recious jewellery accounted for 86% of all jewellery sold in the EU in 2008.

Between 2004 and 2008, the value of recious jewellery sales decreased by an average -0.7%, from ¼ 20.7 to 20.2 billion, with the main fall since 2007.

arket description: consumption and production onsumption otal market size n 2008, the French market for jewellery was worth ¼ 4,056 million in terms of retail sales, hich is equivalent to 65 million pieces. France is the second largest EU market for jewellery, after Italy. However, rance is the largest EU market for costume jewellery. Between 2004 and 2008, French jewellery sales fell by an verage annual rate of -0.5%, a gure just above the EU average of -0.3%. The rise in 2007, however, could be attributed to the rising gold price. owever, the volume of gold jewellery continued to fall as France was affected by the economic recession with rench consumers cutting back their expenditure on luxury goods. According to the research company Société 5, any consumers still regarded jewellery as an important accessory for their outfit. However, they were more price onscious than ever and preferred lower cost jewellery instead of gold or platinum jewellery. This has resulted in teady increases in the sale of silver and costume jewellery in the past few years.

rench consumers spent ¼ 65.6 per capita in 2008, which is well above the EU average of 47.2. In France, there is much variety in designerin France, ranging from classic to ultraTable 1.1 Consumption of jewellery jewellery 2004 -2008, ¼m illion odern styles with beautiful shapes that has been now available in different price ranges.

roduct groups he share of precious jewellery decreased from 80.6% to 79.8% between 2004 and 2008. In the same period, alue sales slightly grew between 2004 and 2007 from ¼ 3,328 to 3,373 million, but sales fell in 2008. By volume, recious jewellery represented 52% of the French jewellery market. old jewellery ales particularly fell by volume between 2004 and 2008, from 16.9 to 13.3 million pieces as its price rose by 20% in he same period. By value, 18-carat gold jewellery still formed the lion¶s share (62.4%) of French jewellery sales, alued at ¼ 2,532 million in 2008. Within the gold jewellery segment, µgold jewellery with diamonds¶ formed the rgest sub-segment in value. Whereas µplain gold jewellery¶ formed the largest sub-segment in volume ± see Table .2 ince the gold jewellery price was still rising by 5% between 2007 and 2008, French women urned away from gold. The result was a decreasing sales in all gold sub segments as is shown in Table 1.2. Sales lso decreased in the gold plated jewellery and the 9-carat gold segments. Gold jewellery is mainly purchased at wellers on the high street (53% of value sales and 34% of volume sales). The out-of-town shopping centres epresented 18% (by volume 28%) and hypermarkets 13% (by volume 29%).
able 1.2 Consumption by metal of jewellery in France,

ilver jewellery ilver jewellery volume sales rose substantially. Société 5, registered an increase from 13.0 o almost 16.6 million pieces, between 2004 and 2008, or from ¼ 450 to 569 million. Silver wellery volume sales has overtaken gold jewellery sales since 2006 even if the silver jewellery price rose by 3% in he same period. Nevertheless, silver jewellery is much lower han gold and platinum jewellery and there is much more choice. The silver jewellery segment has taken its dvantage of the high gold prices. This has meant a continued growth in the sale of plain silver jewellery (60% of olume) and a substantial growth of silver jewellery with stones. French consumers generally regard silver jewellery s more Eaffordable in price. There is more choice in designs, brands and colourful combinations with stones or mber. For example, jewellery collections made by Jean Marc Garel, Ted Lapidus, Morgan, Boucheron, Perrin or Clio lue. rench clothing designers have developed silver jewellery collections that are linked with high quality clothing brands uch as Guess, Esprit, Jennyfer, Kookai or Promod. Growing imports of cheaper silver jewellery, sold by accessory hains and hypermarkets, provided French consumers more choice. In addition to the us ual types of jewellery,

