In 2005, the jewellery and watches market in the UK was valued at £4.3bn. These were the two most prominent sectors within the jewellery market. However, 2005 also saw a decline in expenditure in these markets due to competition from other products in the consumer electronics and leisure arenas.
Expenditure rates increased on jewellery and watches in the years leading up to 2004. The reasons for this being that consumer spending on personal luxuries increased across a number of different product sectors. It was the diamond sector that was one of the main performers and trends towards white metal also pushed price points upwards.
Branding has become a major feature of the jewellery market, with manufacturer and designer names now popular. The introduction of new fashion labels has also influenced spending trends.
Watch sales have continued to increase. One of the main reasons for this is that many people purchase different watches for different occasions. For example one watch may be purchased for casual wear, another for dinner wear and others for sporting activities etc. Also, the role of a watch is becoming increasingly significant with the amount of new technology available for different things. The success of seasonal collections from the major suppliers has also encouraged further spending.
The market for jewellery and watches is very fragmented, with a large number of suppliers and retailers. There are also global brands and international trade bodies supporting the trade and its products.
A direct challenge has been made to jewellers and retails from the major supermarkets and clothing shops. However, as with many industries in today’s society, it is the Internet that is posing the greatest threat to traditional jewellery and watch retailers. Domestic businesses are developing their sites, but it is traders from outside the UK who are able to compete with the UK organisations. Also, people have the luxury of being able to search on price comparison Websites instead of having to shop around on the local high street.
