Costume Jewelry in Ukraine

by Anna Gayduk
Monday, November 22, 2021
2 MIN

Why is it more beneficial to invest in costume jewelry than in the precious one?

Until recently, under the category of costume jewelry fell exclusively inexpensive ornaments that copy jewelry. Today, in the fashion world, it has occupied its own niche and even began to be classified according to styles and types.

There are numerous advantages of products made from base metals. One of them is the variety of materials and pricing policy. Leather, textiles, plastic, wood, fur and even shells are not a complete list of materials from which designers create beauty.

The volume of costume jewelry sales in Ukraine continues to grow, analysts estimate the annual growth in sales of the Ukrainian jewelry market at 30-50%.

There are several reasons for the development of this sector of industry, and perhaps the major one is a significant increase in prices for raw materials for the manufacture of jewelry precious stones, and especially for gold which took place in recent years. From 2008 to April 2013, gold prices increased by 67%, amounting to $1.487 per troy ounce.

The second reason is the amazing workmanship of modern jewelry samples, often not inferior to that of jewelry made of precious minerals and metals. It provides the opportunity to have a sophisticated and unique piece of jewelry, which is achieved in the precious jewelry at the expense of a high price, and in costume jewelry due to the development of "hand made" production.

Other advantages of starting a business in this field include:

  • High marginality, which is estimated by the participants of the market up to 300-400%
  • The negative situation in the competitive precious jewelry market
  • A relatively inexpensive “entrance” to the business, especially since costs can be reduced through online trading, so popular nowadays
  • A possibility of organizing offline trade on a small land plot rented in a large store or other locations
  • The presence of a large number of homeworkers who are engaged in "hand-made" and can become truly exclusive suppliers for the business

To sum up, the current state of affairs in this segment of business in Ukraine undoubtedly makes it beneficial and attractive for investments and any activity within its framework.

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