The US jewellery market has been forecast to see its value sales grow at a compound annual growth rate (CAGR) of 11% over the next five years, to reach a market value of US$64 billion by 2017.
The major growth drivers overhauling the growth of the US jewellery industry are: increasing internet penetration, rising global gross national income and ease of shopping with the information available at a click. But, putting the benefits apart, there are certain factors like risk of cyber crime/online fraud and lack of expert advice and real product examination, posing acute challenges in front of the respective industry.
After several losses during the recession, jewellery stores will come out of the downturn with renewed consumer sentiment and strong profit performance. Demand for high-valued pieces like engagement rings will drive industry growth, as competition from budget-conscious retailers and supercenters remains limited. Furthermore, revived demand for luxury goods will cause stores to raise their prices, benefiting profit margins.
The US jewellery market is very fragmented, with no single company controlling more than 7% of the market for real jewellery and 5% for costume jewellery. Sterling Jewelers Inc is the leader in jewellery overall, with a 6% value share in 2011, unchanged from 2010. The company owns the number one jewellery brand in the US, Kay Jewelers, and the number five Jared the Galleria. Sterling Jewelers has been able to maintain its leadership in jewellery through its large store base and extensive investment in marketing.
Increased confidence about the US economy is expected to lead to increased sales of both real and costume jewellery over the next five years. Fashion trends emphasising a retro look are expected to lead to good demand for jewellery, especially costume jewellery. Consumers are expected to look for retro glamour looks, as well as flashier statement pieces.
For more information on the US jewellery market, see the latest research: US Jewellery Market
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