THE PRECIOUS AND FASHION JEWELRY MARKETS

SECTION I - OVERVIEW OF THE U.S. PRECIOUS AND FASHIONJEWELRY INDUSTRY

Summary:

Sales Performance 1

Raw Materials 1

Retail Distribution 2

Advertising in the Jewelry Industry 2

Factors Affecting Demand for Jewelry 3

SECTION II - THE MANUFACTURERS'  MARKET FOR PRECIOUS AND FASHION JEWELRY

Summary:

U.S. Manufacturers'  Sales 4

U.S. Exports of Jewelry 6

U.S. Imports of Jewelry 7

Tables:

Total U.S. Manufacturers'  Sales of Jewelry (Graph) 8

Total U.S. Manufacturers'  Sales of Jewelry 9

Growth in U.S. Manufacturers'  Sales: Precious Metal vs. Costume Jewelry 10

Product Mix of U.S. Manufacturers'  Sales of Jewelry (Graph) 11

Product Mix of U.S. Manufacturers'  Sales of Jewelry 12

U.S. Manufacturers'  Sales of Precious Metal Jewelry: Total 13

Product Mix 14

Gold and Platinum Jewelry 15

Gold and Platinum Jewelry, by Type 16

Product Mix of Gold and Platinum Jewelry 17

Jewelry Made of Silver and Other Metals Clad to Silver, Except Costume Jewelry 18

Jewelry Made of Silver and Other Metals Clad to Silver, Except Costume Jewelry, by Type 19

Silver Jewelry, by Type 20

Product Mix of Silver Jewelry 21

Other Jewelry, Except Costume, by Type 22

Product Mix of Other Jewelry, Except Costume 23

Precious Metal Jewelry, Not Specified by Kind 24

SECTION II - THE MANUFACTURERS'  MARKET FOR PRECIOUS AND FASHION JEWELRY (cont' d.)

Tables: (cont' d.)

U.S. Manufacturers'  Sales of Costume Jewelry:

Total 25

By Type 26

Product Mix 27

U.S. Apparent Consumption of Jewelry (Graph) 28

U.S. Apparent Consumption of Jewelry 29

U.S. Balance of Trade for Jewelry 30

U.S. Apparent Consumption of Precious Metal Jewelry 31

U.S. Balance of Trade for Precious Metal Jewelry 32

Top 20 U.S. Export Destinations for Precious Metal Jewelry 33

Dollar Market Shares of the Top 20 U.S. Export Destinations for Precious Metal Jewelry 34

U.S. Exports of Precious Metal Jewelry, by Type 35

U.S. Exports of Precious Metal Jewelry, by Country of Destination and by Type:

Silver Jewelry and Parts Thereof 36

Jewelry and Parts of Base Metal Clad with Precious Metal 37

Watch Bands, Straps, and Bracelets of Precious Metal or of Metal Clad with Precious Metal 38

Industrial Diamonds, Worked 39

Jewelry of Precious or Semiprecious Stones 41

Articles of Natural Pearls 42

Articles of Cultured Pearls 43

U.S. Apparent Consumption of Costume Jewelry 44

U.S. Balance of Trade for Costume Jewelry 45

Top 20 U.S. Export Destinations for Costume Jewelry 46

Dollar Market Shares of the Top 20 U.S. Export Destinations for Costume Jewelry 47

U.S. Exports of Costume Jewelry, by Type 48

U.S. Exports of Costume Jewelry, by Country of Destination and by Type:

Imitation Jewelry, Not of Base Metal 49

Cuff Links and Studs of Base Metal, Whether or Not Plated with Precious Metal 50

Other Imitation Jewelry of Base Metal, Whether or Not Plated withPrecious Metal 51

Top 20 U.S. Import Sources for Precious Metal Jewelry 52

Dollar Market Shares of the Top 20 U.S. Import Sources for PreciousMetal Jewelry 53

U.S. Imports of Precious Metal Jewelry, by Type 54

SECTION II - THE MANUFACTURERS'  MARKET FOR PRECIOUS

AND FASHION JEWELRY (cont' d.)

Tables: (cont' d.)

