Personal Accessories in Romania

PERSONAL ACCESSORIES IN
ROMANIA
Euromonitor International
February 2014
PERSONAL ACCESSORIES IN ROMANIA
LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Positive Growth Is Recorded in Personal Accessories in Romania .......................................... 1
Romanians Continue To Be Star Struck by Globally Famous Luxury Goods Brands ............... 1
the Personal Accessories Industry Becomes Increasingly Fragmented ................................... 1
Chained Retailing and Mono-brand Stores Are Rapidly Growing ............................................. 1
Positive Prospects for the Sale of Personal Accessories .......................................................... 1
Key Trends and Developments .................................................................................................... 2
Increasing Competition Between Umbrella Brands................................................................... 2
Romanians More Up To Date With the European Trends ........................................................ 3
Specialised Retail Reigns Supreme.......................................................................................... 6
Timid Economic Recovery - Timid Evolution of the Market ....................................................... 8
Market Data ................................................................................................................................ 10
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Sales of Personal Accessories by Category: Volume 2008-2013 .............. 10

Sales of Personal Accessories by Category: Value 2008-2013 ................. 10
Sales of Personal Accessories by Category: % Volume Growth 20082013 ........................................................................................................... 10
Sales of Personal Accessories by Category: % Value Growth 20082013 ........................................................................................................... 10
NBO Company Shares of Personal Accessories: % Value 2008-2012 ...... 11
LBN Brand Shares of Personal Accessories: % Value 2009-2012 ............. 11
Distribution of Personal Accessories by Format: % Value 2008-2013 ....... 12
Forecast Sales of Personal Accessories by Category: Volume 20132018 ........................................................................................................... 13
Forecast Sales of Personal Accessories by Category: Value 20132018 ........................................................................................................... 13
Forecast Sales of Personal Accessories by Category: % Volume
Growth 2013-2018 ..................................................................................... 14
Forecast Sales of Personal Accessories by Category: % Value
Growth 2013-2018 ..................................................................................... 14
Definitions................................................................................................................................... 14
Sources ...................................................................................................................................... 15
Summary 1
Research Sources ...................................................................................... 15
Passport
PERSONAL ACCESSORIES IN
ROMANIA
EXECUTIVE SUMMARY
Positive Growth Is Recorded in Personal Accessories in Romania
After the shopping behaviour of Romanian consumers was highly influenced by the economic
recession, personal accessories managed to show the first signs of recovery in 2012 after four
years of decline. Although only marginal growth was registered, personal accessories is a
consumer goods industry which reflects a series of improvements ranging from more relaxed
spending on personal accessories to the increasing variety of brands which are available, which
is limiting the influence of the trade in counterfeit goods.
Romanians Continue To Be Star Struck by Globally Famous Luxury

Goods Brands
Personal accessories is an industry of products which are often regarded as cheap and easy
options for presenting a fashionable public image. When it comes to personal accessories, the
majority of Romanians prefer to associate themselves with internationally renowned brands.
However, a famous brand name is often the only motivating factor behind the purchase of
certain personal accessories products, with consumers often needing more education about the
quality of certain products.
the Personal Accessories Industry Becomes Increasingly Fragmented

Personal accessories in Romania is home to an increasingly wide array of companies and
brands. The competitive landscape across the industry is dominated by international players,
many of which have been attracted to Romania by the good prospects for improving their
businesses. Nevertheless, there are some domestic players maintaining leading positions in
several personal accessories categories, with Meli Melo Paris the leading company in costume
jewellery, one prime example.
Chained Retailing and Mono-brand Stores Are Rapidly Growing

During the review period, personal accessories in Romania benefited from the rapid
expansion of specialist retailers. In addition, chained retail outlets are rapidly expanding and
investing in building strong retail brands. This is greatly benefiting those consumers who seek
high-profile brands with a strong image for quality and durability. In addition, personal
accessories is an industry in which the majority of products are becoming increasingly present
within hypermarkets and apparel specialist retailers as manufacturers and importers seek to
diversify their product portfolios and distribution networks in order to meet consumer needs.
Positive Prospects for the Sale of Personal Accessories

Within the context of the adverse economic situation and changing consumer lifestyles,
growth in personal accessories is expected to accelerate between 2013 and 2018. The industry
is by no means mature and for this reason a wider range of international brands are expected to
be launched in Romania during the forecast period in order to take full advantage of existing
potential whilst creating new opportunities. The wider availability of key brands, coupled with the
Passport
superior coverage of major chained retailers, is set to boost growth in personal accessories
during the forecast period.
KEY TRENDS AND DEVELOPMENTS

