Jewelry & Watch Manufacturing Industry Profile

Companies in this industry manufacture jewelry and personal goods, such as compacts and cigarette cases, from precious metals, gemstones, and other materials. Major companies include US-based Tiffany, James Avery Craftsman, and Richline Group; Cartier (headquartered in France); Bulgari (Italy); PANDORA (Denmark); D Swarovski & Co (Austria); and Kingold Jewelry (China).

Worldwide, jewelry sales exceed $185 billion. The US, China, and India are the largest jewelry markets. Demand for diamond and gold jewelry in China and India will fuel much of the industry's growth over the next several years.

The US jewelry manufacturing industry includes about 1,600 companies with combined annual revenue of about $8 billion and is expected to grow at a moderate rate over the next two years. Key growth drivers include new sales channels, branding strategies, and cheaper offshore manufacturing.

COMPETITIVE LANDSCAPE

Demand for jewelry is driven by personal income and world gold and silver prices. The profitability of individual companies depends on efficient operations and cost controls. Large companies have advantages in offering a broader product line to meet consumers' changing desires, and in efficient production and distribution operations. Small companies can compete effectively by offering individualized and unique product lines. The industry is concentrated: the 50 largest companies account for about 70 percent of industry revenue.

Jewelry exports, primarily to Hong Kong, Switzerland, the UK, Canada, and Japan, represent more than 65 percent of US production. Imports account for nearly ...