U.S. Imports of Precious Metal Jewelry, by Country of Origin and by Type:

Gold Rope Necklaces and Neck Chains 56

Gold Mixed Link Necklaces and Neck Chains 57

Gold Necklaces and Neck Chains, Not Elsewhere Specified orIncluded 58

Gold Clasps and Parts Thereof 59

Gold or Platinum Jewelry; Whether Plated, Clad, or Not; NotElsewhere Specified or Included 60

Chains and Similar Articles of Base Metal Clad with Precious Metal 61

Rope Necklaces and Neck Chains of Base Metal Clad with Gold 62

Mixed Link Necklaces and Neck Chains of Base Metal Clad with Gold 63

Necklaces and Neck Chains, Not Elsewhere Specified or Included, ofBase Metal Clad with Gold 64

Necklaces, Valued at Not Over 30 Cents Per Dozen, Composed

Wholly of Plastic Shapes, Mounted on Fiber String 65

Clasps and Parts Thereof of Base Metal Clad with Precious Metal 67

Jewelry, Not Elsewhere Specified or Included, of Base Metal Clad with Precious Metal 68

Silver Jewelry, Articles, and Parts of Precious Metal, Valued at Not Over $18 Per Dozen Pieces 69

Silver Jewelry, Articles, and Parts of Precious Metal, Valued at Over $18 Per Dozen Pieces 70

Silver Chains, Ropes, and Similar Articles 71

Watch Straps, Bands, and Bracelets of Base Metal, Valued at Not Over $5 Per Dozen 72

Watch Straps, Bands, and Bracelets of Base Metal, Valued at Over $5 Per Dozen 74

Parts for Watch Bracelets, Valued at Not Over $12 Per Dozen 76

Parts for Watch Straps, of Base Metal 77

Jewelry of Precious or Semiprecious Stones, Valued at Not Over $40 Each 78

Jewelry of Precious or Semiprecious Stones, Valued at Over $40 Each 79

Other Articles of Semiprecious Stones (Except Rock Crystal) 80

Articles of Precious or Semiprecious or Synthetic Stones, Not Elsewhere Specified or Included 81

Articles of Natural Pearls 82

Articles of Cultured Pearls 83

Top 20 U.S. Import Sources for Costume Jewelry 84

Dollar Market Shares of the Top 20 U.S. Import Sources for Costume Jewelry 85

U.S. Imports of Costume Jewelry, by Type 86

U.S. Imports of Costume Jewelry, by Country of Origin and by Type:

Rope, Curb, Chain, Cable, etc., and Similar Articles Produced in Continuous Lengths, of Base Metal, Valued at Not Over 33 Cents Per Meter 87

Rope, Curb, Chain, Cable, etc., of Base Metal, Including Precious

Metal-Plated, Valued at Over 33 Cents Per Meter 88

Cuff Links and Studs of Base Metal, Whether or Not Plated with Precious Metal 89

Other Imitation Jewelry of Base Metal 90

Toy Jewelry; Base Metal Rope, Curb, Cable, Chain, etc.; Valued at Not Over 8 Cents Each 91

Other Toy Jewelry of Base Metal, Valued at Not Over 8 Cents Each 92

Toy Jewelry, Not Metal, Valued at Not Over 20 Cents Per Dozen Pieces (Except Parts) 93

Other Imitation Jewelry, Not Metal, Valued at Not Over 20 Cents Per Dozen Pieces or Parts 94

Imitation Jewelry, Valued at Over 20 Cents Per Dozen Pieces or Parts 95

Imitation Jewelry, Plastic, Valued at Over 20 Cents Per Dozen Pieces or Parts 96

Religious Articles of Base Metal, of a Devotional Type to be Worn or Carried on the Person 97

Rosaries and Chaplets, Other than Base Metal 98

Religious Articles, Not Elsewhere Specified or Included, to be Worn or Carried on the Person 99

SECTION III - THE RAW MATERIALS SITUATION

Summary:

U.S. Exports of Jewelry Raw Materials 100

U.S. Imports of Jewelry Raw Materials 101

Tables:

World Mine Production of Gold 103

World Mine Production of Gold, by Country 104

Average Annual Gold Prices 105

World Mine Production of Platinum-Group Metals 106

World Mine Production of Platinum, by Country 107

Average Annual Platinum Prices 108

U.S. Imports of Platinum for Consumption 109

World Mine Production of Silver 110

World Mine Production of Silver, by Country 111

Average Annual Silver Prices 112

World Production of Gemstones 113

World Production of Gemstones, by Country 114

Top 20 U.S. Export Destinations for Jewelry Raw Materials 115

Dollar Market Shares of the Top 20 U.S. Export Destinations for Jewelry Raw Materials 116