Increasing Competition Between Umbrella Brands
The Romanian preference for personal accessories offered under renowned brands continues
to shape in the personal accessories industry. As a general rule, Romanian consumers consider
popular brands as a sign of personal prestige and inherent value. Thus, the strong presence of
numerous luxury goods brands such as Louis Vuitton, Rolex and Gucci in personal accessories
in Romania should not necessarily come as a surprise. This preference for famous brands
applies not only to luxury goods brands but also global brands which target a more general
audience. The presence of mono-brand retail outlets which offer a wide range of personal
accessories in categories such as watches, jewellery, bags and luggage and writing instruments
is increasing in Romania.
Current impact
In recent years, retailing in Romania has evolved, which has involved a shift away from
outlets specialising in certain types of personal accessories towards outlets which target certain
types of consumers. For instance, Meli Melo is a retail chain which offers a wide variety of
personal accessories aimed at younger, less affluent women, while Decathlon, Adidas and
Intersport offer personal accessories among their wide ranges of merchandise which intend to
capture demand among active sports enthusiasts. Towards the higher end of the price
spectrum, Louis Vuitton and Gucci retail outlets offer a wide range of luxury goods including
personal accessories, targeting consumers with higher income levels. The major tendency in the
Romanian personal accessories industry is the diversification of their product portfolios, a
process which is being undertaken in order to satisfy demand among a wider range of
consumers. This diversification of the merchandise of key retailers is highly evident in the case
of Burberry and Louis Vuitton.
There are numerous advantages to offering personal accessories under umbrella brands,
mainly that comprehensive brands which offer such a wide range of products are able to capture
and sustain high levels of consumer loyalty, leading players such as Hugo Boss and Furla to
focus more on product diversification in order to reach out to more consumers. The
comprehensive marketing campaigns undertaken by these brands are also undergoing major
changes in the sense that they no longer promote single products, but rather several products
under the auspices of the one umbrella brand.
Meli Melo Paris is the most successful umbrella lifestyle brand available in Romania and its
current efforts involve the constant diversification of its product portfolio. After starting with a
product range which focuses mainly on costume jewellery, Meli Melo is increasingly focusing on
handbags and, to a lesser extent, on watches and clothing accessories. Capitalising on such as
diverse product range and its reputation for high quality at affordable prices, the retailer has
been constantly developing its retail network, which now comprises in excess of 40 retail outlets
spread throughout Romania.
Umbrella brands operating in luxury goods still faced numerous difficulties during 2012 as the
Romanian luxury goods industry continues to feel the negative effects of the economic
recession as well as the fact that a high proportion of affluent Romanian consumers prefer to
shop for luxury goods when travelling outside the country. The performance of premium and
super-premium personal accessories was also negatively affected by both the political crisis
which emerged in Romania during the first half of 2012 and the high prices being charged for
Passport
real estate in the country. Many of the companies operating in personal accessories have
commented that the owners of Romanias commercial real estate have failed to adapt to the
economic crisis and continue to demand unjustifiably high rents. There were no significant
declines in rent levels on Calea Victoriei, Bucharests main thoroughfare for luxury goods
retailing over the course of 2012. Consequently, as brands such as Hugo Boss and Gucci
witnessed declines in their sales over the course of 2011, their profitability took a massive hit as
their rents did not decline accordingly. Moreover, Louis Vuitton, one of the best performers in
luxury goods in Romania, recorded declines in luxury goods during 2011 for the first time since it
entered Romania.
Outlook
During the forecast period, the leading retailers of personal accessories were generally
engaged in the retailing of a combination of apparel and personal accessories. These
companies are all expected to increase the range of products which they offer, with brands such
as Adidas and Mango likely to lead the way in this respect. For example, Romanias leading
sports good stores are set to focus more on selling crossbody bags and backpacks. As more
umbrella lifestyle brands are likely to intensify their activities in Romania, the products they offer
are likely to be more in line with those on offer in other European countries, in terms of
marketing campaigns and the prices charged.
Future impact
As consumer loyalty for strong brands is set to continue building during the forecast period,
the leading players in personal accessories are set to focus on new marketing approaches such
as the establishment of VIP clubs and the offer of loyalty cards. A more congruent marketing
approach which takes the entire product portfolios of the leading umbrella brands is also likely to
be prevalent. In addition, due to the highly seasonal nature of demand for personal accessories,
various special offers and discounts are likely to be more common during August and January,
while the periods with the highest sales are likely to witness large numbers of limited editions of
personal accessories, specifically February and December.
The competitive landscape in personal accessories is expected to be characterised by intense
battles between umbrella brands as increasing numbers of companies are expected to be highly
active in the industry. As a result, the marketing campaigns in personal accessories are likely to
become more innovative, embracing a wider range of communication channels. In addition, the
growing presence of umbrella brands is likely to place more pressure on smaller players, thus
well-established brands are expected to increase their value shares during the forecast period.
Romanians More Up To Date With the European Trends

