Japan’s luxury jewellery boom signals a new era of fashion investing

Japanese shoppers are driving up luxury jewellery sales to a record as consumers seek a haven from inflation and the weakening yen. Sales of gems, precious metals and artwork at Japan’s department stores climbed 19% in the first half of 2026 from a year earlier to ¥330bil (approximately RM8.2bil), the highest sales for the period since records began in 2008, according to data from the Japan Department Stores Association.

Demand for jewellery comes as the Japanese yen weakens to nearly ¥164 per dollar, its lowest level since the 1980s, while core consumer prices, excluding fresh food, rose 1.6% in June. The economic backdrop is prompting consumers to shift spending toward assets they see as better stores of value.

Japanese consumers increasingly favouring branded jewellery over handbags as higher living costs make them more selective about discretionary purchases. Some consumers could view these items as a potential source of appreciation, particularly as the yen weakens. Strong domestic demand for jewellery has also helped lift the outlook for Japan’s luxury market as a whole. The sector has been facing headwinds including a slowdown in inbound tourism – its key growth driver – due to a sharp decline in visitors from China amid a political spat with Beijing.