Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- Market to grow by 2.3% in 2016
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- Figure 1: Best- and worst-case forecast value sales of jewellery and watches, 2011-21
- Brexit could result in slower growth
- Gold hallmarking on the increase
- Aurum Group among the strongest players
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- Figure 2: Leading jewellery specialists’ compound annual growth rate (CAGR) in net revenues, 2011-14/15*
- Rolex stands out for trust
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- Figure 3: Brand personality – Micro image, June 2016
- Gifting drives jewellery purchases
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- Figure 4: Purchasing of jewellery and watches, July 2016
- Watches top consumers’ future purchasing intentions
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- Figure 5: Purchasing intentions for jewellery and watches, July 2016
- Over four in ten have bought online
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- Figure 6: Where precious metal jewellery and watches were purchased in the last 5 years, in-store or online by retailer, July 2016
- Older men shop around for the best priced jewellery
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- Figure 7: Attitudes towards precious metal jewellery and watches, July 2016
- Monitoring health and fitness is biggest attraction of smartwatches
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- Figure 8: Reasons for considering a smartwatch purchase, July 2016
- Majority (60%) of consumers not considering a smartwatch purchase
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- Figure 9: Reasons for not considering a smartwatch purchase, July 2016
- Gold jewellery is viewed as timeless but lacks fashion appeal
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- Figure 10: Correspondence analysis, July 2016
- What we think
Issues and insights
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- How has the jewellery and watches market fared?
- The facts
- The implications
- How is the smartwatches market developing?
- The facts
- The implications
- How might Brexit have an impact on the jewellery and watches market?
- The facts
- The implications
The Market – What You Need to Know
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- Market to grow by 2.3% in 2016
- Brexit could result in slower growth
- Consumer finances remain stable for now
- Gold and silver prices begin to rise in 2016
- Gold hallmarking on the increase
Market Size and Forecast
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- Market to grow by 2.3% in 2016
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- Figure 11: Value sales of watches and jewellery, at current and constant prices, 2011-21
- Jewellery and watch sales to reach £6bn by 2021
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- Figure 12: Best- and worst-case forecast value sales of jewellery and watches, 2011-21
- Forecast methodology
- The impact of the EU referendum vote
- Jewellery and watches market was flat following the recession
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- Figure 13: Alternative market scenarios for the post-Brexit jewellery and watches market, at current prices, 2016-21
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- Figure 14: Detailed post-Brexit scenarios for the jewellery and watches market, at current prices, 2016-21
- Value growth in the market may slow
- Weaker Pound could boost tourist spend in the UK
- Pandora was a relatively small player during the post-recession years
Market Segmentation
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- Precious metal jewellery retains demand
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- Figure 15: UK retail value sales of jewellery and watches, by sector, 2011-16
- Watch sales grow 4.9%
Market Drivers
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- Gold and silver prices begin to rise in 2016
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- Figure 16: Average yearly prices of gold, platinum and palladium, in dollars, 2002-16
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- Figure 17: Average yearly prices of silver, in dollars 2002-16
- Gold hallmarking on the increase
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- Figure 18: % change in number of items hallmarked, by precious metal type, 2014-15
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- Figure 19: Number of gold and silver items hallmarked, 2007-16
- Swiss watch exports to the UK rise 13.4% in July
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- Figure 20: Share of all COSC certificates accounted for, by leading Swiss-watch brands, 2014-15
- Figure 21: Number of Swiss watch certificates issued by the COSC, 2014-15
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- Figure 22: Number of Swiss watch certificates issued by the COSC, three leading brands, 2011-15
- Consumer confidence dips post-Brexit
- Population trends point to rise in male 25-44s
- Surprise decline in marriages in 2013
- Current smartwatch ownership levels remain low
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- Figure 23: Ownership of smartphones and smartwatches, September 2015 and April 2016
- US tourists spend the most in the UK
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- Figure 24: % change of inbound tourism to the UK, by world region, for the rolling 12 months June 15-May 2016 compared with June 14-May 15
