All that glitters: Wholesale bypass has been constraining industry revenue growth

Growth in the Jewellery and Watch Wholesaling industry has been subdued over the past five years. Industry revenue is expected to grow at an annualised 0.3% over the five years through 2018-19, to $1.7 billion. A fall in real household discretionary income, and largely negative consumer sentiment have constrained industry revenue growth over the period. In particular, many consumers have limited their spending on low- and mid-range watches and jewellery. However, demand for luxury industry products, such as loose gemstones and fine jewellery, has supported the industry. This is because high-income consumers are less price sensitive when buying upmarket products. In 2018-19, household discretionary income is expected to decline. As a result, industry revenue is expected to fall by more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Wholesale bypass has affected trading conditions across the industry, limiting revenue growth
  • Manufacturers and retailers have been increasingly bypassing merchant jewellery wholesalers
  • Industry consolidation will likely increase profit margins as unprofitable firms exit the industry
  • Industry Report - Industry Locations Chapter

    Jewellery and watch wholesalers are typically located in proximity to major downstream markets and shipping ports. The industry's major markets, jewellery retailers (including both independent and chain store operators) and department stores, tend to be located in urban areas with high population density, such as Sydney and Melbourne. Being located close to downstream markets allows wholesalers to be more responsive in changing their stock to follow trends and suit the needs of retailers and consumers. Proximity to domestic jewellery manufacturers also gives wholesalers a competitive advantage as they can maintain closer relationships with designers and jewellers involved in the production process. Mos...purchase to read more.

    Additional Insights for the Jewellery and Watch Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Jewellery and Watch Wholesaling are:

  • Ability to control stock on hand
  • Having contacts within key markets
  • Level of competition existing in the market
  • IBISWorld analysts also discuss how external factors such as Demand from watch and jewellery retailing and Real household discretionary income in the Jewellery and Watch Wholesaling industry impact industry performance..

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    What's in this report

    What is the Jewellery and Watch Wholesaling Industry?

    Industry operators wholesale jewellery, watches or clocks (including parts), and precious stones or precious metals. Businesses that primarily wholesale fashion jewellery not made with precious metals or gemstones are excluded from the industry.

    Industry Products
  • Fine metal jewellery
  • Watches, clocks and other items
  • Precious stones jewellery
  • Industry Activities
  • Clock wholesaling
  • Gem stone wholesaling
  • Fine jewellery wholesaling
  • Precious metal wholesaling
  • Watch or clock part wholesaling
  • Watch wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from watch and jewellery retailing
  • Real household discretionary income
  • Consumer sentiment index
  • World price of gold
  • Trade-weighted index

  • Current Performance
  • Profit margins
  • Consumer preferences
  • International trade
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Profit and competition
  • Trading landscape
  • Table: Jewellery and Watch Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Jewellery and Watch Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Watch and Jewellery Retailing
  • Consumers

  • Key Selling Industries
  • Jewellery Manufacturing
  • Measurement and Other Scientific Equipment Manufacturing

  • Products & Services
  • Fine metal jewellery
  • Precious stones jewellery
  • Watches, clocks and other items
  • Chart: Jewellery and Watch Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Chain store watch and jewellery retailers
  • Independent watch and jewellery retailers
  • Department stores
  • Consumers
  • Chart: Major Market Segmentation for the Jewellery and Watch Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Advertising
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Jewellery and Watch Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Jewellery and Watch Wholesaling Industry

  • Industry Globalization
    AD Astra Holdings Pty Limited, Swatch Group (Australia) Pty Limited,
  • Table: AD Astra Holdings Pty Limited - financial performance
  • Table: Swatch Group (Australia) Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Jewellery and Watch Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Jewellery and Watch Wholesaling Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A unit of weight in gemstones or unit of measurement that measures the purity of gold, with pure gold being 24 carat.
  • Fine Jewellery
  • Items made of precious metals, precious and semi-precious gemstones.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Jewellery and Watch Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Jewellery and Watch Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Jewellery and Watch Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Jewellery and Watch Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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