2020
9
UK Jewellery and Watches Retailing Market Report 2020
2020-12-09T03:08:29+00:00
OX988978
2195
128475
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Report
en_GB
“The first lockdown due to COVID-19 came as a shock to many in the jewellery and watch industry; numerous independent retailers had to shut stores with no ecommerce presence to…

UK Jewellery and Watches Retailing Market Report 2020

£ 2,195 (Excl.Tax)

Description

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Jewellery & Watches Retailing – UK market including the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Almost three in five (58%) people now want to see jewellery and watch retailers give back to communities by donating proceeds to charity. This is something evident in this sector over the last year, with countless brands and retailers raising money for the NHS, Age UK and contributing to the BLM movement. COVID-19 is likely to have a long-lasting effect on the market. Online shopping has increased throughout 2020, even when nonessential retailers opened their doors, and we would expect this to continue even when a vaccine becomes available. The watches and jewellery industry, which has generally been slow to enter the ecommerce space, will have to innovate and learn to engage with customers online via transactional sites and a social media presence.

Expert analysis from a specialist in the field

Written by Chana Baram, a leading analyst in the Retail sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The first lockdown due to COVID-19 came as a shock to many in the jewellery and watch industry; numerous independent retailers had to shut stores with no ecommerce presence to sell items online instead. Furthermore, the subsequent lack of tourism dented the luxury sector which tends to drive the jewellery and watches market. However, with the second lockdown retailers have been more prepared with many instances of retailers launching new transactional websites as well as upping their social media presence to sell directly to customers when stores are not open.
Chana Baram
Senior Retail Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on jewellery and watches
      • Figure 1: Short, medium and long-term impact of COVID-19 on jewellery and watches, November 2020
    • The market
    • COVID-19 causes market to drop 18% in 2020
      • Figure 2: Market size for jewellery and watches, by value, 2015-25 (prepared on 2 November 2020)
    • UK footfall dives as stores shutter
      • Figure 3: Year-on-year percentage footfall change, by location, Jan 2015-Sep 2020
    • Lack of tourism threatens the luxury sector
      • Figure 4: Country or region of origin of non-UK-resident purchasers of high-end products, 2019
    • Price of gold on the rise
      • Figure 5: UK price of gold tracked over a 15-year period, per troy ounce in GBP, 2005-20
    • Swiss watch exports face big declines in 2020
      • Figure 6: Value of Swiss watch exports, by top five markets, Jan-Sep 2018-20
    • Companies and brands
    • Pandora’s relaunch has promising start
    • Advertising spend continues to decline in 2019
      • Figure 7: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, 2015-19
    • Pandora and Tiffany & Co. benefit from high levels of awareness
      • Figure 8: Attitudes towards and usage of selected brands, July 2020
    • The consumer
    • People are spending less on fashion items
      • Figure 9: Consumer spending expectations due to COVID-19, 2-11 November 2020
    • More people are shopping online
      • Figure 10: People shopping more online since COVID-19, 16 April-11 November 2020
    • Watches and costume jewellery continue to be the most popular options
      • Figure 11: Who jewellery/watches were bought for in the last five years, June 2020
    • Most buy precious metal jewellery from specialist stores
      • Figure 12: Types of retailers used for buying jewellery and watches, June 2020
    • Quality and price stand out as the main priorities
      • Figure 13: Factors prioritised when choosing where to buy jewellery and watches, June 2020
    • Nearly two thirds turn to repairs
      • Figure 14: Shopping behaviours around jewellery and watches, June 2020
    • Charity has become important to shoppers
      • Figure 15: Behaviours towards jewellery and watch purchasing, June 2020
    • Innovations in the sector are needed to encourage online purchasing
      • Figure 16: Enticing shoppers to buy jewellery or watches online during COVID-19, June 2020
  3. Issues and Insights

    • Now is the time for the sector to embrace digital and online channels
      • Figure 17: Banks Lyon’s ‘Ask at Home’ campaign and home proposal ideas for customers, 2020
    • The opportunity in gifting throughout the pandemic
  4. The Market – Key Takeaways

    • Fine jewellery and watches severely impacted by COVID-19
    • Sales of watches become increasingly polarised
    • Lack of tourism is a big threat to the sector
    • Price of gold on the rise
  5. Market Size and Forecast

