UK market set to reach 5.32bn

The recent upturn in the United Kingdom's jewellery and watches market is set to continue with sales likely to reach 5.32bn in 2015, according to…

The recent upturn in the United Kingdom’s jewellery and watches market is set to continue with sales likely to reach £5.32bn in 2015, according to the latest Research and Markets report.

The company’s Jewellery & Watches Market Report 2011 found that retail sales of jewellery and watches (precious and fashion/costume) in the UK grew by 1.8 percent in 2010 to total £4.64bn.

“The recent upturn in the market in 2009 and 2010 after two years of negative growth is attributable to a slight recovery in the economy and consumers investing back into the luxury market,” the report said.

“Trends imply that, although consumers have started investing in the jewellery market, there is much division between the sectors, with the actual sales of real jewellery having experienced a small increase in terms of value, while cheaper fashion alternatives have seen a high rise in sales.

“Overall, the trends indicate that, despite the fact consumers have started spending in the industry, they are still conscious of prices, often opting for cheaper alternatives to real jewellery.”

The report also noted that increased competition in the market over the last few years has left the future uncertain for some smaller, independent companies, as the large retailers dominate with lower-cost branded goods.

“The Internet and online stores have also created further competition.

 “Price comparison sites also indicate the cheapest version of products, which are more often than not offered by the larger retailers as opposed to the independents.”

The report concluded that the market for jewellery and watches in the UK is expected to see continual growth as the economy continues to recover, with consumers becoming more spontaneous with their spending, as seen before the recession.