Table of Contents
Executive Summary
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- Impact of COVID-19 on jewellery and watches
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- Figure 1: Short, medium and long-term impact of COVID-19 on jewellery and watches, November 2020
- The market
- COVID-19 causes market to drop 18% in 2020
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- Figure 2: Market size for jewellery and watches, by value, 2015-25 (prepared on 2 November 2020)
- UK footfall dives as stores shutter
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- Figure 3: Year-on-year percentage footfall change, by location, Jan 2015-Sep 2020
- Lack of tourism threatens the luxury sector
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- Figure 4: Country or region of origin of non-UK-resident purchasers of high-end products, 2019
- Price of gold on the rise
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- Figure 5: UK price of gold tracked over a 15-year period, per troy ounce in GBP, 2005-20
- Swiss watch exports face big declines in 2020
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- Figure 6: Value of Swiss watch exports, by top five markets, Jan-Sep 2018-20
- Companies and brands
- Pandora’s relaunch has promising start
- Advertising spend continues to decline in 2019
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- Figure 7: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, 2015-19
- Pandora and Tiffany & Co. benefit from high levels of awareness
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- Figure 8: Attitudes towards and usage of selected brands, July 2020
- The consumer
- People are spending less on fashion items
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- Figure 9: Consumer spending expectations due to COVID-19, 2-11 November 2020
- More people are shopping online
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- Figure 10: People shopping more online since COVID-19, 16 April-11 November 2020
- Watches and costume jewellery continue to be the most popular options
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- Figure 11: Who jewellery/watches were bought for in the last five years, June 2020
- Most buy precious metal jewellery from specialist stores
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- Figure 12: Types of retailers used for buying jewellery and watches, June 2020
- Quality and price stand out as the main priorities
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- Figure 13: Factors prioritised when choosing where to buy jewellery and watches, June 2020
- Nearly two thirds turn to repairs
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- Figure 14: Shopping behaviours around jewellery and watches, June 2020
- Charity has become important to shoppers
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- Figure 15: Behaviours towards jewellery and watch purchasing, June 2020
- Innovations in the sector are needed to encourage online purchasing
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- Figure 16: Enticing shoppers to buy jewellery or watches online during COVID-19, June 2020
Issues and Insights
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- Now is the time for the sector to embrace digital and online channels
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- Figure 17: Banks Lyon’s ‘Ask at Home’ campaign and home proposal ideas for customers, 2020
- The opportunity in gifting throughout the pandemic
The Market – Key Takeaways
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- Fine jewellery and watches severely impacted by COVID-19
- Sales of watches become increasingly polarised
- Lack of tourism is a big threat to the sector
- Price of gold on the rise
Market Size and Forecast
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- Fine jewellery and watches hit by lack of tourism due to COVID-19
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- Figure 18: Short, medium and long-term impact of COVID-19 on jewellery and watches, September 2020
- COVID-19 causes market to drop 18% in 2020
- Initial outbreak caused decline in sales
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- Figure 19: Market size for jewellery and watches, by value, 2015-25 (prepared on 2 November 2020)
- Figure 20: Consumer spending on jewellery and watches, at current prices, 2015-25
- Sector benefited from gifting and lack of seasonality
- Online retailing will continue to be problematic
- Eventual recovery
- Market drivers and assumptions
- Learnings from the last recession
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- Figure 21: Value sales of jewellery and watches, 2007-12
- Forecast methodology
Market Segmentation
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- Sales of watches struggle due to economic uncertainty
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- Figure 22: Market size for watches, by value, 2015-25 (prepared on 2 November 2020)
- Figure 23: Consumer spending on watches, at current prices, 2015-25
- Demi-fine jewellery bright spot in the sector
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- Figure 24: Market size for jewellery, by value, 2015-25 (prepared on 2 November 2020)
- Figure 25: Consumer spending on jewellery, at current prices, 2015-25
- Fine jewellery loses share as demand slows
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- Figure 26: Estimated share of total UK jewellery and watch market, 2017-20
- Figure 27: UK retail value sales of jewellery and watches, by sector, 2015-20
Market Drivers – Retail and the Economy
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- The UK has plunged into the deepest recession since records began
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- Figure 28: Quarter-on-quarter change in private consumption, seasonally adjusted, Q1 2007-Q3 2020
- Earnings have decreased
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- Figure 29: Real wage growth – Average weekly earnings vs. inflation, Jan 2015-June 2020
- UK footfall dives as stores shutter
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- Figure 30: Year-on-year percentage footfall change, by location, Jan 2015-Sep 2020
- Lack of tourism threatens the luxury sector…
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- Figure 31: Country or region of origin of non-UK-resident purchasers of high-end products, 2019
- …with end of UK tax-free scheme threatening the industry further
- Move towards online retail continues
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- Figure 32: Internet sales as a percentage of total retail sales, 2007-19
Market Drivers – Jewellery
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- Jewellery purchasing remains more stable than other categories
