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Watches and Jewellery Retailing - UK - September 2011

This report examines watches and jewellery for men and women aged over 15. The report covers:

  • Watches, including mechanical watches powered by means of a mainspring which is either wound up manually or, in an automatic watch, by the rotor being constantly actuated by the motion of the wearer’s arm; quartz movement watches powered by a battery-driven electrical pulse that brings the quartz into oscillation, which then controls the stepping motor, driving the watch. This group also includes battery-less quartz watches which use the wearer’s movements or light to run; and a third type that combines a quartz movement with micro-mechanics for additional features.
  • Precious metal jewellery, ie jewellery made of precious metal – gold, silver, platinum and palladium – with or without precious gemstones. These include a few materials of organic origin: pearl, coral, amber and jet.

The report excludes silverware and other giftware, which may be purchased from jewellery retailers. Antique and second-hand jewellery is excluded from market size estimates, as are tax-free sales.

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Table of contents

  1. Introduction

      • Definitions
        • Abbreviations
        • Executive Summary

            • The market
              • Figure 1: Best- and worst-case forecast value sales of watches and jewellery, 2006-16
            • Green shoots of recovery
              • Market Factors
                • Booming mobile phone ownership poses a threat
                  • Figure 2: Ownership of watches and mobile phones, 2005-10
                • Gold price hits all-time high
                  • Figure 3: Average price of gold and total weight of gold hallmarked in all UK assay offices, 2001-10
                • Waning demand for wedding and engagement rings
                  • Ageing population presents a challenge
                    • ABs to boost market
                      • The Consumer
                        • Rising popularity of inexpensive watches
                          • Figure 4: Amount of money prepared to spend on a watch for self, by gender, July 2011
                        • Average price prepared to spend on a watch
                          • Figure 5: Average price prepared to spend on a watch for oneself, 2010 and 2011
                        • Middle-aged AB males aim high
                          • The majority wear a watch most of the time
                            • Figure 6: Attitudes towards watches, by gender, July 2011
                          • Gifting is a lucrative driver of watch sales
                            • Replacement is a key motivator for watch sales
                              • Consumers with several watches benefit market
                                • Specialist brands vs. designer brands
                                  • High street chains are the top destination for jewellery
                                    • Figure 7: Preferred outlets for buying jewellery, July 2011
                                  • ABs favour independent jewellers
                                    • Argos is top of the non-specialists
                                      • Other outlets
                                        • Jewellery is a precious gift
                                          • Figure 8: Attitudes towards buying or receiving precious metal jewellery, by gender, July 2011
                                        • Scope for retailers to capitalise on unworn jewellery
                                          • Under-25 women are the biggest self-purchasers
                                            • Consumers are not willing to pay more for ethical jewellery
                                              • What we think
                                              • Issues in the Market

                                                  • What effect has the rising competition from alternative timepieces had on the watch market?
                                                    • What impact is the rising price of gold having on the jewellery market?
                                                      • How are advances in multichannel shopping affecting the jewellery market?
                                                        • Has the amount consumers are prepared to spend on themselves changed?
                                                          • How has fashion jewellery impacted upon the precious metal market?
                                                            • How important is gifting to the watches and jewellery market?
                                                            • Future Opportunities

                                                                • Trend: Experience is All
                                                                  • Trend: Many Mes
                                                                  • Internal Market Environment

                                                                    • Key points
                                                                      • Vast majority wear a watch
                                                                        • Figure 9: Trends in ownership of watches, 2006-10
                                                                        • Figure 10: Ownership of watches and mobile phones, by age and socio-economic group, 2010
                                                                      • Surge in mobile ownership
                                                                        • Figure 11: Trends in ownership of watches compared to mobile phones, 2005-10
                                                                      • Price of gold rockets
                                                                        • Figure 12: Average price of gold and platinum, 2001-10
                                                                      • 2011 sees record highs in the price of gold
                                                                        • Weight of hallmarked gold falls
                                                                          • Figure 13: Weight of gold hallmarked by all UK assay offices, 2001-10
                                                                        • Switch to silver
                                                                          • Figure 14: Ownership of gold or platinum jewellery* and silver jewellery, 2006-10
                                                                          • Figure 15: Trends in ownership of gold or platinum jewellery and silver jewellery, 2006-10
                                                                        • Increased spend in luxury gold market
                                                                          • Figure 16: Trends in amount spent on gold or platinum jewellery, not diamond set, in the last 12 months, 2006-10
                                                                        • Growing market for under £100 silver
                                                                          • Figure 17: Trends in amount spent on silver jewellery in the last 12 months, 2006-10
                                                                      • Broader Market Environment

