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| May is Gold Month" ads like this one created for Ben Bridge Jeweler are scheduled to run throughout May. |
Though the rising price of gold has made retailers skittish about sales, "May is Gold Month," a national retail promotion aimed at increasing consumer sales of gold jewelry throughout the month, will be targeting spring shoppers.
Duvall O'Steen, director of jewelry public relations and promotion at the World Gold Council (WGC), says May remains a great time to buy gold for special occasions such as Mother's Day and graduations, or for self-purchase.
Part of the buzz this May will be generated by the official participating retailers who have collectively spent some $3 million so far to launch their new, fashion-forward gold assortments in a national media campaign in magazines such as Elle, Good Housekeeping, Harper's Bazaar, InStyle, People and Redbook.
The campaign will also be supported at retail with point-of-sale signage, window displays and direct-mail catalogs. More broadcast retailers are jumping on board this year too, O'Steen says, which will heighten consumer awareness.
The campaign isn't just growing by way of media attention, but also in terms of dollars spent. In 2006, the campaign partners spent $3.2 million, and last year that figure rose to $3.6 million. It's hoped that this May's total sales, to be tallied this summer, will be even higher.
Although the WGC can't release sales growth figures because of confidentiality reasons, O'Steen says that partner stores witness double-digit sales growth in May, on average, as a result of the promotions. She acknowledges this year could be different due to the faltering economy, but remains hopeful.
John Calnon, WGC's U.S. managing director, says prior to 2007, gold sales had been increasing rather nicely, and 2007 saw increases until the fourth quarter, which saw a downturn.
With the troubled economy and increasing price of gold, O'Steen advises retailers to focus on the precious metal's value, and adds that the consumer perception of gold's intrinsic and lasting value has actually been strengthened by the higher prices.
"When things are expensive, we want them," O'Steen says. "We aspire to them."
Value doesn't mean cheap, O'Steen emphasizes, and customers still want to buy the best they can afford. Consequently, she says, selling inexpensive pieces isn't necessarily the way to go.
"Consumers want to make sure it lasts and is durable," she says.
O'Steen adds that in addition to consumers seeking luxury items, regardless of price, gold's own attributes can also help keep sales up.
One such quality to emphasize is its lasting nature. Unlike a pair of shoes or a purse that wears out quickly, 15 years after purchase, gold will still be around. She adds that value on the design side also helps for greater sales, as do pieces that offer versatility.
The co-sponsors of the program, the WGC, Jewelry.com and the Richline Group, will collaborate with retailers including Belks, Ben Bridge Jeweler, BJ's, J.C. Penney, Jewelry Television, Macy's, ShopNBC, Sterling Jewelers and QVC to launch the campaign, which will feature new gold collections.
Independent retailers are, once again, invited to participate in the campaign by downloading the May is Gold Month logo and point-of-sale materials from the WGC's Web site, Marketing.Gold.org.
O'Steen says the WGC always intended to make the campaign industry-wide but wanted to ensure it was strong before welcoming it to all.
"Independents should capitalize on the buzz," she says.
May is Gold Month will also raise funds and awareness for Jewelers for Children, an organization benefiting children who have been affected by illness, abuse or neglect, through a sweepstakes to be hosted on Jewelry.com.
The sweepstakes offers consumers the chance to vote on and win their favorite new gold jewelry design, with the Web site making a contribution of 10 cents—up to $50,000—for each completed sweepstakes entry.
The online sweepstakes will be supported with digital marketing.
Source: nationaljewelernetwork
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