linked to the colours in fashion and their symbolic meaning. the ratio of working women increased from 58. men and new immigrants from Europe. fabric. aquamarine. resin. while cheaper items and most hair accessories are imported from Asia. zircons. Réminiscence. hich is higher than the EU average of 59. citrine. tones and pearls espite their high price when combined with gold or silver. and in more varieties (shapes and sizes) nd combinations with stones.2% to 60. amethysts. stones have been more popular ecause of their colours. at jewellers in out-of-town shopping centres or in he city.7 million pieces sold. including the Dark Tahiti pearls. hiphop music and TV shows). The French are interested in olourful stones such as agates. Recently coloured diamonds and diamond set studs (nose or upper lip) have been popular. Clio Blue. Cartier. particularly since 2006. which implies that they have more to spend.7% of all French women between 2004 and 2008. Sales increases may come from niches in the wellery market such as: ‡ Middle aged and older French working women being drawn into the regular fashion changes on the market due to tense media coverage of fashion and celebrities. textile or leather. urquoise. Middle East and Brazil. Africa and Asia. copper) combined with large beads or objects that are ade of glass. Even if interest in costume and silver jewellery remains. Cora) and online sellers. earrings and neckwear. tourmaline. French people will be more careful their spending and pay more attention to price in the next two years. wood. shells. horn. There are now more coloured pearls. ostume jewellery is a highly fragmented market and represented 49% of total jewellery sales by volume. earls have been available in a wider price bracket. onyx and amber. ccording to the research bureau Xerfi the main reasons for the growing costume jewellery market in France were: ‡ Enthusiasm for the product ‡ Exploding in offerings of costume jewellery. they tend to shop around. India. BI MARKET SURVEY: THE JEWELLERY MARKET IN FRANCE arket segmentation ‡ Segmentation by gender rench women increasingly buy their own jewellery when buying clothing. The largest increases were registered in women aged between 25 and 4 years. Auchan. coral. arket outlook he economic recession has affected jewellery sales in France. topaz (blue). diamonds gained popularity among ounger people. with an expected continuation in the econd half of that year. Here the design and originality is most important. For recious jewellery. They often do this on impulse in a lothing store or at a hypermarket during their weekly shopping. ostume jewellery is often made of base metal (titanium. even in post offices ‡ Increases in the number of brands ‡ Stronger involvement of creators in jewellery designs ‡ Its seasonal character and its affordable price. ‡ New markets for tweenies. Branding and branded cuts by e. Higher quality costume wellery is made in France. According to urostat. articularly gold jewellery value sales dropped by 9% in the first half of 2009. GL Bijoux.opular among young people. Biche de ère and Murat. iamonds timulated by celebrities and the media (rap. China. feather. An enormous variety in costume jewellery is made by local artists and are sold at the µbijoux antasie¶ specialist shops.1%. After a eriod of static sales until 2007. The number of working women has risen. Diamond set wellery is sold at more retail outlets. France has around 80 million visitors nnually. According to Société 5. ‡ The tourist market who is highly interested in French designer jewellery. Well known rench costume jewellery brands are Néréides. This is mainly costume or silver jewellery. including hypermarkets (Carrefour.g. there were around 31. chocolate brown oloured pearls that are popular in rings. over a longer period. but an increasing number of people rom the emerging economies such as Russia. peridot. bone. . valued at ¼ 820 million in 2008. Guy Laroche form a unique selling point in he trade. Lacroix. crystals. opals. Dior. Agatha. Camille & Luci. mainly from the EU.

