jewellery players leveraging on the digital era
TRANSCRIPT
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JEWELLERY PLAYERS LEVERAGING ON THE DIGITAL ERA BY: PREMANJALI GUPTA LUXURY, RETAIL & FASHION SPECIALIST, EUROMONITOR INTERNATIONAL
• Market Potential and Competitive Profiling
• E-Commerce, Social and Other Digital outlook for Jewelers
• The Road ahead
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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]