This is for all fashionistas out there. ‘The next big thing’, in case you didn’t know, are watches and jewellery. A new report shows that while accessories have enjoyed strong growth as more and more operators exploit the demand for designer handbags, jewellery and watches will become the next ‘must have’ luxury fashion items.

Watches and jewellery will become the second largest sector after fashion and clothing. Clothing commands the largest share of the market – 44.3% in 2007, but it will begin to lose share as other product sectors increase theirs.

Brands have been producing new high-end pieces in both jewellery and watches which is stimulating interest. Additionally the high intrinsic value of jewellery and watches, because of the high cost of their components, makes them an attractive luxury investment to a wide range of consumers – not just the ultra-rich. Furthermore, the higher usage of precious jewellery in developing economies will boost the sector.

Global expenditure on luxury branded products will hit £225bn by 2012. As wealth increases across the globe, the demand for luxury products will accelerate with the market, currently worth £131bn, boosted by high demand from emerging economies, wider demand from mature markets and new channels.

The good news is- it will just require a push of a button to buy the hottest items of the year, since the Internet will be another channel and driver of demand. Many brands have introduced transactional websites over recent years, and more will follow. This will enable brands to access consumers beyond their reach via traditional channels, and generate new revenue streams. This channel is also highly suitable for accessories, watches and jewellery, where fit is not an issue.