Fine Jewelry

Part
01
of six
Part
01

Fine Jewelry - Consumer Journey

Americans mostly buy fine jewelry in-store, after consulting a jeweler. People buy fine jewelry because of the way it makes them feel, and young people want more variety in colour and fashion styles when buying fine jewelry.

How and Where Americans Research About Fine Jewelry

  • Buyers of fine jewelry prefer to see a piece of fine jewelry in-store before they make a purchase, even if they conduct initial research online.
  • When it comes to purchase locations, consumers prefer to buy fine jewelry from national chain stores or local small businesses, than from websites, duty-free stores, and big-box stores. For online stores, those with physical presence are preferred.
  • According to research by The Futurist, fine jewelry consumers shop in-store, and do so for marriage or engagement-related gifts, and they chose brands based on status.
  • According to a US consumer research and retail insights conducted by Jewelers of America, 64% of fine jewelry purchasers visit a jewelry store to speak to a jeweler as part of their buying research process.

Fine Jewelry Purchase Motivations

  • According to a July 2018 study by MVI Marketing, a consumer market research firm that specializes in fine jewelry, over 51% of fine jewelry consumers buy them for themselves (self-purchasing). Their top purchase motivations being to get exactly what they desire, to reward themselves for reaching a milestone, to commemorate a special memory or trip, and ‘just because’.
  • Half (50%) of consumers believe that fine jewelry has sentimental value and helps to mark special occasions.
  • Results from a 2017 MVI Marketing survey showed that 91% of respondents were interested in buying more fine jewelry because of the way it makes them feel.

When Americans buy Fine Jewelry and What They Look out for

  • Of all fine jewelry purchases made in the US, almost 25% of them are made during the November – December holiday season.
  • According to the MVI research, self-purchasing females, especially younger ones, want to see more variety in colour and fashion styles represented in fine jewelry stores. They want more colour to go with their outfits.
  • Consumers stated that they will most likely give gifts of gold (40%), followed by sterling (32%), and coloured gems and pearls (32%) in the next year.
  • When millenials buy fine jewelry, they search online to compare prices, find product details, and look for discounts and promotions.

Additional Insights

  • An average US household spends over $600 on fine jewelry and watches per year.
  • Over thirty-six percent (36.12%) of Americans who own fine jewelry are between 18 and 29 years old, 43.63% are between 30 and 49 years old, and 35.88% are between 50 and 64 years old.

Research Strategy

After detailed and wide-reaching research, your research team could not find any information regarding the differences in fine jewelry consumer journey based on price points. We commenced by searching through credible industry data providers and databases such as Statista and Business Insider. We had hoped to find credible data that highlighted the journey of an American fine jewelry purchaser. While we were able to find the share of Americans who own fine jewelry by share, there was no information regarding the customer journey.
Next, we moved on to find publications/interviews of fine jewelry sellers and retailers from which we could deduce the general customer journey and that based on price points. While we were able to find a survey of fine jewelry consumers and retailers that provided some information regarding a typical customer journey, but had no information consumer journey based on price points.
Furthermore, we went ahead to search for consumer studies and surveys on fine jewelry in order to get insights into the purchase journey of fine jewelry and how it changes based on price points. This approach led us to surveys by The Futurist, Jewelers of America, and MVI Marketing. These surveys provided information on the general customer journey of an American purchasing fine jewelry, but none of these had information on the journey when based on price points.

Part
02
of six
Part
02

Fine Jewelry - Diamond Stone Cuts

The three most-popular diamond stone cuts in the U.S., based on sales, are round cut, princess cut, and oval cut.

Most-Popular Diamond Stone Cuts in the U.S.