Bracelets are often purchased in combination with neckwear and/or earrings. clothing chains and hypermarkets.2 of µThe jewellery market in the EU¶.see Table . due to a rice rise of 4%. sales decreased by 7% and by 4% in value. Value sales also ecreased by 6% during the two-year period. 2007 -2008. mainly due to the rising gold pr ice. However. ‡ Segmentation by type of jewellery ings he number of marriages per 1. pendants and racelets. However.46 to 4. Neckwear has become more omplex in form. stones. racelets or similar reasons to neckwear. wooden µstones¶ or with etal bangles. o Retailers are being forced to change their collections more frequent . charm. rings formed almost half (45%) of gold jewellery value sales in 2008 . bones or with any other material remain popular. bangles. Between 2007 and 2008. massive bracelets of metal/wood/plastic. Please note that French men in the southern part of France are more receptive to jewellery. The sales of pendants made of gold have decreased. so will buy both ems. This has led to: \\ o Greater levels of impulse purchasing. which accounted for more than one quarter of the silver jewellery segment. has rown both in volume and value terms. The cocktail ring and rings ith flower patterns have gained popularity. or the other user segments . stars. links and shape. shells. cross.3 Consumption by type of jewellery in France. Along with stainless steel. especially popular among men.000 people fell from 4. teardrop or fossils have een quite popular ere are some major trends and characteristics that influence demand for jewellery in France: ‡ Many clothing chains and fashion magazines like Marie Claire and Elle sell their own lothing collections. Silver gem set ear studs and silver decorated) hoops and multiple hoops remain popular. ¼ million/pieces eckwear olume sales of gold neckwear decreased by -7% between 2007 and 2008.en's jewellery has become popular in France. They can be a robust silver or gold chain. leather bracelets. silver is the material most eing preferred by men. Recently rings made of resin or artificial material in all trendy colours ith coloured stones are seen more often in France. large semi-precious stones. BI MARKET SURVEY: THE JEWELLERY MARKET IN FRANCE eckwear varies from short and increasingly long neck chains. While pendants ith a silver or leather cord with a large stone.219 thousand pieces epresenting 32% of gold jewellery. and not in isolation. or be made of subtle (leather) wire. . o Jewellery is increasingly purchased as part of an outfit . Ethnic designs represent interesting possibilities for exporters. endants his forms a sizeable segment within jewellery. For example. ccording to Societé 5. bracelets with glass beads. Nouvel Star). There is an influence from celebrities such as Johnny Halliday. The ethnic style is mostly linked to the tendencies mentioned in Annex 1. including jewellery. In silver and costume wellery. Silver eckwear. French appers and glamorous TV shows (Star Academie. Silver earrings are larger. heart. silver or gold neck chains.26 between 2004 and 2008. longer and more ornate in style. able 1. Christophe Maé. Pascal Obispo. stones.see chapter 1. in order to espond to this competition from accessory chains. especially in rings. a woman may go into a shop to urchase a dress and she may see a necklace that matches the style. bracelets coloured resin have been in ogue. sales of silver earrings increased substantially even though the price rose by 5%. han in the middle and northern part. This partly explains the 9% fall in the olume of golden rings. By value. Yhaped. These ay include coloured neck chains with beads. s the number of French unmarried couples continues to rise since 2005. big amulet. arrings olden earrings formed a large part in this segment by volume: 4. but silver bracelets rose by 1% in value by 5%). Women tend to wear more silver rings. flower. which are thumb rings and right-hand rings. in volume terms sales of gold bracelets fell by 13%.2.

