Demand for jewelry will grow as the economy continues to recover, boosting industry revenue.
New York, NY (PRWEB) July 11, 2014
The Online Jewelry and Watch Sales industry has shown tremendous growth over the five years to 2014. Many factors worked in the industry's favor over this period, which are expected to enable it to grow at an annualized rate over the five years to 2014. Increases in the number of services conducted online and the price of gold, the latter of which had a dynamic effect on industry revenue through different transmission mechanisms; a resurgence in per capita disposable income; and a decrease in leisure time all contributed to industry growth over the past five-year period.
In the earlier part of the five-year period, many consumers had to work with tighter budgets, while the prices of gold and silver increased. According to IBISWorld Industry Analyst Zeeshan Haider, “Industry operators make up a bulk of their income selling semi-precious, costume and artificial jewelry.” Therefore, online retailers witnessed an increase in demand for industry items, as many consumers started substituting high-end expensive jewelry for more affordable options. Additionally, the growing affinity of consumers with online shopping, as evidenced by an annualized increase in the number of services conducted online, boosted the industry. Some essential measures instituted by industry operators, such as guaranteed returns, store pick-up options and the ability to compare prices from various retailers simultaneously, enabled this industry's popularity to surge.
However, over the next five years, revenue growth is expected to taper off. As the economy starts rebounding, many consumers are likely to switch back to higher-end jewelry and watches, which will reduce the revenue generated by other industry items. “Nonetheless, industry operators will count on the relationship they have developed with consumers over the past five years by providing good value for money and high-quality products,” says Haider. Thus, the revenue generated from the online sales of high-end jewelry is expected to increase, which will translate into sustained profit margins for industry operators. Nonetheless, as revenue grows over the next five years, internal competition in this industry will intensify.
For more information, visit IBISWorld’s Online Jewelry & Watch Sales in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry sell fine jewelry, artificial jewelry, watches and costume jewelry over the internet. Operators include online-only retailers as well as brick-and-mortar stores that have an online presence.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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