Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Market set to reach £5.5 billion in 2017
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- Figure 1: Best- and worst-case forecast value sales of jewellery and watches, 2012-22
- Watches outperform jewellery
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- Figure 2: Estimated share of total UK jewellery and watch market, 2016
- Hallmarking in the UK declines 7.1% in 2016
- Companies and brands
- Aurum overtakes Signet to become market leader
- Cartier stands out for consistent quality
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- Figure 3: Attitudes towards and usage of selected brands, July 2017
- Leading brands target new audiences
- The consumer
- Self-purchasing drives watch market
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- Figure 4: Purchasing of jewellery and watches, July 2017
- More people shopping online
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- Figure 5: Where people shop for precious metal jewellery and watches, in-store or online, July 2017
- Pandora and Argos the most shopped at retailers
- Birthdays are a popular gifting occasion
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- Figure 6: Occasions people buy jewellery and watches as a gift, July 2017
- Necklaces drive the jewellery market
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- Figure 7: Types of jewellery purchased, July 2017
- People research online ahead of purchase
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- Figure 8: Jewellery and watch shopping behaviour, July 2017
- What we think
Issues and Insights
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- The ongoing impact of Brexit on the market
- The facts
- The implications
- Watches continuing to drive growth, but the market is increasingly competitive
- The facts
- The implications
- What are the opportunities in the market?
- The facts
- The implications
The Market – What You Need to Know
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- Sales of jewellery and watches rise 2.3% in 2016
- Luxury watch market boosted by weak Sterling and rising inbound tourism
- Uplift in Swiss watch exports to the UK
- Decline in hallmarking highlights challenges in precious metal market
- Precious metal prices rise in 2016
Market Size and Forecast
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- Jewellery and watch market forecast to reach £6.1 billion by 2022
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- Figure 9: Best- and worst-case forecast value sales of jewellery and watches, 2012-22
- Figure 10: Value sales of watches and jewellery, at current and constant prices, 2012-22
- Forecast methodology
Market Segmentation
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- Sales of watches expected to rise 5.1% in 2017
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- Figure 11: Estimated share of total UK jewellery and watch market, 2016
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- Figure 12: UK retail value sales of jewellery and watches, by sector, 2012-17
Market Drivers
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- Rising inflation puts pressure on consumers
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- Figure 13: Real wages growth – Percentage change in average weekly earnings vs inflation, August 2014-July 2017
- Consumer confidence weakening
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- Figure 14: How consumers would describe their financial situation, August 2016-July 2017
- Consumer spending priorities
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- Figure 15: What consumers spend their extra money on, July 2017
- An ageing population threatens market
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- Figure 16: Trends in the age structure of the UK population, 2014-24
- Figure 17: Trends in the age structure of the UK population, 2014-24
- Gifting opportunities
- Declining birth and marriage rate
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- Figure 18: Total number of births in the UK, 2011-15
- Figure 19: Total number of marriages in the UK, 2011-15
- Rising number of people visiting the UK
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- Figure 20: Total overseas residents’ visits to the UK, 2012-16
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- Figure 21: Total overseas residents’ visits to the UK, by purpose of visit, 2012-16
- Figure 22: Overseas residents’ spending in the UK, by purpose of visit, 2012-16
- Increasing smartwatch ownership
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- Figure 23: Ownership of mobile phones and smartwatches, 2015-17
- Swiss watch exports decline, but exports to the UK increase
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- Figure 24: Value of Swiss watch exports, by watch type, 2012-16
- Gold and silver prices return to growth in 2016
- Declining hallmarking in the UK
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- Figure 25: Percentage change in number of items hallmarked, by precious metal type, 2015-16
Companies and Brands – What You Need to Know
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- Leading brands reposition to attract new customers
- Growing emphasis on travel retail
- Plenty of innovation in the watch market
- Cartier and Sekonda benefit from strong brand awareness
Leading Specialist Retailers
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- Sales performance
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- Figure 26: Leading specialists’ revenues, 2011-16
- Outlet numbers
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- Figure 27: Leading specialists’ outlet numbers, 2011-16
- Sales per outlet
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- Figure 28: Leading specialists’ sales per outlet, 2015
