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Name: Sarah Nick Assignment 1 Opportunity Analysis Dashboard • Market Sizing • 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. • Market Overview: • 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) Table 2 Opportunities and Threats
Competitors’ strengths and Weaknesses 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-to-date 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. • Market Share Analysis (Global) • 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 • 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 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.
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