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JEWELRY MARKET INTELLIGENCE:
2013 Jewelry Industry Review
The Millennial Influence
The Future is Here
Presented by: Carolyn Cohen
April 2014
The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential
2013 Jewelry Industry Year in Review
The Millennial Influence
The Future is Here
Agenda
3
The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential
2013 Jewelry Industry Year in Review
The Millennial Influence
The Future is Here
Agenda
4
The NPD Group, Inc. | Proprietary and Confidential 5
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014 Projected Market Share by Classification
With shares of 38% and 29% respectively, jewelry and handbags drive the
accessories market.
Source: The NPD Group/Consumer Tracking Service, Annual 2013
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Women’s Fashion/Costume & Bridge Jewelry: Channel
6
Channel Category Dollar Share Distribution 2013 vs. 2012
0
5
10
15
20
25
30
35
2013 Dollar Share
2012 Dollar Share
Specialty, Department and Internet Pureplays were the winners in 2013, each
with 2 point gains in share.
Source: The NPD Group/Consumer Tracking Service, Annual 2013
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Fashion/Bridge Jewelry: Occasion
7
0
5
10
15
20
25
30
35
40
45
50
% of 2013 Dollar Sales
% of 2012 Dollar Sales
Not much changed: Holiday picked up 1 point, while No
Special occasion fell 2 points.
Percent of 2013 vs. 2012 Dollar Sales
Source: The NPD Group/Consumer Tracking Service, Annual 2013
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Fashion/Bridge Jewelry: Style of Accessories
8
Basic picked up 1 share point while both Trendy and Classy lost a point.
0
10
20
30
40
50
60
% of 2013 Dollar Sales
% of 2012 Dollar Sales
Percent of 2013 vs. 2012 Dollar Sales
Source: The NPD Group/Consumer Tracking Service, Annual 2013
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Women’s Fashion/Sport Watches
9
Primary Reason for Purchase
0 5 10 15 20 25 30 35
Matches many outfits
Caught my eye while shopping
Price
Styling/Feature
Brand
Someone asked for it
Quality
% of 2012 Dollar Sales % of 2013 Dollar Sales
Shifts in primary reasons for purchase were ‘someone asked
for it’ and ‘price.’
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Method of Purchase
69%
18%
3% 2% 2% 6%
Store Website Catalog TV Shopping Channel
Mall Kiosk Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
10
Online purchases grew 4 points since 2011, decreasing brick and mortar stores
dollar share of jewelry to 69%. We expect this trend to continue.
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
Annual 2013 Dollar Share %
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Age of Wearer
4%
9%
15% 13%
18%
23%
18%
Total Market
13-17 18-24 25-34 35-44 45-54 55-64 65+
11
Annual 2013 Dollar Share %
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
At 60% , Boomers are the most important market . Is this a surprise?
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US Regional Performance
5%
15% 15%
6%
21%
6%
11%
8%
15%
Total Market
New England Middle Atlantic East North Central West North Central South Atlantic
East South Atlantic West South Atlantic Mountain Pacific
Annual 2013 Dollar Share %
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Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
The South Atlantic Region dominates nearly a quarter of the market.
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Purchase Drivers Based on Dollar Share
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Gifts and promotions drive half of all jewelry sales.
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
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Design Attributes: Stones
4% 4%
26%
7%
28%
10% 12%
4% 2%
0%
5%
10%
15%
20%
25%
30%
14
“Gem stones” are in over 50% of Jewelry sales
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
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Design Attributes: Material
4% 4% 1%
7%
31%
4% 2%
1% 2%
26%
4% 4%
8%
0%
5%
10%
15%
20%
25%
30%
35%
15
42% of the dollars spent are in Gold/Tone while 34% are in Silver/Sterling/Tone
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
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2013 Jewelry Industry Year in Review
The Millennial Influence
The Future is Here
Agenda
16
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Type of Accessories Purchased in Last 12 Months
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8%
19%
14%
17%
24%
19%
10%
21%
22%
22%
23%
23%
8%
19%
18%
22%
21%
22%
Watches
Fashion Jewelry
Hair Accessories
Tech Accessories
Handbags
Sunglasses
25-34
18-24
Total Women
Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry
With the exception of handbags, Millennials purchased more accessories than
Total Women. Younger Millennials (ages 18 – 24) purchased more hair
accessories and fashion jewelry than their older counterparts, ages 25 – 34.
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The voice of a generation
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“Believe it or not, if you are a woman,
you are a feminist. By default. Nothing to
be scared of.”
“Hi I'm Lena. I like raw Buittoni ravioli and
making my mom giggle till her asthma
kicks in”.
“This morning I was alerted to the fact that
I won a Who Wore It Best and I was so
f******g happy and my happiness made me
so f******g sad.”
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Tech savvy and raised on the internet, they are the most connected and informed generation.
It makes them more demanding, more influential and capable of driving change by activating their own voice
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Multi-tasking as children lead to “the need for speed” as adults; they demand convenience and they are less inclined to settle
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They are . . . Socially-conscious and decidedly liberal
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A can do attitude of a DIY generation where self-expression, choice and community influence are “rights” and “entitlements”
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Millennial Bella Weens of Origami Owl
Charms the market
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2013 Jewelry Industry Year in Review
The Millennial Influence
The Future is Here
Agenda
30
The NPD Group, Inc. | Proprietary and Confidential
Smart Watches: Dick Tracy Redux?
■ Consumers interested in smart watches desire the same capabilities as smart phones such as calling, email and text
31
Source: The NPD Group/Wearable Technology Report, March, 2014
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Who’s Wants Fitness Trackers?
■One-in-five US Consumers are interested in purchasing a wearable fitness trackers
32
Source: The NPD Group/Wearable Technology Report, March, 2014
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Battle of the Sexes
■ Men are more interested in smart watches while women are interested in wearable fitness
33
Source: The NPD Group/Wearable Technology Report, March, 2014
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“Wearables that don’t look like activity
bands or men’s watches”
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Q&A
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Accessories industry overview
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Q&A
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Thank You
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