  • In the U.S., "round cut . . . is by far the most popular diamond shape" as it accounts for 51% of diamond sales nationwide. Other sources state the same, including Town and Country Magazine, which stated a slightly higher percentage of round-cut sales (57% of diamond sales nationwide). Furthermore, a survey conducted by industry source Ringspo found that 61.1% of participants who recently got engaged bought a round-cut diamond.
  • Princess cut is the second-most-popular diamond cut in the U.S., as it accounts for 11% of diamond sales. The previously referenced Ringspo survey corroborated that data in finding that 12.2% of the recently engaged participants bought a princess-cut diamond.
  • Oval cut is the third-most-popular diamond cut in the U.S. and accounts for 10% of the country's diamond sales.
  • The fourth-most-popular diamond cut in the U.S., based on sales, is cushion cut, which accounts for 8% of all sales.
  • Emerald cut is the fifth-most-popular diamond cut, as it accounts for 5% of U.S. diamond sales.
  • The sixth-most-popular diamond cut is a tie between asscher and pear, each of which accounts for 4% of diamond sales in the U.S.
  • Radiant cut is the seventh-most-popular diamond cut in the U.S. and accounts for 3% of all diamond sales nationwide.
  • Lastly, the eighth-most-popular diamond cut is a tie between marquise and heart shape, each of which accounts for 2% of U.S. diamond sales. Ringspo's survey results yielded similar sales statistics in finding that 2.7% of the recently engaged participants bought a marquise-cut diamond and 1.3% bought a heart-cut diamond.

Research Strategy

A key source we found during our research was a data report published by diamond source Beyond 4Cs. The data that we cited from that report is specific to the U.S. and is based on total sales of top diamond cuts. Even though that data was both comprehensive and published by a credible industry source, we also checked other sources to confirm that such data is indeed accurate. Examples of sources that we found and cited to for that included Ringspo and Town & Country Magazine. Together, these three sources were the best ones we found that discussed the most-popular diamond cuts based on U.S. sales specifically. A few of the sales numbers vary slightly among those sources, as was the case with every source we found about this topic, including from sources we didn't use that discussed global diamond-cut sales. However, those variances tended to be among the less-popular diamond cuts. The sources consistently agreed that round cut is the most popular.

In contrast, the other sources we found throughout our research either (1) stated examples of the most-popular diamonds based on sales, but without mentioning the geographical scope of those sales (and thus we couldn't ensure they were specific to the U.S.) or (2) were from quite a few years ago and thus outdated. We didn't use sources that fell into either of those categories. An example of a vague statement about diamond-cut sales (which was from a source we didn't use) is from a Deseret News article, which states: "As the most popular diamond cut, round diamonds accord for 60% of all engagement rings." From that statement, there was no way for us to determine the region that statistic applies to. Other articles we found that made similar statements were published by Jonathan's Fine Jewelers, Today, and Milanj Diamonds. Accordingly, the data we provided in our research findings above comprises the entirety of the relevant information we found specifically pertaining to the U.S. and based on sales.
Part
03
of six
Part
03

Fine Jewelry - Alternative Engagement Rings

The three alternative engagement rings trends are pear-shaped center stones, colored stone rings, and birthstone rings.

ALTERNATIVE ENGAGEMENT RINGS TRENDS

Pear-shaped center stones

  • Pear-shaped center stones for rings are a trend in alternative engagement rings expected to dominate 2019 and 2020. This trend has been reported on by fashion and lifestyle magazines such as Marie Claire and WeWoreWhat, and was pushed into the spotlight by Ariana Grande who recently got engaged and wore a pear-shaped diamond ring.
  • According to jeweler Ken Leung of NYC's Ken & Dana Design and the fashion publications, the pear-shaped diamonds are expected to dominate in popularity with the younger generations. Wedding website called The Knot reports that photos with pear diamonds receive 40% more likes than the average engagement ring photo.
  • The main reasoning why the trend is so widely accepted is the fact that Millennial and Gen-Z consumers prefer vintage-inspired rings over classic styles such as the halo cut, and the pear-shaped center stone ring is a typical vintage-inspired ring.
  • According to style casters, pear-shaped rings are expected to rapidly gain in popularity within the next two years.

