Swarovski’s Sparkling Strategy: How the Brand is Redefining Luxury in a Changing Market
Swarovski entered 2025 with a dazzling performance, its jewelry business gleaming with a 9% year-on-year growth in 2024. But here's where it gets interesting: the real shine came from the US market and the surging popularity of lab-grown diamonds, whose sales more than doubled. This isn't just about numbers; it's about a brand strategically positioning itself at the intersection of luxury and accessibility, tradition and innovation.
Alexis Nasard, Swarovski’s CEO since July 2022, is confident this momentum will continue. The brand’s 2026 strategy hinges on a delicate balance: preserving its reputation for creative craftsmanship while adapting to evolving trends in design and consumer behavior. Think jewelry that transitions seamlessly from boardroom to brunch, a shift that’s reshaping the market.
And this is the part most people miss: Swarovski isn’t just about high-end sparkle. It’s segmented its offerings into low, medium, and high price points, mirroring the watch industry’s approach. The mid-range, where competition is surprisingly sparse, is where Swarovski is seeing its strongest growth, according to Nasard.
Lab-grown diamonds are another cornerstone of Swarovski’s strategy. Nasard highlights their ability to attract new customers, even those traditionally loyal to mined diamonds. Interestingly, these newcomers often become repeat buyers, branching out to explore Swarovski’s crystal collections. This diversification is key to the brand’s positioning as “pop jewelry”—a category that actively engages with and reflects the cultural zeitgeist, keeping it fresh and relevant.
Strategic capsule collections and celebrity partnerships, like the record-breaking collaboration with Ariana Grande, further solidify Swarovski’s pop-culture appeal. This approach resonates particularly well in the US, Swarovski’s largest market, where a strong job market fuels continued demand for its jewelry.
But here's the controversial part: In an era where luxury fashion struggles with price hikes exceeding inflation, Swarovski has kept its pricing largely aligned with inflation. Nasard emphasizes a focus on local engagement in key metropolitan areas, both in established markets like Europe and the US, and in growth markets such as South Korea, Brazil, Japan, and Mexico. The brand aims to make its stores destinations in their own right, offering experiences that encourage repeat visits and self-purchases—a trend Swarovski finds empowering and actively promotes.
Is this strategy sustainable in the long run? While some luxury jewelry brands are simplifying their assortments to manage inventory and minimize risk, Swarovski maintains a broad price range and diverse designs. The mid-tier complexity segment, combining originality with accessible pricing, has emerged as a sweet spot. But is this approach too ambitious in a crowded market? Nasard argues that thoughtful curation ensures each product resonates with customers and supports the brand’s cultural relevance.
The rise of lab-grown diamonds is another point of contention. While they offer sustainability benefits and design flexibility, some purists argue they lack the romance and history of mined diamonds. Yet, Nasard sees them as a critical part of jewelry’s future, particularly in engaging customers who value creativity, sustainability, and value. The US, where lab-grown diamonds now dominate over half the market, is leading this charge.
Looking ahead to 2026, Nasard identifies several trends shaping the market: jewelry designed for all-day wear, the rise of multi-metal pieces and multicolored crystals, and the slow but steady growth of men’s jewelry. Pearls and charms are also being reimagined for contemporary use. However, customization, despite a brief uptick a few years ago, remains a niche offering for Swarovski.
China, a complex market for luxury brands, presents unique challenges. Demographic shifts, macroeconomic pressures, and regulatory uncertainty have led Swarovski to adopt a more cautious strategy there. The brand maintains a presence in key cities with locally resonant designs, balancing relevance with risk mitigation.
The US, on the other hand, remains a bright spot. Stable employment and a strong brand perception—Americans love the ‘joyful exuberance’ of Swarovski’s jewelry—fuel continued growth. With fewer than 250 stores in the US, there’s ample room for expansion, keeping the brand optimistic.
In a global market increasingly dominated by branded jewelry, how does Swarovski stand out? Nasard emphasizes creativity, cultural engagement, and a sense of participation in a broader lifestyle. Celebrity ambassadors like Kim Kardashian, Bella Hadid, and Ariana Grande amplify this connection to pop culture. However, in secondary cities in emerging markets like India, unbranded jewelry may still hold sway, particularly during economic downturns.
Finally, the debate between investment pieces and everyday wear: Are they mutually exclusive? Nasard argues they coexist, with economic cycles and consumer segments influencing preferences. Middle-class consumers in emerging markets may prioritize value and longevity, while socialites in established markets seek instant gratification. Swarovski caters to both, offering a spectrum of choices.
This interview, originally published in The State of Fashion 2026 by BoF and McKinsey & Company, has been edited and condensed.
What do you think? Is Swarovski’s strategy bold enough to sustain its shine in a rapidly evolving market? Or is it spreading itself too thin? Share your thoughts in the comments below!
