Market Report 2005 21st Edition October 2005 Edited by Samantha Kidd ISBN 1-84168-860-6 Jewellery & Watches Jewellery & Watches Foreword In today’s competitive business environment, knowledge and understanding of your marketplace is essential. With over 25 years’ experience producing highly respected off-the-shelf publications, Key Note has built a reputation as the number one source of UK market information. Below are just a few of the comments our business partners and clients have made on Key Note’s range of reports. “The Chartered Institute of Marketing encourages the use of market research as an important part of a systematic approach to marketing. Key Note reports have been available in the Institute’s Information and Library Service for many years and have helped our members to build knowledge and understanding of their marketplace and their customers.” The Chartered Institute of Marketing “We have enjoyed a long-standing relationship with Key Note and have always received an excellent service. Key Note reports are well produced and are always in demand by users of the business library.” “Having subscribed to Market Assessment reports for a number of years, we continue to be impressed by their quality and breadth of coverage.” The British Library “Key Note reports cover a wide range of industries and markets — they are detailed, well written and easily digestible, with a good use of tables. They allow deadlines to be met by providing a true overview of a particular market and its prospects.” NatWest “Accurate and relevant market intelligence is the starting point for every campaign we undertake. We use Key Note because they have a report on just about every market sector you can think of, and the information is comprehensive, reliable and accurate.” J Walter Thompson “Market Assessment reports provide an extremely comprehensive source of information for both account handling and new business research, with excellent, clear graphics.” Saatchi & Saatchi Advertising James Donovan Managing Director Key Note Limited © Key Note Ltd 2005 Jewellery & Watches Contents Contents Executive Summary 1 1. Market Definition 2 REPORT COVERAGE.......................................................................................................................2 MARKET SECTORS..........................................................................................................................2 Jewellery ...........................................................................................................................................2 Real Jewellery ...................................................................................................................................2 Fashion Jewellery..............................................................................................................................2 Watches.............................................................................................................................................3 Mechanical Watches.........................................................................................................................3 Quartz Analogue Watches...............................................................................................................3 Quartz Digital Watches....................................................................................................................3 MARKET TRENDS............................................................................................................................3 Fine Jewellery Hallmarking..............................................................................................................3 Table 1: Number and Weight of Articles Processed at UK Assay Offices (000 units and kilograms), 2003 and 2004 .....................................................................................4 Fashion Factors .................................................................................................................................4 2004/2005 Trends..............................................................................................................................5 Colour................................................................................................................................................5 Vintage Style.....................................................................................................................................5 Nature ...............................................................................................................................................5 Yellow Gold ......................................................................................................................................5 Men’s Jewellery ................................................................................................................................5 The UK Wedding Market .................................................................................................................6 Table 2: Number of Marriages and Average Age at First Marriage in the UK (000), 1999, 2001 and 2003 ............................................................................................6 Branded Diamonds...........................................................................................................................6 Two-Tier Pricing................................................................................................................................7 Real ‘Bling’ for Children...................................................................................................................7 ECONOMIC TRENDS.......................................................................................................................8 Gross Domestic Product....................................................................................................................8 Table 3: UK Gross Domestic Product at Current and Annual Prices (£m), 2000-2004 .................8 Household Disposable Income.........................................................................................................8 Table 4: Household Disposable Income per Capita (£), 2000-2004 ...............................................9 Inflation.............................................................................................................................................9 Table 5: UK Rate of Inflation (%), 2000-2004 ................................................................................9 © Key Note Ltd 2005 Jewellery & Watches Contents MARKET POSITION ......................................................................................................................10 The UK.............................................................................................................................................10 Table 6: Index of Consumer Expenditure on Jewellery and Watches Compared with Index of Total Consumer Expenditure (2000=100), 2000-2004 ..........................................10 Overseas ..........................................................................................................................................10 2. Market Size 11 THE TOTAL MARKET....................................................................................................................11 Table 7: The UK Jewellery and Watches Market by Value at Current Prices (£m at rsp), 2000-2004 ......................................................................................11 Figure 1: The UK Jewellery and Watches Market by Value at Current Prices (£m at rsp), 2000-2004 ......................................................................................12 Figure 2: Market Share of Jewellery and Watches in The Total Market by Value at Current Prices (£m at rsp), 2000-2004 .......................................................................13 BY MARKET SECTOR....................................................................................................................13 Jewellery .........................................................................................................................................13 Table 8: The UK Jewellery Sector by Value at Current Prices (£m at rsp and %), 2000-2004 .......................................................................................................14 Real Jewellery .................................................................................................................................14 Table 9: The UK Real Jewellery Subsector by Value at Current Prices (£m at rsp and %), 2000-2004 .......................................................................................................14 Gold ................................................................................................................................................15 Platinum .........................................................................................................................................15 Diamonds .......................................................................................................................................15 Fashion Jewellery............................................................................................................................16 Table 10: The UK Fashion Jewellery Subsector by Value at Current Prices (£m at rsp and %), 2000-2004 .......................................................................................................16