Costume jewellery in Germany

The market for costume jewellery in Germany offers you opportunities despite the economic downturn in the past few years. Consumer confidence gradually turns out positively. As more women join the German workforce, there is a growing market for jewellery as an important fashion accessory being worn daily. Several growth areas could provide you with opportunities including original jewellery, romantic jewellery and convertible jewellery.
Market characteristics
1. Consumption. The German market for costume jewellery was valued at 286 million in 2009, a 4.5% average annual increase since 2005, representing 10% of EU market value. This growth rate was well above the EU as a whole, which registered a 2.6% annual increase. Other EU Member States with a higher performance included United Kingdom, Austria, Spain, Cyprus, Romania and Bulgaria. See the module Costume jewellery - Promising EU export markets with all trade statistics. Along with a growing confidence among the Germans since 2008/2009, jewellery sales has picked up. Particularly costume jewellery (14 million pieces) has been more popular as it is lower in price than precious jewellery. Costume jewellery has become more diverse and responds well to the move away trend from bling-bling towards jewellery that expresses more traditional, cultural or artistic values. The latest designs link up with different themes, personalities, styles, moods, seasons or events see some examples in the factsheet Silver jewellery in Germany. The number of working women increased from 59.8% to 65.5% of all German women between 2005 and 2009. Most women buy jewellery themselves to complement their outfit. They are increasingly attracted to the choice in (fresh) colours, combinations in material, in clever modular jewellery, or in charms expressing their personality. Men's jewellery continues to gain ground. Leather cords with a pendant, stainless steel bracelets, rings with engraved names, cufflinks or tiepins are reflecting a good style for men. More information can be found in the module Costume jewellery trends and segments. 2. Production. Germany is a small producer of costume jewellery, valued at 50 million, representing 4% of EU production of costume jewellery. German production is increasing, at the rate of approximately 2.7% per annum since 2005. Most production was imitation jewellery with parts of glass and imitation jewellery of metal (clad). 3. Imports. DC imports (value) show a positive trend. The total German imports of costume jewellery were valued at 383 million in 2009, a 3.8% annual average increase since 2005, representing 12.5 thousand tonnes, a 10% increase in volume in the same period.

Costume jewellery in Germany

DC imports increased by 3.0% over the period (compared with a 10.1% increase in volume to 7.8 thousand tonnes). In 2009, DC imports accounted for 62% of all imports by value and by volume. Germany was among the largest EU importers of costume jewellery with the second highest share (62%) from developing countries following the UK. Leading DC suppliers (by volume) were China (56% of total, +12% average annual growth), India (3.3%, +2%), Indonesia (0.8%, -3%), Thailand (0.6%, +6%), Turkey (0.6%, +13%), Philippines (0.6%, -1%), South Africa (0.1%, +17%), Vietnam (0.1%, +30%), Brazil (0.06%, +11%), Nepal (0.04%, +7%) and Kenya (0.03%, +12%). Imitation jewellery with parts of glass was the largest sub-group by value (35%), but represented 17% of German costume jewellery imports by volume. While Imitation jewellery of other material was the largest sub-group by volume (30%) but the smallest by value (19%). Hair accessories represented 9% of German costume jewellery imports and marginally increased in significance from 34 to 36 million with slightly falling volumes (from 3.4 to 3.3 thousand tonnes). The largest sub-group was combs, hair slides of rubber, plastic valued at 16.4 million which increased by 8% since 2005. China was by far the leading supplying country taking up 95% of DC supplies by volume in 2009. 4. Prices. Average DC import prices of costume jewellery increased from 27.54 to 30.26 per tonne, while average intra-EU prices increased from 66.31 to 86.53, making intra-EU import prices almost triple the average of DC import prices. Approximately 28% of costume jewellery are priced under 10 at retail, 57% are between 10-75 and the remaining 15% are priced over 75. 5. Key opportunities. Costume jewellery with ethnic designs is an important opportunity. Opposite to the ever-changing fashion trends, German consumers turn back to timeless designs, which can be found in ethnic designs from foreign cultures. For example, the atmosphere of African nature, tribal or natural shapes by different materials such as shells, bones, terracotta, enamel or leather. Designs on rings, brooches or bangles can be in the form of a funnel of volcanoes combined with the bright African colours. Other opportunity is romantic jewellery, which expresses the wearers thoughts. For example, chandeliers earrings, pendants on small or large chains, or long neck chains with wooden beads or coloured imitation pearls. Other examples could be charm bracelets with colourful beads that bring good luck or protect the wearer. In order to offer more value for money, you could offer modular or convertible systems in your jewellery collection. For example, a long neck chain that can be shortened; a neck chain that can be turned into a bracelet; hoop/creole earrings that can be strung together; interchangeable charms or collectible bracelets.