- Figure 29: Leading specialists’ sales per outlet, 2011-16
Competitive Strategies
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- Mergers and acquisitions
- Aurum Holdings buys major US jewellers
- Movado Group acquires Olivia Burton
- Theo Fennell saved from administration
- Breitling bought by London-based investment group
- Distribution changes
- Tapping into the travel retail market
- Signet limiting investment in smaller shopping centres
- Ralph Lauren postpones plans to build UK wholesale-to-retail channel for watches
- Thomas Sabo debuts new store concept
- Online developments
- Net-a-Porter strengthens online jewellery and watch offer
- Jewellers experiment with chatbots
- Brand positioning
- Tiffany & Co. targets younger audience
- Aurum focusing on prestige as opposed to fashion products
- Signet targeting growth in mid-market
- Fraser Hart also eyes mid to high-end market
- Links of London reveals new strategy
- Store investment
- Department stores increase watch selling space
- Mono-brand stores increasingly important in the UK watch retail landscape
- Casio unveils new G-Shock store
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- Figure 30: G-Shock store on Carnaby Street, London, 2017
- A new flagship for Mappin & Webb
Launch Activity and Innovation
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- New players in the UK jewellery market
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- Figure 31: Glitzbox at Old Street Station, London, 2017
- Wearable technology and product innovation
- Louis Vuitton and Movado enter the smartwatch market
- New smartwatch targets visually impaired consumers
- Casio reveals new time-sync technology
- Apple Watch vs Google Android Wear
- Personalisation gains momentum in watch market
- Extend my Brand
- Capturing data with retail technology
- Department stores bolster offer with pop-up shop-in-shops
- Jewellers embrace the Experience is All Trend
- Celebrity lines gain momentum
- Non-specialists boost weddings jewellery offer
- Tapping into demand for ethical products
Advertising and Marketing Activity
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- Above-the-line spending declines in 5.6% in 2016
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- Figure 32: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, 2012-16
- Richemont ramps up advertising expenditure
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- Figure 33: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by advertiser, 2012-16
- Less emphasis on press advertising
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- Figure 34: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2016
- Figure 35: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2012-16
- Key campaigns
- Ongoing repositioning at Tiffany & Co
- Fraser Hart targets mid to high-end market with new advertising message
- Harvey Nichols highlights rare jewellery in new campaign
- Pandora unveils experiential Valentine’s campaign
- Swarovski taps into influencers
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 36: Attitudes towards and usage of selected brands, July 2017
- Key brand metrics
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- Figure 37: Key metrics for selected jewellery and watch brands, July 2017
- Brand attitudes: Cartier known for consistent quality
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- Figure 38: Attitudes, by brand, July 2017
- Brand personality: Sekonda seen as accessible
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- Figure 39: Brand personality – Macro image, July 2017
- Links of London viewed as stylish
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- Figure 40: Brand personality – Micro image, July 2017
- Brand analysis
- Sekonda garners highest levels of trust
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- Figure 41: User profile of Sekonda, July 2017
- Links of London’s style credentials stand out
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- Figure 42: User profile of Links of London, July 2017
- Tissot benefits from its good reputation
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- Figure 43: User profile of Tissot, July 2017
- Cartier’s exclusivity sets it apart
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- Figure 44: User profile of Cartier, July 2017
- TAG Heuer is a trendsetter
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- Figure 45: User profile of TAG Heuer, July 2017
- Olivia Burton expresses the wearer’s personality
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- Figure 46: User profile of Olivia Burton, July 2017
- Ti Sento suffers from low brand awareness
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- Figure 47: User profile of Ti Sento, July 2017
The Consumer – What You Need to Know
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- Purchasing peaks amongst young and affluent
- Rising number of people shopping online
- Birthdays primary reason for gifting
- Necklaces have a broad appeal
- Strong demand for ethically sourced jewellery
Purchasing of Jewellery and Watches
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- Young people drive the jewellery and watch market
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- Figure 48: Consumers who have bought jewellery and/or watches in the last five years, by demographics, July 2017
- Precious metal jewellery a popular choice for gift buyers
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- Figure 49: Purchasing of jewellery and watches, July 2017
- Popularity of silver amongst female buyers prevails
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- Figure 50: Purchasing of precious metal jewellery in the last five years, by age and gender, July 2017