U.S. Exports of Jewelry Raw Materials, by Type 117

U.S. Exports of Jewelry Raw Materials, by Country of Destination and by Type:

Diamonds, Unsorted 119

Diamonds (Except Industrial), Worked, Not Set or Strung, Weighing Over 0.5 Carat Each 121

Industrial Diamonds, Unworked or Simply Sawn, Cleaved, or Bruted 123

Diamonds (Except Industrial), Unworked or Simply Sawn, Cleaved, or Bruted 124

Diamonds (Except Industrial), Worked, Not Set or Strung, Not Weighing Over 0.5 Carat Each 126

Precious and Semiprecious Stones, Unworked 128

Other Precious and Semiprecious Stones, Simply Sawn or Roughly Shaped 130

Rubies, Sapphires, and Emeralds, Otherwise Worked 132

Piezoelectric Quartz, Not Mounted or Set 133

Gemstones, Not Elsewhere Specified or Included, Cut But Not Set 134

Synthetic or Reconstructed Gemstones, Unworked 135

Synthetic or Reconstructed Gemstones, Cut But Not Set 136

Imitation Gemstones 138

Natural Pearls, Not Mounted or Set (May be Temporarily Strung) 139

Cultured Pearls, Worked, Not Set 140

Cultured Pearls, Unworked 141

Top 20 U.S. Import Sources for Jewelry Raw Materials 142

Dollar Market Shares of the Top 20 U.S. Import Sources for Jewelry Raw Materials 143

U.S. Imports of Jewelry Raw Materials, by Type 144

U.S. Imports of Jewelry Raw Materials, by Country of Origin and by Type: Diamonds, Unsorted 147

Diamonds (Except Industrial), Unworked, Simply Sawn, Cleaved, or Bruted 149

Industrial Diamonds (Miner' s Carbonados), Unworked, Including

Sawn, Cleaved, or Bruted 151

Industrial Diamonds, Unworked, Not Elsewhere Specified or Included 153

Industrial Diamonds (Miner' s Carbonados), Worked 155

Industrial Miner' s Diamonds, Worked, Not Elsewhere Specified or Included 157

Industrial Miner' s Diamonds, Not Elsewhere Specified or Included 159

U.S. Imports of Jewelry Raw Materials, by Country of Origin and by Type:

(cont' d.)

Industrial Diamonds (Except Miner' s Diamonds), Simply Sawn,

Cleaved, or Bruted 161

Industrial Diamonds (Except Miner' s Diamonds), Worked, Not

Elsewhere Specified or Included 163

Diamonds (Except Industrial), Worked, Not Set or Strung, Not

Weighing Over 0.5 Carat Each 165

Diamonds (Except Industrial), Worked, Not Set or Strung, Weighing

Over 0.5 Carat Each 167

Rubies, Sapphires, Emeralds, and Rock Crystals, Unworked 169

Rubies, Cut But Not Set 171

Sapphires, Cut But Not Set 173

Emeralds, Cut But Not Set 175

Other Precious and Semiprecious Stones, Unworked 177

Piezoelectric Quartz, Not Mounted or Set 179

Graded Semiprecious Stones, Strung Temporarily for Transport 181

Gemstones, Cut But Not Set, Not Elsewhere Specified or Included 182

Synthetic or Reconstructed Gemstones 183

Synthetic or Reconstructed Gemstones, Cut But Not Set 184

Natural Pearls, Graded and Temporarily Strung 186

Natural Pearls, Not Elsewhere Specified or Included 187

Cultured Pearls, Unworked 188

Cultured Pearls, Worked, Graded, or Temporarily Strung 189

Cultured Pearls, Worked, Not Elsewhere Specified or Included 190

SECTION IV - STRUCTURAL ANALYSIS OF THE U.S. JEWELRY INDUSTRY

Summary:

Sales Trends 191

Cost Structure 192

Employment Trends 193

Capital Spending 194

Tables:

The Precious Metal Jewelry Industry:

Number of Manufacturing Establishments 195

Number of Manufacturing Establishments, Number of Employees, and

Annual Payroll, by State 196

Number of Manufacturing Establishments, by Employment Size Class

and by State 198

Financial Profile:

