U.S. online jewellery and watches market size was estimated at USD 6.19 billion in 2017. Rising disposable income is one of the key factor supporting market growth. Increasing trend of wearing costume is expected to have positive impact on growth of market. The accessories market is dominated by the purchase of the jewellery, whereas watches are gaining momentum owing to the growing consumer interest in smartwatches.
U.S. online jewellery and watches market revenue split, by type, 2017 (% share)
The people are attracted towards purchasing jewel owing to the reason that precious jewel is the symbol for pride and status. Americans purchase jewellery on many occasions such as during holidays (November-December), on weddings, valentine’s day, Mother’s Day and others. Gifting of jewel and other accessories is one of the supportive trend bolstering the expansion of the market. Branded items accounted for more than three-fifth of the total sales of the watch market attributed to popularity of famous brands, whereas branded jewellery accounted for approximately one-fifth of the overall jewellery market in the country.
The average spending on the jewellery and watches tend to increase more during mid-20s, mid-30s and after the age of 55 years, as most of the Americans reach at their maximum earning potential or get married during this period. In U.S., the households land up in spending more than 27.0% on jewellery and watches of their overall annual spending. An estimate of about 30%-40% of the people purchase jewellery and wristwatches using their credit cards. Therefore, high income and easy availability of credit cards are probably contributing to more revenue to this market.
Travel/tourism and strengthening demand for fashion accessories is likely to provide impetus growth to jewellery and watches market. High-spending of women on luxury accessories is anticipated to aid growth for U.S. jewellery and watches industry.
Segmentation by Type
Based on type, market is categorised into jewellery and watches. Jewellery is expected to hold the largest share. It is one of the best performing categories of personal accessories. Furthermore, this segment can be sub-divided into fine and costume/fashion jewel. Fine jewellery has a slight superiority over the fashion jewel.
The categories of the market include diamond j, loose diamonds, coloured stoned, cultured pearl, gold, timepieces and watch brands. Gold and diamond jewel dominated the U.S. jewel market contributing a share of about three-fifth in 2016.
The growing interest of consumers in smartwatches is expected to provide impetus for the development of watches segment over the forecast period. Smartwatches are taking over the share of traditional watches owing to the variety of features offered by the smartwatches manufacturing companies.
The jewellery and watches market sell its products mainly through two mediums, i.e. online and retail stores. Two-third of the luxury shoppers are buying items through online mediums, whereas offline landscape is also evolving. The segment is expected to gain momentum during the coming years on account of presence of popular brands in U.S. and the prevailing affinity of consumers towards the segment at large.
U.S. jewellery and watches market are highly fragmented into nature owing to the presence of more than 21,000 retailers and online e-commerce companies dealing in the industry. Key players engaged in selling jewel and watches in U.S. comprises of Harry Winston, American Swiss Ltd., FOSSIL GROUP, INC., WP Diamonds, and Titan US LLC. The jewel marketplace is personifying by the intense competition amongst the popular brands and new entrants.
Jewel manufacturers are concentrating mainly on the expansion of company business through digital media platforms for advertising the company products and conveying information. These platforms also help companies in building customer relationships by shaping brand identity. The factors such as ability to quickly adopt new and advanced technologies, ability to control company stock, and production of most demanded items are some of the factors contributing to force the sales of the company.
Research Support Specialist, USA