Trade Resources

Retail jewelers are adapting to a changing marketplace. As online sales of fine jewelery continue to grow, traditional retailers are challenged to integrate new technologies and strategies to their business models in order to stay competitive. In this report, we examine topics of interest to retail jewelers including:

- E-commerce platforms for jewelers

- Social media and 'Social Care' concepts

- Best practices for developing your presence online

- Examples of successful online strategy

- Current jewelry market data and trends

Working as a consultant in the jewelry industry for the last 15 years, I visit stores in person and connect all the time with businesses online. I have the opportunity to view their inner workings, business details, financials, etc. and I can tell you that successful stores share some common best practices.

Notice the title of this article: I said "have money," not "make money." What's the difference? Plenty. Most jewelers make money, although many have very little of it in their chequing accounts. Many years ago, I read a statistic that stated that well over 55% of companies who declared bankruptcy had a profitable profit and loss statement.



Here's my list of what I've seen in the trenches, not in order of importance.

2012 was a year of growth, innovation, and change for retail jewelers in America. Total revenues from fine jewelry and watch sales in the U.S. reached a record $71.3 billion in 2012, an increase of 5.9% over 2011 ($67.3 billion). Consumers are gradually becoming more comfortable with online shopping, and online jewelry sales are growing in tandem with other retail sectors. In 2012, wholesale fine jewelry prices rose at a rate of 2.5% year-over-year, in line with historical pricing trends, while retail prices fell by 1.2%, further diminishing margins for commercial retailers. Opportunities for brick-and-mortar jewelry retailers to enter the fragmented mid-range U.S. market remain significant.

Many jewelers run their store by the "seat of their pants” (or skirts) and are always trying to catch up.

There are numbers for successful jewelers and then there's "everyone else". Many people are happy to be making about the same or less than their bench jeweler because they are their own boss. Income is not as important as freedom. But freedom comes with a price. If you can improve your store’s numbers then you can more than likely improve your personal numbers (bank account level, debt, retirement amount, etc).

Sales numbers confirm that the U.S. jewelry market has nearly fully recovered from the recession climate of 2007, at which time the luxury and jewelry industries were particularly hard hit. According to the U.S. Department of Commerce, total U.S. jewelry and watch sales reached the record level of $68.3 billion in 2011 and forecasts for 2012 are more than encouraging for the industry. Sources such as The World Jewellery Confederation or The Altagamma Fondation, predict that the luxury industry globally will see a growth in jewelry and watch sales of around 10 % in 2012 compared with 2011.