Claud741

Costume Jewellery and Finishing touches: Industry Report 2011

Fashion Accessories - The Jewellery and Fashion industry has stayed reasonably buoyant throughout the last 2 yrs inspite of the global downturn. I will detail the reasons with this and discuss the prospects for 2011 and beyond.

Style accessories - Costume jewellery (or fashion jewellery, because it sometimes known), can be defined as any jewellery created from non-precious metals including gold. Normally it does not contain any precious or semi-precious stone or pearls either, although in some high end cases, it may, particularly the designer jewellery market. This is not to express it is always inexpensive, Kenneth Jay Lane's (referred to as god father of costume jewellery) vintage pieces, are already recognized to sell at Christie's and Sotheby's for thousands, although new pieces are much more affordable. Generally however, shop bought items are available for anything between $1 and $100. Types of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.

'Fashion accessories' is a broader term that features not just costume / fashion jewellery, but additionally includes bags, hair accessories such as fascinators, scarves and belts. Jewellery is said to take into account over 30% from the overall fashion accessory market with handbags one other big contributor, about (or just below), this level.

Style accessories - After many years of steady growth within the industry, the world 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, minimizing temperatures across Western Europe in the increases to Christmas, may lead to a slight downgrading of the estimate, as retailers lost crucial selling days. The well documented problems 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, taking into account that growth in the important thing costume jewellery markets of North America and The european union has been sluggish in 2010, any type of positive growth is definitely an achievement.

Companies within this sector needs to be bullish about the prospects for 2011 onwards; positive indicators how the industry will grow are listed below:

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

• Austerity measures across much of Europe are likely to keep consumer spending in check. However smart retailers can take advantage of this, marketing to consumers who are trading down. Good value will probably be the main element driver inside the chronilogical age of austerity; in the UK, 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 out of this, brands that can offer affordable luxury will probably prosper. For many Fashion Jewellery brands, affordable luxury is one of the key selling points. A good example from outside the industry of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results throughout the last several years as much consumers continue to buy being a 'treat'.

• Emerging markets such as India and china, offer vast potential from strong brands. Rise in these economies remained strong this season and is also prone to continue, albeit at a slightly decreased rate. Quite as much of the world's made in huge amounts costume jewellery and fashion accessories are manufactured over these new economies, companies need to examine their logistics and marketing, to best capitalise about this opportunity. Cutting out the freight costs and selling directly at the reason for origin is really a goal worth striving for.

• The cost of gold along with other precious metals is still very high, Gold has been increasing in the last decade from $255 per ounce in 2001 with a high of $1422.60 this season. Silver is a similar, if not as dramatic story. This means that costume jewellery is better value up against the traditional jewellery metals.

Those positives and opportunities aside, there are particular challenges a face within the search for growth:

• The main element challenge faced by the industry and indeed by many parts of the retail sector. will be the rising world wide material costs. From copper to wheat, prices are rocketing because the emerging economies, particularly India and china, enable their populations to go from poverty.

• Wages in China may also be on the rise, putting additional pressures on manufactures that can eventually filter as a result of retailers and customers.

• International pressure about their trade surplus and also the looming threat of inflation, may even see China eventually boost the price of the Yuan leading again to increased purchase costs.

• Products, particular mid-market spends, are boosted by way of a high percentage of impulse buys. Replicating this spend in the online jewellery space can be a challenge that retailers need to face approximately. There is no simple answer, famous brands Amazon and ASOS spend thousands and thousands a year on web design, to enable linking of products, and tricks to their customer. Smaller retailers have to also consider how they can innovate to optimize their sales.

Overall this can be a challenging but exciting time for 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 participate a and also the continued expansion of online jewellery and accessories' sales. I'll be revisiting this web site later around to find out if I am correct during my analysis.