In 2005, the U.K Giftware Market Was Worth an Estimated £4.53bn, Which Represents a Marginal 1% Increase On The Previous Year's Value

Dublin (PRWEB) October 2, 2006 -- Research and Markets (http://www.researchandmarkets.com/reports/c42889) has announced the addition of Giftware Market Report 2006 to their offering.

This Market Report on giftware covers five major sectors: toys and games; jewellery, watches and silverware; ceramics; glassware; and small leather goods. The highest-value sectors are toys and games, and jewellery, watches and silverware.

In 2005, the market was worth an estimated £4.53bn, which represents a marginal 1% increase on the previous year's value. The market has been hampered by heavily discounted goods in an intensely competitive and oversupplied market. Household income has risen over the past 35 years, but income inequality has widened, and figures from National Statistics confirm considerable differences in expenditure on non-essential items according to gross income decile group. However, the UK has a growing population and one that is living longer, which makes for more gift-giving opportunities. Moreover, part of the growth in population size can be attributed to immigration and, as ethnic minorities grow, an increasingly diverse society will be reflected in what is chosen as giftware and the occasions on which it is given.

The oversupply and intense competition are signs that there will be future corporate consolidation. There has certainly been a flurry of activity in the jewellery retail sector, with the Baugur Group's acquisition of MW Group Ltd in late 2005 and the sale of the A&G Group in early 2006. The Icelandic investment company Baugur is merging the luxury Mappin & Webb chain with its existing Goldsmiths business, while Asprey & Garrard has been acquired by its management and US equity companies, which subsequently sold the Garrard business to another US company. Meanwhile, by late June 2006, there was speculation that Gerald Ratner would launch a £100m bid to buy back the H Samuel chain, which was formerly part of his Ratner empire.

Other corporate activity among giftware companies includes the sale of Dartington Crystal by its US owner to management, the sale of Eidos PLC to the UK group SCi Entertainment, and the continuing loss of jobs in ceramics manufacturing. Wedgwood has decimated its workforce following its acquisition of Royal Doulton, CH Brannam is in administration and further job losses are expected at Aynsley China and Spode.

The loss of British manufacturing jobs has steadily increased over recent years, as high production costs make it impossible to compete with overseas operators in the price-sensitive product sectors. Certainly, each of the giftware sectors considered in this Market Report faces the ongoing threat of cheap imports and each has a trade deficit.
The author anticipates modest year-on-year growth in the value of retail sales between 2006 and 2010. A key factor in the growth of the luxury market, at least, will be the ability of companies to introduce new sub-brands, catering for different markets without threatening the integrity of their established core brands.

The Companies Mentioned inside this report include:
- Abbeycrest PLC
- Goldsmiths PLC
- Hasbro UK Ltd
- LVMH Fashion Group UK Ltd and LVMH Watch & Jewellery (UK) Ltd
- Mattel UK Ltd
- Mulberry Group PLC
- Portmeirion Group PLC
- Signet Group PLC
- The Character Group PLC
- Vivid Imaginations Ltd
- Waterford Wedgwood PLC

For more information visit http://www.researchandmarkets.com/reports/c42889

Laura Wood
Senior Manager
Research and Markets
Fax: +353 1 4100 980

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