Jewellery - France

Euromonitor International : Country Sector Briefing

May 2010
Jewellery France

List of Contents and Tables

Headlines ................................................................................................................................................................. 1

Trends ...................................................................................................................................................................... 1

Competitive Landscape .......................................................................................................................................... 2

Prospects .................................................................................................................................................................. 2
New Product Developments ...................................................................................................................................... 3
Summary 1 New Product Launches 2009-2010 .................................................................................... 3

Category Data ......................................................................................................................................................... 3

Table 1 Sales of Jewellery by Category: Value 2004-2009 ............................................................ 3
Table 2 Sales of Jewellery by Category: % Value Growth 2004-2009........................................... 3
Table 3 Sales of Jewellery by Type: % Value Breakdown 2004-2009 ........................................... 4
Table 4 Jewellery Company Shares 2005-2009.............................................................................. 4
Table 5 Jewellery Brand Shares 2006-2009 ................................................................................... 4
Table 6 Costume Jewellery Company Shares 2005-2009............................................................... 5
Table 7 Costume Jewellery Brand Shares 2006-2009 .................................................................... 5
Table 8 Real Jewellery Company Shares 2005-2009 ..................................................................... 5
Table 9 Real Jewellery Brand Shares 2006-2009 ........................................................................... 6
Table 10 Sales of Jewellery by Distribution Format: % Analysis 2004-2009 .................................. 6
Table 11 Forecast Sales of Jewellery by Category: Value 2009-2014.............................................. 6
Table 12 Forecast Sales of Jewellery by Category: % Value Growth 2009-2014 ............................ 7

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Jewellery France

JEWELLERY IN FRANCE

HEADLINES
• The total value sales of jewellery declined by 5.0% in 2009 to €3.7 billion.
• This decline in the market was mainly attributable to the poor performance of the real jewellery segment,
whose sales declined by 5.9%, accounting for the larger share of sales in value terms, at 86.8%.
• At the same time, costume jewellery saw its sales grow by 1.2%, driven by the rising success of fashion
accessories.
• The real jewellery subsector was led by Christian Bernard Diffusion SA, with a market share of 12.4% in
2009, while Claire’s dominated the costume jewellery subsector, with 18.0%.
• Sales of jewellery are forecast to grow by 9.3% during 2009–2014 to reach €4.0 billion in 2014, equating to
a CAGR of 1.8%.

TRENDS
• The overall decline in sales recorded in 2009 was attributable solely to the poor performance of real
jewellery, whose value sales declined by 5.9%. This category still made up the larger share of sales,
however, with a total of €3.2 billion. In parallel, value sales of costume jewellery grew by 1.2% as
consumers shifted towards less expensive products as a result of the economic crisis and the decline in their
purchasing power.
• Demand for jewellery is largely determined by consumers’ disposable incomes. French households’
purchasing power began to decline in 2008 as a result of the economic crisis, which had a negative impact
on the consumption of jewellery.
• Sales of costume jewellery increased faster than those of real jewellery because of their lower price point
and the growing success of fashion accessories. They accounted for 13.2% of value sales in 2009, up from
11.6% in 2006.
• Within the real jewellery subsector, the share of silver increased steadily to the detriment of gold because of
its lower price. When raw material prices rise, jewellery becomes more expensive and consumer demand
declines. Gold jewellery, whose average price increased by 20% in three years, was therefore the most
heavily affected segment, with sales declining by 2% in 2008.
• As a result, customers have switched towards artificial and imitation jewellery. People who previously
bought gold jewellery pieces could no longer afford to do so because of their high prices, while imitation
jewellery is readily available from street vendors and stand-alone shops within malls.
• Consumers have become more price conscious as a result of the crisis, and 87% of the jewellery items
bought in 2008 cost less than €300.
• In terms of materials, silver, platinum and pearls have become increasingly popular to the detriment of gold
and precious stones, thanks to their more affordable prices and the growing success of accessories and
costume jewellery among the French population.
• Rings and neckwear were the most popular types of jewellery, accounting together for more than 68% of
total value sales. Rings accounted for the largest share of sales of gold jewellery, and average prices
remained high in this segment. The French do not hesitate to invest in pieces of this type for special
occasions (engagements, wedding anniversaries, birthdays, etc.). Necklaces were prevalent within silver
jewellery which has become the fastest-growing segment.
• Volume sales of jewellery grew rapidly between 2002 and 2006 thanks to the strong dynamism of the
costume and silver jewellery categories. Volume sales then declined between 2007 and 2009. This market
slow-down is mainly explained by the reduction in French households’ purchasing power as a result of the
economic crisis.

