Live From Las Vegas: Industry’s Level of Optimism ‘Striking’

asked how optimistic they were about their own businesses over the next 12 months, 88 percent of retailers said they were either somewhat or very optimistic.

“This is a number that we’re eager to watch over the years, testing its resilience and learning about the attitudes of our professionals in the jewelry industry over time,” Weinrich said.

When it comes to the industry’s biggest challenges, the most commonly mentioned were: online competition, overall economic climate, a lack of general consumer demand and a lack of millennial demand.

According to the survey, the top strategy for dealing with these challenges is improving the in-store buying experience, which “shows that retailers particularly believe that buying jewelry is not something that can only migrate to the virtual world,” she said.

Even with the larger number of brick-and-mortar stores closing, many in the industry aren’t behind going all-in on e-commerce, as buying jewelry goes beyond product to also include seeing and feeling pieces in person, becoming educated and being guided by a trusted professional.

The industry also is turning toward non-traditional advertising and social media as ways to drive the consumers into the store.

Eighty-one percent of survey-takers ranked social media marketing as one of their most successful business practices, while 90 percent indicated they plan to increase their efforts in this area, with Facebook and Instagram dominating.

“Social media is obviously seen as a cost-effective front for taking on online competition,” Weinrich said.

The survey also delved into lab-grown diamonds.

Though only one in five respondents reporting selling the stones, those that are in the business reported that sales were good; 62 percent said sales were up in the last year, and 78 percent expect them to increase again in the coming year.

Also among the top trends for survey-takers was the sale of “responsibly sourced jewelry,” with 73 percent reporting that they sell it, and 49 percent reporting sales were up year-over-year in 2017.

“While this may bolster the growth of blockchain in the industry in the immediate future, it also provides a foothold for lab-grown diamonds to leverage going forward,” Weinrich said.

Meanwhile, sales of watches and charms were “visibly down” from 2016 to 2017, with the former being affected by the disruption of smartwatches and wearable tech, while sales of custom pieces were up 59 percent among respondents as the customization trend across all consumer categories picks up.

The full version of the 2018 JCK State of the Industry Jewelry Report can be purchased at JCKLasVegas.com/IndustrySurvey.