Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast value sales of watches and jewellery, 2006-16
- Green shoots of recovery
- Market Factors
- Booming mobile phone ownership poses a threat
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- Figure 2: Ownership of watches and mobile phones, 2005-10
- Gold price hits all-time high
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- Figure 3: Average price of gold and total weight of gold hallmarked in all UK assay offices, 2001-10
- Waning demand for wedding and engagement rings
- Ageing population presents a challenge
- ABs to boost market
- The Consumer
- Rising popularity of inexpensive watches
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- Figure 4: Amount of money prepared to spend on a watch for self, by gender, July 2011
- Average price prepared to spend on a watch
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- Figure 5: Average price prepared to spend on a watch for oneself, 2010 and 2011
- Middle-aged AB males aim high
- The majority wear a watch most of the time
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- Figure 6: Attitudes towards watches, by gender, July 2011
- Gifting is a lucrative driver of watch sales
- Replacement is a key motivator for watch sales
- Consumers with several watches benefit market
- Specialist brands vs. designer brands
- High street chains are the top destination for jewellery
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- Figure 7: Preferred outlets for buying jewellery, July 2011
- ABs favour independent jewellers
- Argos is top of the non-specialists
- Other outlets
- Jewellery is a precious gift
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- Figure 8: Attitudes towards buying or receiving precious metal jewellery, by gender, July 2011
- Scope for retailers to capitalise on unworn jewellery
- Under-25 women are the biggest self-purchasers
- Consumers are not willing to pay more for ethical jewellery
- What we think
Issues in the Market
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- What effect has the rising competition from alternative timepieces had on the watch market?
- What impact is the rising price of gold having on the jewellery market?
- How are advances in multichannel shopping affecting the jewellery market?
- Has the amount consumers are prepared to spend on themselves changed?
- How has fashion jewellery impacted upon the precious metal market?
- How important is gifting to the watches and jewellery market?
Future Opportunities
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- Trend: Experience is All
- Trend: Many Mes
Internal Market Environment
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- Key points
- Vast majority wear a watch
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- Figure 9: Trends in ownership of watches, 2006-10
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- Figure 10: Ownership of watches and mobile phones, by age and socio-economic group, 2010
- Surge in mobile ownership
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- Figure 11: Trends in ownership of watches compared to mobile phones, 2005-10
- Price of gold rockets
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- Figure 12: Average price of gold and platinum, 2001-10
- 2011 sees record highs in the price of gold
- Weight of hallmarked gold falls
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- Figure 13: Weight of gold hallmarked by all UK assay offices, 2001-10
- Switch to silver
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- Figure 14: Ownership of gold or platinum jewellery* and silver jewellery, 2006-10
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- Figure 15: Trends in ownership of gold or platinum jewellery and silver jewellery, 2006-10
- Increased spend in luxury gold market
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- Figure 16: Trends in amount spent on gold or platinum jewellery, not diamond set, in the last 12 months, 2006-10
- Growing market for under £100 silver
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- Figure 17: Trends in amount spent on silver jewellery in the last 12 months, 2006-10
Broader Market Environment
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- Key points
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- Figure 18: Trends in the age structure of the UK population, 2006-16
- Declining numbers of under-25s to hinder market
- Ageing population presents a challenge
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- Figure 19: Forecast growth of the UK adult population, by age group, 2006-11 and 2011-16
- 25-34s to boost market
- Growth in ABs to prosper market
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- Figure 20: Forecast growth of the UK population, by socio-economic group, 2006-11 and 2011-16
- Fall in big-spending 35-44s to hamper market
- Marriages are at the lowest ever rate
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- Figure 21: Rate of marriages in England and Wales, by gender, 1960-2009
- Tough trading conditions but light at the end of the tunnel
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- Figure 22: GDP, PDI, consumer expenditure and savings, at constant 2011 prices, 2006-16
- Eurozone economic recovery grinds to a halt
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- Figure 23: Trends in GDP quarterly change, Q1 2004-Q2 2011
- Consumer confidence continues on its downward spiral
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- Figure 24: Trends in consumer confidence, January 2008-August 2011
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Additional functionality