    • Fine jewellery and watches hit by lack of tourism due to COVID-19
      • Figure 18: Short, medium and long-term impact of COVID-19 on jewellery and watches, September 2020
    • COVID-19 causes market to drop 18% in 2020
    • Initial outbreak caused decline in sales
      • Figure 19: Market size for jewellery and watches, by value, 2015-25 (prepared on 2 November 2020)
      • Figure 20: Consumer spending on jewellery and watches, at current prices, 2015-25
    • Sector benefited from gifting and lack of seasonality
    • Online retailing will continue to be problematic
    • Eventual recovery
    • Market drivers and assumptions
    • Learnings from the last recession
      • Figure 21: Value sales of jewellery and watches, 2007-12
    • Forecast methodology
  6. Market Segmentation

    • Sales of watches struggle due to economic uncertainty
      • Figure 22: Market size for watches, by value, 2015-25 (prepared on 2 November 2020)
      • Figure 23: Consumer spending on watches, at current prices, 2015-25
    • Demi-fine jewellery bright spot in the sector
      • Figure 24: Market size for jewellery, by value, 2015-25 (prepared on 2 November 2020)
      • Figure 25: Consumer spending on jewellery, at current prices, 2015-25
    • Fine jewellery loses share as demand slows
      • Figure 26: Estimated share of total UK jewellery and watch market, 2017-20
      • Figure 27: UK retail value sales of jewellery and watches, by sector, 2015-20
  7. Market Drivers – Retail and the Economy

    • The UK has plunged into the deepest recession since records began
      • Figure 28: Quarter-on-quarter change in private consumption, seasonally adjusted, Q1 2007-Q3 2020
    • Earnings have decreased
      • Figure 29: Real wage growth – Average weekly earnings vs. inflation, Jan 2015-June 2020
    • UK footfall dives as stores shutter
      • Figure 30: Year-on-year percentage footfall change, by location, Jan 2015-Sep 2020
    • Lack of tourism threatens the luxury sector…
      • Figure 31: Country or region of origin of non-UK-resident purchasers of high-end products, 2019
    • …with end of UK tax-free scheme threatening the industry further
    • Move towards online retail continues
      • Figure 32: Internet sales as a percentage of total retail sales, 2007-19
  8. Market Drivers – Jewellery

    • Jewellery purchasing remains more stable than other categories
      • Figure 33: Trends in items people have purchased for themselves, percentage point change, October 2019-September 2020
    • Total hallmarking declined in 2019
      • Figure 34: Number of items hallmarked across UK Assay Offices, by type of precious metal, 2017-19
      • Figure 35: Number of items hallmarked across UK Assay Offices, by weight, year-to-date Oct 2019/Oct 2020
    • Price of gold on the rise
      • Figure 36: UK price of gold tracked over a 15-year period, per troy ounce in GBP, 2005-20
    • Marriage declining for same- and opposite-sex couples
      • Figure 37: Number of marriages in Great Britain, 2006-17
  9. Market Drivers – Watches

    • Swiss watch exports grew in 2019…
      • Figure 38: Value of Swiss watch exports, by top five markets, 2017-19
    • …driven by pricier options
      • Figure 39: Export of wristwatches, by price range, year-on-year change, 2018-19
    • The industry faces big declines in 2020
      • Figure 40: Value of Swiss watch exports, by top five markets, Jan-Sep 2018-20
    • Smartwatches continue to destabilise the sector
      • Figure 41: Estimated unit sales of wrist-worn wearable devices, by product category, 2016-19
  10. Companies and Brands – Key Takeaways

    • Pandora’s relaunch has promising start
    • Men’s jewellery continues to be a source of innovation
    • Blockchain technology used in luxury watch sector
    • Clogau uses TV advertising to boost brand presence
  11. Leading Specialist Retailers

    • Sales performance
    • Richemont sales decline
      • Figure 42: Leading specialists’ revenues, 2014-19
    • Pandora relaunch sees early success
    • Watches of Switzerland already seeing effects of COVID-19
    • Outlet numbers
    • Links of London disappears from the high street
      • Figure 43: Leading specialists’ outlet numbers, 2014-19
    • Thomas Sabo closes stores
    • Clogau to open five new stores
    • TAG Heuer opens new boutiques
    • Sales per outlet
      • Figure 44: Leading specialists’ sales per outlet, 2018
      • Figure 45: Leading specialists’ sales per outlet, 2014-19
  12. Launch Activity and Innovation – Jewellery

