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Watches and Jewelry - US - September 2015

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Ample upside sales potential
Figure 1: Total US retail sales and fan chart forecast of watches and jewelry, at current prices, 2010-20
Fragmented marketplace
Figure 2: Retailers shopped for watches and/or jewelry (in-store or online), June 2015
Smartwatches could cannibalize sales of traditional watches
Figure 3: Types of watches purchased in last 12 months, June 2015
The opportunities
Include men in targeting outreach
Figure 4: Types of jewelry/watches purchased in last 12 months, June 2015
Blend online and offline offerings
Figure 5: Attitudes toward buying jewelry and watches online, June 2015
Focus on how jewelry/watches can make a fashion statement, not just accessorize
Figure 6: Attitudes toward buying jewelry and watches online, June 2015
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Market primed for moderate growth
Stronger economy will support sales
“Other” forms of wearable technology present a threat for watches
MARKET SIZE AND FORECAST
Positive outlook for watches and jewelry
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
Jewelry dominates the market, but smartwatches could fuel overall watch segment
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
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
Fitness trackers versus smartwatches
DIY jewelry should be monitored
MARKET FACTORS
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
Jewelry is always in fashion
Alternative channels not an immediate threat to traditional retailers
Industry authorities place bets on smartwatches
WHAT’S WORKING?
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?
Alternative channels remain stagnant
Low interest in subscription services
WHAT’S NEXT?
Future for smartwatches: Bright or dim?
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
Watches and jewelry market needs a boost
Willingness to buy online
Fashion over function
TYPES OF JEWELRY/WATCHES PURCHASED IN LAST 12 MONTHS
The 40% opportunity
Fine jewelry/watches preferred
Figure 14: Types of jewelry/watches purchased in last 12 months, June 2015
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
Gold and diamonds remain favorites
Figure 16: Materials purchased, June 2015
Figure 17: Stones purchased, June 2015
RETAILERS SHOPPED
Jewelry stores hold their own, but face stiff competition
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
Split opinions regarding buying online
Figure 19: Attitudes toward buying jewelry and watches online, June 2015
Thoughts on online shopping: In their words
REASONS FOR PURCHASING JEWELRY AND WATCHES
Jewelry and watches are little luxuries
Figure 20: Reasons for purchasing jewelry/watches, June 2015
ATTITUDES TOWARD JEWELRY AND WATCHES
Consumers are trained to wait for sales
Figure 21: Attitudes toward jewelry/watches, June 2015
Traditional and timeless jewelry preferred
Figure 22: Attitudes toward style and Jewelry, June 2015
Watches make a fashion statement
Figure 23: Attitudes toward style and watches, June 2015
Opinions on watches
SHOPPING PROCESS – IN THEIR WORDS
Shopping for self
Important attributes
Shopping for others
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MARKET
Total watches and jewelry sales
Figure 24: Total US sales and forecast of watches and jewelry, at inflation-adjusted prices, 2010-20
Watch sales
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
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
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
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
Figure 34: Average annual closing price of diamond, in US Dollars, 2011-YTD 2015*
APPENDIX – KEY ISSUES
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
APPENDIX – CONSUMER
Correspondence analysis methodology
Figure 37: Correspondence analysis – Materials and stones purchased, June 2015
Figure 38: Percentage of adults who purchased watch for self or someone else, 2012-15, February 2014-March 2015
Figure 39: Watch brands purchased for self or others, February 2014-March 2015
Figure 40: Amount spent on watches for self or someone else, February 2014-March 2015
Figure 41: Amount spent on watches for self or someone else, by gender, February 2014-March 2015

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