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Costume Jewellery and Fashion Accessories: Industry Report 2011
Jewellery tattoos - The Jewellery and Fashion industry has always been reasonably buoyant in the last two years regardless of the global downturn. I will detail the causes with this and discuss the prospects for 2011 and beyond.
Jewellery tattoos - Costume jewellery (or fashion jewellery, as it also known), is a any jewellery produced from non-precious metals for example gold. Normally this doesn't contain any precious or semi-precious stone or pearls either, although in certain top quality cases, it might, specially the designer jewellery market. This isn't to state that it's always inexpensive, Kenneth Jay Lane's (referred to as god father of costume jewellery) vintage pieces, are already proven to sell at Christie's and Sotheby's for thousands of pounds, although new pieces are much cheaper. Generally however, shop bought items can sell for anything between $1 and $100. Forms of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.
'Fashion accessories' can be a broader term that includes not just costume / fashion jewellery, but in addition includes bags, hair accessories such as fascinators, scarves and belts. Jewellery is considered to are the cause of over 30% from the overall fashion accessory market with handbags another big contributor, at around (or just below), this level.
Style accessories - After a period of steady growth within the industry, the worldwide downturn contributed to a 3% fall in retail sales for 2009 to $30.7 billion. Projected figures in 2010 are more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, minimizing temperatures across Western Europe in the increases to Christmas, can result in a small downgrading with this estimate, as retailers lost crucial selling days. The documented problems with the postal service particularly in the UK, might have affected use up rates inside the online jewellery industry, as consumers fretted over delivery dates. Nevertheless, taking into account that development in the key costume jewellery markets of The united states and Western Europe continues to be sluggish this season, any type of positive growth is surely an achievement.
Companies on this sector should be bullish in regards to the prospects for 2011 onwards; positive indicators that the industry will grow are listed below:
• As mentioned before despite sluggish rise in key US and European markets, a was able to not merely recover retails sales from the 2009 fall, but returned to pre credit-crunch growth levels.
• Austerity measures across most of Europe will probably keep consumer spending under control. However smart retailers can begin to play this, marketing to consumers who're trading down. Affordability is likely to be the key driver inside the chronilogical age of austerity; in the UK, ALDI thrived from customers who traded down from Marks and Spencers. Whilst I'm not really comparing the Costume Jewellery industry to ALDI, you are able to hopefully see my point.
• Following on using this, brands that will offer affordable luxury will probably prosper. For a lot of Fashion Jewellery brands, affordable luxury is among the key selling points. A good example externally a of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results over the last several years as many consumers always buy being a 'treat'.
• Emerging markets for example China and India, offer vast potential from strong brands. Growth in these economies remained strong this season and it is prone to continue, albeit in a slightly decreased rate. Quite as much of our planet's produced in higher quantities costume jewellery and finishing touches are manufactured in these new economies, companies have to examine their supply chain and marketing, to best capitalise with this opportunity. Cutting out the freight costs and selling directly at the reason for origin is undoubtedly a goal worth pursuing.
• The cost of gold along with other gold and silver is still high, Gold has been increasing over the past decade from $255 per ounce in 2001 to a a lot of $1422.60 this coming year. Silver is really a similar, if not as dramatic story. Which means costume jewellery is better value up against the traditional jewellery metals.
Those positives and opportunities aside, there are certain challenges a face in the search for growth:
• The key challenge faced through the industry as well as by many people areas of the retail sector. is the rising worldwide material costs. From copper to wheat, prices are rocketing since the emerging economies, particularly China and India, enable their populations to move from poverty.
• Wages in China will also be increasing, putting additional pressures on manufactures which will eventually filter down to retailers and customers.
• International pressure regarding trade surplus and also the looming threat of inflation, often see China eventually raise the price of the Yuan leading again to increased purchase costs.
• Finishing touches, particular mid-market spends, are boosted by way of a high number of impulse buys. Replicating this spend in the web based jewellery space is really a challenge that retailers need to face up to. There is no simple answer, the kind of Amazon and ASOS spend tens of thousands a year on web development, make it possible for linking of products, and tricks to their customer. Smaller retailers have to also consider how to innovate to optimize their sales.
Overall it is a challenging but exciting time for the Costume Jewellery and Finishing touches industry, I expect worldwide consumer spending within this sector to cultivate by between 4% and 5%, several new entrants to join the as well as the continued development of online jewellery and accessories' sales. I'll be revisiting this website later in the year to find out if I am correct in my analysis.