Personal appearance remains highly important for the majority of Romanian women, many of
whom use accessories and apparel to make statements about their personal image. These
consumers are attracted by strong brands with strong reputations and they are generally
prepared to spend significant sums of money on the right item offered by a high-status brand.
This situation can also be largely attributed to the fact that apparel and personal accessories are
widely considered to be primary indicators of social status in Romania and obvious signs of
prestige and affluence. In general, Romanian tastes in personal accessories tend to differ from
those in the rest of Europe. However, given the increasing number of Romanians travelling
outside of the country and the wider access to information regarding latest international trends,
the personal accessories shopping habits of the majority of Romanians are becoming
increasingly similar to those of their counterparts in other European countries.
The economic crisis has shaped consumer behaviour in Romania, leading many consumers
to prefer to invest in accessorising simple outfits than purchasing new apparel. While many
Passport
Romanians remain rather conservative with regards to product design, especially women living
in Transylvania, Romanians are tending to become more non-conformist, gravitating towards
products which are characterised by asymmetry, unusual combinations of colours and different
materials and textures. For this reason, trends in costume jewellery, for example, are shifting
towards larger items.
Current impact
The personal accessories categories in which these changes in consumer tastes have been
most prominent are handbags and costume jewellery. New materials and designs are
characteristic of what has become an increasingly heterogeneous industry in terms of product
features. These trends are also being influenced by the increasingly divergent demand among
Romanias various consumer segments. Younger consumers, for instance, remain more likely to
embrace innovative and purchase more daring products. Recent product developments in
personal accessories have been based largely on this propensity among the general population
of Romania and for this reason the countrys personal accessories industry has recently
witnessed a major increase in the use of metallic elements such as chunky chains with large
links and massive crystals. These aesthetic trends apply not only to costume jewellery but also
to products in other personal accessories categories such as handbags. Handmade personal
accessories and products with various handmade elements remain highly popular in Romania
as they give the user a certain feeling of uniqueness and authenticity.
Even though costume jewellery was initially rather unsuccessful in Romania due to the fact
that consumers tend to perceive costume jewellery as low-quality products with little or no
intrinsic value, various benefits are deriving from the soaring popularity of costume jewellery
among Romanias female consumers. The relatively strong demand for costume jewellery
among young Romanian women is supported by the fact that costume jewellery can easily be
combined with and adapted to every outfit. Changes in the predominant trends in costume
jewellery are developing more slowly now than in previous years as the numbers of products
present in the category has been expanding for several years. The development of themes such
as ethnic, retro, futuristic, architectural and natural qualities have meant that costume jewellery
remains a highly attractive category for a wide variety of Romanian consumers during 2013,
especially those who are willing to wear provocative jewellery designs in an attempt to catch the
eye of their peers and impress with their style choices. In addition, the innovations of the leading
retailers of costume jewellery in Romania continue to stimulate the consumer appetite for
personal accessories. For instance, Pandora offers its customers the possibility to customise
their purchases, thus giving consumers a sense of exclusivity, enabling them to choose the
individual components of their jewellery. Double rings which fit over two fingers in the same time
were recently launched in Romania, with players such as Meli Melo already speculating on the
potential value of this untapped segment by offering a wide range of such products.
Innovations in real jewellery, meanwhile, include the rise of pink gold, one of the most recent
developments in the industry. Sales of real jewellery produced using pink gold are expected to
increase during the forecast period as Romanian consumers become more familiar with this
type of material. Romanian consumers are very traditional when it comes to real jewellery and
the majority of them continue to prefer yellow gold as the primary material for their real jewellery,
while younger consumers are more inclined to choose silver jewellery. White gold remains
favourite material for real jewellery in Romania as it is associated with high quality and
affluence.
Handbags with prints, mostly floral or geometrical, remained popular in Romania during 2013,
while crossbody bags continued to attract more consumers, with especially significant growth
observed among the male population. In the case of handbags, the use of nude colours has
Passport
recently become one of the leading fashion trends and the Moschino brand has led the way in
the development of this trend.
Outlook
While Romanian consumers continue to benefit from their increased exposure to information
about the latest fashion trends in other countries, there remains more room for them to become
educated about the prevailing trends in other countries. There was once a time when Romanian
women had a reputation for dressing in a tacky and flashy fashion, wearing personal
accessories suggested a lack of taste. In addition, it was once common for young women in
Romania to wear a lot of accessories which could be considered unsuitable for someone so
young. Although the situation in this respect has changed in recent years, there remains room
for improvement. Much of this is related to the shift towards higher quality products in personal
accessories, a trend which is set to remain in evidence throughout the forecast period.
Nevertheless, the leading retailers of personal accessories in Romania have already begun to
base their marketing on the quality of their products, including more focus on the use of highmaterial qualities and the superior durability and ecological credentials of certain items. In this
respect, marketing in the industry is set to go much further beyond focusing solely on the image
of certain personal accessories brands. In addition, the Romanian population is slowly becoming
better informed in terms of the latest fashion trends and style rules.
The shift towards Romanian consumers becoming more sophisticated is set to boost demand
for environmentally friendly personal accessories. As a consequence, eco-labelling is expected
to become more prevalent in personal accessories in Romania as the majority of Romanian
consumers still need to more information about the ecological impact of the products they
purchase. Furthermore, organic themed products and those made from recycled raw materials
are likely to attract more consumers during the forecast period. Furthermore, handmade
products are likely to continue enjoying high demand during the forecast period, especially in
handbags and costume jewellery. This is likely to see an increase in the popularity of traditional
Romanian motifs in personal accessories during the forecast period.
As the average age of Romanias personal accessories consumers is set to decline over the
forecast period, the companies present in the industry are expected to focus more on making
certain products more appealing to a younger audience. Handbags and costume jewellery which
are designed to appeal to teenagers are likely to feature more non-conformist themes,
becoming more colourful and better advertised through the most popular media channels
among young people such as the Internet and specialist magazines. Moreover, in addition to
media advertising, some Romanian magazines aimed at teenage girls such as Bravo Girl and
Cool Girl also offer free gifts of costume jewellery. Moreover, customisable products are
expected to emerge in personal accessories over the course of the forecast period, in line with
the rising demand for unique, personalised products which highlight the creativity of the
consumer. It is likely that this will motivate consumers to become more attached to the personal
accessories they wear. This is likely to be especially popular among young and more dynamic
consumers during the forecast period.
Future impact
Non-conformism is set to become more popular in personal accessories over the forecast
period. 2014 is also expected to be a year during which demand increases for vintage,
Victorian-looking jewellery, while geometric forms and neon colours are also set to remain
popular. In addition, personal accessories with massive, brassy metallic chains are likely to
experience high demand as consumer tastes continue to change, while coppery shades are
likely to be become very popular in costume jewellery during 2014. Floral prints are also
Passport
expected to encounter high demand as they are universally considered to be very feminine and
are able to benefit from their longstanding presence in the category.
The range of different materials used in the manufacture of various personal accessories
brands are expected to become more diverse over the course of the forecast period, both in
jewellery and handbags. Pink gold is one recently introduced material which is expected to
experience high growth in popularity during the forecast period, while products such as double
rings are likely to become increasingly popular. In terms of watches, the majority of Romanian
women are likely to prefer larger watches with more masculine touches which can also be worn
as bracelets.
Specialised Retail Reigns Supreme

