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 estimated to reach £5.7 billion in 2018
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- Figure 1: Best- and worst-case forecast value sales of jewellery and watches, 2013-23
- Watches predicted to continue outperforming jewellery
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- Figure 2: Estimated share of total UK jewellery and watch market, 2016-18
- Hallmarking in the UK fell 4.3% in 2017
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- Figure 3: Number of items sent for hallmarking at all UK Assay offices, 2006-17
- Swiss watch exports up in value, but down in volume
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- Figure 4: Percentage of Swiss watch global exports by price range, 2017
- Companies and brands
- Watches of Switzerland dominates the market
- Tiffany & Co. appeal boosted among younger audience
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- Figure 5: Attitudes towards and usage of selected brands, July 2018
- Brands benefit from 2018’s Royal Wedding and FIFA World Cup
- The consumer
- Watches most popular personal purchase
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- Figure 6: Who have you bought for in the last five years, July 2018
- Omni-channel retailers are attracting more customers
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- Figure 7: Retailers used to buy jewellery or watches in the last five years, July 2018
- Sterling silver most popular precious metal
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- Figure 8: Types of precious metal jewellery purchased in the last five years, July 2018
- Leather and stainless steel strap trends
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- Figure 9: Type of watch straps purchased in the last five years, July 2018
- Consumer demand for less expensive jewellery
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- Figure 10: Jewellery consumer behaviour statements, July 2018
- Two in five think watch advertising needs to broaden horizons
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- Figure 11: Watch consumer behaviour statements, July 2018
- What we think
Issues and Insights
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- Watch brands struggle to differentiate in overcrowded middle market
- The facts
- The implications
- Growing grey market threatens brand equity
- The facts
- The implications
- Men’s fashion jewellery takes off
- The facts
- The implication
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- Figure 12: Lewis Hamilton’s Maria Tash piercings, 2018
The Market – What You Need to Know
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- Sales of Jewellery and watches estimated to grow 2.9% in 2018
- Watches sector to see largest growth in the category
- Export of Swiss watches up in the UK
- Hallmarking continues to decline in the precious metal market
- Low levels of UK retail footfall
Market Size and Forecast
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- Jewellery and watch market forecast to reach £6.4 billion by 2023
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- Figure 13: Best- and worst-case forecast value sales of jewellery and watches, 2013-23
- Figure 14: Value sales of watches and jewellery, at current and constant prices, 2013-23
- Forecast methodology
Market Segmentation
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- Watches set to see largest growth in the category
- Luxury watches drive growth
- Jewellery remains less reliant on ultra-high-end
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- Figure 15: Estimated share of total UK jewellery and watch market, 2016-18
- Figure 16: UK retail value sales of jewellery and watches, by sector, 2013-18
Market Drivers
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- Weakened sterling propels growth of high-value items
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- Figure 17: Sterling to US Dollar exchange rate chart, by month, 2013-18
- Sales of smartwatches approaches 2 million in 2017
- Royal Wedding encourages purchasing at lower-end of the market
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- Figure 18: Meghan Sparkle Argos replica ring, 2018
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- Figure 19: Consumer behaviour surrounding the Royal Wedding, April 2018
- Christmas most significant seasonal event for jewellery and watches
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- Figure 20: Amount who purchased jewellery and watches across the seasonal events
- Hallmarking in decline
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- Figure 21: Number of items hallmarked across UK Assay Offices, by type of precious metal, year-to-date June 2017/June 2018
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- Figure 22: Number of items hallmarked across UK Assay Offices, by weight, year-to-date June 2017/June 2018
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- Figure 23: Number of items sent for hallmarking at all UK Assay offices, 2006-17
- Exports of Swiss watches up
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- Figure 24: Percentage of Swiss watch global exports by price range, 2017
- UK retail footfall down
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- Figure 25: Year-on-year footfall change, by location, January 2015-July 2018
- Fewer purchasing costume jewellery
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- Figure 26: Items respondents have purchased for themselves, percentage point change between June 2017 -June 2018
- Online retailing becoming more important
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- Figure 27: Where UK luxury consumers purchased luxury products in the last 18 months, June 2018
- Marriage rates declining overall, but marriages to same-sex couples on the up
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- Figure 28: Number of marriages in Great Britain, 2005-15