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- Figure 33: Trends in items people have purchased for themselves, percentage point change, October 2019-September 2020
- Total hallmarking declined in 2019
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- Figure 34: Number of items hallmarked across UK Assay Offices, by type of precious metal, 2017-19
- Figure 35: Number of items hallmarked across UK Assay Offices, by weight, year-to-date Oct 2019/Oct 2020
- Price of gold on the rise
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- Figure 36: UK price of gold tracked over a 15-year period, per troy ounce in GBP, 2005-20
- Marriage declining for same- and opposite-sex couples
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- Figure 37: Number of marriages in Great Britain, 2006-17
Market Drivers – Watches
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- Swiss watch exports grew in 2019…
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- Figure 38: Value of Swiss watch exports, by top five markets, 2017-19
- …driven by pricier options
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- Figure 39: Export of wristwatches, by price range, year-on-year change, 2018-19
- The industry faces big declines in 2020
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- Figure 40: Value of Swiss watch exports, by top five markets, Jan-Sep 2018-20
- Smartwatches continue to destabilise the sector
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- Figure 41: Estimated unit sales of wrist-worn wearable devices, by product category, 2016-19
Companies and Brands – Key Takeaways
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- Pandora’s relaunch has promising start
- Men’s jewellery continues to be a source of innovation
- Blockchain technology used in luxury watch sector
- Clogau uses TV advertising to boost brand presence
Leading Specialist Retailers
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- Sales performance
- Richemont sales decline
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- Figure 42: Leading specialists’ revenues, 2014-19
- Pandora relaunch sees early success
- Watches of Switzerland already seeing effects of COVID-19
- Outlet numbers
- Links of London disappears from the high street
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- Figure 43: Leading specialists’ outlet numbers, 2014-19
- Thomas Sabo closes stores
- Clogau to open five new stores
- TAG Heuer opens new boutiques
- Sales per outlet
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- Figure 44: Leading specialists’ sales per outlet, 2018
- Figure 45: Leading specialists’ sales per outlet, 2014-19
Launch Activity and Innovation – Jewellery
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- Harrods revamps jewellery offering
- New jewellery space
- Opening of Tiffany & Co.’s Blue Box Cafe
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- Figure 46: Inside Tiffany’s Blue Box Cafe in Harrods, 2020
- Suzanne Kalan opens dedicated boutique within Harrods
- House of Luxury opens pop-up in Harrods
- Jewellers show support for Black designers
- Kassandra Lauren Gordon raises funds for Black jewellers
- Boma Jewelry provides mentorship programme for Black jewellery designers
- Astrid & Miyu launches mentorship for Black-owned businesses
- Lab-grown trend grows stronger
- GIA introduces new lab-grown diamond report
- Nivoda unveils lab-grown diamonds search option
- Kimaï releases engagement rings featuring lab-grown diamonds
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- Figure 47: The Billie engagement ring with a large oval cut lab-grown diamond, 2020
- Retailers launch online
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- Figure 48: De Beers new transactional website
- Pop-up space for jewellery brands
- YAA YAA London pops up in John Lewis
- Tiffany & Co. Covent Garden pop-up with ice rink
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- Figure 49: Tiffany & Co. ice rink in Covent Garden, 2019
- Daniella Draper opens stores in Leeds and Cheshire
- Collaborations
- Pandora unveils Star Wars collaboration
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- Figure 50: Pandora’s Star Wars Logo Snake Chain Bracelet, 2020
- Messika collaborates with Kate Moss on new collection
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- Figure 51: Behind the scenes of the Messika collection created by Kate Moss, 2020
- Lark & Berry searches for designer to collaborate with
- Brands turn to tech
- Astrid & Miyu launches podcast in support of start-ups
- Brown & Newirth launches virtual concierge service
- Men’s jewellery launches
- Biiju’s Camouflage Collection
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- Figure 52: Biiju’s first men’s collection, 2020
- Aurum branches into men’s jewellery
- EC One launches men’s engagement rings
Launch Activity and Innovation – Watches
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- New watch launches
- Timex unveils affordable automatic
- Omega launches anniversary watch
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- Figure 53: Omega’s new watch commemorating the brand’s ‘Silver Snoopy Award’, 2020
- Cartier reintroduces iconic watch
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- Figure 54: Maisie Williams modelling the re-released Pasha de Cartier, 2020
- Pre-owned specialists increase store footprint
- Try Before You Buy
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- Figure 55: Danish watch brand Nordgreen launches its Try Before You Buy scheme in the UK, 2020
- Breitling turns to blockchain technology
- Sustainable lines
- Vivienne Westwood watches keep up with eco-friendly image
- Swatch releases collection of eco-friendly watches
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- Figure 56: The new BioReloaded eco-watch by Swatch, 2020
Advertising and Marketing Activity
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- Advertising spend continues to decline in 2019
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- Figure 57: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, 2015-19
- Pandora ups advertising as part of rebranding
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- Figure 58: Millie Bobby Brown featuring in the latest ‘Pandora Me’ campaign, 2020
- Figure 59: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by advertiser, 2015-19
- Chanel releases ‘Over the Moon’ fine jewellery campaign
- Traditional brands continue to rely on press advertising
- Patek Philippe refreshes classic campaign
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- Figure 60: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2019
- Swarovski launches social media campaign
- Clogau releases TV advert during peak lockdown period
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- Figure 61: Clogau’s ‘The Gift of Love’ advertising campaign, 2020
- Figure 62: Top advertisers’ above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2019
