Jewellery & Watches

Published by: Key Note Publications Ltd

Published: Oct. 1, 2007 - 106 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, single units and kilograms), 2003, 2005 and 2006

Trends in Marriages

Table 2: Number of Marriages in the UK and Mean Age at First Marriage

(000 and age), 1981, 1991, 2001 and 2005

Jewellery Buyers

ECONOMIC TRENDS

Gross Domestic Product

Table 3: UK Gross Domestic Product at Current and

Annual Chain-Linked Prices (£m), 2002-2006

Household Disposable Income

Table 4: UK Household Disposable Income Per Capita (£), 2002-2006

Inflation

Table 5: UK Rate of Inflation (%), 2002-2006

MARKET POSITION

The UK

Table 6: Index of Total Consumer Expenditure and Expenditure

on Jewellery and Watches (2002=100), 2002-2006

Figure 1: Index of Total Consumer Expenditure and Expenditure

on Jewellery and Watches (2002=100), 2002-2006

Overseas

2. Market Size

THE TOTAL MARKET

Table 7: The Total UK Market for Jewellery and Watches by Value

at Current Prices (£m at rsp), 2002-2006

Figure 2: The Total UK Market for Jewellery and Watches by Value

at Current Prices (£m at rsp), 2002-2006

Jewellery

Table 8: The UK Jewellery Sector by Value at Current Prices

(£m at rsp and %), 2002-2006

Real Jewellery

Table 9: The UK Real Jewellery Subsector by Value

at Current Prices (£m at rsp and %), 2002-2006

Fashion Jewellery

Table 10: The UK Fashion Jewellery Subsector by Value

at Current Prices (£m at rsp and %), 2002-2006

Watches

Table 11: The UK Watches Sector by Value at Current Prices

(£m at rsp and %), 2002-2006

OVERSEAS TRADE

Table 12: Overseas Trade in Jewellery and Watches (£m), 2006

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES

Table 13: Number of UK VAT-Based Enterprises Engaged in the Manufacture

of Jewellery and Watches by Turnover Sizeband (£000 and number), 2006

EMPLOYMENT

Table 14: Number of UK VAT-Based Enterprises Engaged

in the Manufacture of Jewellery and Watches

by Employment Sizeband, 2006

DISTRIBUTION

HOW ROBUST IS THE MARKET?

LEGISLATION

KEY TRADE ASSOCIATIONS

British Jewellers’ Association

The National Association of Goldsmiths

Jewellery Distributors’ Association

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS — SUPPLIERS

Abbeycrest

Cartier Ltd

LVMH Watch and Jewellery UK Ltd

Rotary Watches Ltd

Seiko UK Ltd

Swarovski UK Ltd

The Swatch Group (UK) Ltd

Other Suppliers

Accurist

Casio

Rolex

Sekonda

Swico

UK Time

Zeon

MARKET LEADERS — RETAILERS

Asprey Holdings Ltd

Garrard Ltd

Baugur Group Ltd (Goldsmiths and Mappin & Webb)

