Jewellery Players Leveraging on the Digital Era

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JEWELLERY PLAYERS LEVERAGING ON THE DIGITAL ERA BY: PREMANJALI GUPTA LUXURY, RETAIL & FASHION SPECIALIST, EUROMONITOR INTERNATIONAL

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• Market Potential and Competitive Profiling

• E-Commerce, Social and Other Digital outlook for Jewelers

• The Road ahead

APAC jewellery is fastest growing region in the world….

APAC jewellery is fastest growing region in the world….

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Chinese gifting culture and growing middle class driving luxury jewellery sales in Asia

MARKET POTENTIAL AND COMPETITIVE PROFILING

US$11 bn, 2014

China Growing Middle Class

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The “new” modern China is more reserved in its luxury spending than the “old” one

MARKET POTENTIAL AND COMPETITIVE PROFILING

Discreet and logo-free luxury goods are in

Showy and logo-heavy luxury goods are out

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Annual disposable income more than doubled in Asia Pacific over 2005-2014.

Initially, demand was more about “bling” than sophistication, but that changed as consumers became more discerning and brand savvy.

The rise of a powerful middle class with sophisticated demands

MARKET POTENTIAL AND COMPETITIVE PROFILING

In China, middle class households now account for a quarter of the total population, and there are 126 million people in social class A.

Growth in disposable income in Asia Pacific was unrivalled globally over the last decade.

• Market Potential and Competitive Profiling

• E-Commerce, Social and Other Digital outlook for Jewelers

• The Road ahead

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From e-Commerce to s-Commerce; Digitalisation has changed the way we do business

E-COMMERCE, SOCIAL & OTHER DIGITAL STRATEGIES FOR JEWELLERY PLAYERS

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2014 Adoption in Asia

1.2 bn internet users

3.7 bn phone

subscriptions

25% mobile internet

subscription

0% 50% 100%

Thailand

Malaysia

Philippines

Japan

Indonesia

India

Share of Smartphone Sales in Mobile Phones

2008 2013 2018

Rising ownership of iPads, Smartphones, and other internet-enabled mobile devices, especially among people aged 20-35 years, will empower the internet further.

E-COMMERCE, SOCIAL & OTHER DIGITAL STRATEGIES FOR JEWELLERY PLAYERS

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Augmented reality, online apps, and other digital innovations

E-COMMERCE, SOCIAL & OTHER DIGITAL STRATEGIES FOR JEWELLERY PLAYERS

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Smart Jewellery is coming…

E-COMMERCE, SOCIAL & OTHER DIGITAL STRATEGIES FOR JEWELLERY PLAYERS

Cuff

USP: Available as wristwear and neckwear; inexpensive; can be used for emergency alerts.

Price: Starts at US$49

Weaknesses: Limited compatibility with smartphone applications; low price might drive away real jewellery consumer base.

Ringly

USP: Gold-plated ring that vibrates and blinks with both iOS and Android notifications.

Price: Starts at US$195

Weaknesses: Product range limited by jewellery type and in terms of compatibility with smartphone applications; limited retail availability.

Ralph Lauren, Montblanc and Swarovski have shown active interest in wearables and launched their versions of smart apparel and accessories in 2015

Intel MICA

USP: Expertise of Intel and renowned designers; touchscreen display along with stand-alone 3G; unique materials.

Price: Around US$1,000

Weaknesses: Expensive and limited retail reach (Barneys New York and Opening Ceremony outlets).

Source: https://ringly.com Source: www.intel.com Source: https://cuff.io

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Facebook and Twitter sees maximum amount of jewellery brand presence

E-COMMERCE, SOCIAL & OTHER DIGITAL STRATEGIES FOR JEWELLERY PLAYERS

The widespread use of social media is a way for luxury brands to get closer to consumers.

Facebook already has more than 400 million monthly active users in Asia Pacific, and the region accounts for around a third of the world’s Twitter users.

• Market Potential and Competitive Profiling

• E-Commerce, Social and Other Digital outlook for Jewelers

• The Road ahead

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Asia Pacific will continue to be a global powerhouse for the luxury jewellery industry, with growth stabilising at around 5.4% a year (2014-2019).

Western luxury brands will face tougher competition from local rivals, and will increasingly need to tailor their products to regional traits and tastes.

India will be a focus of some of the most ambitious investment, but Western brands will be wary of potential headwinds there too.

Globally, there will be a renewed focus on the West. Also, a potential credit dry out could result in dampening luxury spending in Asia.

Increase in social media involvement and digital innovation amongst jewellery brands; driven by increased smartphone penetration amongst affluent consumers, looking for time-saving luxurious experiences.

Summary: Moderate growth in future, and more cautious investment, amongst jewellery players in the APAC region

THE ROAD AHEAD

THANK YOU FOR YOUR TIME

Premanjali Gupta (Naina)

Phone: +65 6429 0590 ext.: 6597

Email: [email protected]

THANK YOU FOR YOUR TIME! CONTACT: PREMANJALI GUPTA (NAINA) [email protected]