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 63: Attitudes towards and usage of selected brands, July 2020
- Key brand metrics
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- Figure 64: Key metrics for selected brands, July 2020
- Brand attitudes: Monica Vinader seen as innovative
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- Figure 65: Attitudes, by brand, July 2020
- Brand personality: Tiffany & Co. recognised as exclusive
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- Figure 66: Brand personality – macro image, July 2020
- Consumers perceive Pandora to be stylish
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- Figure 67: Brand personality – micro image, July 2020
- Brand analysis
- Astrid & Miyu still has relatively low awareness
- Pandora has high levels of commitment and awareness amongst consumers
- Tiffany & Co. seen as expensive but aspirational
- Watches of Switzerland perceived as cutting edge
- Fraser Hart offers good value
- Monica Vinader seen as most ethical and responsive
- Beaverbrooks needs to boost usage amongst female consumers
- H. Samuel needs to innovate to excite consumers
The Consumer – Key Takeaways
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- People are likely to trade down since COVID-19
- Online presents a big opportunity for the sector
- Male shoppers are more easily influenced by famous personalities
- Young shoppers want to see innovations
Impact of COVID-19 on Consumer Behaviours
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- People are anxious about the impact COVID will have on the economy
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- Figure 68: Thoughts around the effect COVID-19 will have on the economy, 18-24 June 2020
- People are spending less on fashion items…
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- Figure 69: Consumer spending expectations due to COVID-19, 2-11 November 2020
- …with customers likely trading down
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- Figure 70: Consumer spending expectations on clothing and accessories due to COVID-19, by socio-economic group, 2-11 November 2020
- More people are shopping online...
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- Figure 71: People shopping more online since COVID-19, 16 April-11 November 2020
- …as some are reluctant to try on or handle products in-store
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- Figure 72: How consumers feel about doing certain activities during COVID-19 times, 24 September-1 October 2020
- People keen to support local businesses
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- Figure 73: People saying they are shopping more from local businesses since the COVID-19 outbreak, by area, 2-11 November 2020
Purchasing of Jewellery and Watches
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- Watches and costume jewellery continue to be the most popular options
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- Figure 74: Who jewellery/watches were bought for in the last five years, June 2020
- Three in five bought either jewellery or watches
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- Figure 75: Total purchasing of jewellery and watches, June 2020
- Young men are the most likely gift buyers
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- Figure 76: Purchasing of jewellery and watches for self or as a gift, by age and gender, June 2020
Channels and Retailers Used
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- Watches more likely to be bought online than jewellery
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- Figure 77: Channels used for buying jewellery and watches, June 2020
- Overall, shopping for watches or jewellery in-store is more common
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- Figure 78: Channels used for buying jewellery and watches, June 2020
- Most buy precious metal jewellery from specialist stores
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- Figure 79: Types of retailers used for buying jewellery and watches, June 2020
Purchase Drivers
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- Quality and price stand out as the main priorities
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- Figure 80: Factors prioritised when choosing where to buy jewellery and watches, June 2020
- Ethical and eco-friendly items are not a priority
Habits of Jewellery and Watch Shoppers
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- Nearly two thirds turn to repairs
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- Figure 81: Shopping behaviours around jewellery and watches, June 2020
- Young shoppers want to buy jewellery and watches via social media
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- Figure 82: Shopper behaviour towards buying jewellery and watches via social media, by generation, June 2020
Jewellery and Watch Buying Behaviours
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- Charity has become important to shoppers
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- Figure 83: Behaviours towards jewellery and watch purchasing, June 2020
- Men are more likely to be swayed by influencers…
- …and to make fraudulent returns
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- Figure 84: Shoppers admitting to wearing jewellery/watches before returning the items, by age and gender, June 2020
Attitudes towards Jewellery and Watches
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- People are split regarding the importance of big brands
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- Figure 85: Attitudes towards jewellery and watch purchasing, June 2020
- Young women turn to curated piercings for unique style
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- Figure 86: People agreeing with the statement ‘Getting extra ear piercings is a good way to create a unique look’, by age and gender, June 2020
Encouraging Shopping during COVID-19
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- Innovations in the sector are needed to encourage online purchasing…
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- Figure 87: Enticing shoppers to buy jewellery or watches online during COVID-19, June 2020
- …particularly when appealing to young shoppers
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- Figure 88: Enticing shoppers to buy jewellery or watches online during COVID-19, by age, June 2020
- Figure 89: Pandora’s new virtual try-on experience launched for safer shopping during COVID-19, 2020
- Hygiene is main concern when visiting stores
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- Figure 90: Enticing shoppers to buy jewellery or watches in-store during COVID-19, June 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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