The demand for jewelry has organically decreased by 15-20% from the previous year, while in the most favorable periods (late 2023 – early 2024), jewelry sales in Ukraine have recovered to about 70% of the pre-war level, said Igor Ilchyshyn, founder of Kimberli jewelry house.
The demand for jewelry has organically decreased by 15-20% from the previous year, while in the most favorable periods (late 2023 – early 2024), jewelry sales in Ukraine have recovered to about 70% of the pre-war level.
According to the expert, this year saw a record increase in world prices for precious metals, including gold (by an average of 30%). On the other hand, there is a tendency for a decrease in effective demand in the country due to the war, economic difficulties, and Ukrainians leaving the country.
Ilchyshyn recalled that an additional stressful factor for the jewelry market last year was the draft amendments to the tax code, which proposed to increase the military tax on the sale of jewelry to 30%.
Instead, the military tax rate was increased on general terms, which also affected the industry – the burden on employee salaries increased, which in turn affected profitability.
