Costume jewellery in

Austria
The costume jewellery market in Austria continued to grow during the economic
downturn. In reaction to the oversupply of cheap imported pieces with parts of glass
from China, Austrian women are critical about design and look for pieces that are
more stylish and original. This implies a grading up to higher quality jewellery items.
However, consumers remain very price conscious. An impetus to the future market is
the sustained rise in number of tourists. Opportunities can be also found by offering
production capacity for local companies as Austrian manufacturers expand in export
markets such as the BRICS countries (Brazil, Russia, India, China and South Africa).

Market characteristics
Consumers expenditure increased slightly above
the EU average. The Austrian market for costume jewellery was
valued at 59 million in 2010, a 1.9% average annual
increase since 2006, representing 2.0% of EU market
value. This growth rate was slightly above the EU as a
whole, which registered a 1.6% annual increase. Other
EU Member States with a higher performance included
Poland, Italy, Spain, Finland and many of the eastern
EU countries. See the module Costume jewellery
Promising EU export markets with all trade statistics.

The Austrian jewellery market is characterised by a

majority of consumers paying much attention to
the quality and exclusivity of a jewellery piece. They
are less influenced by the fast changing trends in
fashion than people in other EU countries.
Costume jewellery of metal (clad with silver or gold),
stainless steel or titanium with Swarovski crystals or
Thomas Sabo beads remains popular among younger Austrians.

The ratio of working women rose from 62.0% to 66.4% of all Austrian women between 2005 and
2010 with the largest increases in the younger and older-aged groups. Young Austrian women
are an important segment of the work force now, and their growing affluence is stimulating
sales of well-designed jewellery both by Austrian and by foreign designers.

The costume jewellery segment has become more diverse and has benefited from a growing
influence of fashion trends in clothing and matching accessories. Titanium necklaces,
bangles and earrings with glittering or colourful crystals have been particularly popular.
There has been a growing number of trend shops or lifestyle shops selling jewellery,
watches, glasses and leather accessories.
Many designs are combine metals with coloured glass, Venetian glass, glass beads, pearls,
rhinestones, silk, organza, leather, chiffon or any other material. Some popular brands
are Martina Rogy, Uliko, Mayi (fair trade), Ina or Kent.

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Costume jewellery in Austria

Future demand: Costume jewellery may grow further, although at a slower rate due
to the recession. There will be a grading up to higher quality jewellery items. Austrian
people will look more for well-designed costume jewellery as an alternative for the
higher priced precious jewellery.
Impulses to the total jewellery market may come from more personalised jewellery,
DIY jewellery, increased tourism, mens jewellery and Internet sales, which is relatively
high compared to other EU countries.
Production continued to increase. Austria is the largest EU producer of costume jewellery,
valued at 241 million, representing 20.5% of EU production. Note that Austria is the
largest EU costume jewellery producer with the presence of Swarovski (crystals) and
Thomas Sabo (eye-catching personalised charms, mainly of silver). See also the CBI
factsheet Silver jewellery in Austria.
Austrian jewellery production decreased by -2.5% annually since 2006, compared with
-0.1% for the EU as a whole, which can be mainly attributed to less exports to EU
countries. The Austrian jewellery industry is long-established and is based on
qualitative competition. This implies that it will not be trying to compete on price
with low cost manufacturers. The industry has invested in environmentally friendly
machinery, in design and in modern production methods. Some manufacturers
specialise in particular products, materials, special crafts or in special techniques
Outsourcing is well advanced in Austria being mainly done in Asia, as production
costs are lower and quality standards can be quite high. The producers retain their
head office in Austria, and control design, marketing and distribution from here.
Imports. DC imports (value) show a substantial growth. Austrian total imports of costume
jewellery were valued at 196 million in 2010, a 3.9% annual average increase since
2006 (representing 2.7 thousand tonnes, a -1.4% decrease in volume). DC imports
increased by 3.7% over the period, compared with a -9.3% decrease in volume to thousand
tonnes being mainly due to less imports of imitation jewellery of other material. In 2010,
DC imports accounted for 55% of all Austrian imports by value (41% by volume). Austria
was a medium-large sized EU importer of costume jewellery.
Figure 1 Top 5 DC suppliers of costume jewellery to Austria

80
60
40
20
0
Thailand
Value million

China

Mauritius
2006

Jordan

2008

India

2010

Source : Eurostat (2011)

Leading DC suppliers (by value) were Thailand (34% of total, 1.8% average annual growth),
China (19%, 6.9%), Mauritius (1.1%, 14.3%), Jordan (1.0%, +43.9%), India (0.8%, -20.7%),
Philippines (0.6%, -6.8%), Indonesia (0.4%, 7.0%), Turkey (0.2%, -12.4.0%), South Africa
(0.2%, 8.9%), Brazil (0.1%, 49.0%), Colombia (decreasing), Chile and Vietnam (both
increasing).

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Costume jewellery in Austria

Imitation jewellery represents a total 94.5% of all costume jewellery imports.

