Giftware

Published by: Key Note Publications Ltd

Published: Aug. 1, 2008

Table of Contents

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Toys and Games

Jewellery and Watches

Real Jewellery

Fashion Jewellery

Ceramics

Glassware

Small Leather Goods

MARKET TRENDS

Gift of the Year 2008

Table 1: Gift of the Year Winners, 2008

Commemorative Giftware

Tableware

Jewellery

The Bridal Market and the Birth Rate

Hallmarking Trends

Table 2: Number of Articles Dealt With at UK Assay Offices by Type of Precious Metal (000 units), 2005-2007

Small Leather Goods

Environmental Concerns

Toys and Games

Child Population

Toy Awards

Table 3: Toy of the Year Award Winners, 2007

ECONOMIC TRENDS

Gross Domestic Product

Table 4: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2003-2007

Inflation

Table 5: UK Rate of Inflation (%), 2003-2007

Household Disposable Income

Table 6: UK Household Disposable Income Per Capita (£), 2003-2007

Population

Table 7: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007

Unemployment

Table 8: Actual Number of Unemployed Persons in the UK (million), 2003-2007

MARKET POSITION

The UK

Table 9: Household Expenditure on Selected Semi-Durable Goods at Current Prices (£m), 2003-2007

Europe

2. Market Size

THE TOTAL MARKET

Retail Sales

Table 10: The Total UK Market for Giftware by Sector by Value at Current Prices (£m at rsp), 2003-2007

Figure 1: The Total UK Market for Giftware by Sector by Value at Current Prices (£m at rsp), 2003-2007

BY MARKET SECTOR

Toys and Games

Manufacturers' Sales

Table 11: UK Manufacturers' Sales of Toys and Games by Value at Current Prices (£000 at msp), 2003-2006

Retail Sales

Jewellery and Watches

Manufacturers' Sales

Table 12: UK Manufacturers' Sales of Precious Jewellery by Value at Current Prices (£000 at msp), 2003-2006

Table 13: UK Manufacturers' Sales of Imitation Jewellery by Value at Current Prices (£000 at msp), 2003-2006

Retail Sales

Ceramics

Manufacturers' Sales

Table 14: UK Manufacturers' Sales of Ceramic Household and Ornamental Articles by Value at Current Prices (£000 at msp), 2003-2006

Retail Sales

Glassware

Manufacturers' Sales

Table 15: UK Manufacturers' Sales of Hollow Glassware by Value at Current Prices (£000 at msp), 2003-2006

Retail Sales

Small Leather Goods

Manufacturers' Sales

Table 16: UK Manufacturers' Sales of Leather Articles by Value at Current Prices (£000 at msp), 2003-2006

Retail Sales

Overseas Trade

Table 17: UK Imports and Exports of Giftware by Sector by Value (£000), 2006 and 2007

Toys and Games

Table 18: UK Imports and Exports of Toys, Games and Sports Requisites, etc. by Value (£000), 2006 and 2007

Jewellery

Table 19: UK Imports and Exports of Precious and Imitation Jewellery by Value (£000), 2006 and 2007

Ceramics

Table 20: UK Imports and Exports of Ceramic Tableware and Ornamental Ware by Value (£000), 2006 and 2007

Glassware

Table 21: UK Imports and Exports of Glass Tableware and Ornamental Ware by Value (£000), 2006 and 2007

Small Leather Goods

Table 22: UK Imports and Exports of Leather Accessories by Value (£000), 2006 and 2007

3. Industry Background

RECENT HISTORY

Toys and Games

Jewellery and Watches

Ceramics

Glassware

Small Leather Goods

NUMBER OF COMPANIES

Toys and Games

Table 23: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Toys and Games by Turnover Sizeband, 2007

Jewellery

Table 24: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Jewellery by Turnover Sizeband, 2007

Ceramics

Table 25: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Ceramic Household and Ornamental Articles by Turnover Sizeband, 2007

Glassware

Table 26: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Hollow Glass by Turnover Sizeband, 2007

Leather Goods

Table 27: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Luggage, Handbags and the Like, Saddlery and Harness by Turnover Sizeband, 2007