Colored stone rings

  • Colored gems are expected to continue to be one of the hottest alternative engagement ring options. One of the most sought-after Pantone shades for 2019 is Princess Blue, considered to be one of the best royal hues, and is expected to be a top choice for colored stone rings.
  • Other popular choices include rubies, yellow diamonds, pink sapphires, blue sapphires and part sapphires which are usually presented as multi-toned stones. Additionally, brides are expected to opt for colored stone gems to form a halo around a typical white diamond centerpiece.
  • Kendra Pariseault Jewelry from StyleCaster, a fashion website dedicated to reporting on style trends, explained: "I see more and more women looking for something other than a diamond. Green is also trending right now, emeralds and sapphires are very popular and I see a slight move to my favorite, pink sapphires — I think today’s bride is more concerned with being unique, and while she still wants a three stone ring, she is looking for something that is one of a kind, and women today want to stand out!"
  • This trend is embraced as one of the top five trends for 2020, and is expected to dominate the market right after the typical white-colored halo-diamond trend which has been the most classing engagement ring trend for the last few decades.

Birthstone rings

  • Handmade and vintage retailer site Etsy has seen a huge rise in interest when it comes to alternative engagement rings, specifically when it comes to birthstone rings. Dayna Isom-Johnson, Etsy's trend expert, explained that Etsy saw 259,00 searches for birthstone rings in three months in 2019, with the trend only growing for the next year.
  • Additionally, Etsy saw 895,000 searches for emeralds and 892,000 searches for sapphires in the last three months. Opal is the most popular alternative stone with over 1,500,000 searches in the last three months.
  • The trend is not limited only to handmade and vintage retailers. Jewelry designer and consultant Kate Baxter, of The Cut, stated: "Over the past couple of years I have definitely seen a rise in people wanting to personalize their engagement rings using birthstones."
  • The trend is expected to grow at even a higher rate in 2020, with the number of searches for emeralds, sapphires, opals, and other alternative stones expected to rise in the next 18 months.
Part
04
of six
Part
04

Fine Jewelry - Shopping Likelihood

Even though we found interesting and relevant data related to the diamond market in the United States, we were not able to find if a variety of diamond stone cuts on offer significantly increases the likelihood that people will shop that brand.

Useful Findings

  • RapNet, a Rapaport Group Company, is considered to be the world's largest professional online diamond trading network.
  • As published by RapNet, being able to explain the diamond cutting process and its impact on a diamond’s brilliance is important when a sale is made.
  • It also says that if a retailer can help potential customers to appreciate the difference cut makes to the splendor and value of a diamond, the retailer might just be on his way to a successful sale.
  • Rapnet also highlights the importance of explaining to customers that a diamond’s cut is a mark of workmanship, and not an inherent quality of the diamond.
Example of Harry Winston Brand of Diamonds
  • Harry Winston is an American jewelry brand that has been in the diamond industry for more than 80 years and it is considered one of the top 14 diamond brands.
  • Every diamond of the brand is accurately cut to disclose its distinctive brilliance and radiant fire.
Americans and Their Diamond Preferences
  • According to David Prager, Global Head of Corporate Affairs at De Beers Group, while choosing diamonds Americans tend to look for larger stones, falling between 0.5-1 carat, but of slightly lower quality.
  • Also, while looked at gem-diamonds (99% of the market)- the bridal category, wedding and engagement rings, was the leading segment in the United States and China.
  • In 2017, millennials were responsible for 60% of diamond jewelry demand in the US.
  • Gen Z consumers bought 5% of all diamond jewelry sold in the US in 2017.
  • Looking at both these generations' preferences, it was suggested that diamond brands and retailers must complement traditional designs with more niche, customizable offerings to reflect the broader interpretation of love and commitment from young consumers.

Your Research Team Applied The Following Strategy

We started our search by looking into sources that provided comprehensive research reports describing the diamond market in the US. Sources involved reports made by providers such as DeBeers or global market/industry research consultancies, such as Bain, BCG, Gartner, and Nielsen. Our rationale in conducting these searches was to find out the purchase drivers of diamond in the US and whether a variety of cuts were one of them.
Although we found information on the growth of the diamond market in the US and the motivators responsible for it, the reports mostly focused on macroeconomic factors of demand, such as price, improved condition of the economy, sufficient supply of raw materials. As far as product qualities were concerned, it was mostly focused upon the design without going into many details whether design meant a variety of cuts.