Given the fact that personal accessories are becoming a more popular and affordable way of
enhancing the public image among Romanian consumers, increasing numbers of retailers which
normally focus on apparel such as Mango and New Yorker are including handbags and costume
jewellery within their merchandise. Moreover, more personal accessories specialist retailers are
opening in Romania as retailers seek to take advantage of changing consumer preferences.
Thus, the current retail landscape for personal accessories is undergoing continuous
geographical expansion as the leading retailers in the industry achieve consistent growth in
sales. Romanias leading retailers of personal accessories are also benefiting from the fact that
personal accessories are generally easier to sell than apparel as many personal accessories
items carry much lower unit prices than the majority of apparel items, making them more
accessible for cash-strapped Romanian consumers. In addition, the variety of products in
personal accessories is very wide and categories such as bags, jewellery and watches feature a
wide variety of products, meaning that all consumers are able to find something which suits their
needs and tastes. Finally, standalone retail outlets in high street locations are considered
comparatively risky in Romania as the success of individual outlets is often highly dependent on
the exact location of the outlet and on the cost of commercial rent.
Current impact
Specialist retailing remains the leading distribution format for personal accessories in
Romania. Jewellery & watch specialist retailers, bags and luggage specialist retailers and
apparel specialist retailers are the main distribution channels for personal accessories in
Romania, combined accounting for 76% of total retail value sales across the industry in 2013.
Among these distribution channels, chained retailers are becoming the major force in the
retailing of personal accessories. The most successful chained retailer of personal accessories
in Romania is Meli Melo, a chained retailer which sells mainly costume jewellery but also bags
and luggage, sunglasses, watches and clothing accessories. In real jewellery, the majority of
retail sales are also achieved through chained specialist retailers, the majority of which sell
mainly imported brands, with Cellini and B & B Collection the most important players. Another
key trend in the retail distribution of personal accessories is the growing presence and
expansion of mono-brand retail outlets under brands such as Samsonite, Furla, Coccinelle and
Mont Blanc. These retailers are benefiting from the growing brand loyalty and their strong efforts
to win and retain loyal customer bases.
In addition to these specialist retailers, hypermarkets is also becoming a key distribution
channel for personal accessories in Romania. During 2012, hypermarkets accounted 5% of total
personal accessories retail value sales, as well as 36% of writing instruments retail value sales.
The wide range of products which can found for affordable prices within Romanias
hypermarkets has led to the channel becoming increasingly important in the distribution of
personal accessories, a trend which has had a negative impact on the performance of some
personal accessories specialist retailers. For instance, a substantial number of Romanias
Passport
stationers/office supply stores have been forced to close down due to the fierce competition
coming from supermarkets. This led to the value share of stationers/office supply stores in
writing instruments declining to 31% in 2013, down from 37% in 2008.
In terms of geographical presence, the majority of personal accessories specialist retailers are
present in Bucharest, the Romanian city with the highest potential for sales of personal
accessories. The Romanian capital was also the first city to witness the entry of specialist
retailers, with other Romanian cities only seeing the entry of specialist retailers quite recently,
including Cluj-Napoca and Timisoara. These cities have recently become important hubs for
specialist retailers of personal accessories. Nevertheless, Bucharest remains the most attractive
location for personal accessories specialist retailers as it is home to the Romanias most affluent
consumers, an especially advantageous situation for luxury goods retailers. Thus, at the end of
2011, Pandora opened its first Romanian retail outlet in Bucharest, with a second outlet opening
in Constanta during 2012. Furthermore, 2012 was also the year during which the luxury writing
instruments retailer Montegrappa opened its first retail outlet in Romania.
Venue shopping is less developed in Romania, which is likely due to the fact that shopping
centres are the primary shopping destinations for the majority of Romanians. As a
consequence, the majority of Romanias leading chained personal accessories retailers such as
Samsonite, Cellini and B & B Collection are present mainly in shopping malls. This allows them
to take advantage of high levels of consumer foot traffic, while it also offers consumers the
possibility to shop for a wide variety of personal accessories in the same location.
Outlook
The shift towards specialist retailing is expected to remain a growing trend in personal
accessories over the course of the forecast period, with the rapid emergence of mono-brand
retail outlets likely to be another key trend in personal accessories over the forecast period.
During 2014, retailers which have recently entered Romania such as Tiffany and Chanel are
expected to open more mono-brand retail outlets due to rapidly growing demand. Luxury
retailing is expected to continue growing in Romania as many new players are expected to enter
the country during the forecast period. Romania is still regarded as a country with significant
growth potential for luxury goods as many consumers in the country are becoming increasingly
attracted to famous international brands.
Sales of personal accessories through sports good stores are set to continue growing as
mono-brand retailers such as Adidas and Nike are expected to diversify their product portfolios
to include more bags and luggage within their product ranges. Chained retailers such as
Decathlon are set to remain highly popular among Romanian consumers looking for backpacks,
duffel bags and luggage. Personal accessories are also set to become available in retail
distribution channels in which they were not previously present in significant volumes such as
hypermarkets. Kaufland and Carrefour have recently introduced costume jewellery into their
merchandise, while luggage is already sold through these and similar retail chains. While sales
of luggage and costume jewellery have been consistent through hypermarkets, these sales
remained marginal during 2013, with growth expected to accelerate during the forecast period.
Moreover, as the range of costume jewellery available in outlets of Carrefour or Kaufland is
expected to expand over the forecast period, chained grocery retailers such as Auchan and Billa
are also expected to being offering these products on their shelves.
Future impact
As a major future trend in the retailing of personal accessories, the expansion of the outlet
networks of Romanias leading chained retailers are set to increasingly encompass cities and
towns outside of Bucharest as more of the Romanian people living in remote rural areas are
migrating to these cities for work or study. The increasingly intense competition between
Passport
Romanias leading chained retailers is also set to benefit consumers as various marketing
initiatives such as price discounting and loyalty schemes are likely to become more prevalent
within the retailing industry generally.
The scale and scope of non-store retailing is set to continue increasing in Romania during the
forecast period, mainly because of the rapid increase in the popularity of internet retailing in the
country. By the end of 2018, e-commerce is expected to account for almost 4% of total personal
accessories retail value sales, much higher than the 2% value share recorded in 2012.
Moreover, direct selling is set to evolve constantly over the forecast period, with Avon and
Oriflame set to become more prominent retailers of personal accessories during the forecast
period.
Timid Economic Recovery - Timid Evolution of the Market