EMPLOYMENT

Toys and Games

Table 28: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Toys and Games by Employment Sizeband, 2007

Jewellery

Table 29: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Jewellery by Employment Sizeband, 2007

Ceramics

Table 30: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Ceramic Household and Ornamental Articles by Employment Sizeband, 2007

Glassware

Table 31: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Hollow Glass by Employment Sizeband, 2007

Leather Goods

Table 32: Analysis of UK VAT-Based Enterprises Engaged in the Manufacture of Luggage, Handbags and the Like, Saddlery and Harness by Employment Sizeband, 2007

REGIONAL VARIATIONS IN THE MARKETPLACE

Toys and Games

Jewellery

Ceramics

Glassware

Small Leather Goods

DISTRIBUTION

Manufacturers

Wholesalers and Importers

Specialist Stores

Toys and Games

Jewellery

Ceramic and Glass Tableware and Collectibles

Small Leather Goods

Department and Variety Stores

Fashion Stores

Supermarkets

Tourist Attractions

Home Shopping

Promotional Market

HOW ROBUST IS THE MARKET?

LEGISLATION

REACH

Toys and Games

Toy (Safety) Regulations 1995

British Standards

Jewellery

The Hallmarking Act 1973

EU Nickel Directive

Ceramic and Glass Tableware

Ceramic Articles in Contact with Food (England) Regulations 2006

The European Communities (Crystal Glass) Regulations 1972

Small Leather Goods

IPPC Directive

KEY TRADE ASSOCIATIONS

General Giftware

British Jewellery Giftware & Finishing Federation Ltd

The Giftware Association

Toys and Games

British Toy & Hobby Association

Toy Retailers' Association

Jewellery

British Jewellers' Association

Jewellery Distributors' Association

The National Association of Goldsmiths

Ceramics and Glassware

British Ceramic Confederation

British Ceramic Plant & Machinery Manufacturers' Association

Ceramic Industry Forum

Craft Potters Association

European Ceramic Society

The Guild of Specialist China & Glass Retailers

International Crystal Federation

Leather Goods

British Travelgoods and Accessories Association

UK Leather Federation

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS — TOYS AND GAMES

The Character Group PLC

Company Structure

Current and Future Developments

Financial Results

Hasbro UK Ltd

Company Structure

Current and Future Developments

Financial Results

Mattel UK Ltd

Company Structure

Current and Future Developments

Financial Results

Vivid Imaginations Ltd

Company Structure

Current and Future Developments

Financial Results

MARKET LEADERS — JEWELLERY

Abbeycrest PLC

Company Structure

Current and Future Developments

Financial Results

Table 33: Abbeycrest PLC — Revenue by Geographic Region (£000), Years Ending 28th February 2007 and 29th February 2008

Graff Diamonds International Ltd

Company Structure

Current and Future Developments

Financial Results

Signet Group PLC

Company Structure

Current and Future Developments

Financial Results

MARKET LEADERS — CERAMICS AND GLASSWARE

Portmeirion Group PLC

Company Structure

Current and Future Developments

Financial Results

Waterford Wedgwood PLC

Company Structure

Current and Future Developments

Financial Results

Table 34: Waterford Wedgwood PLC — Selected Financial Results (_m), Years Ending 31st March 2006 and 2007

MARKET LEADERS — SMALL LEATHER GOODS

Mulberry Group PLC

Company Structure

Current and Future Developments

Financial Results

Radley + Co Ltd

Company Structure

Current and Future Developments

Financial Results

OUTSIDE SUPPLIERS

General Services to the Giftware Industry

Toys and Games

Jewellery

China and Glassware

Small Leather Goods

MARKETING ACTIVITY

Main Media Advertising Expenditure

Table 35: Main Media Advertising Expenditure by Companies Involved in the Giftware Industry (£000), Years Ending March 2007 and 2008

Toys and Games

Table 36: Main Media Advertising Expenditure on Toys and Games by Leading Manufacturers (£000), Year Ending March 2008

