The jewellery and watches market in the UK was valued at £4.3bn in 2005. The main sectors of the market are jewellery (which comprises real and fashion pieces) and watches (both quartz and mechanical).
The jewellery and watches market in the UK was valued at £4.3bn in 2005. The main sectors of the market are jewellery (which comprises real and fashion pieces) and watches (both quartz and mechanical). In 2005, there was a decline in expenditure in the jewellery and watches market, due to competition from other products in the consumer electronics and leisure arenas.
Expenditure on jewellery and watches rose in the years leading up to 2004, for a number of reasons. Consumer spending on luxuries increased across a number of product sectors. Diamond pieces performed particularly well, and trends towards white metal have also pushed price points upwards.
Branding has become a major feature of the jewellery market, with manufacturer and designer names now widely evident. The introduction of more fashion labels (from Miss Sixty to Puma) has been a more recent influence.
Watch sales have continued on an upward trend. Watch wardrobing, whereby consumers own different watches for different occasions, is now an established feature, and the role of watches as accessories is constantly developing. The success of cross branding and seasonal collections from the major suppliers have also encouraged further spending.
The market for jewellery and watches is very fragmented, with a large number of both suppliers and retailers. However, there are also global brands, with matching promotional budgets, as well as strong international trade bodies supporting the trade and its products.
The entry of more volume players (such as supermarkets and larger clothing chains) offers a direct challenge to traditional specialists and retailers. However, it is the Internet that may pose the greatest threat to traditional jewellery and watch retailers. Domestic businesses are developing their sites, but it is now possible for overseas groups to trade directly with UK customers through transactional websites. There is also more transparency in the market, as it is easy for consumers to research prices and ranges.
The UK market for jewellery and watches will see a slowdown in the short to medium term caused, in part, by limited growth in the UK economy. In addition, the growing competitiveness of the market will lead to some consolidation.
1. Market Definition Report Coverage MARKET SECTORS Jewellery Real Jewellery Fashion Jewellery Watches Mechanical Watches Quartz Analogue Watches Quartz Digital Watches Market trends Fine Jewellery Hallmarking Table 1: Number and Weight of Articles Processed at UK Assay Offices (000 units and kilograms), 2003-2005 Figure 1: Number of Articles Processed at UK Assay Offices, 2005 Branding and Labels Self-Purchase by Women... . . .and Men What About the Kids? ECONOMIC TRENDS Gross Domestic Product Table 2: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005 Household Disposable Income Table 3: UK Household Disposable Income Per Capita (£), 2001-2005 Inflation Table 4: UK Rate of Inflation (%), 2001-2005 MARKET POSITION The UK Table 5: Index of Total Consumer Expenditure and Expenditure on Jewellery and Watches (2001