Concentration of the bride jewelry, Gassman told the jeweler
June 28, 2010
The bridal industry remains a huge business for jewelers, analyst Ken Gassman said at his keynote address titled Minimize Inventory While Maximizing Your Bridal Opportunity, sponsored by Unique Settings. tiffany charms
“Bridal jewelry can increase your revenues, but only if you have the goods to sell the customer,” he said. “You need to become bridal headquarters for your area.” louis vuitton bags
He noted the recession has not affected the number of marriages in the United States. He predicted bridal demand would grow dramatically, and cited an estimate of 2.6 million marriages a year in the future. ghd mk4
The current bridal jewelry market is $12 billion, representing 20 percent of all jewelry sales. It will grow to $15 billion by 2016. Engagement rings are a $7.7 million business, and wedding bands account for $3.3 billion. True Religion sale
Currently, 76 percent of brides get a diamond engagement ring, with an average ticket of $4,500 to $6,000.
The factors affecting an engagement ring purchase include the reputation of the jeweler, staff knowledge, and prior relationship.
Most brides who choose the ring go for style first, Gassman said. “It’s all about the look for the bride.”
Fifty-five percent of brides said diamond brands were not important. Most paid more attention to the store’s brand. “It’s important, as owners of your store, that you brand your store,” Gassman said.
In addition, 53 percent of all couples purchase wedding bands. About half the couples buy both rings at an independent jeweler.
Gassman estimated that the potential revenue for bridal purchases for independent jewelers is $8,100 to $9,600. He said one way to do maximize revenue is to stay in touch with the bride and groom after the purchase.
“Call them, send him an e-mail,” he said. “Let them know that you’re still there. Selling an engagement ring to a couple is the beginning of a lifelong relationship. It’s a gateway business for jewelers.”
He said the Millennial generation is different from the Boomers, and you can’t sell jewelry to them the same way. “The Boomers wanted what the Joneses have,” he said. “The Millennials don’t want what we’ve been selling to their parents. We have to give them something different and something unique.”
He noted that Millennials are ready to wait for a perfect item. “The implication for jewelers: You don’t have to deliver it that day,” he said. “But you do need to close that sale and collect that money. You want to take them off the market.”
Millennials are also sensitive to environmental concerns and want to touch the merchandise. “We are a touch and feel society,” he said. “Have [consumers] handle the rings as much as possible.”
They also want a shopping experience. “They want more than for you to sell them a ring,” he said. “They want an experience they’ll remember. Take a picture of them buying the ring. Five years from now, they will remember the photograph and your store, but they won’t remember the discount you gave them.”