Romanias economic situation witnessed a slight improvement during 2012 following a
sustained period of economic recession which resulted reductions in consumer purchasing
power. According to the World Bank, Romanias economic performance was reflected in real
GDP growth of 0.7% in 2012, which followed marginally higher growth during 2011. The main
reasons for this marginal slowdown in GDP growth in 2012 were several natural disasters
caused by extreme weather during the first half of the year as well as high levels of tension on
the political scene, poor agricultural results and corruption in the administration of EU funds.
During the first half of 2013, Romania registered a positive trade balance for the first time
since the 1989 revolution heralded the countrys transition from state socialism to market
capitalism. Other EU member states are now Romanias major trade partners and 72% of
Romanis exports in 2012 were to other EU member states. Other positive indicators are also in
evidence. For instance, between April 2012 and February 2013, the number of employees in the
domestic economy increased by 70,000, resulting in Romanis unemployment rate declining to
6.7%, far lower than many struggling countries inside the Eurozone and half the Eurozone
average. Furthermore, the monthly average income per capita was also on the rise in 2012,
increasing by 4% in real terms to RON1,550.
Current impact
As a result of the fragile nature of Romanias economic recovery and the countrys ongoing
severe political crisis, during spring 2012, investors remained hesitant to commit to Romanian
projects, while Romanias business and political environment showed signs of instability. As a
consequence, personal accessories increased in constant value by 1% in 2013, a growth rate
which was very similar to the countrys GDP growth rate. However, this performance remains
strong as the country continues to deal with burning issues such as the high prevalence of
counterfeit goods in the country and the high prices charged for many raw materials. One
positive result in terms of sales of personal accessories was the high increase recorded the
average per capita income towards the end of the review period, which was due mainly to rising
wages, with this measure returning to levels which were in evidence prior to the imposition of
austerity measures by the IMF in 2010, which was followed by the inevitable contraction in
consumer spending.
During the first half of 2013, the exchange value of the Romanian lei also increased against
the euro, achieving a 16-month peak during May 2013. The strong performance of Romanias
currency was supported by capital inflows from outside the country as well the interest of foreign
investors which were attracted by Romanias improving macroeconomic stability. Nevertheless,
the complicated fiscal landscape and the high level of corruption which remains a major
obstacle to progress in Romania continue to make it relatively difficult for the country to attract
foreign direct investment. Thus, foreign direct investment was 15% lower during the first two
Passport
months of 2013 than during the first two months of 2012, a year which was represented a nadir
in terms of foreign direct investment in Romania.
Furthermore, Romania remains a country in which there is a high level of economic
discrepancy between Bucharest and a handful of other major cities and smaller regional centres
and rural areas. According to the National Commission of Prognosis, the population with the
highest income per capita lives in the Romanian capital, where the average monthly wage was
RON2,300 in 2012. The regions of Romania with the highest average per capita incomes
include Ilfov with an average monthly income of RON1,900, Gorj with an average monthly
income of RON1,700 and Timis and Arges, each with an average monthly income of RON1,600.
Regions such as Harghita, Botosani and Satu-Mare, meanwhile, remain at the opposite end of
the price spectrum. As a consequence, consumption of personal accessories in Romania is also
highly focused on the areas of the country with the highest average income levels, with
Bucharest the city in which the majority of the key personal accessories retailers are also
present.
Outlook
The outlook for Romanias economic performance looks optimistic for the forecast period as
economic and political stability and new opportunities are set to mark the countrys economic
performance during the immediate future. The World Bank improved its forecast for Romania
during 2013, with economic growth of 1.7% projected for the year. For 2014, Romanias real
GDP growth is expected to increase by 2.2%, while the expectation for 2015 is for 2.7% GDP
growth. Several other positive indicators are also expected to emerge as Romanias economy
continues to head in the right direction. For instance, the countrys current account deficit is
expected to have settled on 3.7% of GDP at the end of 2013, an improvement on initial
predictions which placed this measure in excess of 4%. A marginal improvement is expected in
the current account deficit in 2014 and 2015, with 3.6% expected. In addition, according to the
National Commission of Prognosis, Romanias net average [Q: monthly?] income is set to
increase from the RON1,600 recorded in 2013 to RON1,800 in 2015.
The Romanian government expects consistent economic growth during 2014 as the country is
set to record the strongest economic growth in the EU after the Baltic states. While the coalition
governments political strategy for 2012 and 2013 centred on achieving more political and
macroeconomic stability, the government recently declared that the reinvigoration of the
Romanian economy will be its major priority between 2014 and 2016. Diversification of the
countrys key export territories is also set to be one of the major endeavours of Romanias
political and economic agencies, with a major focus on countries outside of the EU, especially
Latin American countries.
Future impact
The improving economic landscape in Romania is set to have a very positive influence on
growth in personal accessories during the forecast period, with a constant value CAGR of 3%
expected between 2013 and 2018, with total constant value sales rising to RON4.8 billion
Further improvements in Romanias fiscal solvency are expected to have a positive impact on
the countrys business environment in a variety of ways during the forecast period. For instance,
new measures requiring VAT payment upon cashing invoices rather than in advance without the
need to collect the value of the invoice which came into effect towards the end of 2013 are
expected to lighten the burdens which currently plague the business activities of the leading
players in personal accessories in Romania.
The vast economic disparity between Bucharest and a handful of Romanias other major cities
and the countrys much less affluent regional centres and rural areas is set to remain a major
feature of Romania throughout the forecast period, compromising consumer purchase power
Passport
Passport
overall and making it difficult for personal accessories companies to expand outside of
Romanias major cities as many Romanians living in regional towns and rural areas do not lead
modern lifestyles. However, further developments in rural areas such as rapidly rising internet
access and higher employment rates among the rural population is likely to improve the
exposure of less privileged Romanians living in relatively remote regions to the latest global
fashion trends, in turn stimulating the consumption of personal accessories.
MARKET DATA
Table 1
Sales of Personal Accessories by Category: Volume 2008-2013
'000 units
Bags and Luggage

