Fashion Jewelry Industry
Known by various names as costume jewelry, designer jewelry, imitation jewelry, fashion jewelry is basically a replica of jewelry crafted out of materials other than gold, silver, diamond like ivory, lac, leather, aluminum, brass, stone, terracotta and semi precious stones.
Fashion jewelry industry has gone through numerous alterations since the commencing of this millennium and this is due to a lot of components affecting the industry like a steep rise in raw material prices, changing consumer conventions and infliction of a lot of regulations by the government.
The jewelry industry can be named as a global industry in the real sense, because raw materials for jewelry are derived from Africa, Russia, Australia and Canada. The manufacturing process takes place in India, Italy, China and Turkey, whereas the most prominent retail markets of jewelry are Europe, USA, Far East, Middle East and Asia.
Global Trade Volume and Trends
The size of the global fashion jewelry industry was near about 146 billion US dollars by the end of the year 2006. Since the year 2000, this industry has been springing up at an average intensified yearly growth rate of 5.2%. These approximations show that the fashion jewelry industry is formulating at a very speedy pace and is fighting to become one of the most significant manufactures in the world. This growth tendency can be shown with the help of the table given below:
| Global fashion jewelry sales (2001-2006), US$ billion | |
| Years | Growth in US$ billion |
| 2001 | 113 % |
| 2002 | 111 % |
| 2003 | 118 % |
| 2004 | 124 % |
| 2005 | 136 % |
| 2006 | 146 % |
Market Trends in 2006
| Types of Jewelry | Market Share |
| Costume Jewelry | 42 % |
| Designer Jewelry | 42 % |
| Imitation Jewelry | 6 % |
| Others | 5 % |
Major Consumers and Market Share
The sales event of fashion jewelry is principally focused in eight of the world’s largest markets, which unitedly establish three fourths of the total sales of jewelry. United States of America is the most prominent market for fashion jewelry and had a share of 31% of the total global fashion jewelry sales in the year 2006. The other significant markets are India, Japan, Middle East, Italy, China, United Kingdom and Turkey. India and China have presented a great development in sales during the previous five years.
| Geographic share of the global fashion jewelry consumption | |
| Country Name | Geographical share |
| China | 8.9 % |
| India | 8.3 % |
| Italy | 5.0 % |
| Japan | 8.3 % |
| Turkey | 2.9 % |
| Middle East | 8.9 % |
| U.K. | 3.1 % |
| U.S. | 30.8 % |
| Rest of the world | 23.7 % |
The future assumptions for the global fashion jewelry industry based on the recent tendencies, are that the mining countries will fascinate an immense contribution of the polishing sector as well. Alternatives of precious stones such as man-made diamonds and non-precious metals will substitute the precious stones. The evident gold jewelry gross sales will keep on declining and countries like China and India will come forth as large retail markets.
According to the above trends the projections for development of jewelry industry are as follows:
- Jewelry manufacturing servicings will also depict inert requirement and will proceed to new centers. The CAGR of world-wide fashion jewelry manufacturing is guessed to be 5.1% by 2015. India and China will be the newer centers for Fashion Jewelry Fabrication.
- Letting down margins in profit and obligation levels in the industry will serve to develop the fashion jewelry industry.
- By the year 2015, the fashion jewelry industry will witness the outgrowth of a number of giant markets, which will be the leaders of industry in the future.
- The increment in sales of the industry as a whole, will decelerate and the world will point out the growth of new markets. The global fashion jewelry sales will grow at the rate of 4.6% per annum and is approximated to reach 185 billion US $ by 2010 and 230 billion US $ in 2015. China and India unitedly will come out as equivalent to the US market in 2015.
| Projected global fashion jewelry sales, USD billion | |
| Years | Jewelry Sales in USD Billions |
| 2005 | 146 |
| 2010 | 186 |
| 2015 | 230 |
Conclusion
The future of fashion jewelry industry lies down in the formulating nations and principally China and India. The African countries making raw materials will also gain from the enlargement of these markets. Thus, on the whole, the future for the industry is brilliant but still certain stairs need to be taken by the central players to enhance the supplying of raw materials and regenerate the supply chain.
