Watches and Jewellery shine bright as opportunity for trading up shoppers
31st July 2018
New research indicates that more than half of shoppers in the Watches & Jewellery category are purchasing more expensive items than at home. Meanwhile gifting is key driver, but under-exploited by retailers.
The study – The Watches & Jewellery Shopper Review 2018 – from CiR analysts examines, in detail, the buying habits of travelling shoppers in this important product category. Some 4,800 visitors to the Watches & Jewellery area were surveyed.
The report indicates that 59% of shoppers are choosing to buy more expensive items from duty free, which is +12% ahead of the global benchmark. “This opens up a clear opportunity to drive engagement and incremental purchasing by delivering a value-added experience,” comments Garry Stasiulevicuis, Founder and President of CiR.
Some 62% are also purchasing a non-regular brand (+15% versus the global benchmark) which suggests that shoppers are open to experimentation in this category. Females (at 59%) are more likely to purchase watches on impulse than males (55%) but some sub-categories are more pre-planned such as necklaces (60%) and rings (54%).
When it comes to gifting, 26% of visitors head to the Watches & Jewellery section for inspiration – this is +9% over-indexed versus the global average. Yet, 65% of purchasing is still driven by self-consumption, suggesting that retailers are missing out on converting potential gift buyers.
“Gifting is an under-utilised aspect of the Watches & Jewellery experience, despite it being a driver of shopper visits,” notes Stasiulevicuis. “The category can do more about this – for example by using more attractive displays and knowledgeable staff to increase conversion rates.”
The report results suggest that Watches and Jewellery as a category “lends itself to the experimental and indulgent shopper looking to treat themselves or others close to them”. Capitalising on this requires attention in the following areas:
– Emphasise visual merchandising of key sub-categories
Attraction and engagement are key to increasing the current one-third conversion rate. More must therefore be done beyond the retail space to drive engagement in specific segments such as men’s watches, bracelets, earrings and necklaces.
– Understand the purchase motivator to each sub-category in turn
Shoppers tend to plan their purchase within one set sub-category and purchase on impulse in others. Retailers need to ensure the range and merchandising promote and encourage this interplay.
– Use highly-visible fixtures to encourage gifting
Watches and Jewellery shoppers are looking for indulgence, either for themselves or for treating a loved one. Eye-catching front-of-store fixtures are of paramount importance in gaining the attention of these shoppers.
“The battlefield is in engagement before duty free visitors have entered the retail space,” says Stasiulevicuis. “This can be done by leveraging the power of visual attraction using supporting ad campaigns for example, or by introducing multi-category displays or full brand sets to showcase complementary products alongside one another.”
The report shows that brands that have greater resonance with shoppers across the sub-categories include Calvin Klein, Cartier, Bvlgari, Chanel, and Fossil.
These are a few of the top-line conclusions from The Watches & Jewellery Shopper Review 2018. The report – available now – offers a detailed analysis of this category and its shoppers. For more information click here