6% since 2004. riginality and craftsmanship. France has a number of jewellery manufacturers that are internationally well-known. Names like artier. n 2008. roduction: rance is the second largest EU producer for precious jewellery after Italy.245 employees.349 companies with 2. some stones such as amethyst are found in the Massif entral and in Brittany. Cacharel or Boucheron have already a reputation for fine craftsmanship. they can be sub -divided s follows ‡ Ile de France (Paris area) . ome of which are closely linked to the French fashion houses. thnic jewellery and precious jewellery will benefit in the long run.3. department stores selling well-known brands and ypermarkets selling heir own brands. the French jewellery industry consisted of round 4.24 companies with 546 employees ‡ Pays de la Loire .7% in 2004.2% (¼ 41 million) ‡ Rubies.131 companies with 389 employees ‡ Other regions . As Table 1. French production of precious jewellery increased onsiderably between 2004 and 2006. rench jewellery production is fragmented.7% (¼ 51 million) ‡ Silver plated jewellery ± 2. rench production of jewellery was valued at ¼ 1.140 employees ‡ Unspecified regions . but Italy roduces more than three times as much precious jewellery as France.see Annex 1 and chapter 1. In terms of regions. With regards to costume jewellery.187 companies with 1. ssembled and finished by French manufacturers. but has decreased in 2008 due to a falling demand for gold jewellery in the omestic market.2 shows. The portance of brands has been taken up by jewellery specialists.15% (¼ 3 million) ‡ Pearls ± 0.uch of which are immigrants or second generations from Africa. The industry cludes many smaller companies and workshops specialising either in a variety of different tyles of jewellery. materials and design. The French jewellery Industry has a long-standing reputation for its creativity in designs. Cote d¶Azur . In 2008. ‡ Impact of recession rench consumers are moderating their spending behaviour. ‡ Branding plays an increasingly important role for French consumers when buying jewellery. ‡ The growing significance of senior citizens in the market.4% (¼ 46 million) ‡ Diamonds ± 2. This represented 14.894 million in 2008. or other trends . Whereas costume jewellery production increased steadily by 1.478 companies. especially for costume jewellery.7% (¼ 13 million). Latin America and some Asian countries. Italy and Spain.415 companies with 3. most of which specialise in precious jewellery.311 companies with 3.21 companies with 549 employees ‡ Franch-Comté . France is anked as the fourth largest producer after Austria. sapphires and emeralds ± 0.40 companies with 300 employees ‡ Provence Alpes. total jewellery production can be subdivided according to Société 5 as follows: recious jewellery: ‡ Jewellery articles mainly of gold and platinum ± 65% of the total value (¼ 1.239 million) ‡ Jewellery articles mainly of silver ± 6. both in terms of numbers and in spending power.7% (¼ 14 million) ‡ Synthetic stones ± 0. up from a share of 12. Most of the precious metals and stones are imported and jewellery pieces are designed.936 employees ‡ Alsace . .6% of the value of all EU roduction. However. This trend applies more to amily units than single person households.5% (¼ 9 million) ‡ (Semi-) Precious stones ± 0. One noticeable impact of the slowdown in spending is he increase in jewellery that is bought when it is on promotion or in a seasonal sale.3% (¼ 120 million) ‡ Gold plated jewellery ± 2.466 employees ‡ Rhône-Alpes .3 of he jewellery market in the EU¶. will nderpin future market growth and diversify the demand in footwear.

These niches are still eveloping and exporters could offer here neckwear. They offer gold jewellery with recious and semi-precious stones (http://www. teens. such as older omen.238 pieces. Production of imitation jewellery with parts of glass fell lightly from 525. pportunities and threats s the French jewellery market is not expected to grow much. anklets. designs and produces high quality jewellery. ‡ French jewellery production is forecast to increase slowly along with domestic and foreign emand. handbag charms and hair accessories. . and on jewellery items which are handmade. Sometimes low to medium-priced jewellery collections are designed in France and produced in rge volumes in Asia. (http://www.767 pieces. located in Briisac Quince. Production of imitation jewellery of other material ell from 94.hstern. designs.maty. is a manufacturer of fine jewellery with iamonds and gemstones (http://www. imitation jewellery of other material (¼ 44 million) and uff links (¼ 16 million) being the main product groups. located in Besançon. http://www.see Annex 1. toe-rings. This can be mainly attributed to an increase in imports from developing countries. including ethnic. nteresting players ome leading and interesting manufacturers in France are: ‡ Stern (Bijoux) SA. crystal. resin. ‡ Most jewellery manufacturers can be found at http://www.boci. Also. + Other opportunities could be found in the rising numbers of tourists who look for jewellery f French of international designs. Also. ‡ Fabrice. located in Paris. They operate an online shop. However. French manufacturers have had to adapt their systems to remain competitive. located in Paris (http://www.org rends in production ‡ Due to growing competition from Asian countries. endants with stones.bijouteriepommeau. located in Levallois Perret. + It will be appreciated if you can combine elements of French design such as fashionable colours or shapes in your wellery collections. ‡ Maty.bijouxfabrice. men.com) is a manufacturer of ashionable silver jewellery with diamonds and stones. individual.com) is a manufacturer of gold or silver with iamonds and precious or fine stones. ‡ Baccarat. located in Paris (http://www. bracelets.835 to 90. Precious jewellery continues to be popular and modern jewellery makers and esigners aim to produce and distribute through a wider sales network such as ypermarkets and fashion retailers.fr).baccarat.653 to 493.. piercings. makes prototypes and assembles jewellery. It specialises in handling small nd medium sized collections. belts etc. the industry increasingly focuses on uality materials and reliability. nsuring proper monitoring by making pilot models prior to full -scale manufacturing.chaumet. t should be noted that some of these imports are parts of materials for imitation jewellery from Asia that are ssembled in France. They will particularly appreciate input from uppliers who can demonstrate design flair and innovation.5% of the total value (¼ 217 million). manufactures jewellery in brass. ‡ Bijouterie Pommeau. ‡ Chomet International. tylish and fit in well with the latest trends in fashion. silver jewellery ontinues to reach a wider consumer group. hey have forged partnerships with domestic and overseas suppliers. opportunities should be found in niches. with imitation jewellery f base metal (¼ 135 million). They sell online. between 2006 and 2007.com). try to combine your collection with other fashion accessories such as handbags.net).ostume jewellery: ‡ Imitation jewellery ± 11. + Outsourcing provides opportunities. with amber. children.com). it is still important to be riginal and aware of the latest tendencies in French fashion . They ffer very original and fashionable jewellery.

