UK Jewellery & Watches Market Update 2015
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- Andrew Freeman
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1 Brochure More information from UK Jewellery & Watches Market Update 2015 Description: This market update examines the UK market for jewellery and watches over the past 5 years between 2010 and 2014, as well as the future of the market until The market is divided into the two key market sectors of jewellery and watches, although it is worth considering that many of the leading manufacturers and retailers involved in the industry often supply both product types, thus there is some overlap in the trends and competitors. The retail side of the market will be analysed in terms of the market value and size of the industry, yet the manufacturing side of the market is also considered in relation to the trends and issues affecting the entire supply chain structure, commencing with the mining of raw materials. Jewellery is divided into the sub-sectors of real jewellery, which consists of jewellery items made from the precious metals gold, silver, platinum and the more recent entrant onto the marketplace, palladium; and fashion and costume jewellery, which often imitates real jewellery in its styles but uses less expensive materials including non-metals. Within the watches market sector there are three main types of watch: mechanical watches, quartz analogue watches and quartz digital watches. In a similar sense to the jewellery sector, watches could be categorised in terms of real, luxury items and fashion items, yet watches at the luxury, high end of the market are not necessarily made from precious metals; luxury watches are often expensive due to the manufacture or technological capabilities of the product, or the designer brand name, with there being a much greater focus on branding in this sector than elsewhere in the market. Market Sectors Jewellery: The UK has a strong heritage for consumers purchasing jewellery items for themselves or as gifts, with jewellery being a key accessory for a consumer to express their identity and their fashion tastes. Traditionally, the jewellery market caters mainly for women, with many items designed to be worn by women; however, there is a growing demand for male-specific or androgynous jewellery items. Real Jewellery: Real jewellery is jewellery that consists, either wholly or in part, of precious metals, that is gold, silver, platinum and palladium; palladium has recently entered this sector as there has been an increasing demand for palladium jewellery items. Real jewellery pieces often include semi-precious and precious stones set in the precious metals, such as diamonds; this report will cover both precious metal jewellery with or without the setting of stones. As precious metals and gemstones are expensive to source, as well as being in limited supply, real jewellery pieces are expensive and primarily serve the luxury end of the jewellery industry, found within jewellers and leading luxury jewellery brands. However, prices can vary depending on the proportion of the precious metal used in a jewellery piece, as due to the high costs of the raw materials and the softness of the likes of gold and silver, the precious metals must be alloyed with less expensive, more durable base metals, such as nickel and lead. The proportion of the precious metal can be quantified with a Hallmarking symbol, which depicts to the retailer and consumers that the jewellery piece is made from the metal symbolised, as well as the proportion of metal in the item, and thus its subsequent monetary value. It is a legal requirement for all real jewellery items retailed in the UK, regardless of their sourcing or production origin, to comply with the Hallmarking Act The Hallmarking Act stipulates that it is compulsory for precious metal jewellery to indicate: - Sponsor s Mark - this shows the individual or company responsible for sending the article to the Assay Office, therefore the manufacturer, retailer or importer of the article - Standard Marks - this shows the proportion of precious metal in the article, that is the standard of fineness or purity of the precious metal in parts per thousand - Assay Office Mark - this shows the British Assay Office where the article was tested and marked. Fashion and Costume Jewellery: Fashion and costume jewellery is jewellery which can be made from any other type of material or metal,
