Swarovski's Strategy for Maintaining Its Shine
Swarovski entered 2025 with a sparkle that continued to grow. Its jewelry business experienced a 9% year-over-year increase in 2024, with particularly strong performance from the US market and lab-grown diamonds, which saw sales more than double.
Alexis Nasard, Swarovski's CEO since July 2022, is confident that this momentum will persist. The brand's plan for 2026 focuses on maintaining its commitment to creative craftsmanship while adapting to evolving design trends and customer behaviors, such as the growing popularity of jewelry as everyday wear.
Swarovski also aims to cater to a wide range of customers across different price points. The company segments its offerings into low, medium, and high complexity, similar to the watch industry, with the mid-range segment experiencing the strongest growth. Nasard noted that this segment has minimal competition, making it an attractive opportunity.
Lab-grown diamonds have been a significant driver of growth, attracting new customers, including those who traditionally favored mined diamonds. Some of these new customers are now converting into buyers of Swarovski's other lines, such as its crystal pieces.
Swarovski's strategy aligns with its positioning as 'pop jewelry,' actively engaging with and shaping the cultural zeitgeist. To achieve this, the brand has launched strategic capsule collections and partnerships with celebrities, with the latest being Ariana Grande, whose capsule collection became the brand's best-selling in history.
This strategy has proven particularly effective in the US, Swarovski's largest market, where Nasard anticipates continued consumer interest as long as the job market remains robust.
BoF: How is Swarovski approaching pricing, and what strategies have you employed to engage consumers?
Alexis Nasard: **We've kept our pricing in line with inflation. Our focus is on building strong engagement with local customers in key metropolitan areas in our established markets, like Europe and the US, as well as in our growth markets such as South Korea, Brazil, Japan, and Mexico. Cosmopolitan areas drive trends, so we have a city-focused strategy. We want our stores to be destinations, offering experiences that encourage repeat visits and self-purchases, a trend we find empowering. By combining compelling product design, cultural alignment, and a seamless shopping experience, we aim to create reasons for consumers to shop beyond holidays or special occasions. In this context, jewelry becomes a medium for everyday expression, even during economic downturns. Jewelry is a discretionary purchase, but in markets like the US, consumers will spend as long as they have some disposable income and the value proposition resonates.
BoF: Some luxury jewelry brands are simplifying their product ranges to manage inventory and minimize risk. How is Swarovski approaching its product range, and do you see any shifts in consumer demand influencing this strategy?
AN: We maintain a broad price range and variety of designs, but we're highly disciplined about what we offer. Our assortment reflects both creative innovation and consumer expectations. The mid-tier complexity segment has emerged as a strong performer because it combines originality with accessible pricing. In a competitive landscape, we curate our offerings thoughtfully, ensuring each product resonates with customers and supports the brand's cultural relevance.
BoF: You mentioned that the mid-tier complexity segment is driving growth. Can you explain why this segment is performing so well, and how it fits into the broader jewelry market?
AN: The mid-tier complexity segment bridges the gap between entry-level pieces and high jewelry. It offers customers original, intricate designs at a price point that's more accessible. This segment has relatively little competition, and it provides a compelling value proposition. Customers recognize the creativity and craftsmanship in these pieces, making them a strong choice for self-purchases. It's a segment that reflects both aspiration and accessibility, aligning with contemporary consumers' evolving desires.
BoF: How is Swarovski responding to the rise in women shopping for themselves, particularly with the adoption of lab-grown diamonds?
AN: Women are increasingly choosing jewelry for themselves, and lab-grown diamonds play a significant role in facilitating this shift. These diamonds offer exceptional quality, design flexibility, and affordability. They are also more sustainable, using renewable energy and recycled metals, which resonates strongly with self-purchasing. We've observed that stores offering lab-grown diamonds attract new customers who then explore other parts of the Swarovski range, creating a positive ripple effect across the business.
BoF: Lab-grown diamonds are becoming more mainstream. How do you see their role evolving in luxury jewelry?
AN: Lab-grown diamonds are a critical component of the future of jewelry. They offer the same brilliance and durability as mined diamonds while enabling more imaginative design options. They allow us to engage customers seeking creativity, sustainability, and value. The US is leading in adoption, with over half of the diamond market now lab-grown, and we expect this growth to continue globally.
BoF: Cultural trends are increasingly influencing jewelry design. Which trends do you expect to shape the market in 2026?
AN: We see several intersecting trends. Jewelry designed for all-day wear is becoming more prevalent, seamlessly transitioning from professional to leisure settings. Multi-metal pieces and multicolored crystals are gaining popularity, allowing for more playful and versatile styling. Men's jewelry is slowly gaining traction, reflecting broader shifts in gender expression, though it still accounts for only around 2% of the market. Women will always be key consumers for jewelry. Pearls and charms are being reimagined for contemporary use beyond traditional settings.
BoF: Customization is not a game-changer for Swarovski, though we saw a small uptick four to five years ago. How does Swarovski approach customization, and is it a significant part of your business?
AN: We offer some customization options, but it's still a small part of our business and the market. The majority of customers prefer standard collections. Customization is not a significant differentiator for us.
BoF: China remains a complex market for luxury brands. How have the market's dynamics affected Swarovski's strategy there?
AN: China presents unique challenges due to demographic shifts, macroeconomic pressures, and regulatory uncertainty. Youth unemployment is high, and population trends suggest a contraction in the younger consumer base, who represent half of the domestic luxury market. These factors, combined with policy unpredictability and geopolitical tensions, make our strategy more cautious. We maintain a presence in key cities with designs that resonate locally, ensuring the brand's relevance while avoiding disproportionate risk.
BoF: The US appears to be a strong growth driver. What factors contribute to your success there?
AN: In the US, discretionary spending remains strong due to stable employment levels, and consumers continue to prioritize categories like jewelry. Swarovski's brand perception is at an all-time high in the US, with Americans resonating with the 'joyful exuberance' of our jewelry. We have room for growth, as we don't yet have 250 stores in the US, keeping us optimistic.
BoF: With branded jewelry increasingly dominant globally, how does Swarovski position itself in this competitive landscape?
AN: Branded jewelry offers creativity, culture, and a sense of participation in a broader lifestyle. These are key differentiators from unbranded jewelry. Consumers buy not just a product but the cultural narrative and emotional experience it represents. Swarovski's strategy emphasizes brand consistency, creativity, and engagement with the cultural zeitgeist, especially pop culture, through ambassadors like Kim Kardashian, Bella Hadid, and Ariana Grande, whose capsule collection was our all-time bestseller. Tapping into these elements sets us apart from unbranded alternatives. Value considerations remain important in some markets, like secondary cities in emerging markets such as India, where unbranded jewelry may be favored for value purposes. Globally, branded jewelry will prevail in the long run.
BoF: How do you see jewelry consumption evolving between investment pieces and everyday wear, and are these even mutually exclusive?
AN: Everyday wear and investment pieces will continue to coexist. Economic cycles and consumer segments influence preferences, but jewelry serves multiple roles. Middle-class consumers in emerging markets may prioritize value and longevity during economic downturns, while socialites in established markets seek instant gratification. We cater to both ends of the spectrum.
