1

LUXURY JEWELLERY
GLOBAL OVERVIEW OF INDUSTRY AND CONSUMER TRENDS
INTERNATIONAL JEWELLERY LONDON 2013
SEPTEMBER 4TH
FFLUR ROBERTS

Euromonitor International

THE STATE OF THE LUXURY MARKET

THE GLOBAL JEWELLERY MARKET

FOCUS ON LUXURY JEWELLERY

TRENDS IN THE UK
FUTURE PROSPECTS

THE STATE OF THE LUXURY MARKET

THE GLOBAL JEWELLERY MARKET

FOCUS ON LUXURY JEWELLERY

TRENDS IN THE UK
FUTURE PROSPECTS

THE STATE OF THE LUXURY MARKET

Where is the luxury goods market heading?

4%

Global Luxury Sales and Growth 2007/17 US$ Billion

400
350

global growth since

2011

14
12
10

300

250

6
4

200

150

100

-2
-4

50

-6

-8
2007

US$ billion
Euromonitor International

10

11

12

13

14

15

16

Year-on-Year % Growth

17

%value growth

US$ billion

Eurozone
Sovereign
Debt Crisis

Global
Financial
Crisis

22%
global growth since
2007

25%
global growth by
2017

THE STATE OF THE LUXURY MARKET

Emerging markets are driving growth

Luxury Sales Developed vs.
Emerging Markets % Split

Luxury Growth Developed vs.

Emerging Markets

100%

35
30

80%

% value growth 2007-2017

% value share 2007/2017

90%

Forecast

70%
60%
50%
40%
30%

20%

25
20
15
10
5

10%

0%

-5

-10
Developed
Euromonitor International

Emerging

Developed

World

Emerging

THE STATE OF THE LUXURY MARKET

But developed markets remain largest spenders

Worlds Top 5 Luxury Markets Value Sales % share 2012

USA

Ukraine +102%

Euromonitor International

Japan

Hong Kong
+103%

Italy

France

Argentina +131%

China

China +172%

ROW

India +495%

THE STATE OF THE LUXURY MARKET

The movers and shakers

140

80

120

70

US$ billion 2012

100
80

60
50
40

60
40

30
20

20

10

% value growth 2007-2012

Global Luxury Goods Sales and Growth by

Product Category

Louis Vuitton, Place

Vendome Paris, 2012

Versace , fine jewellery

collection, 2012

Euromonitor International

THE STATE OF THE LUXURY MARKET

THE GLOBAL JEWELLERY MARKET

FOCUS ON LUXURY JEWELLERY

TRENDS IN THE UK
FUTURE PROSPECTS

THE GLOBAL JEWELLERY MARKET

Global jewellery sales returns to single digit growth

450

Global Jewellery Sales and Growth 2007 - 2017

US$ Billion

9%

20

global growth since

2011

400
15

US$ billion

300

10

250
5
200
150

100
-5
50
-

-10
2007

Euromonitor International

10

11

12

13

14

15

16

2017

% value growth

350

45%
global growth since
2007

41%
global growth by
2017

10

THE GLOBAL JEWELLERY MARKET

China, India, Russia: the powerhouses of jewellery

Jewellery Sales Developed vs.
Emerging Markets % Split

World Leading Jewellery Market

Sales US$ Billion 2012

100%

80

80%

70

70%

60

60%
50%

US$ billion

% value share

90%

40%
30%
20%
10%

50
40
30
20

0%

10
Developed Markets

China

Euromonitor International

Emerging Markets

India

China

Russia

USA

India

42%

Japan Russia

11

THE GLOBAL JEWELLERY MARKET

Unit price rises propel jewellery growth

Luxury Jewellery

2012 US$ 2,636

Non-Luxury Jewellery

2007

US$ 385

2012

US$ 467

% unit price growth (2007-12)

2007 US$ 2,402

120

100
80
60
40
20
0
-20

Euromonitor International

Total Jewellery : Average Unit Price

Growth 2007-12

12

THE GLOBAL JEWELLERY MARKET

Is luxury jewellery struggling in a premium led world

2007

Non-Luxury

Chow Tai Fook,

China
Euromonitor International

2012

Luxury

Kay Jewelers,
USA

2017

Costume

Tanishq,
India

THE STATE OF THE LUXURY MARKET

THE GLOBAL JEWELLERY MARKET

FOCUS ON LUXURY JEWELLERY

TRENDS IN THE UK
FUTURE PROSPECTS

14

FOCUS ON LUXURY JEWELLERY

Luxury jewellery reaches US$35 billion in 2012

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

60

15

10

40
5
30
0
20

%value growth

US$ billion

50

-5

10

-10
2007

2008

2009

2010

2011

2012

Luxury Jewellery Sales US$ bn

Euromonitor International

2013

2014

2015

2016

Luxury Jewellery Growth %

2017

15

FOCUS ON LUXURY JEWELLERY

Western market domination unquestionable in luxury jewellery

+56%

+1%
-9%

+133%

+5%
+17%
+49%

> US$ 12 Billion

Euromonitor International

US$ 7-12 Billion

US$ 0.5-7 Billion

< US$ 0.5 Billion

16

FOCUS ON LUXURY JEWELLERY

Second and third tier emerging markets hold positive revenue potential
Top 10 Luxury Jewellery Markets
2012