Then we looked into blogs, articles, and white papers published by online diamond selling networks. These included sources such as rapnet, Diamfair, IDEX Online, Gemit.
Since these platforms were directly dealing with sales, we aimed to find out findings that these platforms may have obtained from their surveys or studies regarding aspects that are considered the most by consumers when purchasing online.
Although, there were such findings published in sources such as RapNet, which stressed the importance of cuts as a selling factor, the aspect of cuts were considered more from the point of accuracy and details rather than variety. More importantly, the opinions, as published in RapNet were not backed by any actual study or survey.

To understand whether best-selling brands necessarily had more variety of cuts than the lesser sold ones, we looked into top-selling companies which included names such as Harry Winston, Cartier, Tiffany, De Beers, Blue Nile. We looked into their websites and other financial databases to find out their revenue, which could be found. However, when it came to getting an idea of the expanse of cuts in terms of numbers or categories of varieties offered, the data was not available. The variety often included customization, and not details relating to the cut of a specific one was mentioned.

Since from the market research reports, it was evident that diamond sales were on the rise in the US, we looked into news sources, such as Forbes, Business Insider, and CNBC to find out reports that might have published articles reporting this upsurge. Our objective was to find out whether these articles provided any information relating to the growth analyzed from a consumer's perspective, which might have included opinions of customers expressing their inclination towards the variety of cuts. However, the information was mostly provided under the umbrella term of design, without clarifying whether a variety of cuts had to play a role.
Part
05
of six
Part
05

Fine Jewelry - Future Trends

E-commerce growth and the use of 3D printing are some future trends that will impact the fine jewelry market in the United States.

E-commerce Growth

  • Some jewelry e-commerce stores have started using creative web content in order to lure prospective buyers in making a big purchase through the company's online stores.
  • According to Kinsey & Company, the fine jewelry industry will increase their online sales by more than 10% by 2020.
  • In fact, a lot of consumers have shown a big interest in buying fine jewelry on the internet.
  • Millennials, which are considered as the biggest future fine jewelry buyers, will be entirely mobile, using e-commerce as a way to get what they want.

The Use of 3D Printing

  • As 3D printing has decreased the production cost of the individual pieces, jewelry companies have started providing online customers with samples, which has had a positive impact on client satisfaction.
  • 3D printing will bring an emotional component to the buying process, as customers will be able to chose specific pieces before investing in the final product.
  • The technology will also help in jewelry customization, providing customers with more options to chose from.
  • Holden is a new kind of wedding ring company that is using 3D printing to transform fine jewelry making.

Additional Insights:

  • The U.S. gems and jewelry market is expected to reach $26 billion by the end of 2025 and will grow at a CAGR of 3.6% from 2018 to 2025.

Research Strategy:

We began by going through industry reports about the United States fine jewelry market. We looked for information on sites like Researchandmarkets, Grandviewreserach, Marketwatch, and IBIS World but we were only able to find information on the market size and growth of the jewelry market in the United States. We also looked for media publications and articles published on sites like Nationaljewler and the Jewlery Magazine but we could only find information on the current trends impacting the fine jewelry market of United States. As a last resort, we went through the website of some of the key players in the fine jewelry market in United States (Tiffany & Co, Harry Winston, Manya & Roumen, Signet Jewelers Ltd). We wanted to see if they had disclosed any information about any future technologies that could be used in fine jewelry but we could not find any relevant information using that strategy.

Part
06
of six
Part
06

Fine Jewelry - Demographic Profile

Fine jewelry customers in the United States market are likely to be white women aged 35-54, with high household incomes. A deeper dive of our findings have been presented below.