- Innovations in watch technology
- Ethical practices
- New retail innovations
- Customisations spur individuality
- Mobile and online innovations
- New marketing campaigns
- Collaborations
Competitive Context
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- Key points
- Jewellery and watches compared to clothing and footwear
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- Figure 25: UK retail value sales of clothing and adornment products, at current prices, 2006-11
- Jewellery and watches make up 9% of the clothing and adornment sector
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- Figure 26: UK retail value share of clothing and adornment products, at current prices, 2011
Market Size and Forecast
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- Key points
- Slow recovery in the midst of consumer caution
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- Figure 27: Value sales of watches and jewellery, at current and constant prices, 2006-16
- The future
- Watches and jewellery to grow by 8%
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- Figure 28: Best- and worst-case forecast value sales of watches and jewellery, 2006-16
- Factors used in the forecast
Segment Performance
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- Key points
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- Figure 29: UK retail value sales of jewellery and watches, by sector, 2007-11
- Precious metal jewellery
- Watches
Retail Competitor Analysis
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- Key points
- Store closures for Signet and AURUM
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- Figure 30: Jewellery retailers, by number of outlets, 2005-11
Retailer Profiles
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- Signet Group
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- Figure 31: Key financials for Signet Group UK, 2010 and 2011
- AURUM Holdings
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- Figure 32: Product offering – AURUM, July 2011
- Links of London
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- Figure 33: Key financials – Links (London) Limited (Global), 2008 and 2009
- Tiffany
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- Figure 34: Key financials for Tiffany & Co Ltd, 2009 and 2010
- Warren James
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- Figure 35: Key financials for Warren James (Jewellers) Ltd, 2009 and 2010
Brand Promotion and Communication
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- Key points
- Resurgence in adspend in 2010
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- Figure 36: Expenditure on advertising by top 20 jewellery and watch brands and retailers, 2008-10
- Press advertising holds supremacy
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- Figure 37: Expenditure on advertising by jewellery and watch brands and retailers, by media type, 2008-10
The Consumer – Amount Prepared to Spend on a Watch
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- Key points
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- Figure 38: Amount of money prepared to spend on a watch for self, July 2011
- Value watches en vogue
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- Figure 39: Amount of money prepared to spend on a watch for self, by gender, July 2011
- Mid spenders
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- Figure 40: Amount of money prepared to spend on a watch for oneself, by age, July 2011
- Men willing to spend more
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- Figure 41: Amount of money prepared to spend on a watch for self, by socio-economic group, July 2011
- Middle-aged men top in expenditure
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- Figure 42: Prepared to spend over £250 on a watch for self, by gender, age and socio-economic group, July 2011
- Three in 20 would never buy
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- Figure 43: Agreement with the statement ‘I would never buy a watch for myself’, by age and socio-economic group, July 2011
- Shift towards value watches
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- Figure 44: Amount of money prepared to spend on a watch for self, 2010 and 2011
- Average price prepared to spend on a watch shows marked decline
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- Figure 45: Average price prepared to spend on a watch for oneself, 2010 and 2011
The Consumer – Attitudes Towards Shopping for Watches
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- Key points
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- Figure 46: Attitudes towards watches, by gender, July 2011
- Majority wear a watch most of the time
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- Figure 47: Consumers wearing a watch most of the time, by gender, age and socio-economic group, July 2011
- Time is a gift
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- Figure 48: Consumers who are happy to receive a watch as a gift, by gender, age and socio-economic group, July 2011
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- Figure 49: Consumers who would consider buying a watch for a gift for someone else, by gender, age and socio-economic group, July 2011
- Three in ten only buy to replace
- Mobiles reducing demand for watches
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- Figure 50: Use of mobile phone instead of watch to tell the time, by gender, age and socio-economic group, July 2011
- Several watches for third age consumers
- Watch brands
- Aesthetics are important for one in seven
- Main interest in designer watch brands comes from under-25s
