JEWELRY MARKET INTELLIGENCE: 2013 Jewelry Industry Review The Millennial Influence The Future is Here
Presented by: Carolyn Cohen
April 2014
Copyright 2014. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD. The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential 2 Agenda
2013 Jewelry Industry Year in Review The Millennial Influence The Future is Here
The NPD Group, Inc. | Proprietary and Confidential 3 Agenda
2013 Jewelry Industry Year in Review The Millennial Influence The Future is Here
The NPD Group, Inc. | Proprietary and Confidential 4 2014 Projected Market Share by Classification
With shares of 38% and 29% respectively, jewelry and handbags drive the accessories market.
40% 35% 30% 25% 20% 15% 10% 5% 0%
Source: The NPD Group/Consumer Tracking Service, Annual 2013
The NPD Group, Inc. | Proprietary and Confidential 5 Women’s Fashion/Costume & Bridge Jewelry: Channel Specialty, Department and Internet Pureplays were the winners in 2013, each with 2 point gains in share.
35 Channel Category Dollar Share Distribution 2013 vs. 2012
30 2013 Dollar Share 25 2012 Dollar Share
20
15
10
5
0
Source: The NPD Group/Consumer Tracking Service, Annual 2013
The NPD Group, Inc. | Proprietary and Confidential 6 Fashion/Bridge Jewelry: Occasion Not much changed: Holiday picked up 1 point, while No Special occasion fell 2 points.
Percent of 2013 vs. 2012 Dollar Sales 50 45 40 % of 2013 Dollar Sales 35 % of 2012 Dollar Sales 30 25 20 15 10 5 0
Source: The NPD Group/Consumer Tracking Service, Annual 2013
The NPD Group, Inc. | Proprietary and Confidential 7 Fashion/Bridge Jewelry: Style of Accessories Basic picked up 1 share point while both Trendy and Classy lost a point.
60 Percent of 2013 vs. 2012 Dollar Sales
% of 2013 Dollar Sales 50 % of 2012 Dollar Sales 40
30
20
10
0
Source: The NPD Group/Consumer Tracking Service, Annual 2013
The NPD Group, Inc. | Proprietary and Confidential 8 Women’s Fashion/Sport Watches Shifts in primary reasons for purchase were ‘someone asked for it’ and ‘price.’ Primary Reason for Purchase % of 2012 Dollar Sales % of 2013 Dollar Sales
Quality
Someone asked for it
Brand
Styling/Feature
Price
Caught my eye while shopping
Matches many outfits
0 5 10 15 20 25 30 35
The NPD Group, Inc. | Proprietary and Confidential 9 Method of Purchase
Online purchases grew 4 points since 2011, decreasing brick and mortar stores dollar share of jewelry to 69%. We expect this trend to continue.
80% Annual 2013 Dollar Share % 70% 69% 60% 50% 40% 30% 18% 20% 6% 10% 3% 2% 2% 0% Store Website Catalog TV Mall Kiosk Other Shopping Channel
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
The NPD Group, Inc. | Proprietary and Confidential 10 Age of Wearer
At 60% , Boomers are the most important market . Is this a surprise?
Annual 2013 Dollar Share % 23%
18% 18% 15% 13%
9%
4%
Total Market
13-17 18-24 25-34 35-44 45-54 55-64 65+
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
The NPD Group, Inc. | Proprietary and Confidential 11 US Regional Performance The South Atlantic Region dominates nearly a quarter of the market.
Annual 2013 Dollar Share %
21%
15% 15% 15%
11%
8%
6% 6% 5%
Total Market
New England Middle Atlantic East North Central West North Central South Atlantic East South Atlantic West South Atlantic Mountain Pacific
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
The NPD Group, Inc. | Proprietary and Confidential 12 Purchase Drivers Based on Dollar Share
Gifts and promotions drive half of all jewelry sales.
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
The NPD Group, Inc. | Proprietary and Confidential 13 Design Attributes: Stones
“Gem stones” are in over 50% of Jewelry sales
30% 28% 26% 25% 20%
15% 12% 10% 10% 7% 4% 4% 4% 5% 2% 0%
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
The NPD Group, Inc. | Proprietary and Confidential 14 Design Attributes: Material 42% of the dollars spent are in Gold/Tone while 34% are in Silver/Sterling/Tone
35% 31% 30% 26% 25% 20% 15%
10% 7% 8% 4% 4% 4% 4% 5% 2% 2% 4% 1% 1% 0%
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
The NPD Group, Inc. | Proprietary and Confidential 15 Agenda
2013 Jewelry Industry Year in Review The Millennial Influence The Future is Here
The NPD Group, Inc. | Proprietary and Confidential 16 Type of Accessories Purchased in Last 12 Months
With the exception of handbags, Millennials purchased more accessories than Total Women. Younger Millennials (ages 18 – 24) purchased more hair accessories and fashion jewelry than their older counterparts, ages 25 – 34.
