Table of Contents
Executive Summary
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- Overview
- Issue: Nearly half of consumers aren’t shopping the category
- Opportunity: Encouraging self-splurges and “just because” gifting
- Issue: Jewelry stores are losing sales to competitors outside the channel
- Opportunity: Using digital capabilities to attract and convert browsers to buyers
- What it means
The Market – What You Need to Know
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- Minimal growth expected
- Lifestyle changes are impacting sales
- Uncertainty affects precious metal prices
Market Size and Forecast
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- Small but positive change expected to continue, with growth anticipated in watches and jewelry
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- Figure 1: Total US sales and fan chart forecast of watches and jewelry, at current prices, 2013-23
- Figure 2: Total US sales and forecast of watches and jewelry, at current prices, 2013-23
- Figure 3: Total US retail sales of watches and jewelry, by segment, at current prices, 2016 and 2018
Market Breakdown
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- Watches are a smaller share of sales but drive higher increases than jewelry
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- Figure 4: Total US retail sales and forecast of watches and jewelry, at current prices, 2013-23
Market Factors
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- Lifestyle changes mean fewer needs for milestone purchases, more opportunities for self-purchases
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- Figure 5: Married share of population, 2008-18
- Figure 6: Households, by detailed type, 2008 and 2018
- Pricing concerns pose a risk for future growth
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- Figure 7: GDP change from previous period, Q1 2013-Q3 2018
- Focus on health creates need for functional devices
- Digital is crucial for future growth
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- Figure 8: Tiffany & Co. – Diamond Source Initiative, January 2019
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- Figure 9: eBay Fashion | Wear It Your Way, March 2018
Key Players – What You Need to Know
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- New competitors drive interest in and availability of preferred stones
- Many feel there’s no reason to shop and those who do are shopping outside the channel
- Technology evolution will impact purchases
What’s Happening?
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- Affordable DTC brands keep consumers interested in diamonds and gemstones
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- Figure 10: What is a laboratory-grown diamond?, June 2018
- Figure 11: Lightbox Jewelry Instagram post, January 2019
- Retailers build on the popularity of diamonds and precious metals
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- Figure 12: TURF analysis – Preferred stones and materials, December 2018
- Figure 13: Make a Wish | New Pandora Wish Collection, February 2019
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- Figure 14: How to Stack and Style Rings, April 2017
What’s Struggling?
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- What’s stopping consumers from shopping?
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- Figure 15: Reasons for not buying, December 2018
- External competitors are stealing customers
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- Figure 16: Amazon email campaign, February 2019
What’s Next?
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- Continued focus on the resell and secondhand marketplace
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- Figure 17: The RealReal Instagram photo, December 2018
- Figure 18: The RealReal Instagram photo, January 2019
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- Figure 19: eBay Instagram photo, July 2018
- Wearables continue to evolve
- A need for transparency
The Consumer – What You Need to Know
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- Self-purchases are popular, but nearly half of consumers aren’t shopping
- Traditional retailers are losing to convenience- and value-based competitors
- Women can be prompted to purchase without a specific reason, but functional features attract men
- Diamonds and gold are the way to consumers’ hearts
Items Purchased and Recipients
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- Key takeaways:
- Almost half made no purchase
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- Figure 20: Items purchased, December 2018
- Self-purchases are more common than gifts for others
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- Figure 21: Item recipients – NET purchases, December 2018
- Women are treating themselves, men do more gifting
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- Figure 22: Item recipients – NET purchases, by gender, December 2018
- Jewelry self-purchases are higher among Black shoppers
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- Figure 23: Le Tote email campaign, February 2019
- Figure 24: Item recipients – NET purchases, Black consumers vs overall, December 2018
Reasons for Buying
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- Key takeaways:
- Half of shoppers buy jewelry or watches as a treat
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- Figure 25: Reasons for buying watches or jewelry, December 2018
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- Figure 26: Sperry email campaign, February 2019
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- Figure 27: Reasons for buying, by gender and age, December 2018
- Figure 28: Items purchased: smart- and fitness watches and fitness trackers, by gender and age, December 2018
- Half of purchases for others are for the holidays
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- Figure 29: Reasons for gifting, December 2018
- Older shoppers are gifting for the holidays
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- Figure 30: Buying jewelry/watches as a holiday gift, by age and gender, December 2018
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- Figure 31: Wells Fargo Go Far Rewards email campaign, February 2019
Retailers Shopped
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- Key takeaways:
- Traditional jewelry retailers are losing share to convenience and value players
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- Figure 32: Retailers shopped – NET any shopping, December 2018
- In-store shopping still higher for most channels
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- Figure 33: Retailers shopped, online vs in-store, December 2018
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- Figure 34: Catbird Instagram, January 2019
- Who’s shopping traditional retailers?
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- Figure 35: Shopping at jewelry or accessories retailers, by gender, December 2018
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- Figure 36: Shopping at jewelry or accessories retailers, 18-44s vs over-45s, December 2018
- Who’s shopping outside the channel?
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- Figure 37: Nonjewelry retailers shopped – NET any shopping, by gender and age, December 2018
Attitudes toward Shopping for Watches and Jewelry
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- Key takeaways:
- Men research, women consider return options
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- Figure 38: Attitudes toward shopping for watches and jewelry, December 2018
- Older women don’t need a reason to shop, but men seek function
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- Figure 39: Attitudes toward shopping for watches and jewelry, by gender and age, December 2018
- Black consumers put thought into purchases
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- Figure 40: “It’s important to research before buying” (% agree), Black consumers vs overall, December 2018
Preferred Stones and Materials
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- Key takeaways:
- Diamonds are a girl’s best friend
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- Figure 41: Preferred stones and materials, by gender, December 2018
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- Figure 42: Tiffany & Co. Instagram post, December 2018
- Gold color preferences change with age
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- Figure 43: Preferred types of gold, by gender and age, December 2018
- Preference for diamonds and gold exceeds interest in leather and faux stones
- Black consumers more likely to prefer diamonds and gold
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- Figure 44: Preferred stones and materials (select), Black consumer vs overall, December 2018
Style Preferences
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- Key takeaways:
- Simplicity and versatility reign
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- Figure 45: Style preferences, December 2018
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- Figure 46: Style preferences, by gender, December 2018
- Encouraging incremental sales through various styles and price points
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- Figure 47: Women’s style preferences, 18-44s vs over-45s, December 2018
- Black consumers are adventurous with their style
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- Figure 48: Style preferences, by race and Hispanic origin, December 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 49: Total US retail sales and forecast of watches and jewelry, at inflation-adjusted prices, 2013-23
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