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 Investment Chapter
The industry exhibits a low level of capital intensity. For every dollar spent on capital, $11.33 is spent on wages. As a service industry, wages are a fundamental part of daily operations. Employees are required to undertake several duties, including customer service, product displays and inventory management.
Albeit from a low base, the industry's capital intensity has increased over the past four decades due to the introduction and installation of computerised point of sale (POS) systems. This has simplified labour tasks and minimised employee mistakes. POS systems have also allowed operators to computerise their inventories, which has improved stock control and cost efficiencies... purchase to read more