The Consumer – Where Jewellery is Bought
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- Key points
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- Figure 51: Preferred outlets for buying jewellery, July 2011
- Popularity of high street chains prevails
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- Figure 52: High street jewellery chain and independent jeweller shoppers, by age, July 2011
- ABs favour independent jewellers
- Under-25s and D consumers shop at Argos
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- Figure 53: Argos jewellery shoppers, by gender, age and socio-economic group, July 2011
- Department stores popular for parents
- Fashion stores
- A fifth do not buy jewellery
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- Figure 54: Consumers who do not buy jewellery, by gender, age and socio-economic group, July 2011
The Consumer – Attitudes Towards Buying Precious Metal Jewellery
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- Key points
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- Figure 55: Attitudes towards buying or receiving precious metal jewellery, by gender, July 2011
- A precious gift
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- Figure 56: Consumers who like receiving jewellery as a gift or have been given jewellery to mark a special occasion, by age and socio-economic group, July 2011
- Unworn pieces
- Popularity of gold is in decline
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- Figure 57: Consumers who wear more gold than silver, by age and socio-economic group, July 2011
- One in ten check the hallmark
- ABs are most experimental with jewellery
- Under-25 women are the biggest self-purchasers
- A worthy investment?
- Competition from costume jewellery
- Ethical jewellery
- Cash for gold
- Half of men are non-wearers
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- Figure 58: Consumers who do not wear jewellery, by gender, age and socio-economic group, July 2011
Target Groups
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- Key points
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- Figure 59: Marketing target groups for watches and jewellery, June 2010
- Low Spenders
- Unadorned
- Big Spenders
- Accessorise to Maximise
Appendix – Internal Market Environment
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- Figure 61: Ownership of watches, by demographics, 2010
- Figure 62: Ownership of mobile phones, by demographics, 2010
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- Figure 63: Ownership of gold or platinum jewellery, by demographics, 2010
- Figure 64: Ownership of silver jewellery, by demographics, 2010
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- Figure 65: Amount spent on gold or platinum jewellery, not diamond set, in the last 12 months, by demographics, 2010
- Figure 66: Amount spent on silver jewellery in the last 12 months, by demographics, 2010
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Appendix – The Consumer – Amount Spent on Watches
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- Figure 67: Amount of money prepared to spend on a watch for self, by demographics, July 2011
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Appendix – The Consumer – Attitudes Towards Shopping for Watches
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- Figure 68: Most popular attitudes towards watches, by demographics, July 2011
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- Figure 69: Next most popular attitudes towards watches, by demographics, July 2011
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- Figure 70: Amount of money prepared to spend on a watch for self, by most popular attitudes towards watches, July 2011
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- Figure 71: Amount of money prepared to spend on a watch for self, by next most popular attitudes towards watches, July 2011
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Appendix – The Consumer – Where Jewellery is Bought
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- Figure 72: Preferred outlets for buying jewellery, by demographics, July 2011
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Appendix – The Consumer – Attitudes Towards Buying Precious Metal Jewellery
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- Figure 73: Most popular attitudes towards buying or receiving precious metal jewellery, by demographics, July 2011
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- Figure 74: Next most popular attitudes towards buying or receiving precious metal jewellery, by demographics, July 2011
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- Figure 75: Other attitudes towards buying or receiving precious metal jewellery, by demographics, July 2011
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- Figure 76: Preferred outlets for buying jewellery, by next most popular attitudes towards buying or receiving precious metal jewellery, July 2011
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- Figure 77: Preferred outlets for buying jewellery, by other attitudes towards buying or receiving precious metal jewellery, July 2011
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Appendix – Target Groups
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- Figure 78: Target groups, by demographics, July 2011
- Figure 79: Preferred outlets for buying jewellery, by target groups, July 2011
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- Figure 80: Attitudes towards buying or receiving precious metal jewellery, by target groups, July 2011
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