USA

USA

Italy

France

Canada

India

Germany

Japan

China

Spain

UK

Euromonitor International

Top 10 Future Luxury Jewellery

Growth Markets 2012-17
Rank

Country

% Growth

India

191

Malaysia

99

China

92

UAE

66

Indonesia

61

Singapore

56

Poland

47

South Korea

47

Australia

39

10

Thailand

37

17

FOCUS ON LUXURY JEWELLERY

Shift towards discretionary and aspirational male spending

250

Luxury Jewellery Growth Sales Mens vs.

Womens 2007-12

Indias growth in mens luxury

jewellery since 2007

200

% value growth

2,310%

150

32%

100

global growth in
mens luxury
jewellery since 2007

50

0
Asia Pacific

Latin
America

Middle East
and Africa

North
America

Western
Europe

-50
Men's Luxury Jewellery
Euromonitor International

Women's Luxury Jewellery

10%

global growth in
womens luxury
jewellery since 2007

THE STATE OF THE LUXURY MARKET

TRENDS IN THE GLOBAL JEWELLERY MARKET
FOCUS ON THE LUXURY JEWELLERY MARKET

FOCUS ON THE UK
FUTURE PROSPECTS

19

FOCUS ON THE UK

The UK luxury jewellery market

800

UK: Luxury Jewellery Sales and Value Growth

mn 2007-12

700

-3%

6
4

million

500
400

300

200
-2

100
0

-4
2007

2008

2009

Men's Luxury Jewellery

Men's % Value Growth
Non-Luxury Jewellery % Value Growth
Euromonitor International

2010

2011

2012

Women's Luxury Jewellery

Women's % Value Growth

% value growth

600

UK decline in nonluxury jewellery sales

since 2011

+5%
UK growth in
luxury jewellery
since 2011

20

FOCUS ON THE UK

The UK as the wealthy tourists luxury shopping destination

BRICs Tourism Expenditure in the UK
mn 2007/2012/2017

BRICs Top 5 European

Destinations by Expenditure 2012

France
Spain
Italy
Portugal
UK

Brazil

UK
France
Germany
Switzerland
Netherlands

India

Turkey
Finland
Spain
Italy
Greece

Russia

France
Switzerland
Germany
Spain
UK

China

900

800
700
600
million

500
400
300
200
100
0
Brazil

Russia
2007

Euromonitor International

India
2012

China
2017

21

FOCUS ON THE UK

Luxury jewellery growth constrained by visa restrictions

1,400

number of arrivals (000)

1,200
1,000
Harrods installed 75
China Union Pay
terminals in 2011

800
600

400
200
0
France
Arrivals From China
Arrivals from Russia
Euromonitor International

Italy

UK
Arrivals fron Brazil
Arrival From India

The Ritz Hotel

introduced Mandarin
menus in 2010

THE STATE OF THE LUXURY MARKET

TRENDS IN THE GLOBAL JEWELLERY MARKET
FOCUS ON THE LUXURY JEWELLERY MARKET

FOCUS ON THE UK
FUTURE PROSPECTS

23

FUTURE PROSPECTS

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

7%

8%
10%

6%

92%

29%

99%
29%

US$3,000
million +
Euromonitor International

191%

US$1,0002,999 million

US$300-999
million

US$100-299
million

61%

US$0-99
million

24

FUTURE PROSPECTS

Portfolio diversification is the future

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

High Priced
88 Rue du Rhone,
275 - 2,500
Mid Priced

2013-18 % Growth
2008-13 % Growth

Basic Priced

-10

-5
Euromonitor International

0
% value growth

10

Raymond Weil,
600- 3,500

25

FUTURE PROSPECTS

The digital revolution will further inspire innovation in luxury branding

The Internet Generation

Going Mobile

Social Media

Digital vs. Bricks-& -Mortar

Euromonitor International

26

THANK YOU FOR LISTENING

Fflur Roberts - Head of Luxury Research
Fflur.roberts@euromonitor.com

Euromonitor International