    • Harrods revamps jewellery offering
    • New jewellery space
    • Opening of Tiffany & Co.’s Blue Box Cafe
      • Figure 46: Inside Tiffany’s Blue Box Cafe in Harrods, 2020
    • Suzanne Kalan opens dedicated boutique within Harrods
    • House of Luxury opens pop-up in Harrods
    • Jewellers show support for Black designers
    • Kassandra Lauren Gordon raises funds for Black jewellers
    • Boma Jewelry provides mentorship programme for Black jewellery designers
    • Astrid & Miyu launches mentorship for Black-owned businesses
    • Lab-grown trend grows stronger
    • GIA introduces new lab-grown diamond report
    • Nivoda unveils lab-grown diamonds search option
    • Kimaï releases engagement rings featuring lab-grown diamonds
      • Figure 47: The Billie engagement ring with a large oval cut lab-grown diamond, 2020
    • Retailers launch online
      • Figure 48: De Beers new transactional website
    • Pop-up space for jewellery brands
    • YAA YAA London pops up in John Lewis
    • Tiffany & Co. Covent Garden pop-up with ice rink
      • Figure 49: Tiffany & Co. ice rink in Covent Garden, 2019
    • Daniella Draper opens stores in Leeds and Cheshire
    • Collaborations
    • Pandora unveils Star Wars collaboration
      • Figure 50: Pandora’s Star Wars Logo Snake Chain Bracelet, 2020
    • Messika collaborates with Kate Moss on new collection
      • Figure 51: Behind the scenes of the Messika collection created by Kate Moss, 2020
    • Lark & Berry searches for designer to collaborate with
    • Brands turn to tech
    • Astrid & Miyu launches podcast in support of start-ups
    • Brown & Newirth launches virtual concierge service
    • Men’s jewellery launches
    • Biiju’s Camouflage Collection
      • Figure 52: Biiju’s first men’s collection, 2020
    • Aurum branches into men’s jewellery
    • EC One launches men’s engagement rings
  13. Launch Activity and Innovation – Watches

    • New watch launches
    • Timex unveils affordable automatic
    • Omega launches anniversary watch
      • Figure 53: Omega’s new watch commemorating the brand’s ‘Silver Snoopy Award’, 2020
    • Cartier reintroduces iconic watch
      • Figure 54: Maisie Williams modelling the re-released Pasha de Cartier, 2020
    • Pre-owned specialists increase store footprint
    • Try Before You Buy
      • Figure 55: Danish watch brand Nordgreen launches its Try Before You Buy scheme in the UK, 2020
    • Breitling turns to blockchain technology
    • Sustainable lines
    • Vivienne Westwood watches keep up with eco-friendly image
    • Swatch releases collection of eco-friendly watches
      • Figure 56: The new BioReloaded eco-watch by Swatch, 2020
  14. Advertising and Marketing Activity

    • Advertising spend continues to decline in 2019
      • Figure 57: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, 2015-19
    • Pandora ups advertising as part of rebranding
      • Figure 58: Millie Bobby Brown featuring in the latest ‘Pandora Me’ campaign, 2020
      • Figure 59: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by advertiser, 2015-19
    • Chanel releases ‘Over the Moon’ fine jewellery campaign
    • Traditional brands continue to rely on press advertising
    • Patek Philippe refreshes classic campaign
      • Figure 60: Total above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2019
    • Swarovski launches social media campaign
    • Clogau releases TV advert during peak lockdown period
      • Figure 61: Clogau’s ‘The Gift of Love’ advertising campaign, 2020
      • Figure 62: Top advertisers’ above-the-line, online display and direct mail advertising expenditure on jewellery and watches, by media type, 2019
    • Nielsen Ad Intel coverage
  15. Brand Research

    • Brand map
      • Figure 63: Attitudes towards and usage of selected brands, July 2020
    • Key brand metrics
      • Figure 64: Key metrics for selected brands, July 2020
    • Brand attitudes: Monica Vinader seen as innovative
      • Figure 65: Attitudes, by brand, July 2020
    • Brand personality: Tiffany & Co. recognised as exclusive
      • Figure 66: Brand personality – macro image, July 2020
    • Consumers perceive Pandora to be stylish
      • Figure 67: Brand personality – micro image, July 2020
    • Brand analysis
    • Astrid & Miyu still has relatively low awareness
    • Pandora has high levels of commitment and awareness amongst consumers
    • Tiffany & Co. seen as expensive but aspirational
    • Watches of Switzerland perceived as cutting edge
    • Fraser Hart offers good value
    • Monica Vinader seen as most ethical and responsive
    • Beaverbrooks needs to boost usage amongst female consumers
    • H. Samuel needs to innovate to excite consumers
  16. The Consumer – Key Takeaways

