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Costume Jewellery and Products: Industry Report 2011

Silver/Gold tattoos - The Jewellery and Fashion industry has always been reasonably buoyant throughout the last 2 yrs despite the global downturn. I will detail the reasons for this and discuss the prospects for 2011 and beyond.

Silver/Gold tattoos - Costume jewellery (or fashion jewellery, since it commonly known as), can be explained as any jewellery made from non-precious metals for example gold. Normally it doesn't contain any precious or semi-precious stone or pearls either, although in certain high end cases, it could, especially the designer jewellery market. This is not to express that it's always inexpensive, Kenneth Jay Lane's (referred to as god father of costume jewellery) vintage pieces, have been proven to sell at Christie's and Sotheby's for thousands, although new pieces are much cheaper. Generally however, mass market items can sell for anything between $1 and $100. Kinds of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.

'Fashion accessories' is really a broader term which includes not just costume / fashion jewellery, but additionally includes bags, hair accessories including fascinators, scarves and belts. Jewellery is considered to take into account over 30% with the overall ornament market with handbags the other big contributor, around (or simply below), this level.

Fashion Accessories - After a period of steady growth inside industry, the global downturn contributed to a 3% fall in retail sales for 2009 to $30.7 billion. Projected figures for 2010 will be more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, and lower temperatures across Western Europe within the run up to Christmas, can result in a small downgrading with this estimate, as retailers lost crucial selling days. The well documented issues with the postal service mainly in the UK, might have affected occupy rates inside online jewellery industry, as consumers fretted over delivery dates. Nevertheless, considering that growth in the key costume jewellery markets of The united states and The eu continues to be sluggish this season, any sort of positive growth is surely an achievement.

Companies in this particular sector should be bullish concerning the prospects for 2011 onwards; positive indicators the industry will grow are highlighted below:

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

• Austerity measures across most of Europe are likely to keep consumer spending under control. However smart retailers can begin to play this, marketing to consumers that are trading down. Affordability will probably be the key driver within the chronilogical age of austerity; in britain, ALDI thrived from customers who traded down from Marks and Spencers. Whilst I'm not really comparing the Costume Jewellery industry to ALDI, you are able to hopefully see my point.

• Following on using this, brands that will offer affordable luxury will probably prosper. For most Fashion Jewellery brands, affordable luxury is one of the key selling points. An example externally the of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results throughout the last couple of years as much consumers continue to buy being a 'treat'.

• Emerging markets including China and India, offer vast potential from strong brands. Development in these economies remained strong this year and is also more likely to continue, albeit in a slightly decreased rate. Because our planet's mass produced costume jewellery and fashion accessories are made over these new economies, companies must examine their logistics and marketing, to best capitalise with this opportunity. Eliminating the freight costs and selling directly on the point of origin is undoubtedly a goal worth pursuing.

• The price of gold as well as other gold and silver coins continues to be high, Gold has been increasing over the past decade from $255 per ounce in 2001 to some a lot of $1422.60 this season. Silver is a similar, if not as dramatic story. Which means that costume jewellery is best value from the traditional jewellery metals.

Those positives and opportunities aside, there are specific challenges the industry face inside the pursuit of growth:

• The key challenge faced through the industry and even by a lot of elements of the retail sector. may be the rising worldwide material costs. From copper to wheat, costs are rocketing since the emerging economies, particularly India and china, enable their populations to maneuver out of poverty.

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

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

• Finishing touches, particular mid-market spends, are boosted by way of a high number of impulse buys. Replicating this spend in the web based jewellery space is really a challenge that retailers are confronted with as much as. There's no simple answer, the kind of Amazon and ASOS spend hundreds of thousands a year on website design, to enable linking of merchandise, and tricks to their customer. Smaller retailers have to also consider how to innovate to maximise their sales.

Overall this can be a challenging but exciting time for the Costume Jewellery and Finishing touches industry, I expect worldwide consumer spending on this sector to develop by between 4% and 5%, several new entrants to join a as well as the continued development of online jewellery and accessories' sales. I am revisiting this blog later around to see if I will be correct during my analysis.