WATCHES & JEWELLERY


“The emphasis on low price point costume jewellery is great for young ‘millennial’ travellers, but not so inclusive of other passenger demographics looking for fine jewellery as opposed to fashion accessories.”


Aran Turner, International Customer Service Manager, Clogau


Lambretta (Capella Industries) agrees that the category is moving towards fashion and affordability. “We are seeing an increasing


number of travellers buying watches not as time pieces but as fashion accessories. “This means that more often than


Above right: Pave necklace and earring sets from Kurate International.


Below: Frédérique Constant is making a big push within travel retail.


“The jewellery category on


airlines in particular in recent years has become much tougher for fine jewellery brands, as many low-cost carriers’ inflight shopping brochures become dominated by impulse price point, plated fashion jewellery brands, which is a shame as it doesn’t reflect the majority of domestic jewellery markets,” observes Turner. “The emphasis on low price point costume


jewellery


is great for young ‘millennial’ travellers, but not so inclusive of other passenger demographics looking for fine jewellery


not they are buying on impulse, which makes it very important for us to achieve competitive pricing alongside attractive and eye- catching designs. “This is especially so in more


mature markets such as Europe and America and we start to see patterns emerging in parts of Asia as well,” says Seah-Langeland.


The cost factor Trends can affect the average unit price of watches and jewellery as well as sales performance. “The rise of affordable luxury


jewellery and timepieces is expected to continue,” according to Rendle. “This trend for increased volume


as opposed to fashion


accessories.” However, Ailing


Seah-Langeland, Managing Director of LL International, which works with


but decreased value in luxury jewellery and watches is expected to bring down the average unit price and therefore slow overall growth.” One way of overcoming any issues within the category is to make sure that businesses possess a wide product range to match different price points to different sectors, notes Seah-Langeland. Another obvious area that brand


Dubai Duty Free – lessons in stock management


Dubai Duty Free’s Senior Vice President for Purchasing Saba Tahir explains why having a handle on stockholding levels is crucial in regulating retail supply and demand in the jewellery and watches category.


“In the watches, category we are maintaining more than a one-month stock holding, based on historical sell- out and sales projections for the year. By maintaining this required stock level, the company is prepared in the event of any unforeseen upward spike in sales. Over the years with the support of select suppliers, we do receive stocks for Dubai Duty Free on consignment and on a sales or return basis. For the jewellery category, Dubai


44 TRBUSINESS


do returns. Gold jewellery is sourced 95% locally and 5% imported. Bullions and small bars, which


contribute 30% to our gold business, are bought locally. We maintain an average of less than two months’ worth of stocks in ornaments and two weeks for gold bars to cope with the needs of our passengers. More than 60% of precious jewellery


Duty Free is maintaining approximately a month stock holding for locally procured stocks and for import based shipments we keep a three-month stock holding based on brand performance. For 22 carat gold, which is our top


seller, we buy locally as it gives us more flexibility to change the assortment or to


stocks are imported. We maintain a stock holding of six months for the imported stocks, and three months for jewellery bought locally. Over 80% of costume jewellery


stocks are imported. We maintain a stock holding of three to six months for imported stocks and two months for jewellery bought locally.”


APRIL 2018


owners need to manage is building margins in, while simultaneously appeasing the needs of retailers. As passenger numbers fluctuate in airports, on cruise ships and on airlines, so do sales. However, presence is still key. “There is a direct correlation


between sales and the number of passengers an airline carries,” O’Donnell explains. “These high volume airlines


demand more product. We track sales and forecast stock, to keep up with this demand.” Seah-Langeland adds that regulating and meeting stock demands is achieved through Lambretta working closely with its retail partners. “Our retail partners are made


aware of our production and delivery lead time right from the start and they are very forthcoming about


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