Age

  • According to Freedonia Research, in 2017, women aged 35-54 (Gen X) purchased more fine jewelry than any other demographic.
  • A study conducted by MVI Marketing, a specialist-fine-jewelry consumer market research firm found that self-purchasing women aged 25-40 (Millennial) with household incomes of over $75,000 present a "unique opportunity" for jewelry brands. Over 51% of the 1,001 respondents aged 25-40 surveyed by the firm said they would buy fine jewelry for themselves.
  • The primary drivers of self-purchasing women were to "get exactly what they want", "reward themselves for a milestone", and "commemorate a special memory or trip".
  • A third of the diamond sales in the United States can be attributed to self-purchasing women; bridal diamond sales represent half. Singles living alone spent 2.6 times the average on jewelry and watches.
  • Edahn Golan Diamond Research & Data estimates that half (54%) of the jewelry and watch sales ($82.5 billion) in 2018 came from diamonds. However, the share of diamond jewelry in the jewelry and watch market is decreasing.
  • Individuals aged 21-39 made up 60% of the diamond jewelry demand in the United States in 2017.
  • Millennials spent $16 billion on diamonds in 2016, half of which was related to wedding and engagement. Overall, bridal diamond purchases represent 24% of all diamond purchases.

Gender

  • Eighteen percent of the women aged 25-40 surveyed said that their spouse purchased fine jewelry for them and 17% said they would make the purchase along with their spouse.
  • The global sales of men's fine jewelry was $5.3 billion in 2017. The US jewelry market is itself $68.3 billion; therefore, the men's fine jewelry market is a tiny fraction of the fine jewelry market.
  • However, the purchase of fine jewelry among millennial men in their late 20s is greater than previous generations, in part influenced by the entertainment industry (hip-hop).

Race

  • Well-educated, high-earning, single white women living in the northeast region spent the most on jewelry and watches in 2018.
  • According to Nielsen's study, black women were 9% more likely than non-Hispanic white women to purchase fine jewelry.
  • Fifteen percent of black women had purchased fine jewelry in the previous twelve months.
  • Only 50% of the millennial generation and 51% of the post-millennial generation is white, compared to 68% pre millennials. According to MVI group, "Asian-American and Hispanic millennials are a growing force in the luxury goods market", though jewelers haven't really capitalized on its potential.
  • The size of the Hispanic jewelry and watches market was $8.7 billion in 2015. The jewelry market was around $60 billion in 2015. Hispanics make up roughly 18% of the United States population.

Income

  • Women aged 25-40 with $75,000+ household incomes present a "unique opportunity" for the fine jewelry market.
  • The household income group of $200,000+ spent an average of $1,657 per household on jewelry and watches, almost three times the average.
  • Those earning $30-40,000 spent the least on jewelry and watches when spend is measured in proportion to income.

Education

  • According to Edahn Golan Diamond Research & Data, individuals with masters or doctoral degrees spent the most ($994) on jewelry and watches in 2018. Education and income are correlated; incomes tend to be higher for those with higher education.

Research Strategy

As jewelry has a lion's share in the jewelry and watches segment, data pertaining to the jewelry and watches segment is reflective of the fine jewelry segment. This is also substantiated by the fact that $68.6 billion of the $82.5 billion jewelry and watches market can be attributed to jewelry, and 54% of the jewelry and watch sales come from diamond jewelry, a type of fine jewelry.

