2025 has already been a stressful year for business owners. The US-China tariffs have shown just how quickly economic situations can change.
With inflationary prices, supply chain disruptions, and changing consumer behaviour, the jewellery industry is at the forefront of these challenges. As a non-essential product, jewellery brands are more exposed to economic uncertainties than other industries.
UK jewellery brands aren’t completely without hope. With US companies struggling under the financial pressures of Trump’s China tariffs, it’s a unique time for UK-based businesses to adapt their strategies in response to economic challenges and the priorities of today’s consumer.
We’re exploring the challenges facing the UK jewellery industry and why a shift to sterling silver jewellery with UK-based suppliers could be the golden ticket to success.
Rising Cost of Gold Jewellery
Gold prices are always on the rise, but recent economic uncertainty, including inflation, has seen it rally over $3,000 for the first time in mid-March. With prices peaking at almost $3,5000 in April, the ever-increasing cost of gold is impacting inventory costs, particularly for small businesses. Price sensitivity is hitting the bottom line for both jewellery companies and consumers.
Jewellery brands – and their customers – are increasingly being priced out by the rising cost price. As a result, sterling silver is becoming a more attractive alternative. It offers a more accessible price point for consumers without compromising on quality, giving them an everyday jewellery piece that doesn’t come with the three or four-figure price tag of gold. With sterling silver becoming a major trend for 2025, it’s just as attractive for UK jewellery brands seeking more affordable inventory.
UK vs. International Suppliers
Suppliers make or break a business. Jewellery brands are faced with two main choices – UK vs. international suppliers. With ever-changing trends and peak shopping holidays like Mother’s Day, Valentine’s Day, and Christmas, jewellery brands need to balance potential cost savings from overseas suppliers with the need for reliable service and fast shipping.
While UK suppliers may come with a higher product cost, they offer extra peace of mind and a higher quality service for jewellery brands. They can offer hassle-free returns and faster delivery with local customer service teams to support rapid prototyping and custom orders.
Wholesale sterling silver jewellery suppliers, like Silver JD, offer the best of both worlds by acting as a hybrid between UK and international suppliers. Their smart supply chain strategies give UK jewellery brands access to affordable products with competitive pricing and research-led designs in sterling silver.
Whether they’re launching or scaling, UK jewellery brands need to consider the low-cost incentives of international suppliers against the reliability and faster shipping of domestic-based suppliers.
Changing Consumer Behaviour
One of the biggest challenges facing the UK jewellery industry is changing consumer behaviour. The rise of TikTok has led to an increase in micro-trends with new styles emerging – or returning – in popularity virtually overnight. Jewellery brands need to respond to these changing trends without overstocking or investing in a trend too late.
With inflation impacting the disposable income of everyday consumers, consumers are increasingly looking for jewellery that offers value and style. Sterling silver hits a sweet spot, providing quality for everyday wear without a luxury price tag.
How can UK jewellery brands overcome these challenges? By leveraging the opportunities they create through diversifying their product ranges and working with reliable domestic suppliers.
Read more:
Rising Gold Prices and International Tariffs: The Challenges Facing the UK Jewellery Industry