Watch and jewellery retail sales were far from sparkling over the past five years
Melbourne, Australia (PRWEB) April 20, 2012
While they may sell diamonds, retail sales across the watch and jewellery market were far from sparkling over the five years through 2011-12. Trading conditions remained relatively stable for industry retailers during this period with growth in disposable income levels and continued demand for various jewellery categories. However, according to IBISWorld industry analyst Claudia Burgio-Ficca, ‘sales for the Watch and Jewellery Retailing industry experienced annualised growth of just 0.3% over the five years through 2011-12, largely due to a downturn in economic conditions, decreasing levels of consumer confidence and a softer retail market.’ The weaker trading landscape boosted demand for fashion (costume) jewellery, which fuelled the rise in low-cost retailers. In a bid to capitalise on the middle market, luxury watch and jewellery retailers also started to offer more affordable products, such as key rings and card holders, effectively broadening the consumer scope at the high-end of the industry. Throughout the past five years, industry sales also continued to be affected by increasing levels of competition within the industry and from external operators, such as department stores, which affected the price competitiveness of merchandise. Industry sales are set to rise 1.4% to $3.83 billion in 2011-12. Sales will be supported by continued growth across the domestic economy along with a rise in disposable income levels. Personalised necklaces, men's jewellery and black diamonds will remain popular.
Watch and jewellery retailers can expect a steady market over the next five years, with sales expected to rise. ‘Sales will be driven by demand for personalised jewellery and fashion accessories,’ adds Burgio-Ficca, ‘with affordable costume jewellery continuing to account for a notable share of transactions.’ Growth in income levels and fluctuations in consumer sentiment will play an important role in demand trends and retail spending levels. However, sales will be hindered by mounting competition from department stores and online shopping sites offering consumers an alternative retail avenue.
The two largest players in the Watch and Jewellery Retailing industry in Australia are Prouds Jewellers and Michael Hill International. Market share concentration levels for the industry have tightened over the past five years, albeit from a low base. Growth in market share of players has stemmed from the addition of new stores by established operators and also from the exit of smaller non-employing stores from the industry. Concentration levels have also been influenced by mounting competition exerted on the industry by external players (such as department stores). Market share values over the past five years have also been affected by rationalisation and consolidation activity within the industry such as the 2007 acquisition of Angus and Coote by James Pascoe, who also operated Prouds Jewellers.
For more information, visit IBISWorld’s Watch and Jewellery Retailing report in Australia industry page.
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IBISWorld industry Report Key Topics
Businesses in this industry retail a broad range of watch and jewellery products along with tableware, glassware, cutlery, cooking utensils, clocks and other goods. Products are generally purchased from domestic and international manufacturers and wholesalers, and sold via retail stores to the general public.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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