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Jewellery France

• Jewellery sales are highest during the Christmas season and in the run-up to Valentine’s Day, while
Mother’s Day also sees a spike in sales.
• French customers are now very demanding about their jewellery and increasingly want customised designs.
They like to have the piece they dream of and often take their own designs to the jewellers’ shops to ask
them to prepare similar designs.
• The retail jewellery industry is highly fragmented. Chains dominate the sector, although independent
retailers also have firm roots. The sector’s dynamism has attracted new players into the market and
competition has therefore intensified.
• Leisure and personal goods retailers remained the most important retail channel, accounting for 70.0% of
total value sales of jewellery in 2009. The vast majority of customers want to have a large choice of
products and specialist advice, and they therefore go to specialist jewellers, which are well represented
throughout France.
• Internet and mixed retailers were the fastest-growing channels during the review period. Since the late
1990s, online sales of jewellery have risen steadily which has forced retailers to adapt, and many have
moved some part of their operations on line. More manufacturers and wholesalers are also increasingly
conducting business on line. Since jewellery is seldom branded, product differentiation is key to
competition among retailers and good designers are highly valued.
• In September 2009, the Synalia cooperative (Julien d’Orcel, La Guilde des Orfèvres, Heure et Montres and
Parfait Alibi) acquired 35% of Althair capital (Mégalithes Bijouterie and Mégalithes Montres). This
partnership will enable Synalia to expand its network from 410 to 450 sales outlets, accounting for 7% of
the country’s total distribution, with a total turnover of €248 million.

COMPETITIVE LANDSCAPE
• The leader in real jewellery is Christian Bernard Diffusion SA, with a 12.4% market share in 2009. The
brand is recognised throughout the world for the quality and prestige of its products.
• French manufacturers are well positioned in the high end of the market thanks to the high popularity of
luxury brands such as Cartier, Christian Bernard, Chaumet and Boucheron.
• In the costume jewellery subsector, four brands accounted for 60.7% of value sales in 2009. The market
was led by Claire’s, with value sales of 18.0%, followed by Swarovski, Agatha and Groupe GL Paris
Bijoux. These brands are highly popular thanks to their high levels of investment in communications and
the frequent renewals of their products.
• Claire’s has registered a notable increase in market share thanks to the rapid development of the costume
jewellery segment and its opening of new stores during the review period.
• Agatha celebrated its thirty-fifth anniversary in 2009 and launched a large-scale marketing and
communications campaign in October and November with a total budget of €1 million, both in France and
abroad. The group also launched a mini-collection of Charm’s dolls (the Agatha Girls) and nine pieces of
“couture jewellery” to celebrate the event.
• Product development plays a major role in the marketplace since jewellery pieces are increasingly
perceived as fashion accessories that can be renewed frequently. Manufacturers therefore launch new
products very frequently in order to stimulate demand.

PROSPECTS
• Jewellery sales are forecast to continue to grow over the forecast period, rising by 9.3% during 2009–2014,
which equates to a CAGR of 1.8%. Sales of real jewellery are expected to continue to decline, to the benefit
of costume jewellery, which is cheaper and renewed more frequently.
• Sales of jewellery in 2010 are likely to remain relatively weak, rising by just 0.8% as a result of the
economic crisis. Consumers are becoming increasingly price conscious and shifting towards more
affordable products.