The nature of France. rade channels for market entry rade channels he jewellery market in France is well organised and specialist chains or franchised stores dominate the arket (see table 2. but their arket share is low. bijoux etc. n terms of market entry. market stalls and home irect sales channels are important outlets. ostume jewellery complements with other fashion accessories such as handbags.). the distribution channels are more diverse. For precious jewellery the specialist distribution still dominate the markets. Giving good dvice to consumers. there is definitely a "French style". exporters from developing countries need to consider wholesalers. designs. They often source from overseas manufacturers. bijouterie shops) are still relatively numerous. as French designers produce their own lines. any of these trends can be an opportunity for one exporter. hich is mainly characterised by perfectly finished decorative designs. carves. target groups. Equally. This istribution mainly concerns exclusive jewellery and higher priced accessible jewellery. belts. ‡ For costume and silver jewellery. This channel is becoming less influential. accessory collections or regions.1). Non-specialists uch as fashion accessory chain stores. agents and istributors have similar relationships based on location. clothing stores. one can now find all of these products in a similar type of outlet. the proportion of non-specialists in the ewellery market continues to grow. The remaining specialists (artists.In costume jewellery. this style should be kept in mind. with large differences between the orth and the south also affects the way the trade works. but the country is large so ossibilities will continue to exist. as well as high investments on security are typical for the specialist distribution. hypermarkets. As the French jewellery market is ery diverse. Consequently. This distribution mainly concerns ccessible jewellery and cheap jewellery . In particular. department stores. but a hreat to another. it is imported through wholesalers that usually specialise in materials (gold. Most of them are independent. as is shown in. porters and agents. including the classic French style. When exporting to rance. Many importers. or example in a clothing or in an accessory chain store. so you may lose out to a supplier from your own ountry or neighbouring country. Nowadays here is more variety in styles. with an increasing umber of non-specialist retailers such as duty-free gift shops and department stores. ilver. rench buyers are not always loyal to particular overseas suppliers. hypermarkets and fashion accessories chains are gaining ignificance in jewellery sales. In the past few years.

