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, 2007-17
- Market sees flat sales growth
- Market factors
- Four fifths own a watch, but ownership in decline
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- Figure 2: Trends in ownership of watches compared to mobile phones, 2007-11
- Price of gold keeps rising
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- Figure 3: Average price of gold and platinum, 2002-11
- Growth in 25-34s provides boost, while ageing population is a challenge
- ABs help drive sales
- Declining number of marriages to impact ring purchases
- The consumer
- High street jewellery chains first choice
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- Figure 4: Preferred outlets for buying jewellery, July 2012
- A precious gift
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- Figure 5: Attitudes towards precious metal jewellery, by gender, July 2012
- Women want unique designs
- Jewellery as an investment
- Awareness in hallmarking rises
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- Figure 6: Attitudes towards precious metal jewellery, by age and socio-economic group, July 2012
- Concerns about buying online
- Rolex is one of the most desirable watch brands
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- Figure 7: Most desirable watch brands, by age and affluence, July 2012
- Mobile phones threaten the market
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- Figure 8: Agreement with statement ‘I prefer to use a device such as a mobile phone to tell the time’, by age group and socio-economic group, July 2012
- Older consumers mainly buy as a replacement
- Gifting drives sales
- Consumers browse online, but buy in-store
- What we think
Issues in the Market
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- How is the rising price of precious metals impacting on sales of jewellery?
- What is being done to tackle the rise in sales of counterfeit jewellery?
- To what extent are alternative devices, such as mobile phones, threatening the watches market?
- How important is gifting to the watches and jewellery market?
Trend Applications
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- Trend: Prepare for the Worst
- Trend: Objectify
- 2015 Trend: Access Anything Anywhere
Market Drivers
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- Key points
- Four fifths own a watch, but ownership in decline
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- Figure 9: Trends in ownership of watches, 2007-11
- Mobile phone ownership continues to rise
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- Figure 10: Ownership of watches and mobile phones, by age and socio-economic group, 2011
- Figure 11: Trends in ownership of watches compared to mobile phones, 2007-11
- Men spend more than women on watches
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- Figure 12: Trends in amount spent on watches in the last 12 months, 2007-11
- Figure 13: Trends in amount spent on watches in the last 12 months, by gender, 2007-11
- Price of gold keeps rising
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- Figure 14: Average price of gold and platinum, 2002-11
- Weight of hallmarked gold declines
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- Figure 15: Weight of gold hallmarked by all UK assay offices, 2002-11
- Price of silver rockets
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- Figure 16: Average price of silver, 2002-11
- Growing interest in palladium
- Gold ownership falls
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- Figure 17: Ownership of jewellery, by type of metal, 2007-11
- Figure 18: Ownership of gold or platinum jewellery* and silver jewellery, 2007-11
- Men gift gold, while women give silver
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- Figure 19: Trends in ownership of gold or platinum jewellery and silver jewellery, 2007-11
- Amount spent on gold rises
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- Figure 20: Trends in amount spent on gold or platinum jewellery, not diamond set, in the last 12 months, 2007-11
- Amount spent on silver declines
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- Figure 21: Trends in amount spent on silver jewellery in the last 12 months, 2007-11
- Costume jewellery universally popular
- Fall in fashion-driven under-25s likely to affect market
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- Figure 22: Trends in the age structure of the UK population, 2007-17
- A growth in 25-34s provides boost
- Declining 35-44s market expected to slow premium market
- Rise in lower-spending over-65s
- Slower growth predicted for ABs
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- Figure 23: Forecast growth of the UK population, by socio-economic group, 2007-17
- Rate of marriages declines
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- Figure 24: Rate of marriages in England and Wales, by gender, 1960-2010
- GDP, PDI and consumer expenditure and savings
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- Figure 25: GDP, PDI, consumer expenditure and savings, at constant 2012 prices, 2007-17
- Strong Swiss Franc
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- Figure 26: Exchange rates for sterling against other currencies, 2007-12
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Combining the latest technology with watches
- Experimenting with new techniques
- Fashion and fine jewellery
- Brand collaborations
- Marketing initiatives
- Male inspired collections
- Online initiatives
- A trend for Britishness
Competitive Context
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- Key points
- Jewellery and watches grows slower than other sectors
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- Figure 27: UK retail value sales of clothing and adornment products, at current prices, 2007-12
- Jewellery and watches account for 9% of the clothing and adornment sector
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- Figure 28: UK retail value share of clothing and adornment products at current prices, 2012
Market Size and Forecast
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- Key points
- Market sees flat sales growth
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- Figure 29: Value sales of watches and jewellery, at current and constant prices, 2007-17
- The future
- Watches and jewellery to grow by 5.3%
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- Figure 30: Best- and worst-case forecast value sales of watches and jewellery, 2007-17
- Factors used in the forecast
Segment Performance
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- Key points