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Jewellery France

• Within the real jewellery subsector, sales of silver pieces are anticipated to continue rising to the detriment
of gold, because of their lower prices and the rising popularity of fashion accessories within the French
population.
• Average prices are forecast to decline slightly over the forecast period on account of the growing share of
cheaper costume jewellery in the total.
• Competition is expected to intensify, especially in costume jewellery, and many new players have entered
this sector in recent years and will certainly fight hard to gain market share. As a result, the main brands
may need to redefine their marketing strategies and review their market positioning in order to differentiate
themselves from their competitors.
• Leisure and personal goods retailers will remain the main distribution channel, although the share of
Internet retailing is expected to continue to rise steadily. Clothing and footwear retailers are also expected
to gain market share from specialist retailers, since more brands are including jewellery in their product
portfolios in order to provide global fashion offers.

New Product Developments

Summary 1 New Product Launches 2009-2010

Brand name Company USPs Launch date
Agatha Girls Agatha To mark its thirty-fifth 2009
birthday, the brand
crossed the decades with
five collectable Charm’s
dolls that represent their
respective eras
Little Agatha Agatha New line of children’s Second half of 2010
jewellery, positioned as
brand for “the daughters
of Agatha’s mothers”
Tribal Chick Tribal Chick Eco-friendly jewellery 2009
range with pieces made
from seeds and fruit

Sources: Trade press, Company research, Trade interviews

Note: USP = unique selling point

CATEGORY DATA
Table 1 Sales of Jewellery by Category: Value 2004-2009

EUR million
2004 2005 2006 2007 2008 2009

Costume Jewellery 481.8 477.5 449.6 464.6 480.0 485.8

Real Jewellery 3,467.2 3,404.5 3,426.4 3,506.4 3,391.0 3,191.6
Jewellery 3,949.0 3,882.0 3,876.0 3,971.0 3,871.0 3,677.4
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 2 Sales of Jewellery by Category: % Value Growth 2004-2009

% current value growth

2008/09 2004-09 CAGR 2004/09 TOTAL

Costume Jewellery 1.2 0.2 0.8

Real Jewellery -5.9 -1.6 -7.9

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Jewellery France

Jewellery -5.0 -1.4 -6.9

Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 3 Sales of Jewellery by Type: % Value Breakdown 2004-2009

% retail value rsp

2004 2005 2006 2007 2008 2009

Earrings 16.3 16.2 16.2 16.2 16.2 16.2

Neckwear 23.4 23.4 23.4 23.4 23.3 23.3
Rings 44.2 44.4 44.5 44.6 44.8 44.9
Wristwear 16.1 16.0 15.9 15.8 15.7 15.6
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews,
Euromonitor estimates

Table 4 Jewellery Company Shares 2005-2009

% retail value rsp

Company 2005 2006 2007 2008 2009

Christian Bernard 10.9 11.0 11.0 10.9 10.8

Diffusion SA
Chaumet International SA 9.3 9.3 9.3 9.2 9.0
Groupe GL Paris Bijoux 8.7 8.6 8.6 8.6 8.6
Boucheron SA 8.7 8.7 8.7 8.6 8.5
Cartier SA 8.2 8.2 8.1 7.9 7.9
Orest Group SA 4.6 4.8 4.8 4.8 5.0
Bijoux Altesse SA 3.3 3.4 3.4 3.4 3.4
Charles Perroud SAS 3.1 3.1 3.1 3.0 3.0
Claire's France SA 2.2 2.1 2.1 2.2 2.4
Swarovski France SA 2.1 2.0 2.0 2.1 2.3
Agatha France SA 1.7 1.6 1.6 1.7 1.8
Réminiscence Diffusion 0.5 0.5 0.5 0.5 0.5
Internationale
Biche de Bère SA 0.4 0.4 0.4 0.4 0.4
Marc Orian SA 0.4 0.4 0.4 0.4 0.4
Rand Frères SA 0.4 0.3 0.3 0.4 0.4
Harry Cover SA 0.3 0.3 0.3 0.3 0.3
Lollipops SA 0.2 0.2 0.2 0.2 0.2
Others 35.2 35.2 35.2 35.3 35.0
Total 100.0 100.0 100.0 100.0 100.0
Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 5 Jewellery Brand Shares 2006-2009

