Watches and Jewellery Retailing - UK - September 2010
Report description
About this report
The watches and jewellery market has not been immune to the economic climate and the whole industry suffered in late 2008 and in 2009 as consumer confidence fell and people became more cautious about their spending.
- The overall jewellery and watches market grew by 10% since 2005 to reach £4.8 billion in 2010 and Mintel forecasts 11% growth for the jewellery and watches market over the next five years.
- Rocketing gold prices and the recession have led many consumers to buy silver jewellery instead of gold, with almost one in five people wearing more silver jewellery than gold, rising to nearly three in ten women, particularly young people aged 15-24.
- Costume jewellery is the smallest sector of the watches and jewellery market, but has grown at the fastest rate. The market is expected to grow further, thanks to people buying pieces for accessorising more frequently and as young people under-25 continue to spend.
- The affordability and disposability of many costume jewellery items means that customers are more willing to experiment and try new looks without denting their bank balances. Almost a third of women buy costume jewellery in different styles and colours to complement their outfits.
- The high number of people who like to receive precious metal jewellery as a gift shows the importance of the gifting market for retailers, with four in ten adults enjoying receiving precious metal jewellery as a birthday or Christmas present.
- Young men aged under-35 are more open to paying higher amounts for a watch as they typically do not wear jewellery to express their individuality or consumer spending power.
- Some 86% of consumers wear a watch, but nearly 40% only buy a new one when their old one is broken. Converging the watch’s main function with health benefits would be one way of helping create new reasons for purchase.
Table of contents
Issues in the Market
Main themes
Definitions
Abbreviations
Market in Brief
Watches and jewellery sales remain flat
Precious metals remain the largest product sector
Most own a watch
Price of gold rides high
Switch to silver
Low-priced watches best sellers
Men willing to spend more on watches
Watch brand buyers
A watch for every outfit
Mobiles replace watches for telling time
Designer timepieces
Jewellery gifting
A quarter of women are self-purchasers
Silver more popular than gold
Cash for Gold
Unethical jewellery
Costume vs precious metal jewellery
Jewellery to match an outfit
High street chains remain most popular
ABs prefer independent jewellers
Young shop at high street costume jewellers
Fashion stores draw impulse buyers
Four main target groups
The future
Internal Market Environment
Key points
Most own a watch
Figure 1: Ownership of watches, 2005-09
Boom in mobiles
Figure 2: Trends in ownership of watches compared to mobile handsets, 2005-09
Price of gold rides high
Figure 3: Average gold and platinum prices, 2004-09
Figure 4: Gold prices, 2004-10
Price of silver edges up
Figure 5: Silver prices, 2004-10
Price of platinum drops
Figure 6: Platinum prices, 2004-10
Figure 7: Number of articles hallmarked, by metal, 2004-09
Switch to silver
Figure 8: ownership of gold or platinum jewellery* and silver jewellery, 2005-09
Figure 9: Ownership of jewellery, by type of metal, 2005-09
Gold spend
Figure 10: Amount spent on gold or platinum jewellery, not diamond set, 2005-09
Silver spend
Figure 11: Amount spent on silver jewellery, 2005-09
Broader Market Environment
Key points
Middle-aged to boost watch gifting market
Figure 12: Trends and projections in the UK population, by age group, 2005-15
25-34s are precious about jewellery
Old go for gold
Passion for fashion among the young
Affluent to drive watch brand sales
Figure 13: UK population, by socio-economic group, 2005-15
ABs turn to silver
Rising unemployment poses a threat
Figure 14: Employment and unemployment, by gender, 2005-15
Figure 15: Trends in personal disposable income and consumer expenditure, at constant 2010 prices, 2005-15
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Competitive Context
Key points
Jewellery and watches compared to clothing and footwear
Figure 16: UK retail value sales of clothing and adornment products, at current prices, 2005-09
Market Size and Forecast
Key points
Total market for jewellery and watches
Figure 17: UK retail value sales of jewellery and watches, at current and constant prices, 2005-15
The future
Figure 18: UK retail value sales of jewellery and watches, at current prices, 2005-15
Factors used in the forecast
Segment Performance
Key points
Figure 19: UK retail value sales of jewellery and watches, by sector, 2007-10
Precious metal jewellery
Watches
Costume jewellery
