London, United Kingdom (PRWEB) July 05, 2012
A weak economy, high precious metal prices and growing import penetration have taken the sparkle out of the Jewellery & Related Article Manufacturing industry. The industry is fragmented and there is a lack of large firms able to propel the industry forwards. Consumers have been reluctant to spend on luxury items like jewellery since the onset of the financial crisis. According to IBISWorld industry analyst Nigel Fitzpatrick, “cheap, imported products from low-cost countries have become more appealing to retailers seeking to protect their margins, and to consumers looking for value for money”.
Over the five years through 2012-13, industry revenue is forecast to decrease an annualised 11.7% to £650 million. Industry revenue in 2012-13 is forecast to decrease by 7.6%, reflecting subdued retail spending and a growing number of imports. Weak sales and price competition have eroded industry profit margins. Fitzpatrick adds, “over the five years through 2017-18, the industry is expected to grow modestly supported by a stronger local market (supported by a lift in consumer spending) and increased exports to developing markets like China and India, as well as exports to oil-rich countries”.
The Jewellery & Related Article Manufacturing industry has a low level of market share concentration. Industry concentration measures the extent to which major players dominate an industry. The top four players are estimated to account for just 6.7% industry revenue. The concentration level has been low due to the cottage nature of the industry. On average, firms employ less than six people, and some craftsman in the industry work alone. In addition, some UK firms have diverted manufacturing offshore and focused local operations on distribution and marketing. Major companies include Boodle & Dunthorne, Buckley Jewellery & Abbeycrest.
For more information on the Jewellery & Related Article Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Firms in this industry manufacture jewellery and related articles
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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