8. This report is supplied in accordance with Mintel's terms & conditions.
ยฉ Mintel International Group Limited
Jewellery and Watches Retailing - UK - October 2003
Executive Summary
High levels of consumer confidence driving growth
The jewellery and watches market has benefited from high levels of consumer confidence, more innovative designs and the trend towards more
branded jewellery. Total consumer spending on jewellery and watches grew strongly between 1998 and 2002, increasing by 28% to a value
of ยฃ3.2 billion. At constant 1998 prices, sales increased by 18%.
Precious jewellery is the dominant segment
The largest market segment is precious jewellery, which includes gold, silver and other precious metals. It also includes diamonds, which have been
a very buoyant sector of the market in recent years. Spend on precious metal jewellery rose by 17% between 2000 and 2002 to reach nearly
ยฃ2.2 billion. Watches also had a buoyant time, with a rise of 7.1% in consumer spending. The costume jewellery market increased by 12.3%
to reach ยฃ365 million.
9. Mintel Key points SWOT
watches = quartz digital, quartz analogue, mechanical MARKET
40% internet usage at home amongst adults and growing SO
45% Digital/cable SO
68% on mobile phone NA
Acorn - expanding, aspiring = jewellry = 22%=main O
trend toward branded Jewellery SO
Growth market @ ยฃ3.2bn SO
Core market is actually ,people like us at the ABC1 end S
Working women - growth area O
Traditional watches/jewellery in decline O
Jewellery is more for today than for longevity O
Regular change is more O
watch replacement can be encouraged O
Argos especially important C1C2 D T
45yrs plus like specialist TW
index/argos/qvc=high level trust/no need to touch SO
co-ordination more to the fore O
Asda / walmart threat? T
department stores maybe good benchmark NA
Good retail design important - away from traditionalist SO
Polariasation to two sectors 15-24 & 45+ O
Distribution channels will expand O
future is bright S
mkt growing @5% in real terms over 10 years S
Design led can demand a slight premium O
10.
11.
12.
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15.
16. Timeline
โข Initial idea formulated in 2004
โข Simple aim โ to bring high quality luxury
watches within the reach of most people
โข Or.. To Make the Cheapest Most Expensive
Watches in the World
โ Using Swiss movements
โ Assembled in Asia
โ Appropriate Business Model
23. Business Model
Cases ยฃ27
Mvt. ยฃ45
Other ยฃ18
Total ยฃ90
Agents ยฃ9
Brand Hype ยฃ18
Brand % ยฃ50
Swiss Brands โRโ Us
24. Business Model
Cases ยฃ27
Mvt. ยฃ45
Other ยฃ18
Total ยฃ90
Agents ยฃ9
Brand Hype ยฃ18
Brand% ยฃ50
Distributor % ยฃ68
Swiss Brands โRโ Us
25. Business Model
Cases ยฃ27
Mvt. ยฃ45
Other ยฃ18
Total ยฃ90
Agents ยฃ9
Brand Hype ยฃ18
Brand% ยฃ50
Distributor % ยฃ68
Total ยฃ235
Swiss Brands โRโ Us
26. Business Model
Cases ยฃ27
Mvt. ยฃ45
Other ยฃ18
Total ยฃ90
Agents ยฃ9
Brand Hype ยฃ18
Brand% ยฃ50
Distributor % ยฃ68
Total ยฃ235
Retailer @x4 ยฃ940
Swiss Brands โRโ Us
49. Timeline
โข Initial idea formulated in 2004
โข 12 months development to 1st watch
โข Advertised - sold first watch off the page 2005
50. Timeline
โข Initial idea formulated in 2004
โข Sold first watch off the page & PPC in 2005
โ Supported by a simple transactional website
โ Call centre
51.
52.
53.
54. Timeline - 2005
โข Soon became clear that 1 product in 1
Advertising Channel was going to be hard
work
55. Timeline - 2005
โข Soon became clear that 1 product in 1
Advertising Channel was going to be hard
work
โข Expanded the range
โข Developed the website a little
56.
57.
58.
59.
60.
61. Timeline - 2005
โข Soon became clear that 1 product in 1
Advertising Channel was going to be hard
work
โข Expanded the range
โข Developed the website a little
โข Entered the world of PPC in 2006 โ with an
outside agency
62. Timeline - 2006
โข Conventional wisdom said โthe Holy Grail was
at the end of a โlong tailโ of keywordsโ
โข Conventional Wisdom liedโฆ.
