Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- YOY total growth expected while annual pace of growth to decelerate
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- Figure 1: Total US sales and fan chart forecast of watches and jewelry, at current prices, 2012-22
- 40% aren’t buying
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- Figure 2: Items purchased, August 2017
- Jewelry stores face tough competition
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- Figure 3: Retailers shopped, August 2017
- The opportunities
- Empower women to treat themselves
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- Figure 4: Recipient of items purchased and fine versus fashion/costume, August 2017
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- Figure 5: Reasons for buying, by gender and age, August 2017
- Invest in the online shopping experience
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- Figure 6: Online shopping behavior, by generation, August 2017
- Address shoppers’ desires in new and fun ways
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- Figure 7: Attitudes about watches and jewelry, August 2017
- What it means
The Market – What You Need to Know
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- Market outlook remains positive
- Uptick in smartwatches drives total watch sector
- Stable macroeconomic climate supports market
- Younger generations key buyers, but are quick to gravitate toward experiences over tangibles
Market Size and Forecast
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- Pace of growth expected to slow after record sales in 2016
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- Figure 8: Total US sales and fan chart forecast of watches and jewelry, at current prices, 2012-22
- Figure 9: Total US sales and forecast of watches and jewelry, at current prices, 2012-22
Market Breakdown
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- Jewelry commands majority of sales, but watches grow at faster pace
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- Figure 10: Total market share percentage of US retail sales of watches and jewelry, by segment, at current prices, 2017
- Figure 11: Total US retail sales and forecast of watches and jewelry, by segment, at current prices, 2012-22
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- Figure 12: US manufacturer unit shipments of smartwatches, 2013-17
- Jewelry stores lose share
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- Figure 13: Total US retail sales of watches and jewelry, by channel, at current prices, 2015 and 2017
- Figure 14: Total US retail sales of watches and jewelry, by channel, at current prices, 2012-17
Market Factors
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- iGens and Millennials drive the market’s momentum
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- Figure 15: Population by generation, 2017
- Figure 16: Items purchased, by generation, August 2017
- Hispanics, non-Hispanic Blacks and Asians comprise 36% of the population
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- Figure 17: Distribution of population, by age and race/Hispanic origin, 2016
- Consumer confidence remains high
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- Figure 18: Consumer confidence and unemployment, 2000-July 2017
- Household income on the rebound
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- Figure 19: Median household income, in inflation-adjusted dollars, 2005-15
- Figure 20: Items purchased, by household income, August 2017
- Disposable personal income remains positive
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- Figure 21: Disposable Personal Income change from previous period, January 2007-July 2017
- Experiences over tangible goods
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- Figure 22: How extra money is spent, January 2017
- Prices of precious metals remain low for the most part; Diamonds continue to shine
Key Players – What You Need to Know
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- It’s okay to buy engagement rings online
- Long live the classics
- Legacy jewelers lose some luster
- Smartwatches get smarter about what makes consumers tick
What’s In?
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- Online marketplace starts to shine
- Anniversary celebrations herald themes of nostalgia and heritage
- Now trending: minimalism and layered looks
- Materials and stones
- Looks
What’s Struggling?
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- Traditional jewelers losing some sparkle
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- Figure 23: Tiffany & Co.’s advocacy letter, May 2017
What’s Next?
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- Smartwatches pick up steam again
- LG, Verizon and others
- Samsung
- Apple
- Looking ahead
The Consumer – What You Need to Know
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- The 40% opportunity
- Fashion jewelry acceptable for the majority
- Jewelry stores lose ground while online rises
- Self-indulgence and gifting main reasons for purchase
- Watches for more than telling time
Items Purchased
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- Four in 10 have not purchased
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- Figure 24: Items purchased, August 2017
- Who’s buying smartwatches?