Overall 200

Sorted by Sales 201

Sorted by Assets 202

Operating Structure 203

Gross Operating Margin 204

Value Added by Manufacture 205

Vertical Integration Index 206

Employment Structure 207

Total Labor Costs 208

Average Hourly Earnings of Production Workers 209

Cost of Living Index for Production Workers 210

Labor Productivity 211

Indexes of Real Labor Productivity 212

New Capital Expenditures 213

Plant vs. Equipment Expenditures 214

Ending Inventories 215

The Costume Jewelry Industry:

Number of Manufacturing Establishments 216

Number of Manufacturing Establishments, Number of Employees, and

Annual Payroll, by State 217

Number of Manufacturing Establishments, by Employment Size Class

and by State 219

Operating Structure 221

Gross Operating Margin 222

Value Added by Manufacture 223

Vertical Integration Index 224

Employment Structure 225

Total Labor Costs 226

Average Hourly Earnings of Production Workers 227

Cost of Living Index for Production Workers 228

Labor Productivity 229

Indexes of Real Labor Productivity 230

New Capital Expenditures 231

Plant vs. Equipment Expenditures 232

Ending Inventories 233

The Plant Manager' s Workbook:

How to Use This Section 234

Gathering Your Data 235

Developing Your Ratios 236

How Does Your Plant Stack Up? 237

Explanation of Terms 242

SECTION V - PRICING WITHIN THE JEWELRY INDUSTRY

Summary:

Producer Prices 248

Gold Jewelry Sales 249

Tables:

Producer Price Indexes:

Costume Jewelry 250

Costume Jewelry, by Type 251

Precious Metal Jewelry 252

Solid Platinum Metal and Karat Gold Jewelry 253

Solid Platinum Metal and Karat Gold Jewelry, by Type 254

Jewelers'  Findings and Materials 257

Consumer Price Index for Jewelry 258

Average Gold Jewelry Prices, by Outlet Type 259

Gold Jewelry Retail Sales, by Outlet Type 260

Distribution of Gold Jewelry Retail Dollar Sales, by Outlet Type (Graph) 261

Distribution of Gold Jewelry Retail Unit Sales, by Outlet Type (Graph) 262

Distribution of Gold Jewelry Retail Sales, by Outlet Type 263

Gold Jewelry Sales, by Item 264

Distribution of Gold Jewelry Dollar Sales, by Item (Graph) 265

Distribution of Gold Jewelry Unit Sales, by Item (Graph) 266

Distribution of Gold Jewelry Sales, by Item 267

Retail Unit Sales of Gold Jewelry (Graph) 268

Retail Unit Sales of Gold Jewelry 269

SECTION VI - JEWELRY DISTRIBUTION CHANNELS

Summary:

Retail Sales Trends 270

Top Retailers 270

E-Commerce 271

Tables:

Financial Profile of Jewelry Wholesalers:

Overall 272

Sorted by Sales 273

Sorted by Assets 274

Jewelry and Precious Stone Wholesalers: Number of Establishments,

Number of Employees, and Annual Payroll, by State 275

Jewelry and Precious Stone Wholesalers: Number of Establishments, by

Employment Size Class and by State 277

Total U.S. Retail Sales of Jewelry and Watches 279

Overall Retail Sales Trends vs. Jewelry Store Sales Trends 280

Retail Jewelry Store Monthly Sales 281

Profile of the U.S. Retail Jewelry Store Industry 282

Financial Profile of Jewelry Retailers:

Overall 284

Sorted by Sales 285

Sorted by Assets 286

Jewelry Stores: Number of Establishments, Number of Employees, and

Annual Payroll, by State 287

Jewelry Stores: Number of Establishments, by Employment Size Class

and by State 289

Number of Potential Customers Per Jewelry Store, by State 291

Per Capita Disposable Personal Income in the U.S., by State 293

Number of Jewelry Stores, by Employment Size Class 295

Distribution of Jewelry Stores, by Employment Size Class 296

The Top 20 Retail Jewelry Chains in the U.S. 297

The Top Leased Jewelry Department Operators in the U.S. 298

The Top Television Shopping Programs 299

Profile of the Average Mass-Merchandise Store 300

SECTION VII - ADVERTISING IN THE JEWELRY INDUSTRY

Summary:

