Fflur Roberts. Luxury Jewellery Overview of Industry and Consumer Trends

© Euromonitor International

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LUXURY JEWELLERY GLOBAL OVERVIEW OF INDUSTRY AND CONSUMER TRENDS

INTERNATIONAL JEWELLERY LONDON 2013

SEPTEMBER 4TH

FFLUR ROBERTS

THE STATE OF THE LUXURY MARKET

THE GLOBAL JEWELLERY MARKET

FOCUS ON LUXURY JEWELLERY

TRENDS IN THE UK

FUTURE PROSPECTS




TRENDS IN THE UK

FUTURE PROSPECTS


4

-8

-6

-4

-2

0

2

4

6

8

10

12

14

0

50

100

150

200

250

300

350

400

2007 8 9 10 11 12 13 14 15 16 17

%v

alu

e g

ro

wth

US

$ b

illi

on

Global Luxury Sales and Growth 2007/17 US$ Billion

US$ billion Year-on-Year % Growth

Where is the luxury goods market heading?


Global Financial

Crisis

Eurozone Sovereign

Debt Crisis

4% global growth since

2011


2007

25% global growth by

2017

http://www.euromonitor.com/


5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% v

alu

e s

ha

re

20

07

/20

17

Luxury Sales Developed vs. Emerging Markets % Split

Developed Emerging

Emerging markets are driving growth


-10

-5

0

5

10

15

20

25

30

35

% v

alu

e g

ro

wth

20

07

-20

17

Luxury Growth Developed vs. Emerging Markets

Developed World Emerging

Forecast



6

…But developed markets remain largest spenders


USA Japan Italy France China ROW

Worlds Top 5 Luxury Markets Value Sales % share 2012

Ukraine +102% Hong Kong

+103% Argentina +131% China +172% India +495%



7

0

10

20

30

40

50

60

70

80

0

20

40

60

80

100

120

140

% v

alu

e g

ro

wth

20

07

-20

12

US

$ b

illi

on

20

12

Global Luxury Goods Sales and Growth by Product Category

The movers and shakers


Louis Vuitton, Place Vendome Paris, 2012

Versace , fine jewellery collection, 2012





TRENDS IN THE UK

FUTURE PROSPECTS


9

-10

-5

-

5

10

15

20

-

50

100

150

200

250

300

350

400

450

2007 8 9 10 11 12 13 14 15 16 2017

% v

alu

e g

ro

wth

US

$ b

illi

on

Global Jewellery Sales and Growth 2007 - 2017 US$ Billion

Global jewellery sales returns to single digit growth



2011


2007

41% global growth by

2017



10

Jewellery Sales Developed vs. Emerging Markets % Split

World Leading Jewellery Market Sales US$ Billion 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% v

alu

e s

ha

re

Developed Markets Emerging Markets0

10

20

30

40

50

60

70

80

China USA India Japan Russia

US

$ b

illi

on

China, India, Russia: the powerhouses of jewellery


China India Russia 42%



11

-20

0

20

40

60

80

100

120

% u

nit

pr

ice

gr

ow

th (

20

07

-12

)

Unit price rises propel jewellery growth


2007 2012

2007 2012

US$ 2,402 US$ 2,636

US$ 385 US$ 467

Luxury Jewellery

Total Jewellery : Average Unit Price Growth 2007-12

Non-Luxury Jewellery



12

2007

Non-Luxury

Is luxury jewellery struggling in a “premium” led world


2012

Luxury

2017

Costume

Chow Tai Fook, China

Kay Jewelers,

USA

Tanishq,

India





TRENDS IN THE UK

FUTURE PROSPECTS


14

-10

-5

0

5

10

15

0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

%v

alu

e g

ro

wth

US

$ b

illi

on

Global Luxury Jewellery Sales and Growth 2007 - 2017 US$ Billion

Luxury Jewellery Sales US$ bn Luxury Jewellery Growth %

Luxury jewellery reaches US$35 billion in 2012




15

< US$ 0.5 Billion US$ 0.5-7 Billion

Western market domination unquestionable in luxury jewellery


> US$ 12 Billion US$ 7-12 Billion

+17%

+56%

+5%

+133%

+49%

+1%

-9%



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Top 10 Luxury Jewellery Markets 2012