Jewellery
Watches
Writing Instruments
Personal Accessories
Source:
2008
2009
2010
2011
2012
2013
9,150.9
4,361.6
446.0
51,800.3
65,758.7
8,540.6
3,947.8
419.3
51,899.6
64,807.2
8,079.3
3,740.9
363.7
52,168.8
64,352.7
8,063.4
3,683.4
344.5
53,004.3
65,095.6
8,188.7
3,703.5
328.6
54,530.6
66,751.4
8,368.5
3,763.1
319.4
56,083.2
68,534.1
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Sales of Personal Accessories by Category: Value 2008-2013
RON million
Bags and Luggage

Jewellery
Watches
Writing Instruments
Source:
2008
2009
2010
2011
2012
2013
631.2
1,992.2
147.7
114.8
2,885.9
638.8
1,760.7
147.2
122.3
2,669.0
655.8
1,743.7
142.7
132.2
2,674.4
705.7
1,797.1
144.0
144.0
2,790.8
752.0
1,818.0
147.6
154.6
2,872.3
820.1
1,897.6
156.6
168.9
3,043.3
Table 3
Sales of Personal Accessories by Category: % Volume Growth 2008-2013
% volume growth
Bags and Luggage

Jewellery
Watches
Writing Instruments
Source:
Table 4
2012/13
2008-13 CAGR
2008/13 Total
2.2
1.6
-2.8
2.8
2.7
-1.8
-2.9
-6.5
1.6
0.8
-8.5
-13.7
-28.4
8.3
4.2
Sales of Personal Accessories by Category: % Value Growth 2008-2013
% current value growth

2012/13
2008-13 CAGR
2008/13 Total
10
Passport
Bags and Luggage

Jewellery
Watches
Writing Instruments
Source:
9.1
4.4
6.1
9.3
6.0
5.4
-1.0
1.2
8.0
1.1
29.9
-4.7
6.0
47.1
5.5
Table 5
NBO Company Shares of Personal Accessories: % Value 2008-2012
% retail value rsp

Company
Richemont SA, Cie
Financire
SC Gamabell Exim SRL
Rafael & Sons Diamonds
& Jewellery
PPR SA
Louis Vuitton Romania SRL
Joyera Tous SA
VF Corp
General Business System
SRL
Giloro SRL
Monsoon Accessorize Ltd
LVMH Mot Hennessy
Louis Vuitton SA
RTC Proffice Experience
SA
Burberry Ltd
Swatch Group Ltd, The
Newell Rubbermaid Inc
Casio Computer Co Ltd
Azad Ent
Solmar Trading Grup SRL
Pandora A/S
Pull & Bear Ro Srl
Herlitz Romania SRL
Elmec Romania SRL
Tiffany & Co
Fossil Inc
Case Logic Inc
Nike Inc
New Yorker GroupServices International
GmbH & Co KG
Safir 94 Impex SRL
Burton Snowboards Inc
St Bic SA
Others
Total
2008
2009
2010
2011
2012
4.2
4.0
4.0
4.0
4.0
1.9
1.1
1.9
1.2
1.8
1.5
1.6
1.6
1.7
1.6
1.1
0.9
0.6
0.9
0.6
1.2
0.8
0.7
0.9
0.6
0.9
1.1
0.7
0.8
0.6
1.0
1.1
0.9
1.0
0.7
1.2
1.1
1.1
1.0
0.7
0.5
0.2
0.1
0.5
0.4
0.1
0.6
0.4
0.1
0.7
0.6
0.4
0.7
0.6
0.6
0.4
0.4
0.4
0.5
0.6
0.3
0.4
0.4
0.6
1.1
0.5
0.2
0.3
0.3
0.4
0.2
0.3
0.3
0.3
0.2
0.4
0.5
0.4
0.6
0.8
0.6
0.3
0.3
0.3
0.4
0.2
0.3
0.3
0.3
0.2
0.4
0.5
0.5
0.6
0.5
0.4
0.4
0.3
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.4
0.5
0.5
0.5
0.5
0.5
0.4
0.3
0.4
0.3
0.3
0.3
0.3
0.3
0.3
0.5
0.5
0.5
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
81.0
100.0
0.2
0.3
0.2
80.6
100.0
0.3
0.3
0.2
80.3
100.0
0.2
0.3
0.2
79.3
100.0
0.3
0.3
0.2
78.1
100.0
Source:
Table 6
LBN Brand Shares of Personal Accessories: % Value 2009-2012
11
% retail value rsp