Key points
Specialist retailers dominate the market
Figure 20: Brand shares in the uk retail jewellery and watches market, by value, 2007-09
Non-specialists led by Argos
Signet closes stores
Figure 21: Jewellery retailers, by number of outlets, 2005-09
Brand Communication and Promotion
Key points
Most retailers cut adspend
Figure 22: Expenditure on advertising, by top jewellery and watches retailers, 2007-09
Press ads dominate
Figure 23: Expenditure on advertising by top jewellery and watches retailers, by media, 2007-09
Companies and Products
Signet Group
Figure 24: Product offering – Signet Group 2010
Figure 25: Key financials – Signet Group, UK, 2009-10
Aurum (formerly The Goldsmiths Group)
Figure 26: Product offering – Aurum, 2010
Figure 27: Key financials – Aurum Holdings Limited, 2009-10
Links of London
Figure 28: Key financials – Links (London) Limited (Global), 2008-09
Swarovski
Figure 29: Key financials – Swarovski UK Limited, 2007-08
Tiffany
Figure 30: Key financials – Tiffany & Co. Limited, 2009
Accessorize
Warren James
Figure 31: Key financials – Warren James, 2008-09
The Consumer – Amount Spent on Watches
Key points
Figure 32: Amount of money prepared to spend on a watch for self, June 2010
Low-spenders
Mid-spenders
Men willing to spend more
Middle-aged men aim high
Figure 33: Prepared to spend over £250 on a watch for self, by age and socio-economic group, June 2010
Young don’t buy watches for themselves
The Consumer – Where Jewellery is Bought
Key points
Figure 48: Preferred outlets for buying jewellery, June 2010
High street chains remain most popular
ABs prefer independent jewellers
Figure 49: Independent jewellery shoppers, by age and socio-economic group, June 2010
Argos loses ground
Figure 50: Argos jewellery shoppers, by age and socio-economic group, June 2010
Young shop at high street costume jewellers
Fashion stores draw impulse buyers
Department stores
Other outlets for jewellery
Appendix – Internal Market Environment
Figure 57: Ownership of jewellery, by demographics, 2009
Figure 58: Ownership of jewellery, by demographics, 2009
Figure 59: Ownership of jewellery, by demographics, 2009
Figure 60: Cost of other gold or platinum jewellery, by demographics, 2009
Figure 61: Cost of silver jewellery, by demographics, 2009
Figure 62: Cost of other jewellery, by demographics, 2009
Figure 63: Ownership of watches, by demographics, 2009
Figure 64: Statements on watches, by most popular amount of money prepared to spend on a watch for self, June 2010
Figure 65: Statements on watches, by next most popular amount of money prepared to spend on a watch for self, June 2010
Figure 66: Amount of money prepared to spend on a watch for self, by demographics, June 2010
Appendix – Amount Spent on Watches
Figure 67: Amount of money prepared to spend on a watch for self, by most popular statements on watches, June 2010
Figure 68: Amount of money prepared to spend on a watch for self by most popular statements on watches, June 2010
Appendix – Where Jewellery is Bought
Figure 81: Most popular outlets to buy jewellery, by demographics, June 2010
Figure 82: Most popular outlets to buy jewellery, by demographics, June 2010
Figure 83: Most popular outlets to buy jewellery, by demographics, June 2010 (continued)
Figure 84: most popular outlets to buy jewellery, by demographics, June 2010 (continued)
Main themes
Definitions
Abbreviations
Market in Brief
Watches and jewellery sales remain flat
Precious metals remain the largest product sector
Most own a watch
Price of gold rides high
Switch to silver
Low-priced watches best sellers
Men willing to spend more on watches
Watch brand buyers
A watch for every outfit
Mobiles replace watches for telling time
Designer timepieces
Jewellery gifting
A quarter of women are self-purchasers
Silver more popular than gold
Cash for Gold
Unethical jewellery
Costume vs precious metal jewellery
Jewellery to match an outfit
High street chains remain most popular
ABs prefer independent jewellers
Young shop at high street costume jewellers
Fashion stores draw impulse buyers
Four main target groups
The future
Internal Market Environment
Key points
Most own a watch
Figure 1: Ownership of watches, 2005-09
Boom in mobiles
Figure 2: Trends in ownership of watches compared to mobile handsets, 2005-09
Price of gold rides high
Figure 3: Average gold and platinum prices, 2004-09
Figure 4: Gold prices, 2004-10
Price of silver edges up
Figure 5: Silver prices, 2004-10
Price of platinum drops
Figure 6: Platinum prices, 2004-10
Figure 7: Number of articles hallmarked, by metal, 2004-09
Switch to silver
Figure 8: ownership of gold or platinum jewellery* and silver jewellery, 2005-09
Figure 9: Ownership of jewellery, by type of metal, 2005-09
Gold spend
