Demand for luxury watches keeps the industry on track for positive growth
London, United Kingdom (PRWEB) August 19, 2013
The Watch and Jewellery Wholesaling industry has lost its shine during the past five years. Since 2008-09, a financial crisis, recession and government austerity measures have resulted in sharp rises in unemployment and paralysed consumer confidence. This has had a damaging impact on watch and jewellery sales, which are highly discretionary in nature. Companies in the industry also faced an increasing trend of wholesale bypass over the period. According to IBISWorld industry analyst Christopher Edwards, “During the five years through 2013-14, revenue is expected to contract at a compound annual rate of 0.9%.” In 2013-14, industry revenue is anticipated to contract by 1.1% to £1.5 billion as these trends continue.
IBISWorld expects that the Watch and Jewellery Wholesaling industry has a low level of market share concentration, with only one company accounting for more than 5.0% of the industry's revenue in 2013-14, which is The Rolex Watch Company. “Over the past five years, there has been consolidation in the industry, evidenced by the decline in industry enterprises over the five-year period,” added Edwards. Companies are rapidly exiting the industry as retailers continually bypass wholesalers in an effort to maximise their economies of scale and save on costs.
Resilient demand for luxury watches has provided a glimmer of hope to firms distributing these products. The clock will continue to tick on the Watch and Jewellery Wholesaling industry during the next five years. The bleak economic outlook is expected to continue to hamper retail demand for jewellery and watches for most of the five-year period. Wholesalers will also face increasing wholesale bypass as major retailers cut wholesalers out of the supply chain by purchasing directly from manufacturers or manufacturers' agents. On a more positive note for the industry, the luxury watches segment should continue to sparkle, supporting firms with exclusive distribution rights to these products. IBISWorld forecasts that industry revenue will increase over the five years through 2018-19. For more information on the Watch and Jewellery Wholesaling 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
Companies in the industry wholesale watches, clocks, fine jewellery and imitation jewellery (also known as costume jewellery). More specifically, the industry wholesales jewellery products such as rings, bracelets, earrings and necklaces. These may be manufactured from a variety of raw materials such as gold, silver, platinum, plastic, glass or wood.
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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