Many importers sell directly to specialist retailers. or to purchase entire ranges rather than specific products within a range. department stores. use of materials and quality requirements. along with the development of brand imitations. department stores. fashion boutiques or clothing shops through permanent cash and carry showrooms. and can give considerableinformation and guidance to the overseas manufacturer. has caused wholesalers to reconsider their position in the distribution st ructure. They do not buy or sell on their own ac count. He is then responsible for their onward sale and distribution in his markets . Others have their own sales staff that visit retailers on a regular basis and take orders. to operate on a regional basis. They work on a commission basis and represent one or more larger manufacturers/suppliers/retailers. who were losing parts of their business. Many importers prefer to specialise in particular jewellery products or groups of products. Wholesalers They often supply independent jewellers and play a major role in the supply of costume jewellery. They either specialise or carry a wide variety of products or brands. and fashion or clothing shops through permanent cash and carry showrooms or exhibition centres. but there is an increasing trend to deal in a wider range of products. Some importers also act as wholesalers and many now deal across national boundaries. This has encouraged some wholesalers. wholesalers sell directly to specialist retailers. The importer has contacts in the local market. The development of a successful working relationship between manufacturer and importer can lead to a high level of co-operation with regard to appropriate designs for the market. knows the trends. the importer effectively takes charge of the goods. The trend of bigger retailers and buying groups going outside the traditional distribution system. Those importers who are not exclusively tied to a particular manufacturer usually buy and sell the goods. Agents Buying agents.Importers : By buying on his own account. Also. although . new trends. take care of import/export procedures and hold items in stock. These are independent companies that negotiate and settle business on the instructions of their principals and act as intermediaries between buyer and seller.

If an agent builds up his own stock. The outlets range from precious jewellers. Roberto Cavalli and Chopart. which have made their products uncompetitive. who are also (specialised) independent companies. Lanvin. Casal. Mango and many more for costume jewellery. Caravelli. Dior. They have buyers who operate all over the world and outsource their jewellery mainly outside the FRANCE. ‡ Non-specialised retailers tend to sell low-priced precious jewellery and costume jewellery. they also have the necessary buying power to obtain greater discounts from suppliers. they look for low-cost sources that produce jewellery pieces on a made-to-order basis.design and development of their o wn exclusive collections that are primarily aimed at affluent consumers. The majority of these outlets are small independent shops. Burberry. jewellery galleries. Cartier. They also act as financial intermediaries between manufacturers and retailers. which is on a consignment basis. Van Cleef & Arpels. There are also jewellery suppliers who operate their own retail outlets in their own and in other EU countries . Escada. Vietnam. Schreiner. There are many different brands (including clothing brands) such as Giorgio Visconti. product development. Swarovski. They operate on two different levels: ‡ Luxury fashion . As well as mail order. They work on a contract and commission basis for one or more manufacturers. In jewellery. Calvin Klein for precious jewellery and Reminiscence. Larger stores are often linked to a major chain or franchise. The objective of the buying group is to make it possible for its members to deal with the growing power of department stores and other non-specialist retailers. Replay. bijouterie shops and fashion accessory shops. Retailers The different types of retail channels can be broadly divided as follows: ‡ Specialist retailers usually only sell jewellery. Buying groups These groups act as purchasing agents for their individual members (retail shops) and promote themselves as an organisation with their own marketing and brand . As a group. ‡ Mainstream fashion ± development of a wider range of jewellery collections for a broad consumer group. Sales. order control. Donatella. Some of them sell from stock in order to meet their clients' short-term demand. Local manufacturers Confronted with rapidly rising production costs. clothing manufacturers such as H&M. They negotiate directly with (overseas) manufacturers and keep items in stock for their members. Prada.Selling agents. some local manufacturers are increasingly assuming the role of suppliers or importers. Yves Saint Laurent. they include TV shopping channels and network marketing. quality and colour specifications. Zara and Mango have added jewellery to their product ranges. Otazu. a large number of exclusive brands are offered only through appointed agents. marketing. Some main brands include Bulgari. These suppliers have their own design. clothing stores and gift shops. Victoria. logistics and service are done by their exclusive importers in each EU country. In addition. ‡ Home direct sales are traditionally important for jewellery. Gucci. . Some brands closely work together or are part of the international fashion houses. some of which can only be sold through selected retailers. Buying groups are more common in the Middle and Northern EU Member States. Louis Vuitton. Chaumet. and sometimes related accessories. especially in China. Like importers. D&G. Jewellery is often part of a clothing or fashion accessory collection. India or in other (developing) countries . Monet. marketing and purchasing departments. he is in effect functioning as a wholesaler or distributor. International jewellery brands and fashion house s Most of the big brand suppliers have their headquarters in the USA or in the EU and act as suppliers/sales organisations of powerful international brands. The main advantage for such suppliers is that the pieces are all made according to their own design. This channel has been further boosted by the internet. This category is led by department stores. D&G. Omega. Thomas Sabo.

