Transcript Opportunity Analysis Dashboard

Opportunity Analysis Dashboard
Product
Category:
• Luxury Goods, with an
emphasis on Jewelry.
Market Overview:
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The Jewelry industry can be termed as a global
industry, because raw materials are derived from
Australia, Africa, Russia and Canada, manufacturing
takes place in China, India, Italy and Turkey whereas the
largest retail markets of jewelry are USA, Europe, Far
East, Middle East and Asia. (11)
Designer, Costume, imitation, fine, and other types of
jewelry are the different main groups and trends for
this market.(11)
During 2009 the price of gold tripled in the previous
four years, which caused the demand to drop but at
the same time the revenue to rise substantially for gold
jewelry and higher class to demand for gold to
increase.(14)
With the available resources online, internet shopping
has become a popular trend in the jewelry industry.(8)
About two-thirds of fine jewelry is sold around the
holidays.(9)
Getting a ‘look for their money’ is a key trend for
women ages 45 and up who buy jewelry’ just because’
and take over half of the consumers in the industry.(9)
The other target market group is men buying for
women minus the watch industry which is dominated
by mostly men.(17)
Name: Sarah Nick
Assignment 1
Market Sizing
Global
Market Size
(2006)
U.S. Market
Size (2006)
Global CAGR
(2001 – 2006)
US Predicted
Growth
(2010 – 2015)
146 Billion
45.15 Billion
5.2%
24.32%
Source: Datamonitor, fashion product
• 54.3% believe they will spend the same amount on fine jewelry in the
next 12 months as they have in the past 12 months. Only 10.6%
believe they will spend more this year.
• 72.4% say that their spending on fine jewelry and accessories has
decreased because of the recent economy change and they would
rather spend it on more sociably responsible things.
• Among all types of jewelry the designer jewelry is the largest
segment of the industry with an approximate growth rate of 69 bill
and a CAGR of 5% over the last 6 years. It is followed by costume
jewelry, which had a total sale of 60.7 bill.
Table 2 Opportunities and Threats
Opportunities
• Strong market growth
predicted
• Technology advances
• Constant innovations
• Favorable trend/luxury good
for consumers
• Various items included in
market
• Seen as being sociably
responsible when associated to
special occasions.
Threats
• Trends always being updated
and changing
• Economy/recession
• Other luxury good items
besides jewelry
• Shortage in supplies leads to
increase in pricing
• Unfavorable trends for
consumers
• Seen as not being sociably
responsible
Table 3 Competitive Landscape
Company
Brand
Key Competing
Product
Average Price per
Unit
Target Market
Jostens
Jostens
Class rings
Sports Rings
Custom Rings
$124.00 - $2,000
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Tiffany & Co.
Tiffany & Co.
Paloma Picasso
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Kay
Kay Jewelers
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Women & Men
ages 16 and up
Higher income
Athletes
Students
Necklaces &
Pendants
Silver Jewelry
$150 - $40,000
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Women
Men
Upper class
individuals
Rings, jewelry,
necklaces,
watches, earrings
Baby jewelry
Wedding bands
$9.60 - $53,000
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Women
Men
Babies
Children
$129 - $14,1650
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Women
Men
Collegiate
level/age and up
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Adult Men &
Women
finks
Finks
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Watches
Rings, earrings,
bracelets,
necklaces,
pendants
Rolex
Rolex
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Watches
Movado
Movado
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Watches
$295 - $850
Logo
Competitors’ strengths and Weaknesses
Market Share Analysis (Global)
China
India 9%
Italy 8%
5%
Japan
8%
Rest of
the
world
24%
USA
31%
Turkey
3% Middle
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UK
East
3%
9%
The US dominates the global market, other countries
that are rapidly growing since 2005 are china and japan.
With lower labor costs outside the US but China and
US population rapidly growing they could become
close competitors predicted within the previous years
to come.
