South Africa is a major supplier of raw materials for jewellery production worldwide. The country is an importer of jewellery and fine jewellery is very popular in South Africa. Jewellery prices are expected to grow rapidly. This growth is dampened by the tough economic conditions and declining disposable income. Increase in jewellery prices is due to declining currency value that is negatively impacting the sector. To survive in the jewellery market, retailers are expected to offer more rewards in terms of regular price promotions and credit purchase facilities. High quality fine jewellery market is majorly driven by tourists because jewellery is cheaper in the local currency and taxes can be claimed while leaving the country.
Research report “Jewellery in South Africa” assess, that there is a great demand for South African gold and diamonds all over the world. The local jewellery is displayed throughout the country as collections and in international museums. There is a vast reserve of high-quality gold and diamonds in South Africa. For hundreds of years, these precious resources have been used in magnificent items of jewellery, coveted the world over. The South African jewellery council has put in a considerable effort for the development of this sector. Investments in gold jewellery manufacturing and gold jewellery design competitions were initiated to support the growth of the jewellery industry. These initiatives led to the development of more retail jewellery outlets in all major centres across South Africa. Gold doesn’t react with any other elements to create tarnish, therefore its wearer-friendly. South Africa is a global leader in polished diamonds and diamonds are more popular than gold. A valuable diamond is colourless and the number of facets in it gives a diamond its radiance and brilliance.
In the year 2016, South Africa’s economy decreased with poor performances in the agriculture and mining sectors but the economy is expected to recover with a minor growth rate in 2017. South Africa has transformed from agriculture and mining economy into a sophisticated manufacturing and services based economy. The country is known for its precious metals and agricultural products like fruit and wines. Manufacturing industries include cars, chemicals, metal, processed food, electronics and textile products. The major service sector is telecommunication, where the country has the highest mobile penetration rate.
South Africa is one of the most populated countries in Africa and is one of the most attractive consumer markets in Africa. For a secured long-term economic growth social and economic challenges including unemployment, income inequality, and over-reliance on natural resources, poor infrastructure and social division are to be tackled.
The three-day annual Jewellex Africa Jewellery Trade Fair is a premier showcase event of the South African diamonds, jewellery and watch industry that is organised by the Jewellery Council of South Africa. The introduction of Department of Trade and Industry’s Gold Loan scheme, the industry boosted the emerging gold jewellery manufacturers. The scheme is to assist the emerging and established gold jewellery manufacturers with their working capital loans and needs at a fixed interest rate. This scheme will help jewellers to grow and supply jewellery to the local retail sector as well as export markets. It will also assist local manufacturers to recapture big local market.
Jewellery manufacturers use digital media as a platform for conveying information, shaping brand identity. According to a recent survey, majority of the consumers are engaged in online research prior to an in-store purchase. The jewellery sector in South Africa will witness an enormous economic growth in the future.
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