Now is a good time to be online jewellery and watch retailer in Australia as the industry is expected to grow by more than a quarter, according to InsideRetail.
Recent figures show 2013-14 online jewellery and watch sales are expected to record a growth of 10.8 per cent, reaching $67.8 million worth of transactions.
Over the past five years through to 2014, this glittering industry is forecast to have increased by an annualised rate of 27.3 per cent.
This growth is supported by increased consumer confidence and trust in the online business model, according to a January 13 report from IBISWorld.
Analysts at IBISWorld identified the industries they believe will experience the highest levels of expansion in 2014.
Online retailing featured in the number four spot in the top five list of growth sectors, with a 12.3 per cent increase expected to take the industry to a collective $13.2 billion in revenue.
“More traditional retailers are beginning to join the online sphere in order to remain competitive, with their shopfronts acting as convenient locations for pick-up and returns,” said Karen Dobie, general manager of IBISWorld Australia.
Holding on to a bricks and mortar store while making the transition online is a popular retail strategy as it helps minimise the cost of logistics, warehousing and supply-chain management.
Currently, jewellery and watch retailers represent a low level of online market share concentration, with the top four players accounting for less than 40 per cent of the industry’s total revenue.
This could be because of a number of challenges businesses working within this industry face.
Major challenges include the substantial number of sites selling fake merchandise and also the competition with online retailers who also offer clothing and lifestyle products.
Market share is expected to increase over the next five years as major retailers, such as Prouds Jewellers and Michael Hill, expand their presence online.
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