Economic Upswing for Jewelry Industry Expected, Following JCK Las Vegas
Not only were we lucky enough to attend JCK Las Vegas, but now have the great fortune of sharing the predicted economic upswing in the luxury and jewelry markets in the wake of its’ completion with our readers. We’ve been financially forecasting a sharp improvement in the state of the jewelry industry, and all signs are pointing to its’ arrival.
This year, according to a new Big Data-based retail forecast from IBM, Jewelry sales are set to shine this year. The retail forecast suggests an 11 percent growth in the second quarter and nine percent overall by the end of 2013.
A few factors are considered to have driven this progress, including: improved consumer confidence, lower unemployment and enhanced stock dividends from the fourth quarter of 2012. The results of these circumstances have combined to rebuild people’s comfort in starting to spend on luxury items, such as jewelry, once again.
Key retailers are buttressing the economic landscape and driving sales through the utilization of Big Data analytics in efforts to better understand customers and trends, responding to them accordingly. Nationally recognized jewelers are overhauling digital channels to better respond to the changing consumer preferences, some reporting an increase in online sales of over 49 percent this past holiday season.
Steve Forbes spoke at JCK, and offered a few keen insights on the future of the Jewelry Industry. While the future looks clear and bright, growing pains will not be avoided. It has been proven that the industry will not thrive with traditional advertising, alone. Technology, digital marketing and optimized digital channels are the key to future good fortune, and must be embraced.
For jewelry retailers…
“The Web has shattered what we do, the print media. Jewelry and watches are not going to go the way of print. What we did for 150 years went out the window. [Young people] may be into iPads and iPhones. But jewelry has sustaining appeal. Remember, young people brought back the martini. Right now, things are turbulent, but it’s not going to last. You have something that’s been enduring for thousands of years.” -Steve Forbes
Things may have started slowly with the first day of JCK Las Vegas, but the four-day event was the largest jewelry trade show in North America, offering everything from jewelry-making equipment to finished jewelry from well-known brands and less-familiar names whose pieces fill jewelry store shelves throughout the country.
As reported by JCK, Exhibitors, Retailers, Vendors and Jewelry Industry professionals all shared an optimistic and upbeat attitude as the show commenced. The industry is beginning to feel safe again with itself, and our cumulative confidence is manifesting great things for the future.
First quarter indicators are supporting that optimism as independent jewelers and jewelry retail chains will report a significant growth in sales, particularly with lower and mid-priced items. In the wake of ‘the return of the middle class’, many consumers are spending again, but spending conservatively. Middle class consumers will be jewelry retailers largest available network to capture market share.