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The recession hurt the Direct Selling of Jewelry and Accessories industry because the products being sold are highly discretionary; however, the five years to 2014 showed growth for the industry as it recovered from the recession and this growth will continue, but slightly slow, in the five years to 2019. For these reasons, industry research firm IBISWorld has added a report on the Direct Selling of Jewelry and Accessories industry to its growing industry report collection.
New York, NY (PRWEB) February 05, 2014
The Direct Selling of Jewelry and Accessories industry is sparkling again following a brief period in the recession-induced doldrums. The industry, which relies on an army of salespeople making person-to-person or group sales away from a fixed retail location, has benefited from the economic recovery and the corresponding uptick in consumer spending. Despite increased competition from online retailers (e-tailers), revenue for the Direct Selling of Jewelry and Accessories industry is expected to increase 3.0% to $2.5 billion over the five years to 2014. This includes a 2.2% rise in 2014 as per capita disposable income and consumer confidence jump 3.1% and 6.2%, respectively, over the year.
According to IBISWorld Industry Analyst Andy Brennan, Purchases of jewelry, watches and associated accessories are highly discretionary, meaning broad economic conditions, such as per capita income, the unemployment rate and consumer confidence, have a big effect on the ability and willingness of consumers to purchase products the industry sells. As income levels have risen over the past few decades, direct sellers have shifted their focus from home durables and personal care items to more expensive personal accessories, such as jewelry and watches. A large number of direct sellers have entered the industry over the past decade to supplement their income or as a flexible and autonomous means of employment. This trend was exacerbated by the recession as people that had lost their jobs or had their hours cut sort employment options with relatively low barriers to entry.
The industry's growth is expected to slow over the next five years as consumers rely on alternative retail channels to purchase jewelry and similar accessories, says Brennan. Industry revenue is projected to rise over the next five years. Two broad themes will characterize the industry over the next five years. The gradually improving economy is expected to lead to higher income levels and, consequently, higher discretionary spending. This will boost overall spending on jewelry and accessories. However, intensifying competition from alternative retail channels, most notably e-tailers, will tempter demand for products sold by direct sellers. For this reason, direct sellers will need to emphasize their competitive advantage of personalized service to maximize sales.
The Direct Selling of Jewelry and Accessories industry is characterized by low market share concentration. The market is highly fragmented with many small operators looking to enter the market. Most operators in the market tend to be a small group of people creating and selling their own jewelry without an extensive network. As the industry continues to grow, IBISWorld expects that market share concentration will follow suit.
For more information, visit IBISWorlds Direct Selling of Jewelry and Accessories in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Direct Selling of Jewelry and Accessories industry rely on a direct sales model, where salespeople are contracted by the company to market the product. Wages are commission-based. Companies in this industry supply accessories, including jewelry and watches.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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