Beaverbrooks the Jewellers Ltd

Boodle and Dunthorne Ltd

Claire’s Accessories UK Ltd

DCK Concessions Ltd

F Hinds Ltd

Links of London Ltd

Signet Group PLC

Other Retailers

OUTSIDE SUPPLIERS

MARKETING ACTIVITY

Main Media Advertising Expenditure

Table 15: Main Media Advertising Expenditure on Jewellery and Watches (£000),

Years Ending July 2006 and 2007

Recent Campaigns

Accessorize

Accurist

Beaverbrooks

Breitling

Goldsmiths Group

LMVH Watch and Jewellery UK

Omega

Rotary

Seiko UK

Sekonda

Swatch

Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

CONSUMER PENETRATION

Table 16: Ownership and Purchase of Jewellery and Watches

in the Last 12 Months (% of adults), 2007

Purchasing by Sex

Table 17: The Purchase of Jewellery or Watches in the Last 12 Months

by Sex (% of adults), 2007

Purchasing by Age

Table 18: The Purchase of Jewellery or Watches in the

Last 12 Months by Age (% of adults), 2007

Purchasing by Social Grade

Table 19: The Purchase of Jewellery or Watches in the Last 12 Months

by Social Grade (% of adults), 2007

CONSUMER SPENDING

Jewellery

Table 20: Expenditure on Jewellery in the Last 12 Months (% of adults), 2007

Watches

Table 21: Expenditure on Watches in the Last 12 Months

(% of adults), 2007

7. Current Issues

BRAND DEVELOPMENTS

Mikey Bought Out of Administration

Devgen Acquires TechnoMarine Brand Distribution

Pianagonda Enters UK

Kenneth Cole Brand Licence Agreed

Girard-Perregaux Subsidiary in UK

Lady Heart Launch

SPECIALIST RETAILER DEVELOPMENTS

ASOS Results

Thomas Sabo Joins UK Retail

Fossil Expansion

New Designers at Alfred Terry

Secrets Shhh Opens in UK

Theo Fennel US Launch

NON-SPECIALIST RETAIL DEVELOPMENTS

Tchibo

Marks and Spencer

Sale of SpringColour

Palladium Challenge in White Metal

Diamond Trading Company Closes UK Operation

8. The Global Market

GLOBAL TRENDS

Gold

Table 22: World Gold Demand for Jewellery by Volume and Value

(tonnes and $bn), 2003-2006

Platinum

Table 23: Global Platinum and Palladium Demand for Jewellery

by Volume (000 oz), 2004 and 2006

TRADE DEVELOPMENTS

Hallmarking in India

New Code of Practice

Retail Developments

Cartier

De Beers

Fields

Gems TV

Harry Winston and Aber Diamond Corporation

Michael Hill

Links of London

Seiko

Tiffany & Co

9. Forecasts

INTRODUCTION

Gross Domestic Product

Table 24: Forecast UK Growth in Gross Domestic Product

in Real Terms (%), 2007-2011

Inflation

Table 25: Forecast UK Rate of Inflation (%), 2007-2011

Demographics

Table 26: Projected UK Population (000), 2004, 2006,

2008 and 2010

FORECASTS 2007 TO 2011

Table 27: The Forecast Total UK Jewellery and Watches Market

by Value (£m at rsp), 2007-2011

Figure 3: The Forecast Total UK Jewellery and Watches Market

by Value (£m at rsp), 2007-2011

MARKET GROWTH

Figure 4: The Forecast Total UK Jewellery and Watches Market by Value

(£m at rsp), 2002-2011

FUTURE TRENDS

Consumer Issues

Product Trends

Ethical Influences

Retail Development

Brands

10. Company Profiles

Abbeycrest PLC

Asprey Holdings Ltd

Cartier Ltd

Seiko UK Ltd

Signet Group PLC

Swarovski UK Ltd

The Swatch Group (UK) Ltd

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Improves

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), February 2006-2007

Willingness to Borrow Slips Slightly

Table B: The Number of Adults Willing to Borrow in Order to Purchase

Expensive Items (000 and %), February 2006-2007

SPENDING FROM SAVINGS

Slight Increase 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), February 2006-2007

Saving Grows in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase

Expensive Items (£ and %), February 2006-2007

12. Further Sources

Associations

Publications

General Sources

Government Publications

Other Sources

Bisnode Sources

Understanding TGI Data

Number, Profile, Penetration

Social Grade

Standard Region

Key Note Research

The Key Note Range of Reports

Abstract

The value of the UK jewellery and watches market increased by 9.7% between 2002 and 2006 to reach £4.51bn. The two main sectors of the market are jewellery, comprising real jewellery and fashion jewellery, and watches.

Growth in the market has been aided by a positive spending environment. Consumer disposable income levels have been rising year-on-year since the 1990s. This has been exacerbated by relatively low levels of inflation, allowing consumers to indulge more in discretionary spending. At the same time, there has been strong development in the watch and jewellery market, with new brands entering the sector and many names gaining from a high level of promotional support.

As jewellery and watches have come under the fashion focus, consumers are also more likely to own more pieces, both real and fashion. The days of single watch ownership, and when jewellery wearing was restricted to a few select pieces, have disappeared, with items now playing a key part in the wider accessories market.

This has been driven by a number of factors. The rise in self-purchase by both men and women has been significant. As the UK population has shifted towards delaying or opting out of marriage and children, available spending for the individual has risen.

There has also been an expansion in the retail of jewellery. While traditional specialists still play a key role, jewellery and watches are now widely sold through a range of sources from the Internet to supermarkets. Many specialists also now offer a browsing, if not transactional, website option.

In the short to medium term, it is likely that there will be pressure on consumer spending. Interest rates have begun to rise, while price increases are also becoming more evident in the food and energy markets. This will adversely affect markets such as jewellery and watches. However, a wide range of products across all price points in the sector means that some brands may fare better than others.

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