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The State of the Core Market Report provides actionable market intelligence for jewelry businesses. It measures the vibrancy of the three core pillars that drive jewelry consumption:
1. Marriage formation trends
2. The economic well-being of American households, families and individuals
3. The business of jewelry store establishments
In compiling the State of the Core Market Report, Equity Communications relies heavily on comprehensive analysis of data provided by the United States Census Bureau, United States Bureau of Labor Services and the triennial Survey of Consumer Finances provided by the Federal Reserve System. When put together, data from these very reputable agencies provides the most authoritative study of the economic condition of Americans and American businesses.
Why the three core pillars are important for jewelry consumption:
Fundamentally, a huge component of jewelry consumption is a result of lifecycle transitions. For instance, jewelry retailers need to have awareness of the popular shapes and sizes of diamonds for successful engagement ring sales. However, the reality is that demand for engagement rings is limited to individuals who want to get married.
So marketing the most popular shapes and sizes of engagement rings will still result in failure if very few people are planning to get married in a target market. Advertising cannot change the facts.
Taking it a step further, a jewelry retailer can successfully target markets in which a large number of people are getting married and provide the most popular shapes and sizes of diamonds. Nevertheless, the business can still result in failure if the retailer does not correctly match price points for his products with the buying power of the customer base.
Lastly, jewelry for love events like engagements, weddings and anniversaries is traditionally costly. Buying jewelry for such occasions has serious purpose for consumers. To the average person, money comes slowly and by sacrifice. Few people have enough. The average person is constantly choosing between one way to spend money and another.
With this in mind, an engagement ring is often the third most expensive good a person will likely buy in a lifetime - other than a house and a car. For this reason, such a purchase often requires the specialized attention of qualified sellers - specialist jewelry stores.
People who buy expensive jewelry from jewelry stores and are satisfied with both the financial and emotional aspects of the process often go on to make other significant jewelry purchases in a lifetime. Nonetheless, the jewelry retailing landscape in America suggests the nation now has less need for specialist jewelry stores. More retail establishments are selling jewelry but the number of specialist jewelry stores has gone in the opposite direction.
at least 30 percent of all jewelry sales by value are linked to marriage
at least 40 percent of all jewelry by value is bought at specialist jewelry stores
it requires a certain level of income for individuals, households and families to afford fine jewelry