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- Figure 31: UK retail value sales of jewellery and watches, by sector, 2007-12
- Precious metal jewellery
- Watches
Retail Competitor Analysis
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- Key points
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- Figure 32: Jewellery retailers, by number of outlets, 2006-12
Retailer Profiles
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- Signet Group
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- Figure 33: Key financials for Signet Group UK, 2011 and 2012
- Aurum Holdings
- Links of London
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- Figure 34: Key financials – Links (London) Limited (Global), 2009 and 2010
- Tiffany & Co
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- Figure 35: Key financials for Tiffany & Co Ltd, 2010 and 2011
- Warren James
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- Figure 36: Key financials for Warren James (Jewellers) Ltd, 2010 and 2011
Brand Promotion and Communication
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- Key points
- Adspend takes centre stage
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- Figure 37: Expenditure on advertising, by top 20 jewellery and watch brands and retailers, 2009-11
- Renewed interest in TV and cinema ads
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- Figure 38: Expenditure on advertising by jewellery and watch brands and retailers, by media type, 2009-11
The Consumer – Where Jewellery is Bought
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- Key points
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- Figure 39: Preferred outlets for buying jewellery, July 2012
- High street jewellery chains first choice
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- Figure 40: High street jewellery chain and independent jeweller shoppers, by age and socio-economic group, July 2012
- Independent jewellers
- Young shop at Argos
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- Figure 41: Consumers who have bought precious metal jewellery from Argos in the last five years, by gender, age and socio-economic group, July 2012
- Women twice as likely to buy from premium jewellers
- Over-65s less likely to buy jewellery
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- Figure 42: Consumers who do not buy jewellery, by gender, age and socio-economic group, July 2012
The Consumer – Attitudes Towards Buying Precious Metal Jewellery
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- Key points
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- Figure 43: Attitudes towards precious metal jewellery, July 2012
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- Figure 44: Attitudes towards precious metal jewellery, by gender, July 2012
- A precious gift
- Women want unique designs
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- Figure 45: Preference for buying jewellery which is unusual or a unique design, by gender, age and socio-economic group, July 2012
- Jewellery as an investment
- Awareness in hallmarking rises
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- Figure 46: Attitudes towards precious metal jewellery, by age and socio-economic group, July 2012
- Concerns about buying online
- Ethical jewellery
- Cost conscious
- Scrapping gold
The Consumer – Most Desirable Watch Brands
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- Key points
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- Figure 47: Most desirable watch brands, July 2012
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- Figure 48: Most desirable watch brands, by age and affluence, July 2012
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- Figure 49: Most desirable watch brands, by gender, July 2012
- Rolex is irresistible
- Cartier desired by women
- Omega appeals to older crowd
- TAG Heuer holds affinity for men
- Breitling draws 35-44s
- Swatch appeals to under-35s
- Casio G-Shock popular among under-25s
The Consumer – Attitudes Towards Watches
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- Key points
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- Figure 50: Attitudes towards watches, July 2012
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- Figure 51: Attitudes towards watches, by gender, July 2012
- Replacement buying
- A watch is a timely gift
- Mobile phones threaten the market
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- Figure 52: Agreement with statement ‘I prefer to use a device such as a mobile phone to tell the time’, by age group and socio-economic group, July 2012
- A watch for every occasion
- Consumers browse online, but buy in-store
- A watch gives me status
- Recycling watches
Appendix – Market Drivers
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- Figure 53: Ownership of watches, by demographics, 2011
- Figure 54: Ownership of jewellery, by type of metal, by demographics, 2011
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- Figure 55: Ownership of gold or platinum jewellery, by demographics, 2011
- Figure 56: Ownership of silver jewellery, by demographics, 2011
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- Figure 57: Attitudes towards accessories, by demographics, 2012
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Appendix – Market Size and Forecast
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- Figure 58: Best- and worst-case forecast value sales of watches and jewellery, 2012-17
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Appendix – The Consumer – Where Jewellery is Bought
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- Figure 59: Preferred outlets for buying jewellery, July 2012
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Appendix – The Consumer – Attitudes Towards Buying Precious Metal Jewellery
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- Figure 60: Attitudes towards precious metal jewellery, July 2012
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Appendix - The Consumer – Most Desirable Watch Brands
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- Figure 61: Most desirable watch brands, July 2012
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- Figure 62: Next most desirable watch brands, July 2012
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Appendix – The Consumer – Attitudes Towards Watches
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- Figure 63: Most popular attitudes towards watches, July 2012
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- Figure 64: Next most popular attitudes towards watches, July 2012
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