Brand
Company
Cartier
Richemont SA, Cie

Financire
SC Gamabell Exim SRL
Rafael & Sons Diamonds
& Jewellery
Richemont SA, Cie
Financire
Louis Vuitton Romania SRL
Joyera Tous SA
PPR SA
VF Corp
Giloro SRL
Monsoon Accessorize Ltd
Burberry Ltd
Richemont SA, Cie
Financire
Casio Computer Co Ltd
Solmar Trading Grup SRL
Azad Ent
PPR SA
Pandora A/S
Pull & Bear Ro Srl
RTC Proffice Experience SA
Herlitz Romania SRL
Elmec Romania SRL
General Business System
SRL
Meli Melo Paris

Rafael & Sons
Piaget
Louis Vuitton
Tous
Gucci
Kipling
Giloro
Accessorize
Burberry
Chlo
Casio
Mango
Lamonza
Boucheron
Pandora
Pull & Bear
Mandarina Duck
Pelikan
Folli Follie
Samsonite
Tiffany & Co
Fossil
Case Logic
Nike
New Yorker
Fossil Inc
Case Logic Inc
Nike Inc
New Yorker GroupServices International
GmbH & Co KG
Safir 94 Impex SRL
Burton Snowboards Inc
VF Corp
Safir 94
Burton
Jansport
Others
Total
Source:
Passport
2009
2010
2011
2012
2.5
2.3
2.3
2.3
1.9
1.2
1.8
1.5
1.6
1.6
1.7
1.6
1.1
1.2
1.2
1.2
0.8
0.7
0.7
0.6
0.5
0.4
0.4
0.4
1.1
0.7
0.5
0.5
0.6
0.4
0.4
0.5
1.1
0.9
0.6
0.7
0.7
0.6
0.4
0.5
1.1
1.1
0.8
0.7
0.7
0.6
0.5
0.5
0.6
0.6
0.8
0.5
0.3
0.3
0.3
0.3
0.4
0.3
0.6
0.4
0.5
0.5
0.4
0.3
0.3
0.4
0.4
0.2
0.5
0.5
0.5
0.4
0.4
0.3
0.4
0.4
0.3
0.3
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.4
0.3
0.2
0.3
0.3
0.3
0.2
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
0.3
0.3
82.3
100.0
0.3
0.3
0.3
82.1
100.0
0.2
0.3
0.3
81.5
100.0
0.3
0.3
0.3
80.5
100.0
Table 7
Distribution of Personal Accessories by Format: % Value 2008-2013
% retail value rsp
Store-Based Retailing
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt retailing
--- Supermarkets
2008
2009
2010
2011
2012
2013
99.3
3.4
3.4
99.0
4.0
4.0
98.7
4.5
4.5
98.2
4.8
4.8
97.8
5.2
5.2
97.5
5.5
5.5
0.3
0.4
0.4
0.4
0.4
0.4
12
--- Hypermarkets
--- Traditional Grocery
Retailers
- Non-Grocery Retailers
-- Apparel specialist
retailers
-- Health and Beauty
Specialist Retailers
--- Chemists/Pharmacies
--- Optical Goods Stores
--- Parapharmacies/
Drugstores
--- Other Health and
Beauty Specialist
retailers
-- Leisure and personal
goods retailers
--- Bags and Luggage
--- Jewellery & Watch
--- Stationers/Office
Supply Stores
--- Other Leisure and
Personal Goods
-- Mixed Retailers
--- Department Stores
--- Mass Merchandisers
--- Variety Stores
--- Warehouse Clubs
-- Other Non-Grocery
Retailers
Non-Store Retailing
- Direct Selling
- Homeshopping
- Internet Retailing
- Vending
Total
Source:
Passport
3.0
-
3.6
-
4.1
-
4.4
-
4.8
-
5.1
-
95.9
7.7
95.0
8.3
94.2
8.5
93.4
8.7
92.7
8.9
92.0
9.1
1.9
1.9
1.9
1.9
1.9
2.0
1.9
1.9
1.9
1.9
1.9
2.0
76.3
75.4
75.0
74.7
74.2
73.8
7.4
8.6
9.1
9.6
10.1
10.4
63.3
60.8
59.8
58.9
57.8
56.9
1.5
1.6
1.7
1.7
1.7
1.7
4.1
4.3
4.4
4.5
4.6
4.7
4.1
2.0
2.1
5.9
4.3
2.0
2.4
5.1
4.3
1.9
2.5
4.5
4.4
1.8
2.6
3.7
4.4
1.6
2.7
3.3
4.4
1.6
2.8
2.7
0.7
0.2
0.1
0.4
100.0
1.0
0.3
0.1
0.7
100.0
1.3
0.3
0.1
0.9
100.0
1.8
0.4
0.1
1.3
100.0
2.2
0.5
0.1
1.6
100.0
2.5
0.5
0.1
1.9
100.0
Table 8
Forecast Sales of Personal Accessories by Category: Volume 2013-2018
'000 units
Bags and Luggage