% retail value rsp

Brand Company 2006 2007 2008 2009

Christian Bernard Christian Bernard 11.0 11.0 10.9 10.8

Paris Diffusion SA
Chaumet Chaumet International SA 9.3 9.3 9.2 9.0
GL Paris Bijoux Groupe GL Paris Bijoux 8.6 8.6 8.6 8.6
Boucheron Boucheron SA 8.7 8.7 8.6 8.5
Cartier Cartier SA 8.2 8.1 7.9 7.9
Orest Orest Group SA 4.8 4.8 4.8 5.0
Bijoux Altesse Bijoux Altesse SA 3.4 3.4 3.4 3.4
Charles Perroud Charles Perroud SAS 3.1 3.1 3.0 3.0
Claire's Claire's France SA 2.1 2.1 2.2 2.4
Swarovski Swarovski France SA 2.0 2.0 2.1 2.3

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Agatha Agatha France SA 1.6 1.6 1.7 1.8

Réminiscence Réminiscence Diffusion 0.5 0.5 0.5 0.5
Internationale
Biche de Bère Biche de Bère SA 0.4 0.4 0.4 0.4
Marc Orian Marc Orian SA 0.4 0.4 0.4 0.4
Rand Frères Rand Frères SA 0.3 0.3 0.4 0.4
Harry Cover Harry Cover SA 0.3 0.3 0.3 0.3
Lollipops Lollipops SA 0.2 0.2 0.2 0.2
Others 35.2 35.2 35.3 35.0
Total 100.0 100.0 100.0 100.0
Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 6 Costume Jewellery Company Shares 2005-2009

% retail value rsp

Company 2005 2006 2007 2008 2009

Claire's France SA 17.7 17.7 17.8 17.9 18.0

Swarovski France SA 17.1 17.1 17.2 17.3 17.3
Agatha France SA 13.4 13.5 13.5 13.5 13.6
Groupe GL Paris Bijoux 12.0 11.9 11.9 11.9 11.8
Réminiscence Diffusion 4.0 4.0 4.1 4.1 4.1
Internationale
Biche de Bère SA 3.6 3.5 3.4 3.4 3.3
Marc Orian SA 2.9 3.0 3.1 3.2 3.3
Rand Frères SA 3.0 3.0 2.9 2.9 2.8
Harry Cover SA 2.2 2.3 2.3 2.3 2.4
Lollipops SA 2.0 1.9 2.0 1.9 1.8
Others 22.2 22.0 21.8 21.7 21.5
Total 100.0 100.0 100.0 100.0 100.0
Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 7 Costume Jewellery Brand Shares 2006-2009

% retail value rsp

Brand Company 2006 2007 2008 2009

Claire's Claire's France SA 17.7 17.8 17.9 18.0

Swarovski Swarovski France SA 17.1 17.2 17.3 17.3
Agatha Agatha France SA 13.5 13.5 13.5 13.6
GL Paris Bijoux Groupe GL Paris Bijoux 11.9 11.9 11.9 11.8
Réminiscence Réminiscence Diffusion 4.0 4.1 4.1 4.1
Internationale
Biche de Bère Biche de Bère SA 3.5 3.4 3.4 3.3
Marc Orian Marc Orian SA 3.0 3.1 3.2 3.3
Rand Frères Rand Frères SA 3.0 2.9 2.9 2.8
Harry Cover Harry Cover SA 2.3 2.3 2.3 2.4
Lollipops Lollipops SA 1.9 2.0 1.9 1.8
Others 22.0 21.8 21.7 21.5
Total 100.0 100.0 100.0 100.0
Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 8 Real Jewellery Company Shares 2005-2009

