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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 a couple of years regardless of the global downturn. I'll detail the reason why because of this and discuss the prospects for 2011 and beyond.
Silver/Gold tattoos - Costume jewellery (or fashion jewellery, as it also known), is a any jewellery created from non-precious metals including gold. Normally it does not contain any precious or semi-precious stone or pearls either, although in certain top end cases, it could, particularly the designer jewellery market. This is not to state that it's always inexpensive, Kenneth Jay Lane's (called the god father of costume jewellery) vintage pieces, happen to be recognized to sell at Christie's and Sotheby's for thousands, although new pieces are much cheaper. Generally however, mass market items are available for anything between $1 and $100. Types of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.
'Fashion accessories' is really a broader term that features not only costume / fashion jewellery, but in addition includes bags, hair accessories such as fascinators, scarves and belts. Jewellery is said to account for over 30% from the overall fashion accessory market with handbags another big contributor, about (or simply below), this level.
Silver/Gold tattoos - After years of steady growth inside the industry, the global downturn led to a 3% fall in retail sales for 2009 to $30.7 billion. Projected figures in 2010 tend to be more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, and lower temperatures across The eu in the run up to Christmas, can result in a small downgrading with this estimate, as retailers lost crucial selling days. The well documented problems with the postal service especially in the UK, might have affected occupy rates inside online jewellery industry, as consumers fretted over delivery dates. Nevertheless, taking into account that growth in the main element costume jewellery markets of North America and The eu has been sluggish in 2010, any kind of positive growth is an achievement.
Companies on this sector needs to be bullish concerning the prospects for 2011 onwards; positive indicators the industry will grow are as follows:
• As earlier mentioned despite sluggish development in key US and European markets, the industry were able to not merely recover retails sales from the 2009 fall, but returned to pre credit-crunch growth levels.
• Austerity measures across a lot of Europe will likely keep consumer spending in check. However smart retailers can take advantage of this, marketing to consumers who're trading down. Value for money will probably be the important thing driver inside the age of austerity; in britain, ALDI thrived from customers who traded down from Marks and Spencers. Whilst I'm not really comparing the Costume Jewellery industry to ALDI, you can hopefully see my point.
• Following on using this, brands that can offer affordable luxury are likely to prosper. For many Fashion Jewellery brands, affordable luxury is among the key selling points. A good example externally the of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results throughout the last several years as much consumers continue to buy like a 'treat'.
• Emerging markets such as China and India, offer vast potential from strong brands. Growth in these economies remained strong this season and is also likely to continue, albeit in a slightly decreased rate. As much of the earth's produced in higher quantities costume jewellery and fashion accessories are produced during these new economies, companies have to examine their logistics and marketing, to best capitalise about this opportunity. Eliminating the freight costs and selling directly at the point of origin is surely a goal worth pursuing.
• The cost of gold as well as other precious metals is still quite high, Gold has been increasing over the past decade from $255 per ounce in 2001 with a a lot of $1422.60 this coming year. Silver is 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 from the industry and even by a lot of parts of the retail sector. will be the rising globally material costs. From copper to wheat, prices are rocketing since the emerging economies, particularly China and India, enable their populations to maneuver away from poverty.
• Wages in China may also be on the rise, putting additional pressures on manufactures that can eventually filter right down to retailers and customers.
• International pressure regarding trade surplus as well as the looming threat of inflation, may even see China eventually raise the price of the Yuan leading again to increased purchase costs.
• Fashion Accessories, particular mid-market spends, are boosted with a large part of impulse buys. Replicating this spend in the web based jewellery space can be a challenge that retailers need to face as much as. There is no simple answer, famous brands Amazon and ASOS spend thousands and thousands annually on website design, to enable linking of items, and tricks to their customer. Smaller retailers must also consider how to innovate to maximise their sales.
Overall this can be a challenging but exciting here we are at the Costume Jewellery and Fashion Accessories industry, I expect worldwide consumer spending on this sector to develop by between 4% and 5%, several new entrants to join the industry and the continued growth of online jewellery and accessories' sales. I am revisiting this web site later in the year to see if I am correct within my analysis.
