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Jewellery & Watches Market Report 2006

Published by: Key Note Publications Ltd

Published: Oct. 1, 2006 - 99 Pages


Table of Contents


Executive Summary

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=100), 2001-2005

Overseas

2. Market Size

The total Market

Table 6: The UK Market for Jewellery and Watches by Value at Current Prices (£m at rsp), 2001-2005

By Market Sector

Jewellery

Table 7: The UK Jewellery Sector by Value at Current Prices (£m at rsp and %), 2001-2005

Real Jewellery

Table 8: The UK Real Jewellery Subsector by Value (£m at rsp and %), 2001-2005

Gold

Platinum

Diamonds

Fashion Jewellery

Table 9: The UK Fashion Jewellery Subsector by Value at Current Prices (£m at rsp and %), 2001-2005

Watches

Table 10: The UK Watches Sector by Value at Current Prices (£m at rsp and %), 2001-2005

Luxury Watches

Watch Wardrobes

OVERSEAS TRADE

Table 11: Overseas Trade in Jewellery and Watches (£m), 2005

3. Industry Background

Recent History

NUMBER OF COMPANIES

Table 12: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Jewellery and Watches by Turnover Sizeband (£000 and number), 2005

Employment

Table 13: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Jewellery and Watches by Employment Sizeband, 2005

DISTRIBUTION

HOW ROBUST IS THE MARKET?

LEGISLATION

TRADE ASSOCIATIONS

British Jewellers' Association

Jewellery Distributors' Association

National Association of Goldsmiths

4. Competitor Analysis
The Marketplace

LEADing SUPPLIERS

Abbeycrest PLC

Company Structure

Current and Future Developments

Financial Results

Almar PLC

Company Structure

Current and Future Developments

Financial Results

Cartier Ltd

Company Structure

Current and Future Developments

Financial Results

LVMH Watch and Jewellery UK Ltd

Company Structure

Current and Future Developments

Financial Results

Rotary Group Holdings Ltd

Company Structure

Current and Future Developments

Financial Results

Seiko UK Ltd

Company Structure

Current and Future Developments

Financial Results

Swarovski UK Ltd

Company Structure

Current and Future Developments

Financial Results

The Swatch Group (UK) Ltd

Company Structure

Current and Future Developments

Financial Results

Other Suppliers

Accurist

Casio

Graff Diamonds

Rolex

SpringColour

Swico

UK Time

Zeon

LEADing RETAILERS

A&G Holdings Ltd

Company Structure

Current and Future Developments

Financial Results

Baugur Group Ltd (Goldsmiths and Mappin & Webb)

Company Structure

Current and Future Developments

Financial Results

Beaverbrooks the Jewellers Ltd

Company Structure

Current and Future Developments

Financial Results

Boodle and Dunthorne Ltd

Company Structure

Current and Future Developments

Financial Results

Claire's Accessories UK Ltd

Company Structure

Current and Future Developments

Financial Results

DCK Concessions Ltd

Company Structure

Current and Future Developments

Financial Results

F Hinds Ltd

Company Structure

Current and Future Developments

Financial Results

Signet Group PLC

Company Structure

Current and Future Developments

Financial Results

Other Jewellery Retailers

Outside Suppliers

Marketing Activity

Main Media Advertising

Table 14: Main Media Advertising Expenditure on Jewellery and Watches (£000), Years Ending March 2005 and 2006

Recent Campaigns

Accurist

Asprey

Baume & Mercier

Citizen

Chopard

Ebel

Omega

Platinum Guild International

Seiko UK

Swarovski

Swatch

TAG Heuer

Tanzanite Foundation

Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

CONSUMER PENETRATION

Table 15: Ownership and Purchase of Jewellery and Watches (% of adults), 2006

Purchasing Patterns

By Sex

Table 16: The Purchase of Jewellery or Watches in the Last 12 Months by Sex (% of adults), 2006

By Age

Table 17: The Purchase of Jewellery or Watches in the Last 12 Months by Age (% of adults), 2006

By Social Grade

Table 18: The Purchase of Jewellery or Watches in the Last 12 Months by Social Grade (% of adults), 2006

CONSUMER SPENDING

Jewellery

Table 19: Expenditure on Jewellery in the Last 12 Months (% of adults), 2006

Watches

Table 20: Expenditure on Watches in the Past 12 Months (% of adults), 2006

7. Current Issues

NEW BRANDS

Roberto Cavalli

Golddigga

SPECIALIST RETAILER DEVELOPMENTS

Prestons

Omega

HPJ Jewellers

Theo Fennel

Charles Fish

Fossil

NON-SPECIALIST rETAILer DEVELOPMENTS

Tesco

H&M

Miss Sixty

TopMan

Sotheby's

Next

SUPPLIER DEVELOPMENTS

Stelux

Solar Designs

8. The Global Market

GLOBAL TRENDS

Gold

Table 21: Global Gold Demand for Jewellery by Volume and Value (tonnes and $bn), 2003-2005

Platinum

Table 22: Global Platinum Demand for Jewellery by Volume (000 oz), 2004 and 2005

Diamonds

Ethical Buying Guide

RETAIL DEVELOPMENTS

Blue Nile

Bvlgari

Folli Follie

Leviev

Links of London

Ethical trade Body

9. Forecasts

The Economy

Gross Domestic Product

Table 23: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010

Inflation

Table 24: Forecast UK Rate of Inflation (%), 2006-2010

FORECASTS 2006 to 2010

Table 25: Forecast Sales in the Jewellery and Watches Market (£m at rsp), 2006-2010

Market Growth

Figure 2: Forecast Sales in the Jewellery and Watches Market (£m at rsp), 2001-2010

FUTURE TRENDS

Demographics

Consolidation

E-Tailing

Brand Evolution

Retail Names

Ethical Pieces

10. Company Profiles

Abbeycrest Plc

Asprey Holdings Ltd

Cartier Ltd

Seiko Uk Ltd

Signet Group Plc

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Rebounds

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), August 2005-2006

Fewer Adults Wish to Borrow

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), August 2005-2006

SPENDING FROM SAVINGS

Strong Recovery in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), August 2005-2006

Savings Grow in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), August 2005-2006

12. Further Sources

Associations

Publications

Government Publications

General Sources

Other

Bisnode Sources

Abstract

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.

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