Jewelers must adapt to changing jewelry market
By www.nationaljeweler.com
Jewelers looking to survive in today’s challenging retail environment need to expand their definition of fine jewelry and be open to using new marketing channels, the findings of the latest study from Unity Marketing suggests.
Last month, Unity Marketing released the Jewelry Report 2011, a report based upon a consumer survey conducted on March 30 and April 1 of 553 recent jewelry buyers, identified from a statistically representative sample of 1,055 U.S. households. The results of this report were compared and contrasted with a similar survey conducted in July 2007 of 753 jewelry buyers.
Specifically, the report showed that the rising price of precious metals has consumers seeking out more affordable alternatives, such as palladium and plated pieces.
Unity Marketing President Pam Danziger said given this, it is recommended that jewelers stock more pieces crafted of lower-cost metals, semi-precious stones and other materials that traditionally have been considered “costume” in nature.
“This might go against the grain of some traditional jewelers, but if you want to appeal to the jewelry customers of today and tomorrow, you have to change with the times,” she said. “If you don’t, you risk suffering the same fate as Blockbuster, Borders and Circuit City, all once category-killer retailers that were undone by failing to move forward with their customers.”
The report also showed that shoppers are turning to different sources for their fine jewelry, including department stores, the Internet, artisans and art galleries, home shopping networks and discounters. According to Unity, Etsy.com is emerging as a jewelry-shopping destination for consumers looking for a homemade touch.
Today’s consumers also know how to pick up a new piece of jewelry at a better price. The average spend on a piece of jewelry declined 37 percent from $734 in 2007, pre-recession, to $466 today, the 2011 report shows.
Danziger said jewelry stores have to work “harder and smarter” to entice customers today. They need to develop creative ways to lure customers in by using all the marketing tools available to them, including social media, community events and local business partnerships, such as pairing up with the neighborhood bridal shops.
Danziger was a speaker at this year’s Rapaport International Diamond Conference, held Sept. 12.
To see a post-conference interview with Danziger, click here.
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