Are consumers opting for prestige, design and image of branded goods in jewellery?

Will jewellery and watches continue to diversify into more types of retail outlets?

The jewellery and watches market is estimated to have increased by 36.5% since 1995 to reach a value of nearly £3 billion in 2001.

This report examines the retailing of jewellery and watches in the UK. The coverage includes precious jewellery and fashion or costume jewellery as well as all watches. Throughout the 1990s the success of the catalogue retailers has been important in switching share of the market away from the specialists. Other types of retail outlet such as fashion specialists and variety stores have also become important players in the costume jewellery market and have begun to introduce jewellery at the bottom end of the precious market. The Millennium appears to have kick-started jewellery markets, and momentum has been strong since, although economic uncertainty and fears over terrorism could have a negative impact, particularly on the luxury end of the market and London retail locations.

Design is the key word for the jewellery markets and this is helping to fuel demand. It takes two guises, the first is a growing desire from consumers for a more unusual and fashionable product. The second is in the growth of branded goods - already well established in watches, but now growing strongly in jewellery.

This report looks at the developments in the retailing of jewellery in the UK and examines the way the market will develop in the future. It examines the proposition that: "greater design input and marketing is required to stimulate demand for precious jewellery."

Mintel last examined jewellery retailing in November 1998. Other recent reports of interest include:

- Costume Jewellery, Market Intelligence, September 2001

- Luxury Watches, Market Intelligence, July 2001

- Fashion Accessories Retailing, Retail Intelligence, September 2000

- Clocks and Clock Radios, Market Intelligence, July 2000

- Precious Metal Jewellery, Market Intelligence, December 2001.