Tierra29

Costume Jewellery and Products: Industry Report 2011

Fashion Accessories - The Jewellery and Fashion industry has always been reasonably buoyant over the past 2 yrs inspite of the global downturn. I'll detail the reason why for 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 for example gold. Normally this doesn't contain any precious or semi-precious stone or pearls either, although in some top quality cases, it may, especially the designer jewellery market. This is not to state that 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 thousands of pounds, although new pieces are much less expensive. Generally however, store bought items can sell for anything between $1 and $100. Kinds of Costume Jewellery include earrings, necklaces, bracelets, brooches, cuffs and rings.

'Fashion accessories' is a broader term which includes 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% of the overall fashion accessory market with handbags one other big contributor, around (or just below), this level.

Fashion 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 in 2010 will be more positive with sales rebounding to $32.2 billion [Source: Accessories Magazine]. Heavier than expected snowfalls, minimizing temperatures across The eu inside the increases to Christmas, may lead to a slight downgrading with this estimate, as retailers lost crucial selling days. The well documented problems with the postal service particularly in the UK, may have affected occupy rates within the 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 european union may be sluggish this season, any kind of positive growth is definitely an achievement.

Companies on this sector ought to be bullish about the prospects for 2011 onwards; positive indicators how the industry will grow are highlighted below:

• As earlier mentioned despite sluggish growth in key US and European markets, the managed to not only recover retails sales in the 2009 fall, but returned to pre credit-crunch growth levels.

• Austerity measures across a lot of Europe will likely keep consumer spending under control. However smart retailers can take advantage of this, marketing to consumers who're trading down. Affordability may very well be the main element driver inside the age of austerity; in britain, ALDI thrived from customers who traded down from Marks and Spencers. Whilst I'm not comparing the Costume Jewellery industry to ALDI, you are able to 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. A good example from outside a of affordable luxury thriving during tough economic times, is Costa Coffee, who experienced strong results over the last few years as many consumers still buy being a 'treat'.

• Emerging markets such as China and India, offer vast potential from strong brands. Growth in these economies remained strong this season and it is likely to continue, albeit with a slightly decreased rate. Quite as much of our planet's made in huge amounts costume jewellery and finishing touches are made over these new economies, companies have to examine their supply chain and marketing, to best capitalise on this opportunity. Reducing the freight costs and selling directly at the reason for origin is undoubtedly a goal worth seeking.

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

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

• The key challenge faced from the industry and even by many elements of the retail sector. may be the rising globally material costs. From copper to wheat, price is rocketing as the emerging economies, particularly India and china, enable their populations to move away from poverty.

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

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

• Finishing touches, 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 up to. There's no simple answer, famous brands Amazon and ASOS spend hundreds of thousands per year on web design, to enable linking of products, and tricks to their customer. Smaller retailers have to also consider how to innovate to maximise their sales.

Overall this is a challenging but exciting time for the Costume Jewellery and Finishing touches industry, I expect worldwide consumer spending on this sector to grow by between 4% and 5%, several new entrants to join a as well as the continued expansion of online jewellery and accessories' sales. I am revisiting this web site later in the year to find out if I am correct in my analysis.