                                                                        • Key points
                                                                            • Figure 18: Trends in the age structure of the UK population, 2006-16
                                                                          • Declining numbers of under-25s to hinder market
                                                                            • Ageing population presents a challenge
                                                                              • Figure 19: Forecast growth of the UK adult population, by age group, 2006-11 and 2011-16
                                                                            • 25-34s to boost market
                                                                              • Growth in ABs to prosper market
                                                                                • Figure 20: Forecast growth of the UK population, by socio-economic group, 2006-11 and 2011-16
                                                                              • Fall in big-spending 35-44s to hamper market
                                                                                • Marriages are at the lowest ever rate
                                                                                  • Figure 21: Rate of marriages in England and Wales, by gender, 1960-2009
                                                                                • Tough trading conditions but light at the end of the tunnel
                                                                                  • Figure 22: GDP, PDI, consumer expenditure and savings, at constant 2011 prices, 2006-16
                                                                                • Eurozone economic recovery grinds to a halt
                                                                                  • Figure 23: Trends in GDP quarterly change, Q1 2004-Q2 2011
                                                                                • Consumer confidence continues on its downward spiral
                                                                                  • Figure 24: Trends in consumer confidence, January 2008-August 2011
                                                                              • Strengths and Weaknesses in the Market

                                                                                • Strengths
                                                                                  • Weaknesses
                                                                                  • Who’s Innovating?

                                                                                    • Key points
                                                                                      • Additional functionality
                                                                                        • Innovations in watch technology
                                                                                          • Ethical practices
                                                                                            • New retail innovations
                                                                                              • Customisations spur individuality
                                                                                                • Mobile and online innovations
                                                                                                  • New marketing campaigns
                                                                                                    • Collaborations
                                                                                                    • Competitive Context

                                                                                                      • Key points
                                                                                                        • Jewellery and watches compared to clothing and footwear
                                                                                                          • Figure 25: UK retail value sales of clothing and adornment products, at current prices, 2006-11
                                                                                                        • Jewellery and watches make up 9% of the clothing and adornment sector
                                                                                                          • Figure 26: UK retail value share of clothing and adornment products, at current prices, 2011
                                                                                                      • Market Size and Forecast

                                                                                                        • Key points
                                                                                                          • Slow recovery in the midst of consumer caution
                                                                                                            • Figure 27: Value sales of watches and jewellery, at current and constant prices, 2006-16
                                                                                                          • The future
                                                                                                            • Watches and jewellery to grow by 8%
                                                                                                              • Figure 28: Best- and worst-case forecast value sales of watches and jewellery, 2006-16
                                                                                                            • Factors used in the forecast
                                                                                                            • Segment Performance

                                                                                                              • Key points
                                                                                                                • Figure 29: UK retail value sales of jewellery and watches, by sector, 2007-11
                                                                                                              • Precious metal jewellery
                                                                                                                • Watches
                                                                                                                • Retail Competitor Analysis

                                                                                                                  • Key points
                                                                                                                    • Store closures for Signet and AURUM
                                                                                                                      • Figure 30: Jewellery retailers, by number of outlets, 2005-11
                                                                                                                  • Retailer Profiles

                                                                                                                    • Signet Group
                                                                                                                        • Figure 31: Key financials for Signet Group UK, 2010 and 2011
                                                                                                                      • AURUM Holdings
                                                                                                                          • Figure 32: Product offering – AURUM, July 2011
                                                                                                                        • Links of London
                                                                                                                            • Figure 33: Key financials – Links (London) Limited (Global), 2008 and 2009
                                                                                                                          • Tiffany
                                                                                                                              • Figure 34: Key financials for Tiffany & Co Ltd, 2009 and 2010
                                                                                                                            • Warren James
                                                                                                                                • Figure 35: Key financials for Warren James (Jewellers) Ltd, 2009 and 2010
                                                                                                                            • Brand Promotion and Communication

                                                                                                                              • Key points
                                                                                                                                • Resurgence in adspend in 2010
                                                                                                                                  • Figure 36: Expenditure on advertising by top 20 jewellery and watch brands and retailers, 2008-10
                                                                                                                                • Press advertising holds supremacy
                                                                                                                                  • Figure 37: Expenditure on advertising by jewellery and watch brands and retailers, by media type, 2008-10
                                                                                                                              • The Consumer – Amount Prepared to Spend on a Watch

