SOURCE: Unity Marketing

September 28, 2011 12:06 ET

Unity Marketing's New Jewelry Study Shows the Jewelry Market Has Recovered to Pre-Recession Levels

But the Post-Recession Jewelry Market Doesn't Look Anything Like the Pre-Recession Market

STEVENS, PA--(Marketwire - Sep 28, 2011) - In 2010, the U.S. jewelry market emerged from the recession, posting a dramatic 7.5 percent increase in consumer expenditures from 2009 to 2010, after two successive years of negative growth. Yet the jewelry market today is very different than it was back in 2006 and 2007, before the recession.

Jewelry makers and retailers expecting to pick up where they left off with the same products targeting the same consumers will find themselves in the lurch. This according to Unity Marketing's latest "Jewelry Report 2011," a new market research study based upon surveys conducted among recent jewelry buyers.

"Since 2006 Unity Marketing has tracked dramatic changes in the jewelry market related to consumers' product and shopping preferences," explains Pam Danziger, president of Unity Marketing (www.unitymarketingonline.com) and author of "Putting the Luxe Back in Luxury: How new consumer values are redefining the way we market luxury" (Paramount Market Publishing, 2011).

Rising demand for men's jewelry accounts for much of the market's growth
Danziger says, "Among the most profound shifts our research uncovered is the growing demand for men's jewelry. While the rising cost of materials accounts for some of the growth, increased demand for men's jewelry also contributed to the rise in the jewelry market from 2008 to 2010."

"The men's jewelry market pre-recession was so small that it was difficult to make definitive assessments about men's jewelry preferences. Today, that segment of the market has grown, and we can pinpoint the preferences men have about the jewelry they wear with a level of detail designed to help manufacturers and retailers carefully target their product line," Danziger explains.

The latest study of the U.S. jewelry market includes:

  • Size of the costume and fine jewelry sector of the market.
  • What's hot and what's not in terms of jewelry products, such as rings, necklaces and earrings or for men, tie tacks and cuff links.
  • What types of metal jewelry consumers favor today, including gold, sterling silver and platinum as well as various plated metals.
  • Where people shop for jewelry, including dramatic shifts away from jewelry stores toward a wider spectrum of shopping destinations including art galleries, department stores, warehouse club outlets and direct-to-consumer channels such as the internet and television shopping.

Further, the report presents the latest demographics that describe the jewelry consumer market and an in-depth look at the luxury sector of the jewelry market, which accounts for more than 50 percent of total industry sales, including which jewelry brands and national retailers the luxury shopper favors.

Jewelry marketers must innovate to find growth in the new economy
Danziger says, "In order to build successful businesses in the future, jewelry marketers and retailers must take into account the many changes that their consumers have experienced coming out of the recession. Jewelry marketers have to be willing to challenge the old strategies and create new designs at new price points to be sold in new ways."

Take PANDORA, the Danish-based jewelry company that sells customizable charm bracelets, rings, earrings, and necklaces in more than 50 countries. Best known for its innovative update to the traditional charm bracelet, PANDORA has posted phenomenal growth of its global jewelry brand that generated ~ $1.2 billion (6,666 million DKK) in 2010 with 92.6% growth from previous year.

Danziger explains each PANDORA bracelet is a customizable piece that allows wearers to commemorate life events and interests with the addition of beads. With base bracelets in the $65 to $1,500 range and beads running from $40 to several hundred, this is a product that offers the opportunity for small splurges over time that will be meaningful to the owner. "Rather than just selling another piece of jewelry, PANDORA has transformed their product into an experience that its customers collect to commemorate milestone events and memories," Danizger says.

Danziger says, "PANDORA is a game-changing competitor for traditional jewelry marketers. They sell a new type of jewelry item in new types of stores to a new value-conscious consumer eager to create a personal expression of their lives and memories. PANDORA has a built in repeat business that has a loyal following, since nobody can buy just one PANDORA charm."

"This deep understanding of the desires of today's jewelry consumer -- an affordable product that emphasizes memories and experiences -- makes PANDORA a significant threat to traditional jewelry brands," says Danziger.

Click this link to learn more about the PANDORA jewelry brand: http://bit.ly/npW3Lr

Click this link to learn more about the new "Jewelry Report 2011" and to order a copy.

About Pam Danziger and Unity Marketing
Pamela N. Danziger is an internationally recognized expert specializing in consumer insights for marketers targeting the affluent consumer. She is president of Unity Marketing, a marketing consulting firm she founded in 1992 (www.unitymarketingonline.com). Pam received the Global Luxury Award for top luxury industry achievers presented at the Global Luxury Forum in 2007 by Harper's Bazaar.

Pam gives luxury marketers "All Access" to the mind of the luxury consumer. She uses qualitative and quantitative market research to learn about their brand preferences, shopping habits, and attitudes about their luxury lifestyles, then turns these insights into actionable strategies for marketers to use to reach these high spending consumers.

Unity Marketing is the voice of the luxury consumer for such clients as PPR, Diageo, Tempur-Pedic, Google, Swarovski, Constellation Wines, Luxottica, Orient-Express Hotels, Italian Trade Commission, Marie Claire magazine, The World Gold Council, and The Conference Board.

Follow Pam on Twitter @ www.twitter.com/PamDanziger

Pam's latest book is "Putting the Luxe Back in Luxury: How new consumer values are redefining the way we market luxury" (Paramount Market Publishing, 2011). Her other books include "Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience," published by Kaplan Publishing in October 2006; "Let Them Eat Cake: Marketing Luxury to the Masses -- as well as the Classes" (Dearborn Trade Publishing, $27, hardcover), and "Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior" (Chicago: Dearborn Trade Publishing, 2004).

Contact Information