Overview 301

Media Outlays by Jewelry Manufacturers 301

Media Outlays by Jewelry Retailers 302

Tables:

Total Media Outlays for Jewelry 304

Advertising by Manufacturers:

Total Media Outlays 305

The Top Ten Advertisers 306

The Top Ten Advertised Brands 307

Media Expenditures, by Company and Brand 308

Advertising by Retailers:

Total Media Outlays 312

Media Outlays, by Type of Retailer 313

Advertising by Jewelry Stores:

The Top Ten Advertisers 315

The Top Ten Advertised Brands 316

Media Expenditures, by Retailer and Brand 317

Advertising by Department Stores:

The Top Ten Advertisers 324

The Top Ten Advertised Brands 325

Media Expenditures, by Retailer and Brand 326

Advertising by Direct-Response Retailers:

The Top Three Advertisers 329

The Top Three Advertised Brands 330

Media Expenditures, by Retailer and Brand 331

SECTION VIII - FACTORS AFFECTING DEMAND FOR JEWELRY

Summary:

Overview 332

U.S. Personal Consumption Expenditures 332

U.S. Household Expenditures 333

Tables:

U.S. Resident Population Trends and Projections 335

U.S. Population Trends and Projections, by Age Group 336

Age Distribution of the U.S. Population 337

U.S. Population and Household Trends and Projections 338

U.S. Resident Population Projections, by Region 339

U.S. Resident Population Projections, by State 340

Distribution of the U.S. Population, by State 342

Number of U.S. Births 344

Number of Marriages in the U.S. 345

Number of High School and College Graduates in the U.S. 346

Civilian Labor Force in the U.S., by Gender 347

U.S. Gross Domestic Product 348

U.S. Per Capita Disposable Personal Income 349

Personal Consumption Expenditures on Jewelry and Watches:

Current Dollars 350

Constant Dollars 351

Average Annual Household Expenditures on Jewelry:

Total 352

By Region 353

By Age of Reference Person 354

By Income Before Taxes 355

By Composition of Consumer Unit 356

By Occupation of Reference Person 357

SECTION IX - COMPANY PROFILES

Introduction 358

Army and Air Force Exchange Service:

Overview 359

Financial Performance 359

Product Line 360

Distribution 360

Avon Products, Inc.:

Overview 361

Product Line 361

Distribution 362

Manufacturing 363

Financial Performance 363

Marketing Strategies 364

Financial Summary and Analysis 365

De Beers Consolidated Mines Limited:

Overview 366

Financial Performance 366

Company News 367

Marketing Strategies 367

Fingerhut Direct Marketing:

Overview 369

Company Structure 369

Company News 370

Finlay Enterprises, Inc.:

Overview 371

Financial Performance 371

Marketing Strategies 372

Company News 372

Financial Summary and Analysis 374

Friedman' s Inc.:

Overview 375

Financial Performance 376

Marketing Strategies 376

Helzberg Diamonds:

Overview 378

Marketing Strategies 378

Company Structure 379

Jostens, Inc.:

Overview 380

Product Line 380

Financial Performance 382

Company News 382

Financial Summary and Analysis 383

Lazare Kaplan International Inc.:

Overview 384

Company Structure 384

Marketing Strategies 385

Company News 385

Financial Summary and Analysis 387

Liz Claiborne, Inc.:

Overview 388

Company Structure 388

Financial Performance 389

Financial Summary and Analysis 391

Mayor' s Jewelers, Inc.:

Overview 392

Financial Performance 392

Marketing Strategies 393

Company News 393

Financial Summary and Analysis 394

QVC, Inc.

Overview 395

Financial Performance 396

Company News 396

Tiffany & Co.:

Overview 398

Financial Performance 398

Company Structure 399

Marketing Strategies 400

Company News 401

Financial Summary and Analysis 402

World Duty Free Americas:

Overview 403

Company Structure 403

Marketing Strategies 404

Zale Corporation:

Overview 405

Company Structure 405

Product Line 406

Marketing Strategies 407

Company News 408

Financial Summary and Analysis 409

SECTION X - INDUSTRY DIRECTORIES

Introduction 410

Directory of Selected Jewelry Manufacturers 411

Directory of Selected Jewelry Stores 430