% retail value rsp

Company 2005 2006 2007 2008 2009

Christian Bernard 12.5 12.4 12.4 12.5 12.4

Diffusion SA
Chaumet International SA 10.6 10.5 10.5 10.5 10.4

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Jewellery France

Boucheron SA 9.9 9.8 9.9 9.8 9.8

Cartier SA 9.3 9.3 9.2 9.0 9.1
Groupe GL Paris Bijoux 8.3 8.2 8.2 8.2 8.1
Orest Group SA 5.2 5.4 5.5 5.5 5.8
Bijoux Altesse SA 3.8 3.8 3.8 3.9 3.9
Charles Perroud SAS 3.5 3.5 3.5 3.5 3.5
Others 37.0 37.0 36.9 37.2 37.0
Total 100.0 100.0 100.0 100.0 100.0
Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 9 Real Jewellery Brand Shares 2006-2009

% retail value rsp

Brand Company 2006 2007 2008 2009

Christian Bernard Christian Bernard 12.4 12.4 12.5 12.4

Paris Diffusion SA
Chaumet Chaumet International SA 10.5 10.5 10.5 10.4
Boucheron Boucheron SA 9.8 9.9 9.8 9.8
Cartier Cartier SA 9.3 9.2 9.0 9.1
GL Paris Bijoux Groupe GL Paris Bijoux 8.2 8.2 8.2 8.1
Orest Orest Group SA 5.4 5.5 5.5 5.8
Bijoux Altesse Bijoux Altesse SA 3.8 3.8 3.9 3.9
Charles Perroud Charles Perroud SAS 3.5 3.5 3.5 3.5
Others 37.0 36.9 37.2 37.0
Total 100.0 100.0 100.0 100.0
Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 10 Sales of Jewellery by Distribution Format: % Analysis 2004-2009

% retail value rsp

2004 2005 2006 2007 2008 2009

Store-Based Retailing 94.0 93.9 93.8 93.7 93.6 93.5

Grocery Retailers 10.9 10.9 11.0 11.1 11.1 11.2
Non-Grocery Retailers 78.7 78.8 78.9 79.1 79.2 79.3
Electronics and - - - - - -
Appliance Specialist
Retailers
Health and Beauty - - - - - -
Retailers
Leisure and personal 69.8 69.8 69.9 69.9 70.0 70.0
goods retailers
Mixed Retailers 8.9 8.9 9.0 9.1 9.2 9.3
Other store-based 4.4 4.2 3.9 3.6 3.3 3.0
retailing
Non-Store Retailing 6.0 6.1 6.2 6.3 6.4 6.5
Direct Selling 0.2 0.2 0.2 0.2 0.2 0.2
Homeshopping 0.5 0.5 0.5 0.5 0.5 0.5
Internet Retailing 5.3 5.4 5.5 5.6 5.7 5.8
Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews,
Euromonitor estimates

Table 11 Forecast Sales of Jewellery by Category: Value 2009-2014

EUR million
2009 2010 2011 2012 2013 2014

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Jewellery France

Costume Jewellery 485.8 506.7 529.4 554.8 583.2 614.3

Real Jewellery 3,191.6 3,165.0 3,145.0 3,127.0 3,113.0 3,105.0
Jewellery 3,677.4 3,671.7 3,674.4 3,681.8 3,696.2 3,719.3
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates

Table 12 Forecast Sales of Jewellery by Category: % Value Growth 2009-2014

% constant value growth

2009-14 CAGR 2009/14 TOTAL

Costume Jewellery 4.8 26.5

Real Jewellery -0.5 -2.7
Jewellery 0.2 1.1
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates

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