โข ROI severely dented through wasted effort on
non-converting terms
63. Timeline - 2006
โข Inadvertently entered the Social Networking
world
โข Independent Forum created dedicated to CW
โข Still independent
โข 3000+ members
โข 100000 posts
โข 7000 topics
65. Timeline
โข Initial idea formulated in 2004
โข Sold first watch Off The Page & PPC in 2005
โข Social Networking in 2006
66. Timeline - 2007
โข Engaged in Affiliate Marketing Programme
โข At the time accounted for 25 -30% of revenue
โข Signed around 2300 affiliates
โข Expanded the range again
โข Tweaked the website
โข Trialled our first catalogue
โข Upgraded our email platform
68. Timeline
โข Initial idea formulated in 2004
โข Sold first watch Off The Page & PPC in 2005
โข Social Networking in 2006
โข Email, Affiliate and Catalogue in 2007
69. Timeline - 2008
โข Supposed to be consolidation and push on
catalogues following success of 2007 trial
โข 500,000 catalogues
โข Priced up
โข Production to match
70.
71. Timeline - 2008
โข Supposed to be consolidation and push on
catalogues following success of 2007 trial
โข 500,000 catalogues
โข Priced up
โข Production to match
โข Swatch group stop supplying movements in
Asia
โข Armageddon hits in October 2008 - Recession
72.
73.
74. Timeline - 2008
โข 12% increase in ยฃSP due to move to
Switzerland
โข Further 8% increase due to exchange rates
โข Production already made plus missed budgets
meant overstocks in 2009.
โข Cash becomes tight
76. Timeline
โข Initial idea formulated in 2004
โข Sold first watch Off The Page & PPC in 2005
โข Social Networking in 2006
โข Email, Affiliate and Catalogue in 2007
โข 100% move to Switzerland and Recession in 2008
77. Timeline - 2009
โข A new Website was developed with Screen
Pages on the Magento Platform
โข Conversion increased by +20%
โข Emphasis was given to SEO rather than PPC
โข Supply Chain sorted
โ Better quality
โ Access to better movements
โ Shorter lead-time โ allowing reduced stockholding
79. Timeline - 2009
โข The Pig in the Python need to be addressed
โข The current Marketing Mix consisted
โ Email to a very retentive database
โ Affiliate Programme taking 33% of the revenue
โ Search focussed on SEO rather than PPC
โ Catalogue โ including offers to Database
โ Higher converting Website
80. Timeline - 2009
โข As a luxury brand still relatively young โ Slash
and Burn tactics on the site ... ? ... NO
โข Email โ targeted campaigns
โข Affiliate โ Incentives, exclusive discounts &
Vouchers
โข Allowed us to keep site relatively clean
โข Retain Brand Integrity
โข Reduce stocks to 6 weeks forward within 1 year
84. Timeline
โข Initial idea formulated in 2004
โข Sold first watch Off The Page & PPC in 2005
โข Social Networking in 2006
โข Email, Affiliate and Catalogue in 2007
โข 100% move to Switzerland and Recession in 2008
โข New Website โ Focus on SEO - 2009
86. Timeline - 2010
โข A change from Catalogue to Magalogue
โข Online Version too
87. Timeline - 2010
โข A change from Catalogue to Magalogue
โข Online Version too
โข Extension to the range โ up to ยฃ750
88.
89. Timeline - 2010
โข A change from Catalogue to Magalogue
โข Online Version too
โข Extension to the range โ up to ยฃ750
โข Swiss Chronometer Status
โข Secure supply chain
โข Trading +65%
โข AOV = ยฃ259 from ยฃ178
91. Timeline - 2011
โข Further integration of front & back end
systems
โข Improved content on website โ mainly video
โข Move towards direct from Switzerland
โข Setting up a world beating after sales service
โข Creation of a Euro site
93. 2011 & beyond
โข Target- to be the UKโs largest watchmaker by
2014
โข Nurture Social Networking
โข Wind down Affiliates โ currently down to 11
โข Improve the way we present ourselves
โข Rebrand
โข Develop much more complicated watches
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115. Looking back over 10 yrs
โข Still growing at 35% compound
โข Selling 300 watches
โข 3 websites and plans for more
โข In house capability for movements and
assembly
โข Operations in UK, Switzerland, USA and China
โข With combined sales of close to ยฃ10m