- Older men choose to gift gold jewellery
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- Figure 51: Purchasing of precious metal jewellery in the last five years, by age and gender, July 2017
- Revived watch interest amongst older men
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- Figure 52: Purchasing of watches in the last five years, by age and gender, July 2017
- Rising number of women buying into smartwatch trend
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- Figure 53: Purchasing of watches in the last five years, by age and gender, July 2017
- One in five young men buy costume jewellery for themselves
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- Figure 54: Purchasing of costume jewellery in the last five years, by age and gender, July 2017
- A third buy just one type of jewellery or watches
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- Figure 55: Repertoire of jewellery and watch purchases, July 2017
Where They Shop for Jewellery and Watches
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- People still prefer to shop in-store…
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- Figure 56: Where people shop for precious metal jewellery and watches, in-store or online, July 2017
- …but a rising number of people are shopping online
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- Figure 57: Where people shop for precious metal jewellery and watches, in-store or online, July 2016 and July 2017
- Men drive online purchases
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- Figure 58: Where people shop for precious metal jewellery and watches, in-store or online, by gender, July 2017
- Online also popular amongst older consumers
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- Figure 59: Where people shop for precious metal jewellery and watches, in-store or online, by age, July 2017
- The popularity of Pandora confirmed
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- Figure 60: Retailers used to buy precious metal jewellery in the last five years, July 2017
- Online-only retailers’ strength in the watch market
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- Figure 61: Retailers used to buy watches in the last five years, July 2017
- Fashion retailers dominate costume jewellery sales
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- Figure 62: Retailers used to buy costume jewellery in the last five years, July 2017
- Retailer loyalty higher amongst watch buyers
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- Figure 63: Repertoire of retailers used for buying jewellery and watches, July 2017
Occasions Jewellery and Watches are Purchased
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- Half of gift shoppers buy for birthdays
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- Figure 64: Occasions people buy jewellery and watches as a gift, July 2017
- Women more likely to gift at Christmas
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- Figure 65: Occasions people buy jewellery and watches as a gift, by gender, July 2017
- Millennials drive Valentine’s purchases
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- Figure 66: Occasions people buy jewellery and watches as a gift, by age, July 2017
- Less affluent gift at Christmas
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- Figure 67: Occasions people buy jewellery and watches as a gift, by socio-economic status, July 2017
- Almost a fifth buy for multiple occasions
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- Figure 68: Repertoire of occasions people buy jewellery and watches as a gift, July 2017
Types of Jewellery Purchased
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- Necklaces most popular style of jewellery
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- Figure 69: Types of jewellery purchased, July 2017
- Necklaces and earrings have broad appeal
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- Figure 70: Types of jewellery purchased, by age and gender, July 2017
- Bracelets popular purchase for older males
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- Figure 71: Types of jewellery purchased, by age and gender, July 2017
- One in five buy four or more types of jewellery
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- Figure 72: Repertoire of types of jewellery purchased, July 2017
Jewellery and Watch Shopping Behaviour
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- Growing appetite for ethical jewellery
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- Figure 73: Jewellery and watch shopping behaviour, July 2017
- Men willing to spend more on personalisation, women on unique designs
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- Figure 74: Agreement with jewellery and watch shopping behaviour statements, by gender, July 2017
- Fashion trends important to young people
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- Figure 75: Agreement with jewellery and watch shopping behaviour statements, by age, July 2017
- Young and affluent plan to spend more in future
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- Figure 76: Agreement with the statement ‘I am planning to spend more on jewellery/watches in the next year’, by demographics, July 2017
CHAID Analysis
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- Methodology
- Targeting affluent young with personalisation
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- Figure 77: Jewellery and watches – CHAID – Tree output, July 2017
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- Figure 78: Jewellery and watches – CHAID – Table output, July 2017
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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