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Jewellery and Watches Retailing - UK

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2007 - 151 Pages


Table of Contents


Issues in the Market

Definitions

Abbreviations

Market in Brief

Challenging market

Declining share of retail sales overall

Figure 1: Jewellery spending as % all retail sales, 1998-2006

Figure 2: Clothing spending as % all retail sales, 1998-2006

Product sectors fare differently

Figure 3: Consumer spending on jewellery and watches by product sector, 2002-07

Figure 4: Share of jewellery and watches market, by product sector, 2006

Influencing factors - external

Saving more and spending less

Positive employment and demographic trends

Figure 5: Population % changes, 2002-12

The demise of analogue and the take-up of broadband

Influencing factors - internal

Price sensitivity

Emotional and ethical issues

Seasonality and fashion

Where they buy

Growing appeal of non-specialists

Industry innovations

Consumer types and attitudes

The male opportunity

The fashionable 40s opportunity

The future - winning strategies

Industry Insight

Key points

A tough market

Market overview

Market sales growth by product category

Store design trends

Winners and losers in the market

New competition

Home shopping channels

The Internet and transactional websites

Product offers - brands and own-brands

Price movements and consumer sensitivity

Product offers - what’s been selling best

The impact of fashion trends

Diamond simulants - potential growth?

The influence of celebrities

Gifting and self-purchase

Advertising and marketing

The future

Key influences, challenges and opportunities

Winning strategies for the future

Internal Market Environment

Key points

Marriages

Figure 6: Number of marriages, 2002-12

The price

Figure 7: Gold prices, 2004-06

Figure 8: Metal price comparisons, August 2006

Seasonality and fashion

Fashion trends

Men’s interest in jewellery and watches

Celebrities

Emotional and ethical issues

Broader Market Environment

Key points:

Personal disposable income and consumer expenditure

Figure 9: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12

Figure 10: PDI and consumer expenditure, 2002-07

Inflation and interest rates

Figure 11: UK inflation rates, all goods UK, 2002-12

Savings

Figure 12: Savings ratio, 2002-12

Employment

Figure 13: UK workforce and employment, 2002-12

Population

Figure 14: Population numbers, by age group, 2002-12

Socio-economic changes

Figure 15: Population numbers and percentage, breakdown, by socio-economic group, 2002-12

Market in Context

Key points

Handbags

Figure 16: UK retail sales of handbags, at current and constant 2002 prices, 2002-07

Portable technology

Figure 17: UK retail sales of portable technology, at current and constant 2002 prices, 2002-06

Jewellery and watches

Figure 18: UK retail sales of jewellery and watches, at current and constant 2002 prices, 2002-07

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Key points

Total market for jewellery and watches

Figure 19: Consumer spending on jewellery and watches, at current and constant prices, 2002-07

Market by product sector

Figure 20: Consumer spending on jewellery and watches, by product sector, excluding VAT, 2002-06

Costume jewellery

Precious jewellery

Watches

The Consumer - Who Buys and Where Do They Buy?

Key points

Where do they buy?

Figure 21: Where consumers buy jewellery and watches, 2003-07

Where they buy, by demographics

The young are prime purchasers

Broad appeal of supermarkets

Figure 22: Who buys jewellery and watches from which retailers, by gender, age and socio-economic group, April 2007

Older affluent consumers like M&S

Internet opportunity and growth

Figure 23: Who buys jewellery and watches from which retailers, by gender, age and socio-economic group, April 2007

Affluent consumers want something different

Figure 24: Who buys jewellery and watches from which retailers, by gender, age and socio-economic group, April 2007

Figure 25: Retailers used for buying jewellery and watches, by affluence and age, April 2007

Retailers and affluence

How loyal are jewellery and watch shoppers?

Figure 26: Outlets used for buying jewellery and watches in the last 12 months, by number of stores shopped, April 2007

Figure 27: Outlets used for buying jewellery and watches in the last 12 months, by number of stores shopped, April 2007

Low purchase rate

Argos and specialists attract loyalty

Shopping around, but not just for costume jewellery and watches

Consumer types and loyalty

Figure 28: Consumer types by number of shops used, April 2007

Who Buys and Where Do They Buy - Detailed Consumer Demographics

Figure 29: Who buys jewellery and watches from which retailers, by lifestage, Special Groups, working status, region, ACORN categories, technology users, commercial TV viewing and supermarket used, April 2007

Figure 30: Who buys jewellery and watches from which retailers, by lifestage, Special Groups, working status, region, ACORN categories, technology users, commercial TV viewing and supermarket used, April 2007

Figure 31: Who buys jewellery and watches from which retailers, by Special Groups, region, ACORN categories, technology users, commercial TV viewing and supermarket used, April 2007

The Consumer - Buying Jewellery and Watches

Key consumer findings

Jewellery - what they buy

Figure 32: Attitudes to shopping for watches and jewellery, April 2007

Expensive items are more for gifts

Figure 33: Attitudes to shopping for watches and jewellery, by gender, age and socio-economic group, April 2007

Few buy frequently

Buying across both costume and precious

The male opportunity

Figure 34: Attitudes to shopping for watches and jewellery, by gender, age and socio-economic group, April 2007

