Steve364

Costume Jewellery and Products: Industry Report 2011

Jewellery tattoos - The Jewellery and Fashion industry has remained reasonably buoyant throughout the last two years despite the global downturn. I will detail the causes because of this and discuss the prospects for 2011 and beyond.

Fashion hotspot - Costume jewellery (or fashion jewellery, since it also known), is a any jewellery made from non-precious metals for example gold. Normally this doesn't contain any precious or semi-precious stone or pearls either, although in a few high end cases, it might, especially the designer jewellery market. This is not to express that it is always inexpensive, Kenneth Jay Lane's (called the god father of costume jewellery) vintage pieces, are already proven to sell at Christie's and Sotheby's for thousands, although new pieces tend to be more affordable. Generally however, mass market items can sell for anything between $1 and $100. Forms of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.

'Fashion accessories' can be a broader term which includes not just costume / fashion jewellery, but also includes bags, hair accessories such as fascinators, scarves and belts. Jewellery is considered to take into account over 30% of the overall fashion accessory market with handbags another big contributor, around (or perhaps below), this level.

Style accessories - After many years 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 for 2010 will be more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, and lower temperatures across The european union inside the increases to Christmas, can lead to a slight downgrading of the estimate, as retailers lost crucial selling days. The well documented problems with the postal service especially 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 important thing costume jewellery markets of North America and The eu has been sluggish this year, any kind of positive growth is definitely an achievement.

Companies within this sector should be bullish concerning the prospects for 2011 onwards; positive indicators how the industry will grow are as follows:

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

• Austerity measures across most of Europe will likely keep consumer spending in check. However smart retailers can begin to play this, marketing to consumers who're trading down. Good value may very well be the main element driver inside the ages of austerity; in the united kingdom, ALDI thrived from customers who traded down from Marks and Spencers. Whilst I am not comparing the Costume Jewellery industry to ALDI, you can hopefully see my point.

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

• Emerging markets for example India and china, offer vast potential from strong brands. Development in these economies remained strong this season and is prone to continue, albeit in a slightly decreased rate. Because the world's made in huge amounts costume jewellery and finishing touches are made during these new economies, companies need to examine their supply chain and marketing, to best capitalise with this opportunity. Reducing the freight costs and selling directly on the reason for origin is undoubtedly a goal worth striving for.

• The buying price of gold and other gold and silver continues to be high, Gold has been increasing in the last decade from $255 per ounce in 2001 to some most of $1422.60 this season. Silver is really a similar, otherwise as dramatic story. Which means that costume jewellery is best value against the traditional jewellery metals.

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

• The key challenge faced from the industry as well as by a lot of areas of the retail sector. may be the rising world wide material costs. From copper to wheat, costs are rocketing because the emerging economies, particularly India and china, enable their populations to move from poverty.

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

• International pressure about 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.

• Products, particular mid-market spends, are boosted by way of a high percentage of impulse buys. Replicating this spend in the online jewellery space is really a challenge that retailers are confronted with approximately. There is no simple answer, famous brands Amazon and ASOS spend hundreds of thousands a year on web design, to allow linking of merchandise, and tips to their customer. Smaller retailers must also consider how they can innovate to optimize their sales.

Overall it is a challenging but exciting time for the Costume Jewellery and Products industry, I expect worldwide consumer spending within this sector to cultivate by between 4% and 5%, several new entrants to become listed on the industry and the continued development of online jewellery and accessories' sales. I am revisiting this blog later in to see if I am correct within my analysis.