The Consumer – What You Need to Know
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- Silver jewellery retains its popularity among women
- Consumers most likely to be considering a watch purchase
- Over four in ten have bought online
- Pandora attracts the most precious metal jewellery shoppers
- Argos caters for less affluent buyers
- Older men shop around for the best priced jewellery
- Style of a watch prevails over function among under-45s
- Four in ten would consider buying a smartwatch
- Gold jewellery is viewed as timeless but lacks fashion appeal
Purchasing of Jewellery and Watches
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- Self-purchasing prevails for watches
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- Figure 25: Purchasing of jewellery and watches, July 2016
- Silver jewellery favoured by women
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- Figure 26: Purchasing of precious metal jewellery in the last five years – Women, July 2016
- Men opt for gold as much as silver
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- Figure 27: Purchasing of precious metal jewellery in the last five years – Men, July 2016
- Costume jewellery a popular self-purchase
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- Figure 28: Purchasing of costume jewellery in the last five years, by gender, July 2016
- Watch self-purchasing peaks among young men
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- Figure 29: Purchasing of watches in the last five years – Men, July 2016
- Fashionable smartwatches set to boost women’s buying levels
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- Figure 30: Purchasing of watches in the last five years – Women, July 2016
- Repertoire of jewellery and watch purchases
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- Figure 31: Repertoire of jewellery and watch purchases, July 2016
Future Purchasing Intentions
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- 12% planning a watch purchase in the coming months
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- Figure 32: Purchasing intentions for jewellery and watches, July 2016
- Almost a quarter of young women look to buy costume jewellery
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- Figure 33: Women that are considering purchasing jewellery or watches in the next 6 months, by age, July 2016
- Platinum tops young men’s priority list for jewellery
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- Figure 34: Men that are considering purchasing jewellery or watches in the next 6 months, by age, July 2016
Where They Shop
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- Over four in ten have bought online
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- Figure 35: Where precious metal jewellery and watches were purchased in the last 5 years, in-store or online, July 2016
- High street jewellery chains favoured by men
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- Figure 36: Where precious metal jewellery and watches were purchased in the last 5 years, in-store or online by retailer, July 2016
- Argos caters for the less affluent jewellery and watch buyers
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- Figure 37: Where precious metal jewellery was purchased in the last 5 years, in-store or online, by socio-economic group, July 2016
- Pandora attracts the most precious metal jewellery shoppers
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- Figure 38: Where precious metal jewellery was purchased in the last 5 years, in-store or online, by age, July 2016
- Young, affluent watch buyers opt for high street chains
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- Figure 39: Where watches were purchased in the last 5 years, in-store or online, by demographics, July 2016
- Increased activity from online-only watch retailers
- Majority of consumers just use one retailer
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- Figure 40: Repertoire of retailers used for buying precious metal jewellery and watches, July 2016
Attitudes towards Precious Metal Jewellery
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- Older men shop around for the best priced jewellery
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- Figure 41: Attitudes towards precious metal jewellery, July 2016
- Layering jewellery trend encourages self-purchases
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- Figure 42: Attitudes towards precious metal jewellery, by age, July 2016
- Opportunity for ethical ranges targeted towards young men
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- Figure 43: Those who would prefer to buy precious metal jewellery that they know has been ethically sourced, by socio-economic group, July 2016
Attitudes towards Watches
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- Style prevails over function among under-45s
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- Figure 44: Attitudes towards watches, July 2016
- Figure 45: Preference towards style/appearance or function of a watch, by gender and age, July 2016
- Older consumers not as concerned with specialist watch brands
- Second hand watches attractive to young buyers
- Demand for personalised watches
Interest in Smartwatches
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- Figure 46: Future purchasing intentions for smartwatches, among those that have bought a watch in the last five years, July 2016
- Why are consumers interested in smartwatches?