2 excluding the precious metals used in real jewellery. This subsector can include jewellery items which are plated with a precious metal such as gold or silver, thereby not being hallmarked as a precious metal article. Costume jewellery can incorporate both precious and imitation gemstones, including expensive stones such as diamonds; however, imitation stones are usually favoured in costume jewellery so as to reduce costs. Covering a broad scope of materials, fashion and costume jewellery can be made from imitation metals as well as less traditional jewellery materials to create alternative aesthetics including the use of wood, textiles, leather, plastics and so on. Fashion and costume jewellery is worn to follow a certain fashion trend and so often incorporates more disposable fashion styles with statement jewellery. Materials are often low in cost and brands aim for the jewellery to be seasonal pieces rather than an investment, and so prices are often much lower than those for real jewellery. Often retailed in fashion and clothing retail stores as accompaniments to seasonal clothing trends, statement fashion jewellery can be bought by consumers to update an outfit as an alternative to purchasing new clothing or footwear, which have higher costs for the consumer. Watches: Within this market update, watches are defined as timepieces that fall within the framework of wrist, pocket and fob watches. This report excludes clocks as it focuses on wearable timepieces; however, for some data used in this report, it has not been possible to separate clocks from the watches market. Watches cover a broad range of retail prices, from luxury, upmarket branded watches through the mid-market range to lowcost, budget options often covering pieces that imitate the luxury brands or that are solely fashion pieces made from low-quality materials. The UK watches industry traditionally caters more for the male consumer than the female, with the technology involved in luxury watch companies products being targeted more towards men; however, fashion trends are seeing a rise in the female offering as watches are often worn as fashion accessories rather than practical timepieces. For the purpose of this report, the watches sector is largely examined in its entirety as it is difficult to separate the sectors in terms of value or brand. However, it can be divided into the following sub-sectors: Mechanical Watches A mechanical watch is the traditional watch type that uses an internal mechanical mechanism, called the movement, to measure the passage of time. Every mechanical watch has the five components of a mainspring, a gear/going train, a balance wheel, an escape mechanism, and an indicating dial, namely the standard 12-hour clock face, thus differing from the quartz watch type which functions electronically. Mechanical watches are driven by this mainspring which must be wound periodically, thus making these watches less accurate than modern quartz watches. Owing to the fact that they are hand-made and often purchased as traditional collectors pieces or for fashion purposes, these watches are generally expensive, serving the luxury end of the watches market. Quartz Analogue Watches: A quartz analogue watch also has a 12-hour clock face, yet it functions through battery power using an electronic oscillator that is regulated by a quartz crystal to keep time. The crystal oscillator allows for a high level of accuracy in timekeeping, making this much more popular in the modern analogue watch. Developments in technology have made the quartz watch inexpensive to manufacture and, owing to its high level of accuracy, it is widely used within budget, low-cost watches as well as high-end luxury watches. Quartz Digital Watches: Quartz digital watches have the same mechanisms as those of quartz analogue watches, with the difference being that they have a digital liquid-crystal display (LCD) showing the time as numerical digits, rather than having a 12-hour dial. The manufacturing of digital watches is inexpensive and requires less skilled work, and so the digital watch is usually at the low end of the retail marketplace. Constant research and development (R&D) in the watches industry has led to the divisions between different watch types becoming blurred. With the advent of the smartwatch and automatic watch, there are increasingly varied methods of watch production. Contents: 1. Introduction & Definition
3 2. Report Coverage - Market Sectors - Jewellery - Watches - Executive Summary 3. What s Key In The Market? - Key Drivers - Market Trends - Marriage Trends Continue To Influence Real Jewellery Market - Real Jewellery Versus Fashion Jewellery - Hallmarking Begins To Rise 4. Economic Trends - Market Position - How Robust Is The Market? - Market Size, Segmentation & Forecasts - Market Size & Segmentation - The Total Market - Jewellery - Watches 5. Forecasts - Future Trends - Future Economic Trends - Forecast Total Market - Market Growth - Overseas Trade - General Overview - Exports - Imports 6. Strengths, Weaknesses, Opportunities & Threats - Strengths - Weaknesses - Opportunities - Threats 7. PESTEL - Political - Issues Of Illegal And Dirty Mining And Conflict Diamonds - Economic - Uncertain Global Diamond Prices - Global Gold Prices - Social - Changing Gender Preferences In Jewellery And Watches Market - Technological - Ongoing New Product Development In Smartwatches - Growth In Online Opportunities In Marketplace - Developments In Lab Diamonds - Environmental - Environmental Issues Of Mining - Recycling Precious Stones And Metals - Legislative - Diamond Producers Association - Passing of New EU Conflict Minerals Regulation 8. Company Financials - League Tables - Company Profiles - Further Sources - Publications - Government Publications
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