Figure 10: Amount spent on gold or platinum jewellery, not diamond set, 2005-09
Silver spend
Figure 11: Amount spent on silver jewellery, 2005-09
Broader Market Environment
Key points
Middle-aged to boost watch gifting market
Figure 12: Trends and projections in the UK population, by age group, 2005-15
25-34s are precious about jewellery
Old go for gold
Passion for fashion among the young
Affluent to drive watch brand sales
Figure 13: UK population, by socio-economic group, 2005-15
ABs turn to silver
Rising unemployment poses a threat
Figure 14: Employment and unemployment, by gender, 2005-15
Figure 15: Trends in personal disposable income and consumer expenditure, at constant 2010 prices, 2005-15
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Competitive Context
Key points
Jewellery and watches compared to clothing and footwear
Figure 16: UK retail value sales of clothing and adornment products, at current prices, 2005-09
Market Size and Forecast
Key points
Total market for jewellery and watches
Figure 17: UK retail value sales of jewellery and watches, at current and constant prices, 2005-15
The future
Figure 18: UK retail value sales of jewellery and watches, at current prices, 2005-15
Factors used in the forecast
Segment Performance
Key points
Figure 19: UK retail value sales of jewellery and watches, by sector, 2007-10
Precious metal jewellery
Watches
Costume jewellery
Key points
Specialist retailers dominate the market
Figure 20: Brand shares in the uk retail jewellery and watches market, by value, 2007-09
Non-specialists led by Argos
Signet closes stores
Figure 21: Jewellery retailers, by number of outlets, 2005-09
Brand Communication and Promotion
Key points
Most retailers cut adspend
Figure 22: Expenditure on advertising, by top jewellery and watches retailers, 2007-09
Press ads dominate
Figure 23: Expenditure on advertising by top jewellery and watches retailers, by media, 2007-09
Companies and Products
Signet Group
Figure 24: Product offering – Signet Group 2010
Figure 25: Key financials – Signet Group, UK, 2009-10
Aurum (formerly The Goldsmiths Group)
Figure 26: Product offering – Aurum, 2010
Figure 27: Key financials – Aurum Holdings Limited, 2009-10
Links of London
Figure 28: Key financials – Links (London) Limited (Global), 2008-09
Swarovski
Figure 29: Key financials – Swarovski UK Limited, 2007-08
Tiffany
Figure 30: Key financials – Tiffany & Co. Limited, 2009
Accessorize
Warren James
Figure 31: Key financials – Warren James, 2008-09
The Consumer – Amount Spent on Watches
Key points
Figure 32: Amount of money prepared to spend on a watch for self, June 2010
Low-spenders
Mid-spenders
Men willing to spend more
Middle-aged men aim high
Figure 33: Prepared to spend over £250 on a watch for self, by age and socio-economic group, June 2010
Young don’t buy watches for themselves
The Consumer – Where Jewellery is Bought
Key points
Figure 48: Preferred outlets for buying jewellery, June 2010
High street chains remain most popular
ABs prefer independent jewellers
Figure 49: Independent jewellery shoppers, by age and socio-economic group, June 2010
Argos loses ground
Figure 50: Argos jewellery shoppers, by age and socio-economic group, June 2010
Young shop at high street costume jewellers
Fashion stores draw impulse buyers
Department stores
Other outlets for jewellery
Appendix – Internal Market Environment
Figure 57: Ownership of jewellery, by demographics, 2009
Figure 58: Ownership of jewellery, by demographics, 2009
Figure 59: Ownership of jewellery, by demographics, 2009
Figure 60: Cost of other gold or platinum jewellery, by demographics, 2009
Figure 61: Cost of silver jewellery, by demographics, 2009
Figure 62: Cost of other jewellery, by demographics, 2009
Figure 63: Ownership of watches, by demographics, 2009
Figure 64: Statements on watches, by most popular amount of money prepared to spend on a watch for self, June 2010
Figure 65: Statements on watches, by next most popular amount of money prepared to spend on a watch for self, June 2010
Figure 66: Amount of money prepared to spend on a watch for self, by demographics, June 2010
Appendix – Amount Spent on Watches
Figure 67: Amount of money prepared to spend on a watch for self, by most popular statements on watches, June 2010
Figure 68: Amount of money prepared to spend on a watch for self by most popular statements on watches, June 2010
Appendix – Where Jewellery is Bought
Figure 81: Most popular outlets to buy jewellery, by demographics, June 2010
Figure 82: Most popular outlets to buy jewellery, by demographics, June 2010
Figure 83: Most popular outlets to buy jewellery, by demographics, June 2010 (continued)
Figure 84: most popular outlets to buy jewellery, by demographics, June 2010 (continued)
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