Consumers' Taste for High-End Jewelry Grew

Jewelry and watch consumers in 2006 traded up to more luxurious choices, according to a recent survey.

In 2006, American consumers spent $62.2 billion buying jewelry and watches, posting a dramatic 6.5 percent increase over sales in 2005 of $58.4 billion, according to new research from Unity Marketing, Stevens, Pa. But it was the luxury end of the jewelry market that experienced the strongest growth last year with sales of fine watches rising 39 percent and fine jewelry up 10 percent.

By contrast the fashion or costume segment in the jewelry market declined by 8 percent and sales of costume watches were off by 20 percent, according to the latest statistics on the jewelry and watch market, according to Unity Marketing's Jewelry and Watch Report, 2007.

"The jewelry market went even more luxurious in 2006," said Pam Danziger president of Unity Marketing and author of Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience.

"Jewelry shoppers moved more up-market in 2006, choosing to buy fine jewelry and watches more frequently, rather than their cheaper costume counterparts, Danziger added. With their eye on more expensive designs, they turned more often to specialty jewelry stores where they got expert advice which boosted their confidence to spend the substantial amounts they did for their purchases."

The shift in the jewelry consumer market toward more luxury is one of a number of important new trends discovered in the latest survey among 750 recent jewelry and watch consumers with an average household income of $72,906, an average age 41.6 years; and gender split 60 percent female and40 percent male, conducted by Unity Marketing. Other trends uncovered in the new study include:

* The men's jewelry market came into its own in 2006 and is no longer an after-thought.

* Jewelry stores came surging back after losing share for several years.

* Demand for gemstone jewelry exploded, especially for colored semi-precious stones and diamonds.

* The market for fine watches grew dramatically in 2006, but the future looks less certain as younger consumers reject watches as a status symbol.
Source: jckonline

Jewelry spending up by luxury consumers

Luxury consumers spent 54.6 percent more on jewelry and 20.3 percent more on watches in the second quarter of 2007 than they did in the first quarter, a new study finds.

The increase represents an overall boost in spending by luxury consumers who shelled out an average $15,283 on luxuries in the second quarter of the year, a 9 percent increase over spending in the first quarter, according to Unity Marketing's Luxury Tracking survey of 1,000 affluent consumers.

Luxury consumers also increased their spending on luxury fashion accessories by 28 percent, on cosmetics and beauty products by 33.8 percent, and on wine and spirits by 12 percent.

But in spite of the increased spending, luxury consumers' future spending intent appeared at its lowest level in more than a year, forcing a four-point decline in the Luxury Consumption Index to 96.2 points.

The average income of those polled in the Luxury Tracking survey is $155,500 and the average age is 44.3.
Source: nationaljewelernetwork