Despite all the talk of economic downturns and stock market collapse, consumer desire to buy jewelry, a key product category in the luxury market, is strong and growing in 2002, according to the latest market research study from Unity Marketing, `The Jewelry Report 2002: The Market, The Competitors, The Trends.' Out of the jewelry industry's total $39.5 billion in retail sales in 2001, jewelry stores account for some 54% of total sales. As a result, jewelry store sales are a key indicator of the overall health of the industry. Reviewing the past two years' performance of jewelry store sales, last year jewelry store sales were up a staggering 5.9% over 2000, but then they started to stagnate as the economic slowdown took hold.
“Store sales dropped even further in the third quarter after the 9-11 tragedy. But toward the end of the fourth quarter 2001, jewelry store sales began to rebound,” explains Pam Danziger, President of Unity Marketing and author of Why People Buy Things They Don't Need.
"Through the first quarter of 2002 jewelry store sales were up 0.7% over 2001. Store sales performance in the second quarter 2002 is even better with sales 4.3% ahead of last year.
Clearly, consumers are satisfying a pent up demand for jewelry that should yield strong industry growth in 2002," Danziger explains.
A consumer survey conducted in April 2002 illuminates the strong consumer demand for jewelry. “Half of all U.S. households bought jewelry in the past year, with some 39% of households buying fine jewelry, defined as jewelry made from precious or semiprecious stones, 14-karat gold and above, sterling silver or platinum, and 31% buying costume jewelry, jewelry not composed of precious materials. Fine jewelry in particular is a passion for the high income households which spend over two times the national average on fine jewelry,” Danziger says.
FabergÉ just doesn't make fine jewelry but also creates eye-catching objects d'art. Here, petals of love are crafted out of rock crystal, diamonds, opal, pink sapphires and enamel, can be set on a desk or table or can turn into a brooch.


Source: Couture International Jeweler
Oct - Nov 2002 issue