Identifying targets

Unconcerned

Cost Conservative

Impulsive Jewellers

Bling Bling

Consumer types - where they shop

Retailer opportunities

Figure 35: Where they shop for jewellery and watches, by consumer types, April 2007

Why they buy jewellery - style and price

Costume jewellery is impulsive

Looking for style over price

Keeping up with fashion

Figure 36: Attitudes to shopping for watches and jewellery, by gender, age and socio-economic group, April 2007

Figure 37: Attitudes to shopping for watches and jewellery, April 2007

Attitudes to watches

Figure 38: Attitudes to shopping for watches, April 2007

Most buy just for replacement

Young men like designer styles, and will splash out

Women more likely to feel guilty

Figure 39: Attitudes to shopping for watches and jewellery, by gender, age and socio-economic group, April 2007

Buying Jewellery and Watches - Detailed Consumer Demographics

Figure 40: Shopper typologies by gender, age, socio-economic group, marital status, ACORN categories, daily TV viewing, region, newspaper readership and supermarket used, April 2007

Figure 41: Shopper typologies by attitudes to jewellery and watches shopping, April 2007

Consumer attitudes to retailers

Figure 42: Why they buy jewellery, by region, ACORN categories, commercial TV viewing and supermarket used, April 2007

Retail Advertising and Promotion

Figure 43: Main media advertising by jewellery retailers, 2002/03-2006/07

RETAIL COMPETITOR ANALYSIS

Key points

Retailer performance

Figure 44: Main retailers’ sales and profit performances, 2004-06

Figure 45: Breakdown of market share of major retailers, 2001-06

Overview of key strategies of retailers

Retailer winners and losers

Figure 46: Main media advertising by jewellery retailers, 2002/03-2006/07

Retail Competitor Analysis
Key points

Retailer performance

Figure 47: Main retailers’ sales and profit performances, 2004-06

Figure 48: Breakdown of market share of major retailers, 2001-06

Overview of key strategies of retailers

Retailer winners and losers

Figure 49: Summary of UK outlet numbers of jewellery retailers, 2001-07

Retailer Profiles

Specialist jewellers

Signet Group (UK)

H.Samuel

Ernest Jones

Figure 50: Signet (UK), number of stores and productivity, 2001-07

Figure 51: Signet (UK), stores data, by fascia, 2001-07

H.Samuel

Figure 52: H.Samuel, merchandise sales mix, 2002-07

Ernest Jones

Figure 53: Ernest Jones, merchandise sales mix, 2002-07

Figure 54: Signet Group (UK), financial performance, 2002-07

The Goldsmiths Group

Figure 55: Goldsmiths, number of stores and productivity, 2001-07

Figure 56: Goldsmiths Ltd, financial performance, 2001-06

Figure 57: MW Group Ltd, financial performance, 2001-06

F Hinds

Figure 58: F Hinds, financial performance and number of stores, 2001-06

Beaverbrooks the Jewellers

Figure 59: Beaverbrooks the Jewellers Ltd, financial performance and number of stores, 2001-07

Fraser Hart

Figure 60: Fraser Hart Ltd, financial performance and number of stores, 2001-06

HPJ Jewellers

Figure 61: HPJ UK Ltd, financial performance and number of stores, 2001-05

Warren James

Figure 62: Warren James Ltd, financial performance and number of stores, 2001-06

Links of London

Figure 63: Links of London, financial performance, 2002-06

Boodles (Boodle & Dunthorne Ltd)

Figure 64: Boodle & Dunthorne Ltd, financial performance and number of stores, 2002-06

Theo Fennell plc

Figure 65: Theo Fennell Ltd, financial performance and number of stores, 2002-07

Other jewellery specialists

Asprey/Garrard

Smaller fine jewellery specialists

Diamond simulant retailers

Carat*

Secrets shhh

Fashion/costume jewellery specialists

Others

Non-specialists

Argos

Figure 66: Argos, financial performance and number of stores, 2002-07

Supermarkets

George at ASDA

Tesco

Sainsbury’s

Department and variety stores

Bhs

Debenhams

House of Fraser

John Lewis

Marks & Spencer

Other department stores

Fashion accessories retailers

Claire’s Accessories

Figure 67: Claire’s Accessories UK Ltd, financial performance, 2001-06

Accessorize

Clothing chains

Next

New Look

Arcadia

Mosaic Fashion Group

River Island

H&M

Home shopping

Avon

Virgin Vie At Home

QVC

Figure 68: QVC UK, financial performance, 2001-06

Gems TV

The Jewellery Channel

Internet retailers

Asos.com

Bluenile

cooldiamonds.com

diamondgeezer.com

Geraldonline

APPENDIX: RESEARCH METHODOLOGY

Abstract

2006 saw the jewellery and watches market recover from a very poor 2005 when precious jewellery in particular suffered a sales slump. Mainstream and lower-end specialist retailers were impacted the most. The market grew by 5.5% to reach £4.55 billion, in contrast to 2005 when it declined by 5.1% on the year before. The value of the market in 2006, therefore, recovered to a similar level as in 2004. The estimated figure for 2007 is £4.7 billion

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