Russian market reference
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COSTUME JEWELLERY MARKET REVIEW
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NEW YEAR GIFTS MARKET REVIEW
COSTUME JEWELLERY MARKET REVIEW
According to the experts' point of view, if to examine the development of the market of costume jewellery and accessories before the crisis, in the year of 2007 the selling of costume jewellery and accessories had increased to 22, 4% in Rubles.
In the first place, the demand for these products was formed at the expense of the increasing of customer interest to semi-precious items and to the developing of the fashion.
In addition, the factor which made the influence on the high indicators of the development of costume jewellery and accessories' market became the coming to Russia the biggest world retailers in the area of costume jewellery and accessories: British "Accessorize" and "Diva", Italian "Colors&Beauty" and American "Clair's" in 2004.
After three years American net "Guess Accessories" had entered the market, too.
In the IV quarter of 2008, under the influence of the world economic crisis, the rate of growth of the market of costume jewellery slowed down practically in two times.
In 2009, the size of the market of costume jewellery and accessories went down 1, 9% in dollars. The main factors making for the market dynamic became the lower of consumer ability of the population, slowdown of clothes market, and lower part of spontaneous buying of the population, including costume jewellery and accessories. Costume jewellery accounts 2/3 from total selling of costume jewellery and accessories at cost ratio.
In 2009 the market of costume jewellery and accessories has reduced, too. In natural ratio the selling returned back on the level in 2005. Partial market stabilization came only in 2010, when the size of semi-precious items' market had increased 7, 7% in cost ratio. In the totals of 2010, the selling on the market resumed and accounted more than 1, 3 billions dollars.
In 2009, the market of precious stones and jewellery had reduced on 38%, and retail selling went down approximately 30% - the difference in sizes is caused by the realization of warehouse stocks. Thanks to all of it many retailers took a new view at their work. The most essential slump had been in the first part of 2009, but in the 4th quarter the situation had stabilized a bit. More than that in January 2010 there is the increasing of turnover in trading for the first time during two years.
According to the experts of "Express-Obzor", there wasn't essential redistribution of the market of jewellery by cost segments in the conditions of crisis - the average cost segment had kept the leading positions on the market.
As the rules, buying of costume jewellery is spontaneous. Costume jewellery isn't the goods of first priority, and the demand for it doesn't depend a lot from the price.
In 2010 the market of wholesale and retail trading of costume jewellery started a sharp increase one of the first. Increase of wholesale trading of costume jewellery was not less than 15% in monetary value.
Traditionally, the jewellery market is divided into three categories:
Low price category includes ornaments, whose value doesn't exceed 18 dollars, and the bulk is sold at retail costs 3,6 -7 dollars. Most items of this price category are made in China, Afghanistan and Syria, although the label is often written "made in Italy". Cheap jewellery is leading in sales volume at natural terms. The main channels of realization for this segment are the open markets, kiosks and stalls.
The average price segment is represented by products sold under its own trademarks. Retail cost of such jewellery ranges from 18 to 54 dollars. There is mostly jewellery of Russian, German, French and Italian firms, as well as some Chinese and Korean manufacturers. Such costume jewellery is quality and fashion. Average price category is the second volume of sales at natural terms, but in the cost equivalent, it is leading, ahead of both cheap and expensive products - its share is 49% of total sales in monetary terms. The main channels of the implementation of this group are counter-glass cases sections, boutiques in shopping malls, departments in department stores, online shops and small specialist shops.
The segment of expensive costume jewellery is presented by the items which average cost is 54-143 dollars; however, the price of exclusive products can reach up to $ 1000. Decorations of such famous fashion houses like Yves Saint-Laurent, Christian Dior, Christian Lacroix, Kenzo and Valentino apply to this group. Costume jewellery of luxury class is available mainly in prestige shops and boutiques of these brands, where clothes and shoes of the same name brands are sold.
Recently there is the tendency of gradual saturation of the market with cheap Chinese and South Korean semi-jewellery decorations. At the same time, consumers demand more quality jewellery. That's why the most perspective niche is average price.
According to experts' forecasts for 2011, good indicators of wholesale trading of costume jewellery should remain in the luxury segment. Sales of average cost segment costume jewellery (from 18 to 54 dollars) will significantly increase in comparison with 2009 and 2010.
Sales of costume jewellery which cost is not higher than 18 dollars in the cheap costume jewellery segment will show stable growth. It's possible that the market growth of costume jewellery will be higher than predictable, as it's going on now with the market of jewellery.
The increase of demands for the classics is expected: first, to the rings, chains, earrings, bracelets, and secondly, to hairpins and hair accessories. Growth of sales of such goods remained at a high level before the crisis, but now the demand for such costume jewellery is steady growing.
The aggregate market of costume jewellery and accessories will completely restore in 2012, when the consumption will be growing almost by pre-crisis rates.
One of the latest market tendencies in the near future will be a redistribution of market share in the direction of the market of accessories (hats, scarves, shawls, belts, etc.). According to the analysts' forecasts, from 2013 the market share of accessories will exceed the market share of costume jewellery. Thus, the market of costume jewellery will relinquish its leading positions.
JEWELLERY MARKET REVIEW.
Since 2001 jewellery sector had intensively developed, annual volume growth of manufacture until the beginning of the financial crisis was 25-30%. It had happened as a result of reducing the tax burden on the sector (the abolition of excise tax) on the one hand and the increase of real incomes of population on the other hand.
As a result of the global financial crisis the demand for gold has changed.
These and other factors have contributed to the already significant decline in the domestic jewellery production as compared to pre-crisis period. As a result, a number of jewellery companies suspended their production activities.
In the first half of 2010 the situation has slightly improved. According to the facts of the Assay Office, in comparison with the data for the six months of 2009, production of gold jewellery in Russia grew by 26.5%, and ornaments of silver - on 16,6%. Simultaneously, the import of gold jewellery rose by 43.8%, and silver at 45.7%.
Thus, we can state that the production of jewellery made of gold didn't reach to the pre-crisis level, and customer demand significantly shifted toward low-cost jewellery from silver.
It should be noted that gold, silver and precious stones, becoming available to the vast number of people have ceased to be luxuries. Jewellery as a commodity to a considerable degree had lost its uniqueness.
The tendency toward the purchases of everyday jewellery, for example, to a dress or suit, was planned.
Russian consumer has changed his attitude towards gold products as the object of investment.
The current consumer, especially in the capital and major cities, is considering rings, earrings, bracelets, chains, as the elements of image and style.
And this is a world tendency.
However, most people can not afford expensive things. According to the experts, today so-called mass production (up to 400 dollars), which occupies 60% of the jewellery market by the number of products, is more in demands.
Basically it is lightweight ornaments weighing 2-3 grams. Approximately 30% is the average price segment (400-900 dollars), and 10% - on high (900-3500 dollars) and premium (over 3500 dollars).
Thus, the bulk of jewellery, including diamonds, in the minds of people became, no matter how seditious it sounds, at expensive costume jewellery.
Hence there is not only reducing the requirements to the design, but generally to the quality, especially compared to the earlier market periods, the original decorations started to be imported from abroad in our country.