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Costume Jewellery and Finishing touches: Industry Report 2011
Silver/Gold tattoos - The Jewellery and Fashion industry has remained reasonably buoyant in the last 2 yrs regardless of the global downturn. I'm going to detail the reasons because of this and discuss the prospects for 2011 and beyond.
Style accessories - Costume jewellery (or fashion jewellery, because it sometimes known), can be defined as 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 a few top quality cases, it might, particularly the designer jewellery market. This is not to say that it is always inexpensive, Kenneth Jay Lane's (known as the god father of costume jewellery) vintage pieces, have been recognized to sell at Christie's and Sotheby's for a lot of money, although new pieces tend to be less expensive. Generally however, store bought items are available for anything between $1 and $100. Forms of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.
'Fashion accessories' is really a broader term which includes not only costume / fashion jewellery, but additionally includes bags, hair accessories such as fascinators, scarves and belts. Jewellery is considered to are the cause of over 30% of the overall ornament market with handbags the other big contributor, around (or perhaps below), this level.
Fashion hotspot - After years of steady growth inside industry, the worldwide downturn contributed 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, reducing temperatures across Western Europe in the increase to Christmas, can lead to a slight downgrading with this estimate, as retailers lost crucial selling days. The documented problems with the postal service particularly in the UK, could have affected occupy rates inside the online jewellery industry, as consumers fretted over delivery dates. Nevertheless, taking into consideration that rise in the main element costume jewellery markets of America and The european union may be sluggish this season, any type of positive growth is surely an achievement.
Companies on this sector ought to be bullish about the prospects for 2011 onwards; positive indicators how the industry will grow are as follows:
• As previously mentioned despite sluggish rise in key US and European markets, a managed to not just 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 under control. However smart retailers can take advantage of this, marketing to consumers who are trading down. Affordability is likely to be the main element driver within 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, you can hopefully see my point.
• Following on from this, brands that will offer affordable luxury will probably prosper. For most Fashion Jewellery brands, affordable luxury is among the key selling points. An illustration externally the of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results during the last several years as many consumers continue to 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 our planet's made in huge amounts costume jewellery and products are made over these new economies, companies need to examine their supply chain and marketing, to best capitalise with this opportunity. Reducing the freight costs and selling directly on the reason for origin is surely a goal worth seeking.
• The cost of gold and other gold and silver coins remains high, Gold has been increasing throughout the last decade from $255 per ounce in 2001 with a a lot of $1422.60 this coming year. Silver is a similar, or even as dramatic story. Which means that costume jewellery is much better value against the traditional jewellery metals.
Those positives and opportunities aside, there are certain challenges the face within the pursuit of growth:
• The key challenge faced through the industry and indeed by many elements of the retail sector. is the rising globally material costs. From copper to wheat, price is rocketing since the emerging economies, particularly India and china, enable their populations to go away from poverty.
• Wages in China are also on the rise, putting additional pressures on manufactures that will eventually filter as a result of retailers and customers.
• International pressure regarding trade surplus as well as the looming threat of inflation, could see China eventually increase the cost of the Yuan leading again to increased purchase costs.
• Finishing touches, particular mid-market spends, are boosted with a high percentage of impulse buys. Replicating this spend in the online jewellery space is a challenge that retailers need to face up to. There's no simple answer, the likes of Amazon and ASOS spend tens of thousands a year on web design, to allow linking of items, and tips to their customer. Smaller retailers have to also consider how to innovate to optimize 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 within this sector to develop by between 4% and 5%, several new entrants to become listed on the and the continued growth of online jewellery and accessories' sales. I will be revisiting this blog later in to find out if I will be correct during my analysis.