Companies and Brands – What You Need to Know
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- Stores give more space to jewellery and watches
- Luxury etailers expand into fine jewellery and watches
- Brands benefit from Royal Wedding and FIFA World Cup
- Increase in outdoor advertising spend
- Tiffany targets Millennial customers
Leading Specialist Retailers
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- Sales performance
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- Figure 29: Leading specialists’ revenues, 2012-17
- Watches of Switzerland dominate the market
- Outlet numbers
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- Figure 30: Leading specialists’ outlet numbers, 2012-17
- Sales per outlet
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- Figure 31: Leading specialists’ sales per outlet, 2016
- Figure 32: Leading specialists’ sales per outlet, 2012-17
Competitive Strategies
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- Acquisitions
- Richemont buys Watchfinder
- Movado Group acquires MVMT
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- Figure 33: MVMT Instagram page, which has 1 million followers, 2018
- Retail network expansions
- Daniel Wellington opens more stores, but reduces number of suppliers
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- Figure 34: Daniel Wellington in Carnaby Street, 2018
- Olivia Burton to open first UK store following international expansion
- Hublot’s new London boutique
- Argento expands its presence
- More space given to jewellery and watches
- Harrods unveils updated Fine Watch Room
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- Figure 35: Harrods new fine watch department
- Figure 36: Vacheron Constantin Harrods boutique, 2018
- Net-a-Porter expands selection of fine watches and jewellery
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- Figure 37: Fine Jewelry & Watch Suite on Net-a-Porter, 2018
- Selfridges transforms accessories hall
- Social media and online presence
- Personalised marketing
- Patek Philippe on Instagram
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- Figure 38: Patek Philippe’s Instagram debut, 2018
Launch Activity and Innovation
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- Smartwatches promote sport and healthy living
- Leading player Apple’s innovations
- Fitbit launches Versa
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- Figure 39: Fitbit Versa Colour range
- Smart hybrids
- Samsung launches Galaxy Watch
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- Figure 40: The Samsung Galaxy Watch
- Timing of the beautiful game
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- Figure 41: Hublot - official sponsor of the 2018 FIFA World Cup
- Patek Philippe’s Instagram debut
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- Figure 42: Patek Philippe watch face
- Back to the future
- Cartier reissues its Santos De Cartier
- Rolex reissue the ‘Pepsi’
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- Figure 43: Jubilee stainless steel bracelet of the Rolex GMT, 2018
- Personalisation and experiences
- Richemont targets aspirational millennials
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- Figure 44: Baume customisation options, 2018
- Customisable jewellery at Vashi
- Breakfast at Tiffany’s
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- Figure 45: Tiffany & Co.’s take on Breakfast at Tiffany’s– The Blue Box Café
- Brands targeting Millennials
- De Beers celebrates Millennials
- #Swatchthis
- Chopard’s ethical promise
- De Beers to sell synthetic diamonds
- Augmented reality
- Swarovski experiments with AR
- Boucheron celebrates its history with modern technology
- Royal wedding fever
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- Figure 46: Buckley London’s Meghan Markle Replica Ring, April 2018
Advertising and Marketing Activity
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- Above-the-line spending increases 9.8% in 2017
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- Figure 47: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, 2013-17
- Leading Players
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- Figure 48: Swatch Skin #your move campaign
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- Figure 49: Tiffany & Co.’s Tiffany blue cabs from the “Believe in dreams” campaign
- Figure 50: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by advertiser, 2013-17
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- Figure 51: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2017
- Increase in outdoor advertising spend
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- Figure 52: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2017
- Figure 53: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2013-17
- Key campaigns
- Movado makes large investment in outdoor advertising
- You never actually own a Patek Phillippe watch
- Swarovski’s #BeBrilliant influencer campaign
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 54: Attitudes towards and usage of selected brands, July 2018
- Key brand metrics
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- Figure 55: Key metrics for selected brands, July 2018
- Brand attitudes: Tiffany & Co. worth paying more for
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- Figure 56: Attitudes, by brand, July 2018
- Brand personality: Thomas Sabo perceived as fun
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- Figure 57: Brand personality – Macro image, July 2018
- Pandora viewed as exciting
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- Figure 58: Brand personality – Micro image, July 2018
- Brand analysis
- Pandora sees most brand commitment from female teenagers
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- Figure 59: User profile of Pandora, July 2018
- Tiffany & Co. perceived as exclusive