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- Figure 47: Reasons for considering a smartwatch purchase, July 2016
- Barriers to smartwatch sales
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- Figure 48: Reasons for not considering a smartwatch purchase, July 2016
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Associations with Gold, Silver and Costume Jewellery
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- Gold jewellery is viewed as timeless but lacks fashion appeal
- Silver jewellery offers everyday wearability
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- Figure 49: Correspondence Analysis, July 2016
- Costume jewellery is the most fashionable option
Companies and Brands – What You Need to Know
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- Pandora is the fastest growing retailer over five years
- Online watch retailers tap into pre-owned watch demand
- Michael Kors enters the smartwatch market
- Advertising spend boosted by Apple
- New campaign strategy for Tiffany
Retail Competitor Analysis
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- Leading specialists: Compound annual growth rates
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- Figure 50: Leading jewellery specialists’ compound annual growth rate (CAGR) in net revenues, 2011-14/15*
- Leading specialists: Revenues
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- Figure 51: Leading specialists’ revenues, 2011-15
- Leading specialists: Outlet numbers
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- Figure 52: Leading specialists’ outlet numbers, 2011/12-15/16
- Leading specialists: Sales per outlet
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- Figure 53: Leading specialists’ sales per outlet, 2013/14*
Launch Activity and Innovation
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- Jewellery
- Harrods’ caters for bespoke jewellery demand
- John Lewis teams up with local jewellers
- Online service improved by video chat function…
- …while other jewellers opt for WhatsApp communication
- Liz Earle enters Fairtrade jewellery market
- ‘Singles Bar’ lets shoppers mix and match earrings
- Wearable jewellery
- Watches
- Online watch retailers tap into pre-owned watch demand
- Harrods hosts six-week Fine Watch takeover
- Olivia Burton launches vegan-friendly watches
- Michael Kors enters the smartwatch market
Advertising and Marketing Activity
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- Advertising spend boosted by Apple
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- Figure 54: Total above-the line, online display and direct mail advertising expenditure on jewellery and watches, 2012-15
- Pandora ramps up advertising spend
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- Figure 55: Total above-the line, online display and direct mail advertising expenditure on jewellery and watches, by advertiser, 2012-2015
- New campaign strategy for Tiffany
- Growth in television advertisements
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- Figure 56: Total above-the line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2015
- Figure 57: Total above-the line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2012-15
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 58: Attitudes towards and usage of selected brands, June 2016
- Key brand metrics
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- Figure 59: Key metrics for selected brands, June 2016
- Brand attitudes: Pandora expresses the wearer’s personality
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- Figure 60: Attitudes, by brand, June 2016
- Brand personality: Rolex stands out for exclusivity
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- Figure 61: Brand personality – Macro image, June 2016
- Swatch is a practical choice, offering durability and comfort
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- Figure 62: Brand personality – Micro image, June 2016
- Brand analysis
- Pandora is a trend-setter
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- Figure 63: User profile of Pandora, June 2016
- Rolex garners the highest levels of trust
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- Figure 64: User profile of Rolex, June 2016
- Swarovski enjoys vibrant and engaging associations
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- Figure 65: User profile of Swarovski, June 2016
- Michael Kors increases awareness
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- Figure 66: User profile of Michael Kors, June 2016
- Tiffany & Co works on its ‘cool’ factor
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- Figure 67: User profile of Tiffany & Co, June 2016
- Swatch is a cool and urban brand
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- Figure 68: User profile of Swatch, June 2016
- Thomas Sabo needs to increase exposure
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- Figure 69: User profile of Thomas Sabo, June 2016
Company Profiles
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- Aurum Group Ltd
- What we think
- Background
- Company performance
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- Figure 70: Aurum*: Group financial performance, 2010/11-2014/15
- Figure 71: Aurum: Outlet data, 2010/11-2014/15
- Retail offering
- Casio Electronics Co. Ltd
- What we think
- Background
- Company performance
- Retail offering
- Signet Group (UK)
- What we think
- Background
- Company performance
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- Figure 72: Signet Group (UK): Group financial performance, 2011/12-2015/16
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- Figure 73: Signet Group (UK): Outlet data, 2011/12-2015/16
- Retail offering
- Swarovski UK Ltd
- What we think
- Background
- Company performance
- Retail offering
- The Swatch Group (UK) Ltd
- What we think
- Background
- Company performance
- Retail offering
- Tiffany & Co Ltd
- What we think
- Background
- Company performance
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- Figure 74: Tiffany & Co Ltd: Group financial performance, 2010/11-2014/15
- Figure 75: Tiffany & Co Ltd: Outlet data, 2010/11-2014/15
- Retail offering
- Links of London Ltd
- What we think
- Reinforcing its British brand positioning
- Boutique.Goldsmith deal offers more options for customers to shop Links of London
- Expanding the breadth of category offering
- Building its presence in Asia through travel retail outlets
- Company background
- Company performance
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- Figure 76: Links (London) Ltd: Group financial performance, 2010/11-2014/15
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- Figure 77: Links (London) Ltd: Outlet data, 2010/11-2014/15
- Retail offering
- Pandora Jewellery UK Ltd
- What we think
- Slowly moving away from just charm bracelets
- Capitalising on the gift market
- Concept stores
- Maximising online presence
- Building close relationships with its customers
- Customised jewellery
- Company background
- Company performance
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- Figure 78: Pandora Group: Group financial performance, 2011-2015
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- Figure 79: Pandora Jewellery UK Ltd: Outlet data, 2011-2015
- Retail offering
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
Appendix - Correspondence Analysis
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- Methodology
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- Figure 80: Correspondence analysis, July 2016
- Figure 81: Jewellery & watches, July 2016
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