How to approach the market

Within jewellery distribution, there are some dominant retail groups (Bijoux Brigitte) and (foreign) chain stores operators, department stores and hypermarkets. They are gaining more importance in jewellery sales. Wholesalers are diminishing in importance as chain stores source more direct from German or foreign manufacturers. Nevertheless, they still represent an important channel for DC exporters as they are able to provide a more diverse and different jewellery collections. The usual distinction in German wholesalers is as follows: o Small wholesalers who operate locally and need to specialise in a particular kind of jewellery. Germany is usually sub-divided into seven Nielsen areas. o Large wholesalers who offer a broad range and often serve the Austrian, Swiss or Eastern EU markets. This could be time saving for you if you consider also to export to these countries.

Costume jewellery in Germany

Most wholesalers can be reached via cash and carry showrooms. There are two showrooms, one in Kaufbeuren (near Munich), and one in Pforzheim, which is more focused on precious jewellery. The Federation of German Wholesale and Foreign Trade can provide advice on importing into Germany - http://www.bga.de. There are the following specialist wholesalers in the costume jewellery sector: o Gogoritas - http://www.gogoritas.com, costume jewellery with crystals. They sell on line. o Tricoulour Jewellery importing much from DCs http://www.tricolourjewellery.com. o Fair Global http://www.fair-global.com, El Martin http://www.elmartin.de - and The Fair Trade Organisation http://www.fair4you-online.de Agents can be found at http://www.cdh.de or http://www.handelsvertreter.de Leading retailers are Bijoux Brigitte http://www.bijou-brigitte.com a retailer with over 1,000 outlets worldwide selling middle-higher quality costume and silver jewellery. Karstadt http://www.karstadt.de - also commands a high market share. Clothing Retailers are important, such as C&A (422 outlets), Esprit (3,531 outlets), Bonita Mode (500 outlets), H&M (319 outlets), New Yorker (289 outlets), Ulla Popken and Adler (Discount, 111 outlets). The variety of non-specialist retailers selling jewellery continues to increase. The growth in these outlets is driven by lower prices and by convenience for the consumer. The main non-specialist retailers are: o Discounters (Aldi, Lidl, Walmart) and hypermarkets which have been important in the jewellery market. o Hypermarkets such as Metro - http://www.metro.de - and Rewe, which often focus on the impulsive jewellery consumers. Most of these retailers have operations in other EU countries, especially in Eastern EU countries. o Drugstores, perfumeries, gift shops, mail order companies (Klingel Versand), footwear stores, duty free shops and market stalls.

You need to decide whether to approach this market directly or indirectly. See the module on distribution strategy for more information. Check also the module on buyer requirements. If you make a direct approach, personal communication is crucial when starting up a relationship. You can approach German customers through direct (e-) mail, personal visits (as follow-up), inviting potential customers to your country, building a network and visiting international trade fairs. Interesting trade fairs include Bijoutex http://www.bijoutex.de held twice a year in Mnchen. The MittelDeutsche Fashion Fair http://www.mitteldeutsche-modemesse.de takes place near Leipzig each August. Bread and Butter http://www.breadandbutter.com focuses on young fashion. The main trade association are the Federation of German Jewellery, Watches, Clocks, Silverware (http://www.bv-schmuck-uhren.de) and BVJ - the Jewellery and Watches Association (http://www.bv-juweliere.de). The German Fashion Industry Association http://www.germanfashion.net. The German Fashion Institute http://www.deutschesmodeinstitut.de. Leading trade press include GZ Magazine (http://www.gz-online.de) and Schmuck (http://www.schmuckmagazin.de). The publication for jewellery retailers is UJS (Uhren, Juwelen, Schmuck) and can be reached at http://www.uhrenjuwelenschmuck.de.