                                                                                                                                • Key points
                                                                                                                                    • Figure 38: Amount of money prepared to spend on a watch for self, July 2011
                                                                                                                                  • Value watches en vogue
                                                                                                                                      • Figure 39: Amount of money prepared to spend on a watch for self, by gender, July 2011
                                                                                                                                    • Mid spenders
                                                                                                                                        • Figure 40: Amount of money prepared to spend on a watch for oneself, by age, July 2011
                                                                                                                                      • Men willing to spend more
                                                                                                                                          • Figure 41: Amount of money prepared to spend on a watch for self, by socio-economic group, July 2011
                                                                                                                                        • Middle-aged men top in expenditure
                                                                                                                                          • Figure 42: Prepared to spend over £250 on a watch for self, by gender, age and socio-economic group, July 2011
                                                                                                                                        • Three in 20 would never buy
                                                                                                                                          • Figure 43: Agreement with the statement ‘I would never buy a watch for myself’, by age and socio-economic group, July 2011
                                                                                                                                        • Shift towards value watches
                                                                                                                                          • Figure 44: Amount of money prepared to spend on a watch for self, 2010 and 2011
                                                                                                                                        • Average price prepared to spend on a watch shows marked decline
                                                                                                                                          • Figure 45: Average price prepared to spend on a watch for oneself, 2010 and 2011
                                                                                                                                      • The Consumer – Attitudes Towards Shopping for Watches

                                                                                                                                        • Key points
                                                                                                                                            • Figure 46: Attitudes towards watches, by gender, July 2011
                                                                                                                                          • Majority wear a watch most of the time
                                                                                                                                            • Figure 47: Consumers wearing a watch most of the time, by gender, age and socio-economic group, July 2011
                                                                                                                                          • Time is a gift
                                                                                                                                            • Figure 48: Consumers who are happy to receive a watch as a gift, by gender, age and socio-economic group, July 2011
                                                                                                                                            • Figure 49: Consumers who would consider buying a watch for a gift for someone else, by gender, age and socio-economic group, July 2011
                                                                                                                                          • Three in ten only buy to replace
                                                                                                                                            • Mobiles reducing demand for watches
                                                                                                                                              • Figure 50: Use of mobile phone instead of watch to tell the time, by gender, age and socio-economic group, July 2011
                                                                                                                                            • Several watches for third age consumers
                                                                                                                                              • Watch brands
                                                                                                                                                • Aesthetics are important for one in seven
                                                                                                                                                  • Main interest in designer watch brands comes from under-25s
                                                                                                                                                  • The Consumer – Where Jewellery is Bought

                                                                                                                                                    • Key points
                                                                                                                                                        • Figure 51: Preferred outlets for buying jewellery, July 2011
                                                                                                                                                      • Popularity of high street chains prevails
                                                                                                                                                          • Figure 52: High street jewellery chain and independent jeweller shoppers, by age, July 2011
                                                                                                                                                        • ABs favour independent jewellers
                                                                                                                                                          • Under-25s and D consumers shop at Argos
                                                                                                                                                            • Figure 53: Argos jewellery shoppers, by gender, age and socio-economic group, July 2011
                                                                                                                                                          • Department stores popular for parents
                                                                                                                                                            • Fashion stores
                                                                                                                                                              • A fifth do not buy jewellery
                                                                                                                                                                • Figure 54: Consumers who do not buy jewellery, by gender, age and socio-economic group, July 2011
                                                                                                                                                            • The Consumer – Attitudes Towards Buying Precious Metal Jewellery

                                                                                                                                                              • Key points
                                                                                                                                                                  • Figure 55: Attitudes towards buying or receiving precious metal jewellery, by gender, July 2011
                                                                                                                                                                • A precious gift
                                                                                                                                                                  • Figure 56: Consumers who like receiving jewellery as a gift or have been given jewellery to mark a special occasion, by age and socio-economic group, July 2011
                                                                                                                                                                • Unworn pieces
                                                                                                                                                                  • Popularity of gold is in decline
                                                                                                                                                                    • Figure 57: Consumers who wear more gold than silver, by age and socio-economic group, July 2011
                                                                                                                                                                  • One in ten check the hallmark
                                                                                                                                                                    • ABs are most experimental with jewellery
                                                                                                                                                                      • Under-25 women are the biggest self-purchasers
                                                                                                                                                                        • A worthy investment?
                                                                                                                                                                          • Competition from costume jewellery
                                                                                                                                                                            • Ethical jewellery
                                                                                                                                                                              • Cash for gold
                                                                                                                                                                                • Half of men are non-wearers
                                                                                                                                                                                  • Figure 58: Consumers who do not wear jewellery, by gender, age and socio-economic group, July 2011
                                                                                                                                                                              • Target Groups

