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Online Jewellery and Watch Sales in Australia Industry Market Research Report Now Available from IBISWorld(PR Web Via Acquire Media NewsEdge) Melbourne, Australia (PRWEB) January 07, 2014 The Online Jewellery and Watch Sales industry has grown strongly over the past five years, mirroring the fortunes of the broader online shopping sector. Growth in the online retail market is being driven by increased consumer acceptance and trust of the online business model. IBISWorld industry analyst Sebastian Chia states, “consumers have been drawn to the convenience and lower prices offered by online retailers, while the retailers have drawn higher margins due to smaller rental and labour costs.” However, companies within the industry face potentially higher costs in terms of logistics, warehousing and supply chain management. Industry operators are mostly made up of existing brands or authorised resellers who have either shifted online or established an online presence to complement their existing operations. Online jewellery and watch retailers face competition from department store brands that are also establishing online operations. According to Chia, “despite strong growth over the past five years, the industry has faced some challenges including higher prices for silver and gold, which increased purchase costs slightly.” However, this effect was diluted due to the relative strength of the Australian dollar. Over the five years through 2013-14, the Online Jewellery and Watch Sales industry is expected to grow at an annualised 27.3%. In 2013-14, the industry is estimated to post growth of 10.8% to reach $67.8 million. Despite the glittering outlook, the industry will face a number of challenges over the next five years. Firms in the industry will continue to battle sites selling fake merchandise. Online jewellery and watch retailers will also face competition from other online retailers that also sell clothing and lifestyle products. Like many retailers migrating online, players within the industry will have to weigh up the value of having a traditional physical storefront that complements their online sales. The Online Jewellery and Watch Sales industry has a low level of market share concentration, with the top four players estimated to account for substantially less than 40% industry revenue. This is due to low barriers to entry and high level of competition within the industry. Establishing a new operation is relatively inexpensive and the industry faces strong buyer power. Nevertheless, well-established brands do tend to skew sales in the direction of larger players. Market share concentration is expected to increase over the five years through 2013-14 as the online presence of the major players, such as Prouds Jewellers and Michael Hill, grows. For more information, visit IBISWorld’s Online Jewellery and Watch Sales report in Australia industry page. Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau. IBISWorld Industry Report Key Topics This industry primarily sells jewellery, watches and costume jewellery via the internet. Industry operators include online-only retailers and bricks-and-mortar stores that have an online presence. Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle Products & Markets Supply Chain Products & Services Major Markets International Trade Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Basis of Competition Barriers to Entry Industry Globalisation Major Companies Operating Conditions Capital Intensity Technology & Systems Revenue Volatility Regulation & Policy Industry Assistance Key Statistics Industry Data Annual Change Key Ratios About IBISWorld Inc. Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886. Read the full story at http://www.prweb.com/releases/2014/01/prweb11463169.htm (c) 2014 PRWEB.COM Newswire |