Top 10 Future Luxury Jewellery Growth Markets 2012-17

USA

USA Italy France Canada

India Germany Japan China

Spain UK

Rank

1

2

3

4

5

6

7

8

9

10

Country

India

Malaysia

China

UAE

Indonesia

Singapore

Poland

South Korea

Australia

Thailand

% Growth

191

99

92

66

61

56

47

47

39

37

Second and third tier emerging markets hold positive revenue potential




17

-50

0

50

100

150

200

250

Asia Pacific LatinAmerica

Middle Eastand Africa

NorthAmerica

WesternEurope

% v

alu

e g

ro

wth

Luxury Jewellery Growth Sales Men’s vs. Women’s 2007-12

Men's Luxury Jewellery Women's Luxury Jewellery

Shift towards discretionary and aspirational male spending


2,310% India’s growth in men’s luxury

jewellery since 2007

32% global growth in

men’s luxury jewellery since 2007

10% global growth in women’s luxury

jewellery since 2007


http://www.google.co.uk/url?sa=i&rct=j&q=woman+icon+no+background&source=images&cd=&cad=rja&docid=rY_AaDRsn6HHKM&tbnid=8L4MZL5BanUp7M:&ved=0CAUQjRw&url=http://www.datehookup.com/Thread-1040423.htm&ei=x9mDUa_uOeKu0QWn2oHIBw&bvm=bv.45960087,d.d2k&psig=AFQjCNHNznhpzOrHhwHa_z4xVwi_rDLDQg&ust=1367681847581147


TRENDS IN THE GLOBAL JEWELLERY MARKET

FOCUS ON THE LUXURY JEWELLERY MARKET

FOCUS ON THE UK

FUTURE PROSPECTS


19

-4

-2

0

2

4

6

8

0

100

200

300

400

500

600

700

800

2007 2008 2009 2010 2011 2012

% v

alu

e g

ro

wth

£ m

illi

on

UK: Luxury Jewellery Sales and Value Growth £ mn 2007-12

Men's Luxury Jewellery Women's Luxury Jewellery

Men's % Value Growth Women's % Value Growth

Non-Luxury Jewellery % Value Growth

The UK luxury jewellery market

FOCUS ON THE UK

-3% UK decline in non-

luxury jewellery sales since 2011

+5% UK growth in

luxury jewellery since 2011



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BRIC’s Top 5 European Destinations by Expenditure 2012

BRIC’s Tourism Expenditure in the UK £ mn 2007/2012/2017

• France • Spain • Italy • Portugal • UK

Brazil

• Turkey • Finland • Spain • Italy • Greece

Russia

• UK • France • Germany • Switzerland • Netherlands

India

• France • Switzerland • Germany • Spain • UK

China 0

100

200

300

400

500

600

700

800

900

Brazil Russia India China

£ m

illi

on

2007 2012 2017

The UK as the wealthy tourists luxury shopping destination

FOCUS ON THE UK



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Luxury jewellery growth constrained by visa restrictions

FOCUS ON THE UK

0

200

400

600

800

1,000

1,200

1,400

France Italy UK

nu

mb

er

of

ar

riv

als

(0

00

)

Arrivals From China Arrivals fron Brazil

Arrivals from Russia Arrival From India

Harrods installed 75 China Union Pay terminals in 2011

The Ritz Hotel introduced Mandarin

menus in 2010



TRENDS IN THE GLOBAL JEWELLERY MARKET

FOCUS ON THE LUXURY JEWELLERY MARKET

FOCUS ON THE UK

FUTURE PROSPECTS


23 FUTURE PROSPECTS

US$3,000 million +

US$1,000-2,999 million

US$300-999 million

US$100-299 million

US$0-99 million

191%

7%

29%

8%

29%

6% 10% 92%

99%

61%

India and US: The Powerhouses of luxury jewellery in the future



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-10 -5 0 5 10

Basic Priced

Mid Priced

High Priced

% value growth

UK: Watch Sales Growth by Price Band 2008-13/2013-18

2013-18 % Growth

2008-13 % Growth

Portfolio diversification is the future

FUTURE PROSPECTS

88 Rue du Rhone, £275 - £2,500

Raymond Weil,

£600- £3,500



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The Internet Generation Going Mobile

Social Media Digital vs. Bricks-& -Mortar

The digital revolution will further inspire innovation in luxury branding

FUTURE PROSPECTS


http://www.google.co.uk/url?sa=i&rct=j&q=gucci+facebook&source=images&cd=&cad=rja&docid=NrlCecqiwhZ9dM&tbnid=qDkSXNAWrmHFEM:&ved=0CAUQjRw&url=http://www.thestyleking.com/fashion/gucci-brings-specs-appeal-to-facebook/&ei=l-1_UbWrBdOm0wWX8IGwDQ&bvm=bv.45645796,d.ZWU&psig=AFQjCNEeoT0LgpOcEJKXOj8QD5Wuy7ZDmA&ust=1367424784544122


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THANK YOU FOR LISTENING

Fflur Roberts - Head of Luxury Research

[email protected]


mailto:[email protected]

Documents

Fflur Roberts. Luxury Jewellery Overview of Industry and Consumer Trends