                                                                                                                                                                                • Key points
                                                                                                                                                                                    • Figure 59: Marketing target groups for watches and jewellery, June 2010
                                                                                                                                                                                  • Low Spenders
                                                                                                                                                                                    • Unadorned
                                                                                                                                                                                      • Big Spenders
                                                                                                                                                                                        • Accessorise to Maximise
                                                                                                                                                                                        • Appendix – Internal Market Environment

                                                                                                                                                                                            • Figure 61: Ownership of watches, by demographics, 2010
                                                                                                                                                                                            • Figure 62: Ownership of mobile phones, by demographics, 2010
                                                                                                                                                                                            • Figure 63: Ownership of gold or platinum jewellery, by demographics, 2010
                                                                                                                                                                                            • Figure 64: Ownership of silver jewellery, by demographics, 2010
                                                                                                                                                                                            • Figure 65: Amount spent on gold or platinum jewellery, not diamond set, in the last 12 months, by demographics, 2010
                                                                                                                                                                                            • Figure 66: Amount spent on silver jewellery in the last 12 months, by demographics, 2010
                                                                                                                                                                                        • Appendix – The Consumer – Amount Spent on Watches

                                                                                                                                                                                            • Figure 67: Amount of money prepared to spend on a watch for self, by demographics, July 2011
                                                                                                                                                                                        • Appendix – The Consumer – Attitudes Towards Shopping for Watches

                                                                                                                                                                                            • Figure 68: Most popular attitudes towards watches, by demographics, July 2011
                                                                                                                                                                                            • Figure 69: Next most popular attitudes towards watches, by demographics, July 2011
                                                                                                                                                                                            • Figure 70: Amount of money prepared to spend on a watch for self, by most popular attitudes towards watches, July 2011
                                                                                                                                                                                            • Figure 71: Amount of money prepared to spend on a watch for self, by next most popular attitudes towards watches, July 2011
                                                                                                                                                                                        • Appendix – The Consumer – Where Jewellery is Bought

                                                                                                                                                                                            • Figure 72: Preferred outlets for buying jewellery, by demographics, July 2011
                                                                                                                                                                                        • Appendix – The Consumer – Attitudes Towards Buying Precious Metal Jewellery

                                                                                                                                                                                            • Figure 73: Most popular attitudes towards buying or receiving precious metal jewellery, by demographics, July 2011
                                                                                                                                                                                            • Figure 74: Next most popular attitudes towards buying or receiving precious metal jewellery, by demographics, July 2011
                                                                                                                                                                                            • Figure 75: Other attitudes towards buying or receiving precious metal jewellery, by demographics, July 2011
                                                                                                                                                                                            • Figure 76: Preferred outlets for buying jewellery, by next most popular attitudes towards buying or receiving precious metal jewellery, July 2011
                                                                                                                                                                                            • Figure 77: Preferred outlets for buying jewellery, by other attitudes towards buying or receiving precious metal jewellery, July 2011
                                                                                                                                                                                        • Appendix – Target Groups

                                                                                                                                                                                            • Figure 78: Target groups, by demographics, July 2011
                                                                                                                                                                                            • Figure 79: Preferred outlets for buying jewellery, by target groups, July 2011
                                                                                                                                                                                            • Figure 80: Attitudes towards buying or receiving precious metal jewellery, by target groups, July 2011

                                                                                                                                                                                        Companies Covered

                                                                                                                                                                                        • A Lange & Söhne
                                                                                                                                                                                        • Audemars Piguet
                                                                                                                                                                                        • Baume & Mercier
                                                                                                                                                                                        • Breitling Uk Ltd
                                                                                                                                                                                        • Cartier SA
                                                                                                                                                                                        • Chimento
                                                                                                                                                                                        • Christian Dior
                                                                                                                                                                                        • Dolce & Gabbana
                                                                                                                                                                                        • Ebel
                                                                                                                                                                                        • Ernest Jones Ltd
                                                                                                                                                                                        • Folli Follie UK Ltd
                                                                                                                                                                                        • Fope
                                                                                                                                                                                        • Fossil
                                                                                                                                                                                        • Girard-Perregaux
                                                                                                                                                                                        • Gucci Group N.V.
                                                                                                                                                                                        • Hot Diamonds
                                                                                                                                                                                        • Mappin & Webb Ltd
                                                                                                                                                                                        • Patek Philippe
                                                                                                                                                                                        • Roberto Coin
                                                                                                                                                                                        • Signet Group
                                                                                                                                                                                        • Storm Watches
                                                                                                                                                                                        • TAG Heuer International SA 
                                                                                                                                                                                        • Tiffany & Co.
                                                                                                                                                                                        • Warren James (Jewellers) Ltd

                                                                                                                                                                                        Watches and Jewellery Retailing - UK - September 2011

                                                                                                                                                                                        £1,750.00 (Excl.Tax)