Jewelry sales have increased broadly equivalent to personal consumption expenditure during long term. Jewelry sales are seasonal, because the main reasons to purchase jewelry and watches are for bridal associated occasions and gift giving events like Christmas, birthdays, Valentine’s Day and Mother’s Day. Jewelery sometimes is also purchased for self reward and for a fashion accessory. The rate of growth increases and slows typically in line with primary non-food retail categories. This is because most of jewelry sales are purchased in the middle mass market. Jewelry sales exceeded other comparable sectors in the more resilient late 1990’s, underperformed in 2001, and performed equal with selected other non-food retail categories between 2002 and 2008.
The long-term forecast for jewelry sales is restoring due to the expected growth in excessive income and more number of women in the work force. But, it is observed that in 2008 jewelry sales are uncertain due to fluctuations in the general level of retail sales.
The US retail jewelry industry is extremely fragmented, specialty jeweler’s share has been steady at nearly 48% of total jewelry sales. General retailers, like department stores, discount outlets, television home shopping, general merchandisers, apparel retailers and accessory stores, had a market share of 44.9% in 2008. Internet jewelery sales, consisting of both specialty and general retail websites had a share of 7.4% in 2008.
Consumer surveys conducted by Signet show that an important factor in the purchase of jewelry is the customer’s confidence in the sales associate. Other key competitive factors of distinction are merchandise selection and the reputation of the retail brand name. In the specialty sector, price is very important factor to the customer.
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