Bridal jewellery market analysis in Singapore

LONDON, April 15, 2015 /PRNewswire/ -- By race: Chinese form the largest addressable racial group as they constitute over 75% of both the male and female population in Singapore
- By age: Males and females between age 30 to 49 years form the largest segment of the population. Within this group, males age 35 to 39, as well as females age 30 to 34, could be a potential target segment for the bridal jewellery as their marriage rates have been steadily rising and also registered the highest increase across the decade
- By income: Income groups between S$2,000 to S$3,999 per month constitute the largest segment for mass market targeting. For the higher end market segment, it is noteworthy that males outnumber females by a ratio of 3 to 1 for monthly income categories aboveS $10,000

- Retail industry: S$26 bn business (as of 2005) with strong growth prospects, due to positive economic outlook and growing tourism sector
- Jewellery sector: Steadily growing sector in Singapore with over S$1.3 bn in sales (4% of retail trade) for 2005. Upward growth trend is likely to continue given consumers' increasing propensity to spend, due to strong consumer confidence and rising disposable incomes

Market size: Total sales revenue from the top jewellery retail chains in Singapore (Taka Jewellery, Asial-Lee Hwa, Citigems, Goldheart, SK Jewellery, Soo Kee Jewellery, Tiffany & Co.) amount to over S$350 mn. This constitutes 24% of the total jewellery sector, which suggests the market may be fragmented with a number of small retail players, alongside major retail chains
- Market structure: Local brands (e.g. Aspial-Lee Hwa, Soo Kee Jewellery) proliferate the mid-range jewellery segment, whereas international brands (e.g. Tiffany & Co.) still
dominate the high-end segment. The mass market is constituted by brands such as Taka Jewellery, D'Meyson Jewelleryetc

- Wedding norms for Chinese couples: Key wedding components are the engagement ring, wedding band, bridal studio package, and hotel banquet package. Of these, hotel
banquet and bridal studio packages form the bulk of the wedding cost. Primo could consider potential tie-ups with these players (e.g. product bundling or special discounts
with purchase of bridal jewellery), so as to increase customer purchase preference

- Growing trend of 'premium' diamonds: Prevalence of 'premium' diamond brands launched by local jewellers, which are premised on better diamond cut (such as 'ideal
cut' or 'hearts & arrows') and the quality assurance of international diamond certifications (such as AGS or GIA)
- Upward shift in product price range: Pricing of 'premium' diamond products are typically 30 to 80% higher than that of other house brands (due to smaller discount value). Some of these brands (e.g. Destinée diamond by Aspial-Lee Hwa) may be priced comparatively to the likes of Tiffany & Co., for the same diamond carat
- Proliferation of jewellery retail outlets: Aggressive retail expansion by local jewellers, with outlets concentrated around the south-central and east areas of Singapore. Store outlets of different retail brands under the same parent company are also clustered together, which suggests little sales cannibalization between stores (as such, customer groups between brands are likely to be clearly segmented.
More jewellers have also set up stores at Changi Airport to target the growing influx of visitors, of which a significant percentage of their product offerings are specifically
catered for tourists, and are not carried by other retail stores under the same brand
- Increasing customer segmentation: Deployment of multi-segment strategy by local jewellers to capture larger market share (e.g. Aspial-Lee Hwa flanks the market with 4
separate retail brands, each catering to a different customer segment

- SK Jewellery
- Brand positioning is one of affordability and trendiness, targeting women in their early 20s or first-time jewellery buyers
- SK Jewellery has embarked on aggressive marketing campaigns and retail chain expansion over the past 2 years. The brand identity is largely driven through regional
and local celebrity endorsements
- While SK's product lines are usually priced lower than the likes of competitors such as Aspial Lee-Hwa or Goldheart, the recent launch of its premium diamond range, True
Love, signals that it is looking to enter the category of higher quality diamond products
- Goldheart
- Goldheart's branding is synonymous with love and romance. Targeting women between mid 20s to late 30s, the brand projects a premium, international image, but its pricing is considered mid-range, compared to its sister brands, Lee Hwa and Aspial
- Goldheart's marketing communications rely on the extensive use of emotive advertising through TV commercials to build strong brand association with lo ve and romance. The company is also active in pursuing tie-ups with celebrity couples and bridal service providers (e.g. hotels, bridal studios etc) to reinforce its persona of love and romance

- Aspial-Lee Hwa
- Aspial is positioned as a high-end jewellery brand targeting sophisticated women. Lee Hwa targets a wider range of consumer age groups. Its pricing is mid-range but the branding looks more upmarket compared to that of its competitors. Both brands are part of the Aspial-Lee Hwa Jewellery group, which carries 2 other major brands under its belt - Goldheart, which is strongly associated with 'romance', and CitiGems, which targets younger consumers with affordable jewellery
- Both the Aspial and Lee Hwa brands carry overlapping product lines across their retail outlets with Aspial offering a slightly more premium range of products
- In line with its image as a high-fashion jewellery brand, Aspial-Lee Hwa advertises extensively in print and TV media, and has worked on high-profile design collaborations with leading designers and celebrities; as well as pioneered new product innovations such as becoming the first company in the world to own the technology to produce purple gold
- Tiffany & Co.
- One of the most established jewellery brands in Singapore, Tiffany's positioning is one of luxury and exclusivity, targeting the high-end market
- Tiffany's product range for engagement rings and wedding bands is similar to its global product offerings
- Unlike local retail brands, Tiffany's advertising themes are mainly product-driven, rather than personality-driven (e.g. use of celebrity endorsers). It focuses more on print media such as newspapers and selective high-end fashion magazines, rather than TV commercials


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