Table 37: Main Media Advertising Expenditure by Toy Retailers (£000), Year Ending March 2008

Jewellery and Watches

Table 38: Main Media Advertising Expenditure on Jewellery by Leading Manufacturers (£000), Year Ending March 2008

Table 39: Main Media Advertising Expenditure on Jewellery and Watches by Leading Manufacturers (£000), Year Ending March 2008

Table 40: Main Media Advertising Expenditure on Watches by Leading Manufacturers (£000), Year Ending March 2008

Table 41: Main Media Advertising Expenditure by Jewellery Retailers (£000), Year Ending March 2008

Ceramics and Glassware

Table 42: Main Media Advertising Expenditure on Tableware, Sculptures and Figurines (£000), Year Ending March 2008

Leather Goods

Recent Promotions

Louis Vuitton

Tomy

Barbie

Eidos

Sponsorship

UK Exhibitions

Spring and Autumn Fairs

Summer Fair

Home & Gift

British Craft Trade Fair

Exclusively Housewares

Top Drawer

International Jewellery London

Goldsmiths' Fair

Toy Fair

International Exhibitions

Ambiente Frankfurt

The Gourmet Housewares Show

International Glass Manufacturing Exhibitions

Mipel International Leathergoods Market

Lineapelle

The Toy Fair

5. Strengths, Weaknesses, Opportunities and Threats

THE TOTAL MARKET

Strengths

Weaknesses

Opportunities

Threats

TOYS AND GAMES

Strengths

Weaknesses

Opportunities

Threats

JEWELLERY AND WATCHES

Strengths

Weaknesses

Opportunities

Threats

CERAMICS AND GLASSWARE

Strengths

Weaknesses

Opportunities

Threats

SMALL LEATHER GOODS

Strengths

Weaknesses

Opportunity

Threat

6. Buying Behaviour

HOUSEHOLD EXPENDITURE

Games, Toys and Hobbies

By Gross Income Decile Group

Table 43: Average Weekly Household Expenditure on Games, Toys and Hobbies by Gross Income Decile Group (£), 2006

By Age of Household Reference Person

Table 44: Household Expenditure on Games, Toys and Hobbies by Age of Household Reference Person (£), 2006

Glassware, Tableware and Household Utensils

By Gross Income Decile Group

Table 45: Average Weekly Household Expenditure on Glassware, Tableware and Household Utensils by Gross Income Decile Group (£), 2006

By Age of Household Reference Person

Table 46: Household Expenditure on Glassware, Tableware and Household Utensils by Age of Household Reference Person (£), 2006

Jewellery/Watches and Leather Goods

CONSUMER PENETRATION

Toys and Games

Purchasing Patterns

Table 47: Types of Toys Bought in the Last 12 Months (% of adults), 2008

Table 48: Amount Spent on Toys and Games for Children in the Last 12 Months by Age of Child (% of adults), 2008

Jewellery and Watches

Ownership

Table 49: Ownership of Jewellery and Watches (% of adults), 2008

Purchasing Patterns

Table 50: Items of Jewellery and Watches Bought for Someone Else in the Last 12 Months (% of adults), 2008

Table 51: Amount Spent on Jewellery and Watches Purchased New in the Last 12 Months (% of adults), 2008

7. Current Issues

CLOSURES, MERGERS AND ACQUISITIONS

Flair Leisure Products PLC

Hornby PLC

Lifestyle Group Acquires Royal Stafford and Poole Pottery

LVMH

Moorcroft

Radley + Co

Toyzone

BOARD AND SENIOR MANAGEMENT CHANGES

Abbeycrest

Goldsmiths

Hamleys

Signet Group

Theo Fennell

Waterford Wedgwood

CONCERNS AFFECTING THE GIFTWARE MARKET

Counterfeiting

Conflict Diamonds

Product Recall

NEW PRODUCTS

Toys and Games

Scalextric

Shaun the Sheep

Jewellery

Diamonds and Colour

Ceramics and Glassware

VIVO

Jamie at Home

Small Leather Goods

Louis Vuitton

8. The Global Market

IMPORTANT GIFTWARE MARKETS

SECTOR TRENDS

Toys and Games

Jewellery

Ceramics and Glassware

Small Leather Goods

SELECTED GLOBAL COMPETITORS

Coach Inc

Hasbro Inc

The LVMH Group

Table 52: LVMH Divisional Revenue by Geographical Region (%), 2007

Mattel Inc

Table 53: Mattel International — Sales Revenue by Geographical Region ($m and %), 2007

