Retail Jewelry Industry Analysis
A retail jewelry industry analysis shows that the industry is poised for great fortune ahead. In particular, the global market will experience a significant market growth of 5 to 6 percent annually to hit about €250 billion by 2020. This is a pointer to endless opportunities in the industry for the players. Consumer appetite, which plummeted during economic recession appears to be voracious and will have impact on the market dynamics.
From all ends, the market is fast-growing with opportunities for not only legendary players but also for new entrants in the business. While this is the case, important changes are underway in the market. For example, consumer behavior is changing rapidly as well as the industry itself. Thus, players in the industry have a challenge of aligning their business practices and activities with the current changes to remain relevant in the market or be edged out by more proactive competitors.
Trends in retail jewelry industry analysis
It is evident that jewelry industry is experiencing massive changes. According to retail jewelry industry analysis, customers’ demand for branded items is on the rise. In the watch market, sales of branded items account for about 60 percent. This denotes the high demand for labeled products among customers. For the jewelry market, this represents 20% of the sales, and the figure has doubled since 2003. Experts in the industry therefore believe that branded items will command the highest sales by 2020 even though they hold divergent opinions on how this shift is likely to take place.
Regardless of the path that branded items will take, three types of consumers are driving the market. Firstly, the effect of ‘new money’ is evident in the market. Many people especially the young people who are starting to earn have a high taste for branded jewelry. While it could be true that they have higher disposable income than elderly consumers do, many are after showing off and stamping their status. For the old-money consumers, their hearts are with heirlooms or estate jewelry.
Secondly, the impact of emerging market consumers is real. These consumers have previously not played a major role in the industry. However, because of changing times, tastes and preferences, they have great appetite for established brands in the market. Finally, young consumers are taking the industry by storm. For example, many have turned to jewelry as a way of self-expression and self-realization. Retail jewelry industry analysis reveals that jewelry continues to appeal to the youthful generation because it complements their identity in the society.
Jewelry Industry in the United States
Jewelry selling is a multibillion-dollar business in the United States. In the year 2015, the industry registered about 2% growth to hit US$63.3 billion in terms of revenue. However, there is likelihood of the industry growing further, with consumers gaining more confidence in the economy. Thus, consumers are more willing to for mid- to upper-tier jewelry than lower-tier products in the market. Because of this high demand, the price of real and costume jewelry went up by 4 percent and 2 percent in 2015. This was a major contributor to the overall growth in the market.
In terms of competitive landscape, America has a fragmented jewelry market, unlike the UK and other leading markets in the world. Therefore, no single company had more than 7% of the market share in 2014. Another implication is that the US market still has room for growth in jewelry manufacturing since dominant players do not exist in the market.
Retail jewelry industry analysis for China
China is a major jewelry market in the world. The market grew by 5% in 2015. A retail jewelry industry analysis shows that this was because of two main factors. First, the level of disposable income is high among Chinese people. The implication for this is that more people have spare money to spend on luxury once they meet their basic needs.
Additionally, many people want to look cool in public by complementing their fashion taste with jewelry. Looking ahead, Chinese Jewelry market is likely to grow to more than 7% of chain value. Today, more Chinese are becoming more sophisticated and brand awareness is on the increase.
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