Revenues Improve with an Expanding Economy When the general economy is doing well, so does the luxury market, which includes jewelry. According to the US Census Bureau, 2017 sales at jewelry stores (NAICS code 44831) increased 5.7%, to $32.42 billion. This positive trend increased significantly during Q1 2018, with $8.64 billion in total jewelry stores sales, an 11.2% increase from Q1 2017’s $7.77 billion. A different set of data from Statista revealed “revenues in the jewelry segment” were $17.52 billion, a 2.1% increase from 2016, and is forecast to increase from $17.88 billion during 2018 to $19.00 billion by 2021.

More Opportunities for Chains with More Independent Store Closings In the department store channel, Macy’s recorded a 4% increase in jewelry sales, to $5.54 billion, for the three months ending May 5, 2018. Tiffany & Co. performed even better, with a 15% increase in revenues during its fiscal first quarter (ending April 30, 2018). Comparable store sales increased 10% for those locations opened at least a year. Although 4%, or 288, more jewelry businesses (retailers, wholesalers and manufacturers) closed during Q1 2018, compared to Q1 2017, there was a slight increase in openings, from 46 during Q1 2017 to 62 during Q1 2018.

Diamonds Never Lose Their Attraction During Q1 2018, global diamond jewelry revenues increased 7%, and 5% in the US and Canada, compared to Q1 2017. According to the RapNet Diamond Index (RAPI™), the diamond market was quite positive for the first half of 2018, with the 0.30-carat index increasing 9.7%; the 0.50-carat index, +6.2%; 1.0-carat index, +3.4%; and 3.0-carat index, +0.9%. The Fancy Color Research Foundation (FCRF) reported a 5% price increase for fancy blue diamonds during Q1 2018, making them the top performer. Fancy pink diamond prices decreased 1.7% and yellow fancy diamonds decreased 0.6%.

Precious Metals Are the Backbone of the Market The World Gold Council reported the 4% increase in the demand for gold jewelry during 2017 was the first annual increase since 2013. The total of 2,135.5 tons was still significantly less than historical averages. The US market was one of three (India and China) responsible for the increase, with a 3% increase in demand in the US, to 122.1 tons, the highest since 2010. According to the Platinum Guild International, 2017 US platinum jewelry sales increased 11%, and then during Q1 2018 increased another 12%, primarily because of the bridal market and younger consumers’ increasing preference for platinum.

Time for a New Approach for the Watch Market Although Swiss-made watches generally represent the top of the market, their performance is a bellwether for the industry. For the first time, more Apple Watches were sold during Q4 2017 (8 million) than all Swiss watches (6.8 million). Swiss watches have been doing better during 2018, with total global exports increasing 10% during the first five months of the year as well as a 10% increase to the US during May, or a total of $189.8 million. According to a March 2018 article in Forbes, the author cites the luxury watch industry’s outdated distribution system, a lack of understanding of the global economy and reluctance to embrace the use of the Internet as reasons for its stagnant growth.

Less Spending for Engagement Rings According to The Knot’s 2017 Real Wedding Study, the average amount spent for an engagement ring decreased 6.1%, from $6,136 for 2016 to $5,764 for 2017. Spending less for the engagement ring reflects the reduction in the average cost of a wedding (excluding honeymoon) per The Knot. The total average cost decreased 5.5% from 2016’s $35,329 to 2017’s $33,391. The Wedding Wire 2018 Newlywed Report (based on 2017 data) indicates a $5,000 average for the engagement ring, $1,800 for the wedding rings and $350 for miscellaneous jewelry.

Advertising Strategies Demonstrate your broader consultative skills by helping jewelry retailers create promotions to increase sales beyond the traditional holiday season. Summer is an excellent period for a promotion as there are fewer traditional shoppers. Industry experts think there is an untapped market among Latino Americans. Retailers may want to add a Spanish-speaking associate, consider some Hispanic-themed promotions and promote jewelry as an excellent gift among Latino men. Stores can schedule one or more promotions featuring silver jewelry and items. Invite a local silversmith to spend part of a Saturday showing customers how he or she creates unique items.

New Media Strategies Based on the content in the Profiler from Pinterest, it is clearly a major source of information for wedding couples. Stores should have a major presence on Pinterest, showcasing the latest designs and fashionable combinations of jewelry and apparel. Upload short videos of world-famous (when available) and local jewelry/precious metal designers describing their creative process and insider views of how they shape natural materials into unique items. Use your social media platforms to feature videos of store-based community projects in which employees participate as well as videos of employees explaining the leisure activities they enjoy during their lives to connect with customers on a personal level.