A Spanish Sojourn

A country known for siesta and salsa, Spain is a market brimming with high end luxury jewellers and a considerably sized diamond industry. With revenues touching $2,925 million in 2019, Spain is an important market in gems and jewellery industry

Intensely passionate and devoted to living the good life, the European country of Spain is no stranger to luxury. Spain, with a GDP of $1.3 trillion and a population of 46.6 million people, is the fourth-largest economy in the Eurozone. Spain’s economy grew 2.6 per cent in 2018, exceeding the Eurozone average. Forecasts for the next several years suggest GDP growth of 2.1 per cent in 2019 and 1.9 per cent in 2020. As the economy recovers, rising employment and disposable incomes suggest that Spaniards are spoiling themselves. This is resulting in the growing importance of impulse consumption, thereby increasing consumption of high end gemstone and diamond studded jewellery pieces.

Political tensions between Spain’s central government and the Catalonia region remain high, stoked by the unconstitutional October 2017 independence referendum. However, there has been little to no negative impact for U.S. companies exporting to Spain and Catalonia remains one of the principal economic regions within Spain

Spanish Speciality
Spain plays a major role in the European jewellery sector. It is the fourth largest manufacturer behind Italy, Britain and Switzerland, with an estimated turnover of €1.5 billion. According to analysts, Spain has a series of key competitive advantages, including premium quality, a largely handcrafted production process, a highly skilled workforce and the ability to offer a wide range of products.

While Spain may not have any large scale mines for diamonds or precious gemstones, it is home to one of the rarest and coveted gemstones, Sphalerite can be found in the mines of Spain. It has often been described as a gemstone with a “fire” that exceeds diamond. The reddish orange hues of the stone make it an exceptional stone, but due to its low hardness rating on the Mohs scale, it is a poor choice for jewellery pieces. This is why it has been described as a ‘collector’s stone’

Facts & Figures
The business structure in Spain includes some 3,800 factories, most of which are small workshops with less than five employees. Just under 10 per cent of companies operating in the market have a workforce of more than ten. Spain has a number of major production locations. Córdoba specialises in small items, period jewellery in the Isabelline style, gold and silverware. Valencia is positioned in the mid-high jewellery segment. Madrid produces primarily top-end jewellery and gold watches while Barcelona makes topend and modernist jewellery.

Spanish exports are highly concentrated, with just ten countries accounting for 82 per cent of the total exports. Switzerland is Spain’s top client with exports worth €141.5 million and a 26.8 per cent share of the export total. France has been ranked second, with 13.5 per cent, followed by the USA with 10.9 per cent, Hong Kong with 6.6 per cent and Portugal with 6.4 per cent.

The Art of Jewellery Making
Spanish jewellery design is synonymous with quality, design and originality, and every bit as good as the most coveted international brands. According to statistics published by the Spanish Foreign Trade Institute (ICEX), Spain’s export earnings totaled €528.1 million, of which jewellery, gold and silver exports accounted for €308.4 million and watches €219.7 million. The results have been very positive, with jewellery and watch exports growing by 46.5 per cent. Particularly spectacular was the rise in jewellery, gold and silver exports in 2010, up 70 per cent on the previous year. Watch exports have also shown growth at 22.6 per cent. These figures demonstrate the buoyancy of Spanish design and the enterprising spirit of business leaders who have recognized that globalization is the best way to compete in a global market.