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Costume Jewellery and Products: Industry Report 2011

Style accessories - The Jewellery and Fashion industry has stayed reasonably buoyant in the last a couple of years despite the global downturn. I will detail the reasons for this and discuss the prospects for 2011 and beyond.

Jewellery tattoos - Costume jewellery (or fashion jewellery, because it commonly known as), is a any jewellery created from non-precious metals including gold. Normally it doesn't contain any precious or semi-precious stone or pearls either, although in certain top end cases, it might, particularly the designer jewellery market. This is simply not to express it is always inexpensive, Kenneth Jay Lane's (called the god father of costume jewellery) vintage pieces, are already known to sell at Christie's and Sotheby's for a lot of money, although new pieces are much cheaper. Generally however, mass market items can sell for anything between $1 and $100. Kinds of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.

'Fashion accessories' can be a broader term that features not merely costume / fashion jewellery, but in addition includes bags, hair accessories including fascinators, scarves and belts. Jewellery is considered to account for over 30% with the overall ornament market with handbags one other big contributor, at around (or just below), this level.

Style accessories - After many years of steady growth inside the industry, the worldwide downturn contributed to a 3% fall in retail sales for 2009 to $30.7 billion. Projected figures for 2010 are more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, reducing temperatures across The european union inside the run up to Christmas, can result in a little downgrading of this estimate, as retailers lost crucial selling days. The well documented issues with the postal service mainly in the UK, may have affected take up rates inside online jewellery industry, as consumers fretted over delivery dates. Nevertheless, taking into consideration that rise in the key costume jewellery markets of North America and The eu may be sluggish this season, any type of positive growth is an achievement.

Companies in this particular sector should be bullish in regards to the prospects for 2011 onwards; positive indicators the industry will grow are highlighted below:

• As previously mentioned despite sluggish growth in key US and European markets, a was able to not only recover retails sales in the 2009 fall, but returned to pre credit-crunch growth levels.

• Austerity measures across most of Europe will probably keep consumer spending in check. However smart retailers can begin to play this, marketing to consumers who're trading down. Affordability is likely to be the important thing driver inside the ages of austerity; in the UK, ALDI thrived from customers who traded down from Marks and Spencers. Whilst I am not comparing the Costume Jewellery industry to ALDI, it is possible to hopefully see my point.

• Following on out of this, brands that can offer affordable luxury are likely to prosper. For many Fashion Jewellery brands, affordable luxury is one of the key selling points. A good example externally the of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results during the last couple of years as many consumers always buy like a 'treat'.

• Emerging markets for example China and India, offer vast potential from strong brands. Rise in these economies remained strong this season and it is more likely to continue, albeit at a slightly decreased rate. Because the world's mass produced costume jewellery and products are produced over these new economies, companies need to examine their logistics and marketing, to best capitalise on this opportunity. Reducing the freight costs and selling directly in the point of origin is undoubtedly a goal worth seeking.

• The price of gold along with other precious metals is still quite high, Gold has been increasing in the last decade from $255 per ounce in 2001 to a high of $1422.60 this year. Silver can be a similar, or even as dramatic story. This means that costume jewellery is much better value against the traditional jewellery metals.

Those positives and opportunities aside, there are particular challenges the industry face in the pursuit of growth:

• The important thing challenge faced through the industry and indeed by many areas of the retail sector. will be the rising worldwide material costs. From copper to wheat, costs are rocketing since the emerging economies, particularly China and India, enable their populations to go away from poverty.

• Wages in China are also on the rise, putting additional pressures on manufactures that can eventually filter down to retailers and customers.

• International pressure regarding their trade surplus as well as the looming threat of inflation, may even see China eventually raise the cost of the Yuan leading again to increased purchase costs.

• Fashion Accessories, particular mid-market spends, are boosted by a high percentage of impulse buys. Replicating this spend in the online jewellery space can be a challenge that retailers need to face as much as. There isn't any simple answer, the kind of Amazon and ASOS spend thousands and thousands per year on web development, make it possible for linking of items, and suggestions to their customer. Smaller retailers must also consider how they may innovate to increase their sales.

Overall this is a challenging but exciting time for the Costume Jewellery and Products industry, I expect worldwide consumer spending on this sector to cultivate by between 4% and 5%, several new entrants to join the industry as well as the continued expansion of online jewellery and accessories' sales. I'll be revisiting this blog later around to ascertain if I am correct within my analysis.