May 2009
Despite the economic downturn, the U.S. accessories market has displayed some areas of growth according to new information released by leading market research company The NPD Group, Inc. Watches and segments in the sunglasses category are areas that are showing signs of life.
During the fourth quarter of 2008, sales of men’s watches grew 20.8 per cent over the same time period in 2007, while the total accessories market saw a decline of 26 per cent, seen mostly in Jewelry (-38 per cent), during that same time. Women’s watches didn't fare as well as men’s and posted a 13.5 per cent decline in that quarter.
“Watches continue to be seen as an investment purchase, at least by men,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc.
“Additionally, we saw most of that growth from young adults through the younger Boomers.”
Sales of watches to men 25 to 34 and 35 to 54 grew 1.9 per cent and 8.5 per cent respectively in the last quarter of 2008.
While the total sunglass market did not see growth and in fact posted declines of 5.5 per cent in 2008 and 26.1 per cent in the 4th quarter of 2008, there were some bright spots. It was the young male consumer that found his way to sunglasses. Sales of sunglasses to the males between the ages of 18 and 24, posted an increase of 30.9 per cent in the 4th quarter of 2008. Right beside them were women 55 to 64 years of age–dollar sales in that demographic grew 48.3 per cent.
The sunniest spot in retail for sales of sunglasses was found in department stores. Sales of sunglasses in that channel grew in the fourth quarter of 2008 by 16.8 per cent.
“Even in a tough market, department stores ramped up their sunglasses assortment and put them front and center, and that really paid,” said Cohen.
Sunglasses have also been the beneficiary of impulse purchasing, Cohen believes. “I have been keeping an eye on sunglasses and watching that category for the return of impulse purchases,” he said. NPD data shows nearly a third of sunglasses purchases were unplanned.
“I think that accessories are a leading indicator to watch as the consumer adjusts to this new economy and displays passion and desire for the right products at the right price.” said Cohen.
“Accessories was one of the last categories to post growth before this downturn and will likely be one of the first to return.”
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