Jewellery
Watches
Writing Instruments
Source:
Table 9
2013
2014
2015
2016
2017
2018
8,368.5
3,763.1
319.4
56,083.2
68,534.1
8,501.9
3,863.8
318.3
57,462.4
70,146.3
8,670.1
3,982.7
318.1
58,725.3
71,696.2
8,872.9
4,105.7
318.4
59,761.0
73,058.0
9,083.6
4,225.8
320.2
60,840.2
74,469.8
9,244.2
4,360.6
322.4
61,957.8
75,885.0
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast Sales of Personal Accessories by Category: Value 2013-2018
13
Passport
RON million
Bags and Luggage

Jewellery
Watches
Writing Instruments
Source:
2013
2014
2015
2016
2017
2018
820.1
1,897.6
156.6
168.9
3,043.3
852.2
1,924.0
159.4
175.3
3,110.9
883.6
1,972.4
162.4
181.3
3,199.6
917.7
2,027.6
165.6
186.7
3,297.5
952.5
2,090.2
169.0
191.9
3,403.6
983.2
2,152.7
172.6
197.0
3,505.5
trade sources
Table 10
Forecast Sales of Personal Accessories by Category: % Volume Growth

2013-2018
% volume growth
Bags and Luggage

Jewellery
Watches
Writing Instruments
Source:
Table 11
2017/18
2013-18 CAGR
2013/18 Total
1.8
3.2
0.7
1.8
1.9
2.0
3.0
0.2
2.0
2.1
10.5
15.9
0.9
10.5
10.7
trade sources
Forecast Sales of Personal Accessories by Category: % Value Growth 20132018
% constant value growth
Bags and Luggage

Jewellery
Watches
Writing Instruments
Source:
2013-18 CAGR
2013/18 TOTAL
3.7
2.6
2.0
3.1
2.9
19.9
13.4
10.2
16.6
15.2
trade sources
DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
GBO refers to global brand owner, which is the ultimate owner of a brand.
NBO refers to national brand owner, which is the company licensed to distribute a brand on
behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a completely separate
company. Share tables at both GBO and at NBO level are provided in the report. Reference
to shares in the report analysis is at NBO level.
Martisor traditional holiday which takes place on 1st of March, a celebration of spring during
which men usually offer women traditional brooches tied with a red and white string;
14
Passport
SOURCES
Sources used during the research included the following:
Summary 1
Research Sources
Official Sources
Eurostat
National Association of Consumer Protection
National Confederation of Operators with
Precious Metals & Stones
Trade Associations
Patronage of Diamonds
Patronage of Romanian Jewellers
Trade Press
9am.ro
Business Magazin
Business24
Businesscover.ro
Capital
Curierul National
Doingbusiness.ro
Doing-business.ro
Economica.net
Fin.ro
finantistii.ro
incomemagazine.ro
Ital Trade
Mediafax
Money.ro
Stiri.rol.ro
Wall-street.ro
WebPR
www.2luxury2.ro
www.amelie.ro
www.business24.ro
www.franchising.info.ro
www.incont.ro
www.romanianlifestyle.ro
Ziarul Financiar
Source:
15

Personal Accessories in Romania

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Personal Accessories in Romania

Uploaded by

Copyright:

Available Formats

PERSONAL ACCESSORIES IN

PERSONAL ACCESSORIES IN ROMANIA

LIST OF CONTENTS AND TABLES

Sales of Personal Accessories by Category: Volume 2008-2013 .............. 10

Research Sources ...................................................................................... 15

PERSONAL ACCESSORIES IN ROMANIA

Romanians Continue To Be Star Struck by Globally Famous Luxury

the Personal Accessories Industry Becomes Increasingly Fragmented

Chained Retailing and Mono-brand Stores Are Rapidly Growing

Positive Prospects for the Sale of Personal Accessories

PERSONAL ACCESSORIES IN ROMANIA

KEY TRENDS AND DEVELOPMENTS

PERSONAL ACCESSORIES IN ROMANIA

Romanians More Up To Date With the European Trends

PERSONAL ACCESSORIES IN ROMANIA

PERSONAL ACCESSORIES IN ROMANIA

PERSONAL ACCESSORIES IN ROMANIA

Specialised Retail Reigns Supreme

PERSONAL ACCESSORIES IN ROMANIA

PERSONAL ACCESSORIES IN ROMANIA

Timid Economic Recovery - Timid Evolution of the Market

PERSONAL ACCESSORIES IN ROMANIA

PERSONAL ACCESSORIES IN ROMANIA

Sales of Personal Accessories by Category: Volume 2008-2013

Bags and Luggage

Sales of Personal Accessories by Category: Value 2008-2013

Bags and Luggage

Sales of Personal Accessories by Category: % Volume Growth 2008-2013

Bags and Luggage

Sales of Personal Accessories by Category: % Value Growth 2008-2013

% current value growth

PERSONAL ACCESSORIES IN ROMANIA

Bags and Luggage

NBO Company Shares of Personal Accessories: % Value 2008-2012

% retail value rsp

LBN Brand Shares of Personal Accessories: % Value 2009-2012

PERSONAL ACCESSORIES IN ROMANIA

% retail value rsp

Richemont SA, Cie

Meli Melo Paris

Distribution of Personal Accessories by Format: % Value 2008-2013

% retail value rsp

PERSONAL ACCESSORIES IN ROMANIA

Forecast Sales of Personal Accessories by Category: Volume 2013-2018

Bags and Luggage

Forecast Sales of Personal Accessories by Category: Value 2013-2018

PERSONAL ACCESSORIES IN ROMANIA

Bags and Luggage

Forecast Sales of Personal Accessories by Category: % Volume Growth

Bags and Luggage

Forecast Sales of Personal Accessories by Category: % Value Growth 20132018

% constant value growth

Bags and Luggage

PERSONAL ACCESSORIES IN ROMANIA

You might also like