22% Sunglasses 23% 19%
21% Handbags 23% 24%
Tech 22% 22% 25-34 Accessories 17% 18-24 Hair 18% Total Women 22% Accessories 14%
Fashion 19% 21% Jewelry 19%
8% Watches 10% 8%
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
The NPD Group, Inc. | Proprietary and Confidential 17 The voice of a generation
“Believe it or not, if you are a woman, you are a feminist. By default. Nothing to be scared of.”
“Hi I'm Lena. I like raw Buittoni ravioli and making my mom giggle till her asthma kicks in”.
“This morning I was alerted to the fact that I won a Who Wore It Best and I was so f******g happy and my happiness made me so f******g sad.”
The NPD Group, Inc. | Proprietary and Confidential 18 The NPD Group, Inc. | Proprietary and Confidential 19 Tech savvy and raised on the internet, they are the most connected and informed generation. It makes them more demanding, more influential and capable of driving change by activating their own voice
The NPD Group, Inc. | Proprietary and Confidential 20 Multi-tasking as children lead to “the need for speed” as adults; they demand convenience and they are less inclined to settle
The NPD Group, Inc. | Proprietary and Confidential 21 They are . . .
Socially-conscious and decidedly liberal
The NPD Group, Inc. | Proprietary and Confidential 22 A can do attitude of a DIY generation where self- expression, choice and community influence are “rights” and “entitlements”
The NPD Group, Inc. | Proprietary and Confidential 23 Millennial Bella Weens of Origami Owl Charms the market
The NPD Group, Inc. | Proprietary and Confidential 24 Agenda
2013 Jewelry Industry Year in Review The Millennial Influence The Future is Here
The NPD Group, Inc. | Proprietary and Confidential 30 Smart Watches: Dick Tracy Redux?
■ Consumers interested in smart watches desire the same capabilities as smart phones such as calling, email and text
Source: The NPD Group/Wearable Technology Report, March, 2014
The NPD Group, Inc. | Proprietary and Confidential 31 Who’s Wants Fitness Trackers?
■One-in-five US Consumers are interested in purchasing a wearable fitness trackers
Source: The NPD Group/Wearable Technology Report, March, 2014
The NPD Group, Inc. | Proprietary and Confidential 32 Battle of the Sexes ■ Men are more interested in smart watches while women are interested in wearable fitness
Source: The NPD Group/Wearable Technology Report, March, 2014
The NPD Group, Inc. | Proprietary and Confidential 33 “Wearables that don’t look like activity bands or men’s watches”
35 The NPD Group,NPD Inc. Group, | Proprietary and Inc. Confidential | Proprietary and Smart: Bracelet, Cocktail Ring and Pendant
The NPD Group, Inc. | Proprietary and Confidential 36 Zazzi allows you to DIY on the fly
The NPD Group, Inc. | Proprietary and Confidential 37 Good “Old Fashioned” Necklace Case
The NPD Group, Inc. | Proprietary and Confidential 38 Skin Protection – How Much UV is Enough
The NPD Group, Inc. | Proprietary and Confidential 39 To Show Our Appreciation
Special offer: Win an individual, half-hour Accessories industry overview by The NPD Group.
Q&A Raffle based on business cards collected today at the conclusion of this presentation.
The NPD Group, Inc. | Proprietary and Confidential 40 Q&A
The NPD Group, Inc. | Proprietary and Confidential 41 Thank You
Industries Countries Automotive Australia Beauty Belgium Consumer Electronics Brazil Entertainment Canada Fashion China Food / Foodservice France Home Germany Luxury India Mobile Italy Office Supplies Japan Sports Mexico Technology Netherlands Toys New Zealand Video Games Poland Russia South Korea Spain Keep up with what’s new at The NPD Group. Sweden Subscribe to our newsletter and other communications Taiwan by visiting npd.com and clicking “Subscribe.” United Kingdom United States
The NPD Group, Inc. | Proprietary and Confidential 42