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- Figure 25: Smartwatch purchase incidence, August 2017
- Most people buy for themselves
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- Figure 26: Recipient of items purchased, August 2017
- In their words: impulse versus planned and preferences
Fine Versus Fashion/Costume
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- Fashion jewelry slightly bests fine
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- Figure 27: Fine versus fashion/costume, August 2017
- Men opt for the finer things
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- Figure 28: Fine versus fashion/costume, by gender, August 2017
- Fine purchasing rises with age and income
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- Figure 29: Fine versus fashion/costume, by generation, August 2017
- Figure 30: Fine versus fashion/costume, by household income, August 2017
- Fine jewelry makes great gifts
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- Figure 31: Recipient of items purchased, by fine versus fashion/costume, August 2017
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- Figure 32: Items purchased, by fine versus fashion/costume, August 2017
- In their words: current mix of fine and fashion
Types of Materials/Stones
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- Gold and diamonds continue as favorites
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- Figure 33: Types of materials/stones, August 2017
- Minimal differences in stone/material preferences by item
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- Figure 34: Items purchased, by types of materials/stones, August 2017 – Part one
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- Figure 35: Items purchased, by types of materials/stones, August 2017 – Part two
Retailers Shopped
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- Jewelry stores lose ground while online gains
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- Figure 36: Retailers shopped, August 2017
- Men more likely than women to visit a jewelry store while women opt for jewelry departments
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- Figure 37: Retailers shopped, by gender and age, August 2017
- Jewelry stores more likely to be destinations for fine jewelry buyers
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- Figure 38: Retailers shopped, by fine versus fashion/costume, August 2017
- High correlation between watch buyers and online shoppers
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- Figure 39: Watches purchased, by retailers shopped, August 2017
Online Shopping Behavior
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- Online shoppers are plentiful
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- Figure 40: Online shopping behavior, August 2017
- At least seven in 10 18-44s buy online
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- Figure 41: Online shopping behavior, by age, August 2017
- In their words: online versus in-store
- Online preferred
- In-store preferred
Reasons for Buying
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- Indulgence drives purchases
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- Figure 42: Reasons for buying, August 2017
- Women and younger consumers more likely to splurge on themselves
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- Figure 43: Percentage who buy jewelry or watches to treat themselves, by gender, by age, August 2017
- Men more likely to seek out technological advancements in watches
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- Figure 44: Reasons for buying watches, by gender, August 2017
- Figure 45: Reasons for buying watches, by age, August 2017
- In their words: their last watch or jewelry purchase
Attitudes about Watches
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- Function over fashion
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- Figure 46: Style-related attitudes about watches, by gender, August 2017
- Nearly four in 10 say brand name matters
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- Figure 47: Other purchase drivers for watches, by gender, by age, August 2017
- In their words: describing their own watches, if any
- A fifth of young men unclear on smartwatch value proposition
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- Figure 48: Attitude toward smartwatches, by gender and age, August 2017
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- Figure 49: Attitudes toward smartwatches, by generation, September 2016
- In their words: thoughts on smartwatches
- In-the-know
- Not for me
Attitudes about Jewelry
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- Jewelry makes wearers feel polished and put together
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- Figure 50: Select attitudes toward Jewelry, by gender and age, August 2017
- In their words: consistency or variety?
- Pairing jewelry with outfits could drive sales
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- Figure 51: Opportunities for jewelry retailers, by gender and age, August 2017
- In their words: if consumers were in charge of their own store
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 – The Market
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- Figure 52: Total US retail sales and forecast of watches and jewelry, at inflation-adjusted prices, 2012-22
- Figure 53: Total US retail sales and forecast of jewelry, at inflation-adjusted prices, 2012-22
- Figure 54: Total US retail sales and forecast of watches, at inflation-adjusted prices, 2012-22
- Figure 55: Total US retail sales of watches and jewelry, by segment, at current prices, 2015 and 2017
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- Figure 56: Median household income, by race and Hispanic origin of householder, 2015
- Figure 57: Price of precious and industrial metals, September 2016-17
- Figure 58: Opening price of diamonds, September 2016-17
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Appendix – The Consumer
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- Figure 59: Percentage of adults who purchased watch for self or someone else, May 2012-May 2017
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- Figure 60: Amount spent on watches for self or someone else, April 2016-May 2017
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- Figure 61: Watch brands purchased for self or someone else, April 2016-May 2017
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