Sources
Sources

From Part 04
Quotes
  • "Most consumers are aware of how color and clarity affect the look of a diamond, since these factors are simple to describe and understand. However, cut is more complex to explain, and many consumers are not aware that cut is the highest contributing factor to the beauty and brilliance of a stone as it governs how much light is reflected from the stone. Poorly cut stones will leak light out the sides and back instead of reflecting it back to the eye of the viewer."
  • "Cut is also a key determinant in the price of a diamond. Creating an ideal cut with greater sparkle requires extensive training, patience, and skill, and often necessitates carving off more of the original rough diamond. Lesser cut diamonds which have less sparkle will most likely be cheaper."
  • "Being able to explain the diamond cutting process and its impact on a diamond’s brilliance is important when making a sale. If you as the retailer can help potential customers to appreciate the difference cut makes to the splendor of the diamond, as well as its value, then you might just be on your way to a successful sale."
Quotes
  • "The 4Cs (Carat, Cut, Color and Clarity) is a value driven grading scale that compares a certain diamond to an equally sized perfect sample. It is important to educate your customers about the 4Cs for the sake of transparency. When investing in diamonds, customers are often concerned that they get their money’s worth, and helping them understand what goes into a diamond’s value is critical to allaying those concerns and instilling confidence in their purchase."
  • "Explain to your customers that a diamond’s cut is a mark of workmanship, and not an inherent quality of the diamond itself. However, a diamond’s cut is a most important characteristic. A well cut diamond reflects light from each of its facets internally, and then disperses that light through its top. The more facets a diamond has, the sharper and more brilliant the diamond appears, potentially redeeming a diamond that might have a lesser color or clarity."
  • "Technically speaking, the diamond cut proportions, the relationship between the size, shape and angle of each diamond facet, is of utmost importance to the diamond’s overall appearance and balance. Share this information with your customers and inform them that a diamond’s cut is designed to reflect light to enhance a diamond’s beauty. This reflected light is perceived as brilliance (total facet-reflected light), dispersion (rainbow flashes within a diamond), and scintillation (sparkling flashes with movement)."
  • "Be sure to tell your customers, in the words of Russell Shor, of the Gemological Institute of America, “The one thing you should not trade off on is the quality of the cut, even a nice color stone, if not well cut, will be dull and lifeless. But if it’s a middle color – like K – and it’s got a real excellent cut, it will pop and flash with all the sparkle diamonds are famous for."
Quotes
  • "RapNet, a Rapaport Group Company, is the world's largest and most trusted professional online diamond trading network, delivering the best available diamonds, prices, people & market intelligence for buyers, dealers and diamond manufacturers worldwide. RapNet is the go-to destination for anyone who’s serious about their diamond business."
Quotes
  • "Harry Winston is an American jewelry brand that has been in the diamond industry for more than 80 years. The company has been creating unbelievable fine diamond jewelry. Established in the year 1932, Harry Winston Company is headquartered in New York City."
  • "The diamonds of Harry Winston meet the evaluating criteria diamonds that is 4Cs. – carat weight, color, cut, and clarity. The 4Cs quantify the stone’s quality by using the charts and scales that meet the standards for all gemstones."
  • "Each and every diamond is accurately cut to disclose its distinctive brilliance and radiant fire. The exactness of a diamond’s cut is what will regulate its final size, shape, and facets. This will combine to increase the overall diamond beauty. Due to the quality of the diamond and its various products, Harry Winston is considered one of the top diamond brands in the world."
Quotes
  • "If we look at gem-diamonds (99% of the market)- the bridal category (wedding and engagement rings) are the leading segment in the United States and China, accounting for around one third to a half of all sales. In India and Japan you see a more balanced demand across all jewellery categories, not just diamonds."
  • "In terms of the diamonds themselves- Americans tend to look for larger stones, falling between 0.5-1 carat, but of slightly lower quality. In China and Japan, around a third of sales are between 0.18 and 0.5 carat but of a higher quality. India is a smalls market, with much smaller stones albeit at a better quality."
Quotes
  • "Millennials means people who are currently in the age range from 21 to 39, when Gen Z covers those who are currently ages 20 years or younger. Millennials represent 29% of the world’s population but, in 2017, were responsible for 60% of diamond jewellery demand in the US and almost 80% in China."
  • "Gen Z account for 35% of global population, but while most of them are children and in no position to buy jewellery, the oldest members of this group (18 to 20 year olds) are beginning to make an impact on the market. Gen Z consumers bought 5% of all diamond jewellery sold in the US last year."