Jewelry Market Segmentation
Designer
44%
Costume
Jewelry
44%
Imitation
Others
Jewelry
5%
7%
• It seems that the industry is segmented into four
different product sectors.
• Costume and designer/fine jewelry are the most
dominate sectors due to the constant trends in fashion,
media received by publics, and target market groups
It seems that the majority of the jewelry industry is dominated by
several small manufacturers/designers and a few more dominate
companies depending on the types of jewelry that is being analyzed.
The worldwide gem, jewelry, and watch industry is dynamic and
evolving. With there being so many companies it makes the competitive
market high for jewelers making it look as if they could all blend
together at some point. The key is to have a product that stands out
from the rest and will either be affordable for middle class or satisfy the
needs of the upper class and be at a more expensive price. The market
doesn’t seem to be stopping or decreasing in sales at all but with the
economy being in recession in the past few years the target market has
been directed towards the upper class seeing as they are the ones that
can afford the precious gems. With constant innovation the competitive
market is always changing therefore companies always have to be up-todate with trends. Also, as raw materials are being constantly needed it
can fluctuate changes within this industry which vastly depends on
pricing, scarcity, and popularity. Another key not for global competitors
more than US the labor outside of the US is cheaper therefore may
result in a lower retail price in some countries and could raise their
percentage in the global market.
Overall Conclusions
Seeing that this industry is a growing and constant trend setting market
it seems to be possible to start a new product line within. With the
right research and materials to stay on task with specific trends and the
right target market which stated about if mostly women and men as
well and the trends are being innovated almost every season or holiday,
as long as one is to go in with a competitive edge in the industry it is
doable. With the rising prices of raw materials, such as gold, it is proven
that this wont affect consumer decision. If they want a piece of jewelry,
considering it is a luxury good, they will more than likely purchase it
based off of their wants. Watches have always been a trend, Engagement
rings wont stop being a trend, and fine jewelry is a people pleaser in
many cases. This industry seems to be growing therefore is a strong, but
competitive market to enter.
References
1.
Jostens. (2011). Retrieved from http://www.jostens.com/.
2.
Tiffany & Co. (2011). Retrieved from http://www.jostens.com/.
3.
Kay jewelers. (2011). Retrieved from http://www.kay.com/webapp/wcs/stores/servlet/home|10101|10001|-1|15051.
4.
Fink’s. (2011). Retrieved from http://www.finks.com/.
5.
Rolex. (2011). Retrieved from http://www.rolex.com/en#/home#tw.
6.
Movado. (2011). Retrieved from http://www.movado.com/.
7.
Apparel, Accessories, and Luxury Goods Industry Profile: Global. (2011). Datamonitor. Retrieved from EBSCOhost
8.
MVI Marketing. (2009). The 4 faces of today’s internet jewelry consumer. Retrieved from http://www.mvimarketing.com
9.
The Wall Street Journal. (2011). Jewelry style waits for no man, buy it yourself. Retrieved from www.wsj.com.
10.
JIC Jewelry Trends. (2011). Retrieved from http://www.jic.org/?page=jewelry-trends.
11.
Fashion Products. (2010). Retrieved from http://www.fashionproducts.com/fashion-accessories-overview.html.
12.
IBIS World. (2011). Retrieved from http://www.ibisworld.com/industry/default.aspx?indid=888.
13.
CIBJO The U.S. Jewelry Consumer & Social Responsibility Research. (2008). Survey. Retrieved from EBSCOhost
14.
Shuster, W. (2009, March). Can US jewelry Manufacturers Survive, part 1-2. Retrieved from EBSCOhost
15.
MVI. (2011). The Hispanic Jewelry Market in the USA. Retrieved from
http://www.mvimarketing.com/hispanic_jewelry_market.php.
16.
MJSA. (2011). Common Trends & Journals. Retrieved from http://www.mjsa.org/.
17.
MVI. (2010, August). Men and Their Jewelry, pg 3-32. Retrived from www.mvimarketing.com