ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
SurveysNov 09, 2016
US Gold Jewelry Demand Down Slightly in Q3
The market saw demand decrease 1 percent, its first decline in three years, due to uncertainty from the presidential election and reluctance to spend amid the global economy.
A 14-karat rose gold necklace ($1,200) from Pamela Love’s collaboration with Shinola. Gold jewelry demand was down 1 percent in the United States in the third quarter.
London--The U.S.’s three-year streak of increasing gold jewelry demand came to an end in the third quarter, according to the World Gold Council’s latest Gold Demand Trends report.
The United States saw gold jewelry demand decrease by 1 percent year-over-year in the third quarter 2016 to 26.2 tons, marking the first decline in three years.
This is notable since the first half of 2016 saw the strongest jewelry demand in seven years as the U.S. continued a slow-but-steady recovery in the wake of the financial crisis.
Year-to-date, consumer demand of 74.6 tons is on a par with last year, the WGC said.
The council said that jewelry imports subsided during the quarter as inventory levels across the supply chain are at healthy levels.
It also noted that the uncertainty surrounding the now-over presidential election was responsible for some of the weakness, but added that research also suggests that wealthy consumers have become more reluctant to spend amid concerns about the global economy.
Globally, gold demand was down 10 percent year-over-year in the three-month period on the high gold price, and gold jewelry specifically saw a 21 percent decrease, marking its biggest decline since Q2 2014. It was the lowest third quarter for jewelry demand since 2011.
Year-to-date, jewelry demand has declined 18 percent compared with the same period last year to 1,423.6 tons to mark the lowest Q1 to Q3 total since 2009.
With a few minor exceptions, the WGC reported a decrease in all its monitored consumer markets, with a 28 percent decline in India and a 22 percent decrease in China, the world’s two largest markets for gold, as well as a 35 percent decrease in the Middle East and 31 percent decline in Europe (year-over-year).
High prices were the cause of continued weakness in the jewelry sector, which has seen a “severely depressed” 2016 so far.
The council said that the fourth quarter should see a recovery, with the drop of the gold price in October and the approach of key buying and gifting seasons, but it doesn’t expect a “clear revival” as pressures remain, Chinese consumers are changing their tastes, consumer environments in Europe and the U.S. remain hesitant, and more.
U.S. Consumer Trends
The first half of 2016 saw the strongest level of jewelry demand in the nation for seven years as the market continued its slow economic recovery.
With that in mind, the WGC surveyed 2,000 females in
the U.S. between the ages of 18 and 65 to discover the motives and behaviors of gold jewelry consumers.
The survey found that gold does still play an important role in the U.S. jewelry market, with almost two-thirds of respondents stating that they own gold jewelry and 11 percent indicating they intend to buy gold jewelry within the next 12 months.
It also found that 14-karat gold is dominant in the U.S. market.
Of the consumers who had bought gold jewelry within the past year, 46 percent bought 14 karat while 22 percent purchased 18 karat.
Meanwhile, branding does not seem to play a big role in gold jewelry purchases in the country, with 45 percent of consumers who had bought gold jewelry saying it was unbranded, compared with 29 percent and 35 percent for diamond and platinum jewelry, respectively.
This appears to be a trend in the market, the WGC said, as “multi-line retailers dominate, and have been gaining market share at the expense of specialty jewelry merchants, who have suffered severe sales shrinkage so far this year.”
Even though purchasing via the internet continues to be an important part of the industry, the in-store experience still is a crucial aspect as well: 55 percent of survey-takers saying they sought ideas at stores before making a purchase, followed by opinions and suggestions from friends and family.
For millennials, however, this was a little different--while they still used stores and friends and families, online blogs were the most popular part of deciding about a purchase.
Though the WGC found that the U.S. gold market still isn’t where it was 10 years ago, there appears to be plenty of latent demand in the U.S., where “share of mind” is greater than the actual “share of purchase.”
This latent demand is a positive thing for retailers, even though the WGC noted that it’s not easy to convert that directly to sales, especially as U.S. consumers think it is somewhat unaffordable and fine jewelry underperforms with the younger generations.
They will need to “tackle consumers’ price and affordability perceptions, for example, by continuing to develop and market pieces at lower price points, and by developing online strategies to engage more effectively with the younger generation.”
The survey found that gold does still play an important role in the U.S. jewelry market, with almost two-thirds of respondents stating that they own gold jewelry and 11 percent indicating they intend to buy gold jewelry within the next 12 months.
It also found that 14-karat gold is dominant in the U.S. market.
Of the consumers who had bought gold jewelry within the past year, 46 percent bought 14 karat while 22 percent purchased 18 karat.
Meanwhile, branding does not seem to play a big role in gold jewelry purchases in the country, with 45 percent of consumers who had bought gold jewelry saying it was unbranded, compared with 29 percent and 35 percent for diamond and platinum jewelry, respectively.
This appears to be a trend in the market, the WGC said, as “multi-line retailers dominate, and have been gaining market share at the expense of specialty jewelry merchants, who have suffered severe sales shrinkage so far this year.”
Even though purchasing via the internet continues to be an important part of the industry, the in-store experience still is a crucial aspect as well: 55 percent of survey-takers saying they sought ideas at stores before making a purchase, followed by opinions and suggestions from friends and family.
For millennials, however, this was a little different--while they still used stores and friends and families, online blogs were the most popular part of deciding about a purchase.
Though the WGC found that the U.S. gold market still isn’t where it was 10 years ago, there appears to be plenty of latent demand in the U.S., where “share of mind” is greater than the actual “share of purchase.”
This latent demand is a positive thing for retailers, even though the WGC noted that it’s not easy to convert that directly to sales, especially as U.S. consumers think it is somewhat unaffordable and fine jewelry underperforms with the younger generations.
They will need to “tackle consumers’ price and affordability perceptions, for example, by continuing to develop and market pieces at lower price points, and by developing online strategies to engage more effectively with the younger generation.”
More on Surveys
The Latest
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
Weekly QuizApr 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly YochThe Patek Philippe expert will serve as personal curator for the brand-focused company.
WatchesApr 18, 2024
TAG Heuer Opens Its Largest Standalone Boutique at SeaThe 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
Policies & IssuesApr 17, 2024
NDC Prevails in U.K. Case Over Lab-Grown Diamond AdvertisingNDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
Events & AwardsApr 17, 2024
And the 2024 Winner of the Shipley Award Is … John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
FinancialsApr 17, 2024
LVMH’s Q1 Jewelry Sales Fall 5%LVMH said the company performed well despite an uncertain geopolitical and economic environment.
MajorsApr 17, 2024
Stuller’s B&D Opens New HeadquartersB&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
CollectionsApr 16, 2024
Akaila Reid Launches ‘Eat Cake’ CollectionIt’s ultra-feminine and filled with gold, pearls, and soft pastels.
MajorsApr 16, 2024
Loudr Adds 2 DirectorsEmily Highet Morgan and Emily Bennett have joined the agency’s team.
MajorsApr 16, 2024
Stuller Releases First Lab-Grown Diamond Jewelry CatalogIts updated book for mountings is also now available.
SourcingApr 16, 2024
Karen Rentmeesters Takes Over as Interim CEO of AWDCShe has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
