Report: Jewelry - US - May 2008 TOC

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Executive Summary

Overview

A market in decline

Jewelry stores remain the primary channel

Multi-tiered marketing strategies

Diverging purchase behavior and tastes

Market Size and Forecast

Future growth likely to be tempered by weak economy

Less for more

Race to the top

Figure 1: Total U.S. sales and forecast of jewelry, at current prices, 2002-12
Figure 2: Total U.S. sales and forecast of jewelry, at inflation-adjusted prices, 2002-12

Competitive Context

Redefining value

It' s all about accessorizing

A new global marketplace

Figure 3: Global and U.S. revenue for leading luxury brands, 2006

Preserving their independents

Segment Performance--Overview

Market focus shifts to high end products

Pinched in the hourglass

The most bang for the buck

U.S. sales and forecast of jewelry

Figure 4: U.S. sales and forecast of jewelry, at current prices, by segment, 2002-12
Figure 5: U.S. sales of jewelry, by segment, 2005 and 2007

Segment Performance--Gemstone Jewelry

Gemstones continue growth, despite poor economy

Diamonds are forever, but colored stones are for fun

U.S. sales and forecast of gemstone jewelry

Figure 6: U.S. sales and forecast of gemstone jewelry, 2002-12

Segment Performance--Costume Jewelry

Costume sales struggle, future area for potential growth

Fashion' s victim

Short-term impact from lead scandal

U.S. sales and forecast of costume jewelry

Figure 7: U.S. sales and forecast of costume jewelry, 2002-12

Segment Performance--Karat Gold Jewelry

High cost hurts karat gold segment

Gold prices hit the ceiling

U.S. sales and forecast of karat gold jewelry

Figure 8: U.S. sales and forecast of karat gold jewelry, 2002-12

Segment Performance--Watches

Watches enjoy steady growth

The sky' s the limit

Creating a watch wardrobe

U.S. sales and forecast of watches

Figure 9: U.S. sales and forecast of watches, 2002-12

Segment Performance--Other Jewelry

Interest in alternative metals drives "other" jewelry sales

Silver is no longer second best

Palladium gains in popularity

U.S. sales and forecast of other jewelry

Figure 10: U.S. sales and forecast of other jewelry, 2002-12

Retail Channels--Overview

Key points

HNW audience, gift buyers maintain jewelry stores

Sales of jewelry by retail channel

Figure 11: U.S. sales of jewelry, by retail channel, 2005 and 2007

Retail channel choices shift by demographic

Figure 12: Retail channels through which jewelry is purchased, by gender, age and household income, November 2007

Retail Channels--Jewelry Stores

Key points

Both sides of the hourglass

New strategies for new competition

Sales of jewelry at jewelry stores

Figure 13: U.S. sales of jewelry at jewelry stores, 2002-07

Retail Channels--Department and Clothing Stores

Key points

Department stores in the decline

Figure 14: Shopping behavior at leading department stores, 2007

Sales of jewelry at department stores

Figure 15: U.S. sales of jewelry at department stores, 2002-07

Sales of jewelry at clothing stores

Figure 16: U.S. sales of jewelry at clothing stores, 2002-07

Retail Channels--Discounters and Mass Merchandisers

Key points

A season for savings

Figure 17: Shopping behavior at leading discount stores, 2007

Sales of jewelry at discounters and mass merchandisers

Figure 18: U.S. sales of jewelry at discounters and mass merchandisers, 2002-07

Retail Channels--Non-Store and Other Retailers

Key points

Going wide on the Web

A starring role for TV

Sales of jewelry at non-store and other outlets

Figure 19: U.S. sales of jewelry at non-store outlets, 2002-07
Figure 20: U.S. sales of jewelry at other stores, 2002-07

Market Drivers

An economy in decline

Figure 21: Consumer sentiment index, 2001-07

Skyrocketing prices for raw materials

Figure 22: Average annual London fixed prices for precious metals, 2002-08

HNWIs and the "hourglass effect"

Figure 23: Number and assets of individuals with household assets of $1m or more, 2002-06

Declining marriage rates

Figure 24: Number of marriages in the U.S., 2002-06

Leading Companies

Key points

Overview

Future growth opportunities and trends

Figure 25: Sales of leading jewelry companies, 2005 and 2006
Figure 26: Luxury jewelry and watch brands owned, by gender, age and household income, November 2007

Brand Qualities

Cartier

H. Stern

Tiffany & Co.

Zales

Innovation and Innovators

David Yurman

Subversive Jewelry

FemmeGems

Advertising and Promotion

Overview

Figure 27: Advertising spending by leading jewelry and watch retailers, 2005 and 2006

Advertising strategies

Television advertising

A Diamond is Forever/De Beers

Figure 28: Diamond is Forever Journey Necklace TV ad, 2007

Helzberg

Figure 29: Helzberg Diamonds TV ad, 2007

Macy' s

Figure 30: Macy' s Jewelry TV ad, 2007

Rolex

Figure 31: Rolex Watch TV ad, 2007

Zales

Figure 32: Zales TV ad, 2007

Items of Jewelry Purchased

Fine jewelry purchased

Figure 33: Mean number of items of fine jewelry purchased in past 12 months, by reason for purchase, by gender, age, household income and race/ethnicity, March 2008

Watches purchased

Figure 34: Mean number of watches purchased in the past 12 months, by reason for purchase, by gender, age, household income and race/ethnicity, March 2008

Jewelry Purchases

Types of jewelry purchased

Figure 35: Types of jewelry purchased in past 12 months, by gender, March 2008
Figure 36: Types of jewelry purchased in past 12 months, by age, March 2008

Earrings

Figure 37: Types of earrings purchased in the past 12 months, by gender, March 2008

Necklaces

Figure 38: Types of necklaces purchased in the past 12 months, by gender, March 2008

Bracelets

Figure 39: Types of bracelets purchased in the past 12 months, by gender, March 2008

Rings

Figure 40: Types of rings purchased in the past 12 months, by gender, March 2008

Buying Behavior

Retail channels most frequently used for jewelry purchase

Figure 41: Channels through which jewelry is purchased most often, by gender, March 2008
Figure 42: Channels through which jewelry is purchased most often, by age, March 2008
Figure 43: Channels through which jewelry is purchased most often, by household income, March 2008

Factors influencing jewelry purchase

Figure 44: Factors influencing jewelry purchase, by gender, March 2008
Figure 45: Factors influencing jewelry purchase, by age, March 2008
Figure 46: Factors influencing jewelry purchase, by household income, March 2008

Attitudes and Motivations

Attitudes towards buying jewelry

Figure 47: Attitudes towards buying jewelry, by gender, March 2008
Figure 48: Attitudes towards buying jewelry, by household income, March 2008

Reasons for jewelry purchase

Figure 49: Reasons for jewelry purchases, by gender, March 2008

Satisfaction with jewelry purchase

Figure 50: Levels of satisfaction with jewelry purchase, by gender, age, household income and race/ethnicity, March 2008

Wedding Jewelry

Figure 51: Types of wedding jewelry purchased, March 2008

Appendix: Other Useful Consumer Tables

Separate jewelry item purchases for self and for others

Figure 63: Items of jewelry purchased for self in the past 12 months, by gender and age, March 2008
Figure 64: Items of jewelry purchased for someone else in the past 12 months, by gender and age, March 2008

The impact of household income on types of jewelry purchased

Figure 65: Types of jewelry purchased, by household income, March 2008

Attitudes towards buying jewelry by respondent age

Figure 66: Attitudes towards buying jewelry, by age, March 2008

Appendix: Trade Associations

Jewelry - US - May 2008

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