Portmeirion Group PLC

Table 54: Portmeirion Group PLC — Turnover by Geographical Market (£000), Years Ending 31st December 2006 and 2007

Signet Group PLC

Tiffany & Co

Villeroy & Boch AG

Table 55: Villeroy & Boch — Group Sales by Country/Region (_m and %), 2007

Waterford Wedgwood PLC

Table 56: Waterford Wedgwood PLC — Revenue by Geographical Region (_m), Years Ending 31st March 2006 and 2007

9. Forecasts

ECONOMIC FORECASTS

Table 57: Forecasts for the UK Economy (000, % and million), 2008-2012

FORECASTS 2008 to 2012

Table 58: The Forecast UK Market for Giftware by Sector by Value at Current Prices (£m at rsp), 2008-2012

Figure 2: The Forecast UK Market for Giftware by Sector by Value at Current Prices (£m at rsp), 2008-2012

MARKET GROWTH

Figure 3: Growth in the UK Market for Giftware by Value at Current Prices (£m at rsp), 2003-2012

FUTURE TRENDS

10. Company Profiles

Abbeycrest PLC

The Character Group PLC

Graff Diamonds International Ltd

Hasbro UK Ltd

Mattel UK Ltd

Mulberry Group PLC

Portmeirion Group PLC

Signet Group PLC

Waterford Wedgwood PLC

11. Further Sources

General Sources

Government Publications

Other Sources

Bisnode Sources

Abstract

This Key Note Market Report on giftware covers five major sectors: toys and games; jewellery and watches; ceramics; glassware; and small leather goods (such as purses and wallets). It is difficult to determine what proportion of sales of such items are intended as gifts, Key Note estimates that the market was worth £4.61bn in 2007.

The market is oversupplied and fiercely competitive, increasingly and relentlessly threatened by cheap imports, particularly from China. Combined, the giftware products considered had a trade deficit of £3.3bn in 2007, with precious jewellery being the only product sector for which the deficit was reduced, compared with 2006 figures. Precious jewellery was also one of only two sectors that achieved growth in the value of manufacturers' sales in 2006 (the latest year for which data were available at the time this Market Report was published — August 2008), the other being leather goods.

The highest-value sectors, in terms of retail sales, are toys and games, which are regarded as educational and developmental, as well as an indulgence; and jewellery and watches, reflecting the popularity of precious jewellery as a gift that is often associated with romance. However, both these sectors will struggle to significantly raise sales value in the near future, with the shrinking of the important wedding market and the declining proportion of under-16s in the UK population.

On a more positive note, the UK's hosting of the 2012 Olympic Games is expected to generate considerable revenues from souvenir giftware. Any announcement of a Royal engagement in the not-too-distant future would also inspire a frenzy of new products in the giftware/souvenir sector.

Corporate activity of relevance taking place during 2008 has included: Flair Leisure Products PLC becoming part of the Italian Giochi Preziosi Group, the largest player in the Italian toy market; and Hornby PLC acquiring Corgi Classics. Also in the toy sector, it was announced in May 2008 that the retail chain Toyzone was to close. In December 2007, Exponent Private Equity LLP acquired a majority shareholding in the luxury-handbag company Radley + Co, which is intent on overseas expansion, having opened its first overseas flagship store in Dubai in September 2007 and launched the brand in Bloomingdale's and Lord & Taylor in the US in spring 2008.

In fact, many manufacturers and retailers are looking to overseas markets for expansion opportunities, given the depressed state of the UK economy and wavering, if not shattered, consumer and business confidence. Key Note anticipates only modest yearly growth in the value of retail sales of giftware between 2008 and 2012.

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