  • "While both of these desire diamonds just as much as the generations that have come before them, there are undoubtedly new dynamics at play: those diamonds may now be in different product designs, used to symbolise new expressions of love and researched and purchased in different ways to mark different moments in life."
  • "First, “[m]eeting Millennial and Gen Z needs for love and commitment on their own terms. … Diamond brands and retailers must therefore complement traditional designs with more niche, customisable offerings to reflect the broader interpretation of love and commitment from young consumers."
Quotes
  • "Harry Winston didn’t become famous because he could get his hands on exquisite diamonds (though that didn’t hurt). It was his uncanny sense of how to design the setting around each diamond that set him apart."
  • "Thousands of companies around the world manufacture jewelry, both for their own distribution efforts and for other brands. Yet a mere handful of jewelry brands ever achieve consumer recognition. Meanwhile, survey after survey reports that good design is a priority for Millennials - from clothing to electronics to kitchen accessories, design matters. Considering that this is the fastest-growing jewelry-buying demographic, the industry must take note."
  • "The jewelry industry has a jewelry manufacturing sector that does not innovate. Yes, there are pockets of innovation – you’ll see them profiled in this column in the coming weeks and months. But the dominant focus of the jewelry manufacturing sector has been to perfect the pumping-out of parts, the mechanization of what was hand work for nearly a millennium, and the reduction reduction reduction of labor costs. Which, when you consider it, should really make you scratch your head. When the item you are making consists of $700 worth of gold, $2,800 worth of gemstones, and $80 worth of labor (and this is before the U.S. started exporting jewelry jobs), how much can a company gain by focusing so much energy on lowering labor costs?"
From Part 05
Quotes
  • "The U.S. gems and jewelry market, valued at $19.7 billion in 2017, is likely to reach $20.2 billion in 2018, rising at a compound annual growth rate (CAGR) of 5.9 percent the last five years. By the end of 2025, it should reach $26 billion, increasing at a CAGR of 3.6 percent, projects the global luxury trends forecasting firm, The Futurist, in research for The Plumb Club."
From Part 06
Quotes
  • "With the change in gender dynamics and societal trends, the average jewelry consumer is likely to be a woman buying for herself, and customers are more interested in expressing their values and personality in the items they buy. Interest in sustainable practices is mainstream, and awareness is strong regarding concerns specific to the jewelry industry."
  • "Self-purchasing women represent one-third of U.S. diamond sales (diamond bridal sales represent about half)."
  • "But a study conducted by MVI in July 2018 finds a unique opportunity for jewelry brands with millennial self-purchase women, age d25 to 40, with household incomes of $75,000 plus. More than 51 percent of 1,001 respondents say they buy fine jewelry for themselves. Their top motivations: to get exactly what they want; to reward themselves for a milestone; just because; and to commemorate a special memory or trip."
  • "“This is the luxury growth demographic of opportunity, because they have a 30-year-plus spending cycle that’s just beginning, their brand attachments still are in the formative stage, and their brand loyalty can be attained by factors like content engagement, style and adornment,” said Hurwitz. "
Quotes
  • "The age group with the highest expenditure on jewelry and watches are 55-64 year olds. On average, they spent $1,231 per household during the second half of 2017 and the first half of 2018."
  • "By income, those earning $200,000 or more had the biggest expenditure on jewelry and watches. They spent, on average, $1,657 per household, nearly triple the average. "
  • "Neither is the finding that those with master’s and doctoral degrees had the highest expenditure when measured by education, $994. Higher income and higher education often go hand in hand."
  • "Another finding is that singles living alone spent more than average, 2.6 times, to be exact."
  • "Going down the list, the households that spent the most are well educated, high earners and singles living alone. To complete the picture, they are also white, live in the Northeast, and own their homes, though most have a mortgage."
  • "One surprise is that those that earn $30-40,000 a year spent the least, as measured by income. This is surprising because those who earn the least, $15,000 and less, spent near the national average of $615."
  • "This is a recurring finding. Over the years, those in the lowest income bracket reported near or higher than average expenditure on jewelry and watches."
  • "Less surprising is that 35-44 year-olds make up the age group who spent the least on jewelry and watches. They are usually married, and the large expenditure on a diamond engagement ring is already behind them. They are also at the height of their wealth accumulation, and are buying a house and raising kids."
Quotes
  • "In 2009, the number of new marriages in the US fell 3.6% in 2009 to a trough for the 2005-2015 decade. Personal spending on jewelry in nominal and real terms declined 7.5% and 9.5%, respectively, that year."
Quotes
  • "Women aged 35-54 were the most likely demographic to purchase fine jewelry."