    • People are likely to trade down since COVID-19
    • Online presents a big opportunity for the sector
    • Male shoppers are more easily influenced by famous personalities
    • Young shoppers want to see innovations
  17. Impact of COVID-19 on Consumer Behaviours

    • People are anxious about the impact COVID will have on the economy
      • Figure 68: Thoughts around the effect COVID-19 will have on the economy, 18-24 June 2020
    • People are spending less on fashion items…
      • Figure 69: Consumer spending expectations due to COVID-19, 2-11 November 2020
    • …with customers likely trading down
      • Figure 70: Consumer spending expectations on clothing and accessories due to COVID-19, by socio-economic group, 2-11 November 2020
    • More people are shopping online…
      • Figure 71: People shopping more online since COVID-19, 16 April-11 November 2020
    • …as some are reluctant to try on or handle products in-store
      • Figure 72: How consumers feel about doing certain activities during COVID-19 times, 24 September-1 October 2020
    • People keen to support local businesses
      • Figure 73: People saying they are shopping more from local businesses since the COVID-19 outbreak, by area, 2-11 November 2020
  18. Purchasing of Jewellery and Watches

    • Watches and costume jewellery continue to be the most popular options
      • Figure 74: Who jewellery/watches were bought for in the last five years, June 2020
    • Three in five bought either jewellery or watches
      • Figure 75: Total purchasing of jewellery and watches, June 2020
    • Young men are the most likely gift buyers
      • Figure 76: Purchasing of jewellery and watches for self or as a gift, by age and gender, June 2020
  19. Channels and Retailers Used

    • Watches more likely to be bought online than jewellery
      • Figure 77: Channels used for buying jewellery and watches, June 2020
    • Overall, shopping for watches or jewellery in-store is more common
      • Figure 78: Channels used for buying jewellery and watches, June 2020
    • Most buy precious metal jewellery from specialist stores
      • Figure 79: Types of retailers used for buying jewellery and watches, June 2020
  20. Purchase Drivers

    • Quality and price stand out as the main priorities
      • Figure 80: Factors prioritised when choosing where to buy jewellery and watches, June 2020
    • Ethical and eco-friendly items are not a priority
  21. Habits of Jewellery and Watch Shoppers

    • Nearly two thirds turn to repairs
      • Figure 81: Shopping behaviours around jewellery and watches, June 2020
    • Young shoppers want to buy jewellery and watches via social media
      • Figure 82: Shopper behaviour towards buying jewellery and watches via social media, by generation, June 2020
  22. Jewellery and Watch Buying Behaviours

    • Charity has become important to shoppers
      • Figure 83: Behaviours towards jewellery and watch purchasing, June 2020
    • Men are more likely to be swayed by influencers…
    • …and to make fraudulent returns
      • Figure 84: Shoppers admitting to wearing jewellery/watches before returning the items, by age and gender, June 2020
  23. Attitudes towards Jewellery and Watches

    • People are split regarding the importance of big brands
      • Figure 85: Attitudes towards jewellery and watch purchasing, June 2020
    • Young women turn to curated piercings for unique style
      • Figure 86: People agreeing with the statement ‘Getting extra ear piercings is a good way to create a unique look’, by age and gender, June 2020
  24. Encouraging Shopping during COVID-19

    • Innovations in the sector are needed to encourage online purchasing…
      • Figure 87: Enticing shoppers to buy jewellery or watches online during COVID-19, June 2020
    • …particularly when appealing to young shoppers
      • Figure 88: Enticing shoppers to buy jewellery or watches online during COVID-19, by age, June 2020
      • Figure 89: Pandora’s new virtual try-on experience launched for safer shopping during COVID-19, 2020
    • Hygiene is main concern when visiting stores
      • Figure 90: Enticing shoppers to buy jewellery or watches in-store during COVID-19, June 2020
  25. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  26. Appendix – Market Size and Forecast

    • Forecast methodology

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