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- Figure 60: User profile of Tiffany & Co., July 2018
- Omega popular amongst males 55 and over
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- Figure 61: User profile of Omega, July 2018
- Fossil uses strategic partnerships to increase brand awareness
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- Figure 62: User profile of Fossil, July 2018
- Thomas Sabo perceived as stylish
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- Figure 63: User profile of Thomas Sabo, July 2018
- Casio highlights its product durability
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- Figure 64: User profile of Casio, July 2018
- Larsson & Jennings needs to improve its brand awareness
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- Figure 65: User profile of Larsson & Jennings, July 2018
The Consumer – What You Need to Know
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- Majority of watch customers loyal to one retailer
- Omni-channel retailers are attracting more customers
- Sterling silver the most popular precious metal jewellery
- Rose gold most popular among young females
- Analogue watches popular with older consumers
- Consumer demand for less expensive jewellery
What Consumers Buy
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- Watches most popular personal purchase
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- Figure 66: Who have you bought for in the last five years, July 2018.
- Most people have bought jewellery in the last five years
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- Figure 67: Who have you bought for in the last five years, July 2018
- Young men most prevalent watch buyers
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- Figure 68: Watch buyers over the past five years, by age and gender, July 2018
- Two thirds of watch customers loyal to one retailer
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- Figure 69: Repertoire of retailers used for buying jewellery and watches, July 2018
Where They Shop for Jewellery and Watches
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- Consumers continue to prefer to shop in-store
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- Figure 70: Where people shop for precious metal jewellery and watches, in-store or online, July 2018
- Omni-channel retailers are attracting more customers
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- Figure 71: Retailers used to buy jewellery or watches in the last five years, July 2018
- More specialist brands available on Amazon
- H Samuel popular with Millennials
- Pandora continues its popularity
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- Figure 72: Jewellery brands purchased in the last five years, July 2018
- Seiko most purchased watch brand
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- Figure 73: Watch brands purchased in the last five years, July 2018
Types of Jewellery Purchased
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- Sterling silver most popular precious metal
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- Figure 74: Types of precious metal jewellery purchased in the last five years, July 2018
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- Figure 75: Consumers who purchased rose gold precious jewellery in the last five years, by age and gender, July 2018
- Diamonds are forever
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- Figure 76: Type of gemstones purchased in the last five years, July 2018
- Males purchase more precious gemstone jewellery
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- Figure 77: Precious gemstones vs. non-precious gemstones purchased in the last five years, by age and gender, July 2018
Types of Watches Purchased
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- Analogue watches most popular with older consumers
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- Figure 78: Type of watch(es) purchased in the last five years, July 2018
- Leather and stainless steel strap trends
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- Figure 79: Type of watch straps purchased in the last five years, July 2018
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- Figure 80: Materials of watches in Swiss watch exports for 2017
Jewellery Shopper Behaviour
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- Consumer demand for less expensive jewellery
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- Figure 81: Jewellery consumer behaviour statements, July 2018
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- Figure 82: Maria Tash’s selection of items for under $300, 2018
- Second-hand jewellery market underdeveloped
- People spending more on jewellery purchase familiar brand names
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- Figure 83: Jewellery and watches retailing – CHAID – Tree output, July 2018
- Men more drawn to brand names
- Social media a helping hand to unknown brands
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- Figure 84: Jewellery buying behaviours – CHAID – Table output, July 2018
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- Figure 85: Watch buying behaviours – CHAID – Table output, July 2018
- Methodology
Watch Shopper Behaviour
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- Two in five think watch advertising needs to broaden horizons
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- Figure 86: Watch consumer behaviour statements, July 2018
- Men see watches as investment pieces
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- Figure 87: Watch buyers that would purchase watches as an investment, by gender, July 2018
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- Figure 88: Patek Philippe ‘Generations’ campaign, 2018
- Grey market an area of concern for luxury watch market
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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