Monique872

Costume Jewellery and Fashion Accessories: Industry Report 2011

Jewellery tattoos - The Jewellery and Fashion industry has remained reasonably buoyant over the past a couple of years inspite of the global downturn. I will detail the causes for this and discuss the prospects for 2011 and beyond.

Fashion hotspot - Costume jewellery (or fashion jewellery, as it sometimes known), can be explained as any jewellery created from non-precious metals such as gold. Normally this doesn't contain any precious or semi-precious stone or pearls either, although in some top end cases, it might, especially the designer jewellery market. This is simply not to say it is always inexpensive, Kenneth Jay Lane's (called the god father of costume jewellery) vintage pieces, happen to be proven to sell at Christie's and Sotheby's for a lot of money, although new pieces are much more affordable. Generally however, store bought items are available for anything between $1 and $100. Types of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.

'Fashion accessories' can be a broader term that features not only costume / fashion jewellery, but in addition includes bags, hair accessories including fascinators, scarves and belts. Jewellery is considered to take into account over 30% from the overall ornament market with handbags one other big contributor, at around (or just below), this level.

Fashion Accessories - After a period of steady growth within the industry, the worldwide downturn led to a 3% fall in retail sales for 2009 to $30.7 billion. Projected figures in 2010 are more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, reducing temperatures across The european union within the increase to Christmas, can result in a slight downgrading with this estimate, as retailers lost crucial selling days. The extensively recorded issues with the postal service mainly in the UK, may have affected occupy rates within the online jewellery industry, as consumers fretted over delivery dates. Nevertheless, taking into consideration that growth in the main element costume jewellery markets of The united states and Western Europe continues to be sluggish this year, any sort of positive growth is surely an achievement.

Companies within this sector needs to be bullish in regards to the prospects for 2011 onwards; positive indicators that the industry will grow are highlighted below:

• As previously mentioned despite sluggish rise in key US and European markets, the was able to not just recover retails sales in the 2009 fall, but returned to pre credit-crunch growth levels.

• Austerity measures across much of Europe are likely to keep consumer spending in balance. However smart retailers can engage in this, marketing to consumers who are trading down. Good value may very well be the key driver within the age of austerity; in the united kingdom, ALDI thrived from customers who traded down from Marks and Spencers. Whilst I'm not comparing the Costume Jewellery industry to ALDI, it is possible to hopefully see my point.

• Following on from this, brands that may offer affordable luxury will likely prosper. For many Fashion Jewellery brands, affordable luxury is probably the key selling points. An example externally a of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results throughout the last couple of years as numerous consumers always buy like a 'treat'.

• Emerging markets including India and china, offer vast potential from strong brands. Growth in these economies remained strong this year and it is more likely to continue, albeit in a slightly decreased rate. Because our planet's produced in higher quantities costume jewellery and finishing touches are produced in these new economies, companies have to examine their logistics and marketing, to best capitalise about this opportunity. Eliminating the freight costs and selling directly on the reason for origin is surely a goal worth pursuing.

• The buying price of gold as well as other gold and silver coins remains quite high, Gold may be increasing in the last decade from $255 per ounce in 2001 with a high of $1422.60 this coming year. Silver is a similar, or even as dramatic story. Which means that costume jewellery is better value from the traditional jewellery metals.

Those positives and opportunities aside, there are certain challenges the face in the search for growth:

• The key challenge faced through the industry and indeed by many people parts of the retail sector. is the rising worldwide material costs. From copper to wheat, price is rocketing since the emerging economies, particularly China and India, enable their populations to move away from poverty.

• Wages in China are also on the rise, putting additional pressures on manufactures that will eventually filter right down to retailers and customers.

• International pressure regarding trade surplus and also the looming threat of inflation, often see China eventually raise the expense of the Yuan leading again to increased purchase costs.

• Products, particular mid-market spends, are boosted by way of a high number of impulse buys. Replicating this spend in the online jewellery space can be a challenge that retailers are confronted with approximately. There isn't any simple answer, the kind of Amazon and ASOS spend thousands and thousands a year on web design, to enable linking of items, and tips to their customer. Smaller retailers need to also consider how they may innovate to optimize their sales.

Overall it is a challenging but exciting here we are at the Costume Jewellery and Fashion Accessories industry, I expect worldwide consumer spending in this sector to grow by between 4% and 5%, several new entrants to become listed on the as well as the continued expansion of online jewellery and accessories' sales. I am revisiting this website later in to find out if I am correct within my analysis.