Watch and jewellery retailers can expect steady market growth of around 1.8 percent per annum over the next five years, according to the latest IBISWorld report.
Launched this month, the Watch and Jewellery Retailing in Australia report stressed that the sales would be driven by demand for personalised jewellery and fashion accessories, with affordable costume jewellery continuing to account for a notable share of transactions.
Report author Claudia Burgio-Ficca said growth in income levels and fluctuations in consumer sentiment will play an important role in demand trends and retail spending levels but “sales will be hindered by mounting competition from department stores and online shopping sites offering consumers an alternative retail avenue”.
She said sales for the watch and jewellery retailing industry experienced annualised growth of just 0.3 percent over the five years through 2011-12, largely due to “a downturn in economic conditions, decreasing levels of consumer confidence and a softer retail market” which boosted demand for costume jewellery and fuelled the rise in low-cost retailers.
The report also predicted that structural growth across the watch and jewellery market over the five years to 2016-17 is expected to be driven by existing operators who continue to expand their store network.
“Enterprise numbers will rise by an annualised 1.3 percent over the five years through 2016-17 but despite this growth, the industry will be subject to competitive pressure and ageing sole proprietors, which will result in further contractions across the non-employing segment,” the report said.
“Store numbers are expected to rise at a similar annualised rate of 1.3 percent over the next five years… The rise in store numbers will increase demand for staff, with industry employment levels expected to rise by an annualised 1.3 percent over this five-year period. Wages costs across the industry will increase from around $643.3 million in 2012-13 to about $677.4 million by 2016-17.”
Headquartered in Melbourne, IBISWorld provides independent industry and market research reports to a wide range of business, professional service and government organisations.
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