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Costume Jewellery and Finishing touches: Industry Report 2011

Fashion Accessories - The Jewellery and Fashion industry has always been reasonably buoyant throughout the last a couple of years despite the global downturn. I'm going to detail the causes because of this and discuss the prospects for 2011 and beyond.

Jewellery tattoos - Costume jewellery (or fashion jewellery, since it also known), can be defined as any jewellery created from non-precious metals such as gold. Normally it doesn't 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 say it is always inexpensive, Kenneth Jay Lane's (known as the god father of costume jewellery) vintage pieces, happen to be recognized to sell at Christie's and Sotheby's for a lot of money, although new pieces are much less expensive. 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' is a broader term that includes not only costume / fashion jewellery, but additionally includes bags, hair accessories including fascinators, scarves and belts. Jewellery is said to take into account over 30% of the overall fashion accessory market with handbags one other big contributor, at around (or perhaps below), this level.

Silver/Gold tattoos - After a period of steady growth within the industry, the worldwide downturn brought about a 3% fall in retail sales for 2009 to $30.7 billion. Projected figures for 2010 will be more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, reducing temperatures across Western Europe inside the run up to Christmas, can lead to a slight downgrading of the estimate, as retailers lost crucial selling days. The extensively recorded issues with the postal service especially in the UK, may have affected take up rates inside the online jewellery industry, as consumers fretted over delivery dates. Nevertheless, taking into consideration that development in the main element costume jewellery markets of North America and The european union continues to be sluggish this year, any kind of positive growth is surely an achievement.

Companies within this sector should be bullish concerning the prospects for 2011 onwards; positive indicators how the industry will grow are as follows:

• As mentioned before despite sluggish rise in key US and European markets, the managed to not just recover retails sales from the 2009 fall, but returned to pre credit-crunch growth levels.

• Austerity measures across a lot of Europe will probably keep consumer spending under control. However smart retailers can engage in this, marketing to consumers that are trading down. Good value will probably be the important thing driver within 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 are able to hopefully see my point.

• Following on using this, brands that will offer affordable luxury will likely prosper. For most Fashion Jewellery brands, affordable luxury is probably the key selling points. An illustration from outside a of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results over the last several years as much consumers still buy being a 'treat'.

• Emerging markets including India and china, offer vast potential from strong brands. Development in these economies remained strong this year and is also prone to continue, albeit in a slightly decreased rate. As much of the world's produced in higher quantities costume jewellery and finishing touches are manufactured in these new economies, companies need to examine their logistics and marketing, to best capitalise with this opportunity. Reducing the freight costs and selling directly in the reason for origin is surely a goal worth striving for.

• The price of gold and other precious metals remains high, Gold continues to be increasing over the past decade from $255 per ounce in 2001 to a high of $1422.60 this season. Silver is really a similar, if not as dramatic story. This means that costume jewellery is best value up against the traditional jewellery metals.

Those positives and opportunities aside, there are certain challenges a face in the quest for growth:

• The important thing challenge faced through the industry and even by many people elements of the retail sector. will be the rising worldwide material costs. From copper to wheat, costs are rocketing because the emerging economies, particularly India and china, enable their populations to maneuver out of poverty.

• Wages in China are also increasing, putting additional pressures on manufactures that will eventually filter right down to retailers and customers.

• International pressure regarding their trade surplus and also the looming threat of inflation, may even see China eventually boost the expense of the Yuan leading again to increased purchase costs.

• Fashion Accessories, particular mid-market spends, are boosted by way of a large part of impulse buys. Replicating this spend in the web based jewellery space is really a challenge that retailers need to face up to. There isn't any simple answer, the likes of Amazon and ASOS spend tens of thousands per year on web design, to enable linking of items, and tips to their customer. Smaller retailers have to also consider how to innovate to maximise their sales.

Overall this is a challenging but exciting here we are at the Costume Jewellery and Finishing touches industry, I expect worldwide consumer spending on this sector to develop by between 4% and 5%, several new entrants to become listed on the and the continued expansion of online jewellery and accessories' sales. I'll be revisiting this blog later in the year to ascertain if I am correct during my analysis.