Imitation jewellery of base metal, clad with parts of glass was the largest import sub-group
by value (55%) and 46% by volume. Around 72% of these imports stem from developing
countries (DCs).
Figure 2 Austrian imports of costume (imitation) jewellery by material

metal, clad, with glass

7%

metal clad

15%

metal

55%
17%

other material

Source : Eurostat (2011)

Imitation jewellery of base metal, clad (with silver, gold or platinum) was the second largest
sub-group representing 17.3% of imports (+22.9%), of which 58% come from DCs; followed
by Imitation jewellery of base metal which represented 15.1% of imports (+6.9%), of which
12% were from DCs.
Austrian imports of cuff links and studs accounted for 0.5% of jewellery imports (value).
Hair accessories represented 5.0% and increased in significance by 6.3% year-on-year.
The largest sub-group consisted of combs, hair slides of hard rubber or plastics, representing
3.1% of imports by value, 48% of which came from DCs.

Prices. Average DC import prices increased slightly from 58.24in 2006 to 99.31 per kg.
in 2010, equivalent to an average annual growth of 14% being largely attributed to
higher prices from Thailand and China (higher quality items, higher wages). Average
intra-EU prices increased from 51.94 to 47.24, making intra-EU import prices around
half the average of DC import prices.
Retail prices of costume jewellery are moving up along with the growing popularity of
designer jewellery. However, large differences remain. Most costume jewellery sold in
Austria was between 20-55. Whereas higher priced jewellery was sold above 100.

Key opportunities
Costume jewellery is expected to improve in quality. Austrian working women and single
households now look for more style and personality in their outfits. This implies good
opportunities for costume jewellery of a good design.
In a competitive market with large supplies from China, the best opportunities for DC
exporters are in costume jewellery in the medium to high price ranges. You could offer jewellery
with original (ethnic) designs with colourful beads, shells, charms, imitation pearls or
semi-precious stones in fashionable colours.
Austrian women also look more for pieces that can be worn longer, opposite to the fast
changing fashion trends. In order to offer more value for money, you could offer modular
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Costume jewellery in Austria

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.
Opportunities can be also found in:
In offering jewellery parts (beads, charms) for the Do It Yourself jewellery market, which
is growing.
The increased tourism from Russia, particularly in the cities of Vienna, Salzburg, Bregenz
and Kitzbuhl. In 2010, Austria had 13.5 million tourists.
As internet sales of jewellery is relatively high, direct selling to consumers is a future
opportunity for developing country exporters.
A rising number of immigrants, especially from the new Eastern EU Member States,
which leads to demand for more diversified costume jewellery.
Young men have become impulse buyers now and prefer steel or titanium rings (engraved
or with a stone), steel neck chains, pendants, texture leather bracelets and ear studs.
There is an opportunity for low-medium priced fashion jewellery designs suitable
for impulse buys. In order to differentiate from China, take inspirations from classic
Austrian designs, which remain popular with consumers.

How to approach the market

The main trade channels for market entry are either via wholesalers or via importers
that sell on to specialist retailers. More information on the choice wholesaler or
importer can be found in the module Silver jewellery Trade structure and channels.
Some of the specialist retailers are linked to (multi-sector) buying groups. Internet sales
of jewellery has developed quickly in the past few years. You could also sell direct to
larger retailers if your size allows it. In Austria, department stores, clothing stores,
trend shops and gift stores are important non-specialists and take up a large proportion
of the market.
Wholesalers of jewellery can be found via the portal http://www.fashion-industry.at
Agents are important and they can be found via http://www.coesch.at. However, their
role is diminishing as the trade becomes more concentrated.
Sizeable jewellery specialist include Juwelier Thomas - http://www.juwelier-thomas.at,
Dorotheum Juwelier (28 outlets), Weiglein (9 outlets), Diadoro juwelier, Juwelier
Huemer http://www.juwelier-huemer.at, Juwelier Horben and Christian Odor.
Jewellery chains selling much silver jewellery aimed at cheap and accessible jewellery
include Bijou Brigitte - http://www.bijou-brigitte.com (21 outlets), Clairs Accessories
(30 outlets) and the discounter Bijoux Terner.
In the non-specialist sector, the leading retailers were: Department stores (Kaufhaus
Steffl, Gerngross, Kastner & hler, Tchibo/Edusho) and clothing stores (H&M, Mango,
Palmers, Esprit, Zara and Orsay).

You need to decide whether to approach this market directly or indirectly. See the module
on distribution strategy for more information. Information on buyer requirements can be
found in the module on buyer requirements.
If you make a direct approach, it is recommended that there is some personal
communication before a trading relationship commences. Developing country exporters
may approach customers in Austria through direct (e-) mail, personal visits (as follow-up),
inviting potential customers to visit you in your country, building a network and visiting
international trade fairs.

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Publication date 30.11.2011

Costume jewellery in Austria

Other interesting contacts

Interesting trade fairs include the Creativ Salzburg which is an International Gift fair that
includes costume and traditional jewellery items and takes place at the end of August http://www.creativsalzburg.at.
The main trade association is the Austrian Association of Gold and Silversmiths and Watch
Manufacturers (Bundesinnung der Gold und Silberschmeide, Juweliere und
Uhrmacher) which can be reached via mailto:schmuck@big2.at.
Leading trade press include der Juwelier - http://www.derjuwelier.at being the main trade
publication in the jewellery sector.
There are links via http://portal.wko.at to members and listings by product.

This survey was compiled by Searce

in cooperation with Mart Krijger
Disclaimer CBI market information tool: http://www.cbi.eu/disclaimer
Source: CBI Market Information Database www.cbi.eu Contact marketinfo@cbi.eu
Publication date 30.11.2011