In its industry study entitled Watch and Jewellery Retailing in Australia, global research company IBISWorld said retail jewellery and watch sales had increased by 1 per cent over the past five years through to 2010-11.
IBISWorld said this was a substantial amount considering the industry has faced one of its biggest challenges – an increasingly price-driven and competitive market.
The study attributed the surge in sales to “continued growth across the domestic economy along with a solid rise in disposable income levels”.
The report added, “Sales will be driven by continued trends in the type of fashion jewellery demanded by consumers along with popularity of personalised jewellery, custom orders and specifically designed pieces.”
More stores?
The report also forecast a surge in both independent and chain store numbers in the next five years.
However, in the long term IBISWorld believes independent retailers will suffer. The study predicted a demise in ‘mum and dad’ stores after 2015-16 and greater concentration within the industry as independent retailers struggle to compete against “larger, more efficient chain stores and buying groups”.
Future trends
Key trends in 2011 will include chunky necklaces, wide bracelets, large cocktail rings, hoop and chandelier-style earrings, according to IBISWorld.
The study also suggested that branded jewellery will experience a surge in sales, despite the general reluctance of jewellery retailers to embrace new entrants to the market.
Georgini, Thomas Sabo, Teno, Lust Pearls, Opals Australia, Dora and Karen Walker Jewellery were referenced as brands that have gained prominence since mid-2007.
Jewellery repairs are expected to take precedence over replacements and rogue traders selling synthetically produced diamonds as the real thing is expected to become a serious concern for jewellery retailers in the next few years.
More reading:
Australian jewellers stand strong