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The NPD Group, Inc. | Proprietary and Confidential

Copyright 2014. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary

and Confidential and may not be disclosed in any manner, in whole or in part, to any third

party without the express written consent of NPD.

JEWELRY MARKET INTELLIGENCE:

2013 Jewelry Industry Review

The Millennial Influence

The Future is Here

Presented by: Carolyn Cohen

April 2014

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The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential

2013 Jewelry Industry Year in Review


The Future is Here

Agenda

3




The Future is Here

Agenda

4


0%

5%

10%

15%

20%

25%

30%

35%

40%

2014 Projected Market Share by Classification

With shares of 38% and 29% respectively, jewelry and handbags drive the

accessories market.

Source: The NPD Group/Consumer Tracking Service, Annual 2013


Women’s Fashion/Costume & Bridge Jewelry: Channel

6

Channel Category Dollar Share Distribution 2013 vs. 2012

0

5

10

15

20

25

30

35

2013 Dollar Share

2012 Dollar Share

Specialty, Department and Internet Pureplays were the winners in 2013, each

with 2 point gains in share.



Fashion/Bridge Jewelry: Occasion

7

0

5

10

15

20

25

30

35

40

45

50

% of 2013 Dollar Sales


Not much changed: Holiday picked up 1 point, while No

Special occasion fell 2 points.

Percent of 2013 vs. 2012 Dollar Sales



Fashion/Bridge Jewelry: Style of Accessories

8

Basic picked up 1 share point while both Trendy and Classy lost a point.

0

10

20

30

40

50

60



Percent of 2013 vs. 2012 Dollar Sales



Women’s Fashion/Sport Watches

9

Primary Reason for Purchase

0 5 10 15 20 25 30 35

Matches many outfits

Caught my eye while shopping

Price

Styling/Feature

Brand

Someone asked for it

Quality

% of 2012 Dollar Sales % of 2013 Dollar Sales

Shifts in primary reasons for purchase were ‘someone asked

for it’ and ‘price.’


Method of Purchase

69%

18%

3% 2% 2% 6%

Store Website Catalog TV Shopping Channel

Mall Kiosk Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

10

Online purchases grew 4 points since 2011, decreasing brick and mortar stores

dollar share of jewelry to 69%. We expect this trend to continue.

Source: The NPD Group/Consumer Tracking Service, Annual 2013 Women 13+ Jewelry

Annual 2013 Dollar Share %


Age of Wearer

4%

9%

15% 13%

18%

23%

18%

Total Market

13-17 18-24 25-34 35-44 45-54 55-64 65+

11



At 60% , Boomers are the most important market . Is this a surprise?


US Regional Performance

5%

15% 15%

6%

21%

6%

11%

8%

15%

Total Market

New England Middle Atlantic East North Central West North Central South Atlantic

East South Atlantic West South Atlantic Mountain Pacific


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The South Atlantic Region dominates nearly a quarter of the market.


Purchase Drivers Based on Dollar Share

13

Gifts and promotions drive half of all jewelry sales.



Design Attributes: Stones

4% 4%

26%

7%

28%

10% 12%

4% 2%

0%

5%

10%

15%

20%

25%

30%

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“Gem stones” are in over 50% of Jewelry sales



Design Attributes: Material

4% 4% 1%

7%

31%

4% 2%

1% 2%

26%

4% 4%

8%

0%

5%

10%

15%

20%

25%

30%

35%

15

42% of the dollars spent are in Gold/Tone while 34% are in Silver/Sterling/Tone





The Future is Here

Agenda

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Type of Accessories Purchased in Last 12 Months

17

8%

19%

14%

17%

24%

19%

10%

21%

22%

22%

23%

23%

8%

19%

18%

22%

21%

22%

Watches

Fashion Jewelry

Hair Accessories

Tech Accessories

Handbags

Sunglasses

25-34

18-24

Total Women


With the exception of handbags, Millennials purchased more accessories than

Total Women. Younger Millennials (ages 18 – 24) purchased more hair

accessories and fashion jewelry than their older counterparts, ages 25 – 34.


The voice of a generation

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“Believe it or not, if you are a woman,

you are a feminist. By default. Nothing to

be scared of.”

“Hi I'm Lena. I like raw Buittoni ravioli and

making my mom giggle till her asthma

kicks in”.

“This morning I was alerted to the fact that

I won a Who Wore It Best and I was so

f******g happy and my happiness made me

so f******g sad.”

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Tech savvy and raised on the internet, they are the most connected and informed generation.

It makes them more demanding, more influential and capable of driving change by activating their own voice


Multi-tasking as children lead to “the need for speed” as adults; they demand convenience and they are less inclined to settle


They are . . . Socially-conscious and decidedly liberal


A can do attitude of a DIY generation where self-expression, choice and community influence are “rights” and “entitlements”

23


Millennial Bella Weens of Origami Owl

Charms the market

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The Future is Here

Agenda

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Smart Watches: Dick Tracy Redux?

■ Consumers interested in smart watches desire the same capabilities as smart phones such as calling, email and text

31

Source: The NPD Group/Wearable Technology Report, March, 2014


Who’s Wants Fitness Trackers?

■One-in-five US Consumers are interested in purchasing a wearable fitness trackers

32



Battle of the Sexes

■ Men are more interested in smart watches while women are interested in wearable fitness

33



“Wearables that don’t look like activity

bands or men’s watches”

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Smart: Bracelet, Cocktail Ring and Pendant

36


Zazzi allows you to DIY on the fly

37


Good “Old Fashioned” Necklace Case

38


Skin Protection – How Much UV is Enough

39


Q&A


To Show Our Appreciation

Special offer:

Win an individual, half-hour

Accessories industry overview

by The NPD Group.

Raffle based on business cards

collected today at the conclusion

of this presentation.


Q&A



Thank You


Industries

Automotive

Beauty

Consumer Electronics

Entertainment

Fashion

Food / Foodservice

Home

Luxury

Mobile

Office Supplies

Sports

Technology

Toys

Video Games

Countries

Australia

Belgium

Brazil

Canada

China

France

Germany

India

Italy

Japan

Mexico

Netherlands

New Zealand

Poland

Russia

South Korea

Spain

Sweden

Taiwan

United Kingdom

United States

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JEWELRY MARKET INTELLIGENCE: 2013 Jewelry Industry …€¦ · JEWELRY MARKET INTELLIGENCE: 2013 Jewelry Industry Review ... Millennial Bella Weens of Origami Owl ... of this presentation