Armani. The most important non-specialist retailers are: Department stores Jewellery sales through department stores have increased in recent years. In France clothing stores account for around 9% of total jewellery sales. Italy and Spain. Sometimes they also sell jewellery from other designers in order to broaden their range. and then move on to new lines for the next sales season. Because of volume discounts from their suppliers. Non-specialist retailers Many non-specialist retailers have considerable buying power and have attracted customers by offering low prices. they can offer pieces at low prices. . Moschino. jewellery and clothing need to be fashion able and exclusive in order to differentiate from mainstream fashion. often related to clothing brands or well-known designers. these jewellers often have a small workshop for repairs or service. Most stores have standardised product ranges and are located on the high street or at out-of-town shopping centres. they work with higher margins. They are strongly represented in France. They increasingly sell branded jewellery. silver and platinum jewellery. alongside their own brands. Most clothing chains stock jewellery in their distribution centres . They benefit from a high volume of consumer traffic and can offer a wide range of goods from fashion to high quality jewellery. Kenzo. Clothing stores International and national chains play a major role in selling costume. In these outlets. scarves and sunglasses. bags. belts. Department stores usually buy jewellery directly from foreign suppliers in large quantities. Fashion accessory chain stores are specialist stores that are part of an (international) chain store operation. Jewellery galleries are gold and silver smiths who make their own jewellery collections.Specialist retailers Jewellers including gold and silver smiths mainly offer mainstream designed jewellery and watches. targeted at a broad consumer group. but also represent a sizeable share of jewellery sales in the other EU markets. selling them at their own shops or galleries. Next to jewellery. Louis Vuitton. Versace. Chanel. clocks. They are rapidly expanding in the new member states. Boss. Bijouteries are also referred to as specialist shops for 'bijoux' (the French word for costume jewellery). which is high compared to the other EU coun tries. they also sell hair and fashion accessories such as hats. Typically. Fashion boutiqu es Most are independently owned and operate in the middle to upper segments of the market. They concentrate on sales of gold. They purchase specifically for a season or particular fashion. about 70% of their turnover is costume jewellery. which often are purchased impulsively. As they do not have the purchasing power of bigger retailers. Claire¶s Accessories or Accessorize are the most well known in this category. Although the owner is not necessarily a qualified gold or silver smith. watches. Importers and agents are IN T .). They tend to carry a limited range of jewellery that is chosen to complement their clothing collections (D&G. silver jewellery and some cheaper precious jewellery with gemstones. and fine metal giftware. where women treat them like any other clothing store. F iorucci etc.

Other shops Jewellery is sold in many other types of stores e.g. Second-hand and street markets The latest fashions are not usually found in these outlets and they are often used by some wholesalers as a means of offloading unsold stock from other retail channels. Many major supermarkets now also sell jewellery. . children¶s clothing outlets. price and brand name. Home direct sales Internet Online shopping in the jewellery sector was increasing rapidly. cashand-carry wholesalers with retail outlets. costume and silver jewellery pieces that are exclusive in terms of design. whose product ranges include giftware as well as jewellery. optical shops. shoe shops. particularly during peak selling periods such as Christmas. There are also risks when sending the jewellery (theft) and risks of illegal imitations. In 2007. These hurdles have kept away EU consumers from Internet buying. and in small shops attached to tourist locations such as museums and art galleries.Since 2008. hypermarkets. Easter. Because a number of online sellers exist without any supporting retail presence. which means that consumer receive a cheap imitation instead of the piece they ordered. duty-free shops at airports and in some major cities. Supplies are purchased from importers. factory outlets and petrol stat ions. Mothers¶ Day etc. sports shops. airlines¶ in -flight shops. particularly since fast speed broadband is now widely used in many EU homes. Pharmacies sell the more fashionable and lower priced jewellery and hair accessories. there were an estimated 250 million Internet users in the EU. there is a lack of after sales service. internet sales has slowed down substantially . Gift and duty-free shops Consumers also buy jewellery in gift shops. This merchandise is purchased from specialist importers.Perfume and pharmacy outlets Jewellery is sold to consumers through perfume and pharmacy outlets. Jewellery is often sold as gift items. This was mainly due to the economic recession. Perfume shops sell some precious. The image of internet sales has been also affected by an overkill ofspam messages offering counterfeit watches and sometimes branded jewellery. Valentine¶s Day. toy shops. .

