|
Diamond
is considered as a women's best friend. But recession bought in the
phrase "So much for diamonds as a best friend". For
jewelers, and store owners the gem have lost some of their BFF status
to the economic downturn.
Only 25
percent of those participating in National Jeweler's Product Panel
reported that non-bridal diamond jewelry comprises 40 percent or more
of their overall sales compared with 36 percent who make that same
claim for bridal, yet earrings, bracelets and diamond necklaces do
remain a staple for many retailers.
Over the past
3 years, non-bridal diamond jewelry sales remained level for 48
percent of the retailers on the product panel. Sales decreased for 28
percent and increased for only 24 percent of panelists.
Inventory
volume of non-bridal diamond jewelry is also holding steady, with 75
percent of panelists reporting their stock is about the same or increasing.
Markdown madness
With the
recession feeling, reducing the price on non-bridal diamond jewelry,
thereby taking lower margins, is one way retail panelists say they
are coping with the economic downturn and the luxury
designers have also changed their attention to affordable and
medium range luxury diamond based jewelry.
One panelist
wrote."We continue to sell value
and quality jewelry but may reduce margins to close a sale,"
And an another
stated, "We are faced with every jeweler doing whatever it takes
to make the sale, and yes, that means lower margins."
However, one
panelist refused to play the markdown game.
"We have
not resorted to deep discounting," the panelist wrote. "That
will not increase sales...The sky-is-falling mentality really get
you anywhere."
Quality check
When asked to
note the ups and the downs in the non-bridal diamond jewelry market
over the past 5to 10 years, one theme that came up repeatedly among
respondents was poor quality, especially in pieces that include pave
and micro pave diamonds.
"Jewelry
with the little diamonds has to be repaired more often," one
panelist stated.
Another noted
that the rise in popularity of micro
pave styles might be good for the consumer, who gets a bigger
look for less, but not so good for the retailer, who ends up doing
repair work on these pieces.
"Pros for
the customer--more bang for the buck," the panelist wrote.
"Cons for the jeweler--more replacement work." |
