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Costume Jewellery and Products: Industry Report 2011

Style accessories - The Jewellery and Fashion industry has stayed reasonably buoyant in the last two years despite the global downturn. I will detail the reason why for this and discuss the prospects for 2011 and beyond.

Style accessories - Costume jewellery (or fashion jewellery, because it commonly known as), is a any jewellery produced from non-precious metals including gold. Normally it does not contain any precious or semi-precious stone or pearls either, although in certain high end cases, it could, particularly the designer jewellery market. This is simply not to state it is always inexpensive, Kenneth Jay Lane's (referred to as god father of costume jewellery) vintage pieces, are already proven to sell at Christie's and Sotheby's for a lot of money, although new pieces less difficult less expensive. Generally however, mass market items sell 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 which includes not only costume / fashion jewellery, but additionally includes bags, hair accessories such as fascinators, scarves and belts. Jewellery has been said to account for over 30% with the overall ornament market with handbags another big contributor, about (or simply below), this level.

Silver/Gold tattoos - After many years of steady growth inside industry, the world downturn led to a 3% fall in retail sales for 2009 to $30.7 billion. Projected figures in 2010 tend to be more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, reducing temperatures across Western Europe within the run up to Christmas, may lead to a small downgrading with this estimate, as retailers lost crucial selling days. The extensively recorded issues with the postal service particularly in the UK, may have affected use up rates inside the online jewellery industry, as consumers fretted over delivery dates. Nevertheless, considering that growth in the key costume jewellery markets of North America and The eu continues to be sluggish in 2010, any sort of positive growth is surely an achievement.

Companies on this sector should be bullish concerning the prospects for 2011 onwards; positive indicators how the industry will grow are listed below:

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

• Austerity measures across most of Europe will likely keep consumer spending under control. However smart retailers can take advantage of this, marketing to consumers who're trading down. Good value will probably be the main element driver within the age of austerity; in the UK, ALDI thrived from customers who traded down from Marks and Spencers. Whilst I am not comparing the Costume Jewellery industry to ALDI, you are able to hopefully see my point.

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

• Emerging markets such as China and India, offer vast potential from strong brands. Rise in these economies remained strong in 2010 and it is more likely to continue, albeit in a slightly decreased rate. Because the earth's mass produced costume jewellery and products are manufactured in these new economies, companies need to examine their logistics and marketing, to best capitalise about this opportunity. Eliminating the freight costs and selling directly at the reason for origin is really a goal worth striving for.

• The buying price of gold as well as other gold and silver remains very high, Gold continues to be increasing over the past decade from $255 per ounce in 2001 with a high of $1422.60 this year. Silver is really a similar, if not as dramatic story. Which means that costume jewellery is better value up against the traditional jewellery metals.

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

• The important thing challenge faced from the industry and indeed by many people areas of the retail sector. will be the rising world wide material costs. From copper to wheat, costs are rocketing as the emerging economies, particularly India and china, enable their populations to move out of poverty.

• Wages in China are also rising, putting additional pressures on manufactures which will eventually filter as a result of retailers and customers.

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

• Finishing touches, particular mid-market spends, are boosted by a high number of impulse buys. Replicating this spend in the online jewellery space is a challenge that retailers need to face as much as. There is no simple answer, the kind of Amazon and ASOS spend tens of thousands annually on web development, make it possible for linking of products, and tips to their customer. Smaller retailers must also consider how they can innovate to optimize their sales.

Overall this is a challenging but exciting here we are at the Costume Jewellery and Fashion Accessories industry, I expect worldwide consumer spending within this sector to grow by between 4% and 5%, several new entrants to participate the industry and also the continued growth of online jewellery and accessories' sales. I'll be revisiting this blog later around to find out if I'm correct during my analysis.