The global luxury industry is grappling with turbulence arising from trade policy shifts and evolving market conditions. This disruption has particularly shaken the jewellery and watch sectors, causing significant effects worldwide. A staggering example is seen in Antwerp, a major hub for diamond exports, which essentially came to a ‘standstill’ in April, as reported by the Financial Times.
Luxury brands have been reassessing their pricing strategies, supply chains, and market focuses. However, the ripple effects are being keenly felt in Asia. Just recently, LVMH’s wine and spirits division, Moët Hennessy announced plans to cut 10% of its workforce due to a 9% decrease in organic sales, as a result of tariffs and weakening demand in key regions like China.
Photo: Tatum Ancheta
Despite its robust pricing power, the luxury sector is fully aware of the likely impact on consumer demand, particularly during a time of broader economic uncertainty. Hong Kong, once a thriving hub for luxury shopping, has seen significant challenges, creating additional challenges for luxury brands. The U.S. has revoked Hong Kong’s special trade status, subjecting its exports, including gems, jewellery and watches, to the same duties as mainland China.
Broader economic challenges and shifting trade agreements could contribute to a global slowdown, prompting Asian consumers to adopt a more cautious approach toward luxury spending. As they hold on to purchased luxuries, it becomes imperative to ensure these items are insured accurately, reflecting the true market value of these goods. This ensures that owners can receive full compensation in the event of loss or damage, enabling them to replace their items without financial shortfall. Enter KoverNow, a beacon of reliability for the luxury consumer.
KoverNow offers exceptional benefits to policyholders in Singapore, providing market value coverage with flexible terms allowing for re-valuations every 3, 6, or 12 months. KoverNow’s luxury watch insurance, for instance, empowers policyholders to align their coverage with the evolving market conditions, offering a more tailored and precise insurance solution.
Despite the premium service, KoverNow offers excellent value for money. For instance, a Rolex Submariner Date 126613LB valued at SGD 21,017 (as of 8 May 2025) can be insured for SGD 876.07 (12-month premium, as of 8 May 2025), proving that prudency can deliver peace of mind.
Check out KoverNow insurance for luxury goods: Luxury Watch Insurance, Jewellery Insurance, Handbag Insurance
While the world reels from these changes, and brands in the global luxury industry face significant trade headwinds, consumers are in a unique position to make savvy choices. Whether they choose to continue investing in luxury goods or put their purchasing on hold, KoverNow assures that their cherished items are insured at the correct market rate, providing reassurance amidst chaos.
In these uncertain times, being informed and prepared is more critical than ever. With KoverNow, luxury consumers can navigate the complexities of the market with confidence and security.
