Table of Contents
Executive Summary
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- The issues
- Ample upside sales potential
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- Figure 1: Total US retail sales and fan chart forecast of watches and jewelry, at current prices, 2010-20
- Fragmented marketplace
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- Figure 2: Retailers shopped for watches and/or jewelry (in-store or online), June 2015
- Smartwatches could cannibalize sales of traditional watches
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- Figure 3: Types of watches purchased in last 12 months, June 2015
- The opportunities
- Include men in targeting outreach
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- Figure 4: Types of jewelry/watches purchased in last 12 months, June 2015
- Blend online and offline offerings
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- Figure 5: Attitudes toward buying jewelry and watches online, June 2015
- Focus on how jewelry/watches can make a fashion statement, not just accessorize
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- Figure 6: Attitudes toward buying jewelry and watches online, June 2015
- What it means
The Market – What You Need to Know
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- Market primed for moderate growth
- Stronger economy will support sales
- “Other” forms of wearable technology present a threat for watches
Market Size and Forecast
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- Positive outlook for watches and jewelry
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- Figure 7: Total US retail sales and fan chart forecast of watches and jewelry, at current prices, 2010-20
- Figure 8: Total US retail sales and forecast of watches and jewelry, at current prices, 2010-20
Market Breakdown
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- Jewelry dominates the market, but smartwatches could fuel overall watch segment
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- Figure 9: Total US retail sales and forecast of watches and jewelry, by segment, at current prices, 2010-20
- Figure 10: Total US retail sales and market share of watches and jewelry, by segment, at current prices, 2013 and 2015
- Jewelry stores face competition from other channels
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- Figure 11: Total US retail sales of watches and jewelry, by channel, at current prices, 2010-15
- Figure 12: Percentage of jewelry sales, by type of jewelry, 2012
Market Perspective
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- Fitness trackers versus smartwatches
- DIY jewelry should be monitored
Market Factors
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- US population continues to grow, especially among Hispanics
- Consumer confidence is peaking
- Higher confidence does not mean shoppers willing to pay more
- Marriage rates picking back up slightly
- Precious metal prices lowest in years, while diamonds continue to sparkle
- Smartwatches creating new demand in the category
Key Issues – What You Need to Know
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- Jewelry is always in fashion
- Alternative channels not an immediate threat to traditional retailers
- Industry authorities place bets on smartwatches
What’s Working?
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- Bold and unique statements hit the runway, while online retailers open physical stores
- Affordable fine jewelry
- Bold gold
- Themed collections
- Other jewelry trends
- Brick and mortar expansion
What’s Struggling?
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- Alternative channels remain stagnant
- Low interest in subscription services
What’s Next?
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- Future for smartwatches: Bright or dim?
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- Figure 13: Anticipated dollar sales of smartwatches versus fitness technology, 2013-January 2015
- Who’s buying smartwatches?
- What do consumers think?
The Consumer – What You Need to Know
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- Watches and jewelry market needs a boost
- Willingness to buy online
- Fashion over function
Types of Jewelry/Watches Purchased in Last 12 Months
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- The 40% opportunity
- Fine jewelry/watches preferred
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- Figure 14: Types of jewelry/watches purchased in last 12 months, June 2015
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- Figure 15: Fine versus fashion/costume jewelry for self versus others in last 12 months, June 2015
- Fine versus costume: In their words
- Favorite types of jewelry: In their words
Materials and Stones Purchased
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- Gold and diamonds remain favorites
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- Figure 16: Materials purchased, June 2015
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- Figure 17: Stones purchased, June 2015
Retailers Shopped
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- Jewelry stores hold their own, but face stiff competition
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- Figure 18: Retailers shopped for watches and/or jewelry (in-store or online), June 2015
- What if consumers owned their own store?
Opinions Regarding Online Shopping
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- Split opinions regarding buying online
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- Figure 19: Attitudes toward buying jewelry and watches online, June 2015
- Thoughts on online shopping: In their words
Reasons for Purchasing Jewelry and Watches
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- Jewelry and watches are little luxuries
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- Figure 20: Reasons for purchasing jewelry/watches, June 2015
Attitudes toward Jewelry and Watches
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- Consumers are trained to wait for sales
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- Figure 21: Attitudes toward jewelry/watches, June 2015
- Traditional and timeless jewelry preferred
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- Figure 22: Attitudes toward style and Jewelry, June 2015
- Watches make a fashion statement
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- Figure 23: Attitudes toward style and watches, June 2015
- Opinions on watches
Shopping Process – In Their Words
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- Shopping for self
- Important attributes
- Shopping for others
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Total watches and jewelry sales
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- Figure 24: Total US sales and forecast of watches and jewelry, at inflation-adjusted prices, 2010-20
- Watch sales
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- Figure 25: Total US retail sales and forecast of watches, at current prices, 2010-20
- Figure 26: Total US retail sales and forecast of watches, at inflation-adjusted prices, 2010-20
- Jewelry sales
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- Figure 27: Total US retail sales and forecast of jewelry, at current prices, 2010-20
- Figure 28: Total US retail sales and forecast of jewelry, at inflation-adjusted prices, 2010-20
- Population data
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- Figure 29: Population aged 18 or older, by age, 2010-20
- Figure 30: Population aged 18 or older, by race and Hispanic origin, 2010-20
- Other macro-economic data
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- Figure 31: Consumer confidence and unemployment, 2007-June 15
- Figure 32: US marriages and marriage rate, 2000-12
- Figure 33: Closing prices of precious metals, in US Dollars, 2014-August 2015
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- Figure 34: Average annual closing price of diamond, in US Dollars, 2011-YTD 2015*
Appendix – Key Issues
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- Figure 35: Anticipated unit sales of smartwatches versus fitness technology, 2013-January 2015
- Figure 36: Average per unit price of smartwatches versus fitness technology, 2013-January 2015
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Appendix – Consumer
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- Correspondence analysis methodology
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- Figure 37: Correspondence analysis – Materials and stones purchased, June 2015
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- Figure 38: Percentage of adults who purchased watch for self or someone else, 2012-15, February 2014-March 2015
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- Figure 39: Watch brands purchased for self or others, February 2014-March 2015
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- Figure 40: Amount spent on watches for self or someone else, February 2014-March 2015
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- Figure 41: Amount spent on watches for self or someone else, by gender, February 2014-March 2015
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