Help for Jewelers: Understand Your Customers New Needs
Jewelers Losing Dominance in the Jewelry Market -- New Unity Marketing Study Shows Jewelers How to Capture Back their Lost Share
New study of the jewelry market is packed with ideas to help jewelry retailers boost sales this holiday season and beyond
As if the recession wasn't bad enough, jewelers and specialty jewelry stores have been hit by a number of additional factors that have hurt their businesses, according to a new study of the jewelry market published by Unity Marketing. Specifically:
- Jewelers are challenged by the rising cost of precious metals, which has caused consumers to seek out more affordable alternatives, such as new metals like palladium, plated metal, costume jewelry and faux gems like CZs and moissanite to consumers looking for value.
- Jewelry shoppers have turned their back on jewelry stores as their chosen place to shop and have instead favored department stores, internet websites, artisans and art galleries, TV shopping and discounters for new jewelry pieces. Etsy.com is emerging as an online destination for jewelry customers that want that handmade touch.
- With a new value consciousness, today's jewelry consumer is finding she can pick up a new piece for a great price if she shops smart. That is one reason why the average amount jewelry shoppers spent on their last piece of fine jewelry declined by nearly 60 percent from pre-recession 2007 when the average price was $734 to $466 in the most recent survey.
"Jewelers need new ideas and inspiration that will help them market successfully against these headwinds," Pam Danziger, president of Unity Marketing and author of the new book, Putting the Luxe Back in Luxury: How new consumer values are redefining the way we market luxury (Paramount Market Publishing, 2011).
"Unity Marketing's new study of the jewelry market gives marketers the facts and the figures to help them size up the status of the jewelry consumer market. Then it adds value by using the research-based findings as a springboard to provide retailers with creative new ways to market their stores, excite their customers and merchandise their stores to grow their businesses," Danziger said.
What jewelry customers want has changed and marketers have to change with them
"For example, the research recommends that jewelers stock more pieces made from lower-cost metals, semi-precious stones and materials that might previously have been considered 'costume.' This many 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.
If you don't, you risk suffering the same fate Blockbuster, Borders and Circuit City, all once category-killer retailers that were undone by failing to move forward with their customers. The research provides retailers and marketers with a road map to help them avoid the potholes and plan for success in their future," Danziger continues.
Danziger concludes, "Traditional jewelry stores continue to lose in the game of selling jewelry. They have to work harder and smarter to entice the customers to buy. They need to think of creative ways to touch customers and invite them into their store using all the marketing tools available to them such as social media, local community events, and partnering with other local businesses like bridal shops. This research report will help inspire marketers to take advantage of the opportunities and constructively face down the challenges in the current market."
If you'd like to hear more from Pam about ways for jewelers to improve sales this Christmas, click this link from an interview conducted at the Rapaport International Diamond Conference http://youtu.be/XUXOaKFJl_Q
About the Jewelry Report 2011
The Jewelry Report 2011 is based upon the results of a consumer survey conducted March 31-April 1, 2011 among 553 recent purchasers of jewelry (average income $76,080; average age 45.1 years; 64 percent female/36 percent male) identified from a statistically-representative sample of 1,055 U.S. households. The results of the latest survey were compared with a similar survey conducted in July 2007 among 753 recent jewelry buyers (average income $75,400; 41.6 years; 63 percent female/37 percent male). Further an analysis of the luxury segment of the jewelry market is provided from the results of Unity Marketing's Luxury Tracking study.
The latest study of the U.S. jewelry market includes:
- Size of the costume and fine jewelry sector of the market
- What's hot and what's not in terms of jewelry products, such as rings, necklaces and earrings or for men, tie tacks and cuff links.
- What types of metal jewelry consumers favor today, including gold, sterling silver and platinum as well as various plated metals.
- Where people shop for jewelry, including dramatic shifts away from jewelry stores toward a wider spectrum of shopping destinations including art galleries, department stores, warehouse club outlets and direct-to-consumer channels such as the internet and television shopping.
- Further the report presents the latest demographics that describe the jewelry consumer market, and an in-depth look at the luxury sector of the jewelry market, which accounts for more than 50 percent of total industry sales, including which jewelry brands and national retailers the luxury shopper favors.
Pamela N. Danziger is an internationally recognized expert specializing in consumer insights for marketers targeting the affluent consumer. She is president of Unity Marketing, a marketing consulting firm she founded in 1992. Pam received the Global Luxury Award for top luxury industry achievers presented at the Global Luxury Forum in 2007 by Harper's Bazaar.
Pam gives luxury marketers "All Access" to the mind of the luxury consumer. She uses qualitative and quantitative market research to learn about their brand preferences, shopping habits, and attitudes about their luxury lifestyles, then turns these insights into actionable strategies for marketers to use to reach these high spending consumers. Unity Marketing is the voice of the luxury consumer for such clients as PPR, Diageo, Tempur-Pedic, Google, Swarovski, Constellation Wines, Luxottica, Orient-Express Hotels, Italian Trade Commission, Marie Claire magazine, The World Gold Council, and The Conference Board.
Pam's latest book is Putting the Luxe Back in Luxury: How new consumer values are redefining the way we market luxury (Paramount Market Publishing, 2011). Her other books include Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience, published by Kaplan Publishing in October 2006; Let Them Eat Cake: Marketing Luxury to the Masses˜as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) and Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior(Chicago: Dearborn Trade Publishing, 2004).