Industry Analysis & Industry Trends
The Watch and Jewellery Retailing industry is expected to grow at an annualised 1.9% over the five years through 2015-16. Industry revenue contracted in 2010-11 and 2011-12, largely due to high world gold prices, unstable global financial markets and a significant drop in consumer sentiment. Instability in global financial markets and uncertainty across the domestic economy weakened demand for watch and jewellery items. Subsequent softer retail conditions heightened competition among industry operators as consumers shopped cautiously and focused on price. Higher world gold prices also led to a shift in consumer demand to silver jewellery due to its affordability compared with gold products... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry is characterised by a medium level of concentration. The top four players account for more than 40% of the market in 2015-16. Jewellery buying groups such as Nationwide Jewellers and Showcase Jewellers are a dominate force in the industry, as are larger players such as Products and Michael Hill. Outside of these key players, most industry participants are small-sized operators with fewer than 20 employees. The industry’s moderate barriers to entry and competition, and mature life cycle may also deter new operators from entering the industry and gaining market share.
Michael Hill’s market share concentration has increased over the past five years, while Prouds has suffered, possibly due to the softer retail market during this period... purchase to read more