Jewellery can build recurring demand around designs whose value lies in continuity.

The trend is also reshaping the meaning of luxury. The era of conspicuous logos has gradually given way to quieter expressions of wealth, including fine materials, subtle design and products recognisable mainly to informed observers. Jewellery fits naturally within that movement because it can signal status without dominating an outfit.

At the same time, consumers are becoming more selective. The luxury market is increasingly divided between products considered timeless and those regarded as unjustifiably expensive. Brands capable of communicating permanence, craftsmanship and emotional significance are proving more resilient than those relying primarily on image and repeated price increases.

Fashion and leather goods will remain central to the industry, but their position is no longer uncontested. As handbags lose momentum and shoppers scrutinise value more carefully, jewellery is moving from a complementary category to a strategic priority.

The latest results suggest that the winners of luxury’s next phase may not be the companies producing the most talked-about runway collections. They may instead be those capable of transforming precious metals, gemstones and enduring designs into objects consumers still believe are worth keeping.