which are delivered for the first time. The major advantage of the system is that people trust the judgement of friends much more than that of retailers. margin maintenance and cost control are vital. Mail order Mail order catalogues usually concentrate on selling lower cost gold jewellery nd some silver or costume jewellery. other exporters from your country. The major international operators are Cabochon. packaging. As there is now greater transparency of prices between countries. marketing and promotion etc. ‡ The most µreasonable¶ or µtactical¶ price level according to some of your local contacts in the field (agents. this has led to some stores being declared . La Redoute (French). France. ‡ Discount structure and credit terms offered by local competitors. Many retailers have mail order catalogues that offer the same or similar range of products to their shops. However. Although people may trust the judgement of their friends. VAT level and other costs. they sometimes feel obliged to buy because their friend has introduced them. Germany. ‡ The production costs. ‡ Retail prices of competitors¶ products in your target markets. In the case of trial orders. Avon and Caura International. Les Trois Suisses (French).000 per year in department stores. as many of them use the same currency. incoterms.TV shopping: companies involved in TV shopping in Europe are. many schemes have received bad publicity. it is important to avoid large differences between prices in each target market. You will not easily be able to change/increase them in future. These consumers then sell on the jewellery in the same way to their friends. companies sell directly to consumers who receive a discount depending on the amount they order. so be careful when you negotiate and agree prices in the first place. Network or Multi-level marketing/Party plan/Pyramid sales In these schemes. Once a brand is established. Import duty for precious jewellery is 2. import duties. sometimes a discount is given to buyers and freight is prepaid. Margins In the jewellery market. store managers). ‡ Additional costs for product adaptation. Key issues with pricing: The trade channels with typical mark-ups of each channel and retail category. consumers are prepared to use mail order. For retailers it is important not to erode the margin too much when making price promotions.5% and for costume jewellery 4% ‡ Listing fees that can be up to ¼ 35. Hungary). Gradually a network of buyers/ sellers develops. In several EU countries (UK.

They now range between 90 and 120%. which need much personal attention and service from the sales staff. For example. Actual margins can vary widely around these averages depending on the exclusivity of the product. Margins for precious jewellery are very much influenced by the price of gold (or other precious metals). due to the high prices of precious metals. and usually more often. particularly . For example. Margins for costume jewellery are higher as their perceived value is usually much higher than their actual cost. However.bankrupt. Another factor is the location of the retailer. On the other hand. margins for golden rings with diamonds. justified in part by the high cost of holding stock and anti-theft insurance. As the gold price rose. will most likely have a higher margin e. which is all reflected in higher margins. 120%. margins of department stores or large retailers such as Accessorize are lower.g. because they often buy direct from manufacturers and often have outlets at out-of-town shopping centres. carry a wide range and have many sales staff. This includes value-added tax (VAT). Margins at retail level Margins of jewellery are higher compared to other consumer goods. some products such as titanium pendants are relatively low in price and require little attention in retail (display and selling). The other reason for higher margins is that retailers need to allow for the heavy discounting that takes place at least once. high street chain stores are often in expensive places. which ranges between 15 and 25% depending on the EU country. so a retailer will ask for a low margin e. the typical mark-ups for retailers have been reduced. the level of demand and the handling involved. On the other hand. retailers had to reduce their margins to maintain sales. Successful retailers have the right balance between cost control. 90%. good retail margins and good buying. each year at sale times.g.

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