Change Brings Opportunity For US Jewelers At Baselworld 2015

Photo credit: Courtesy of Baselworld

By Lisa Nikfarjam of Lisa Nik, Inc.

Attendance was undeniably down this year at Baselworld. But what does this really mean? The buying habits of US retailers have become increasingly focused on commercialized and internationally advertised brands. Perhaps this is because these brands are also becoming increasingly demanding for in store space, purchase dollars, and marketing placement in order to maintain market share. Will this create an overly homogenized jewelry selection for consumers across the country? 

Many jewelers would argue that this industry dynamic is an opportunity to grow by further differentiating and focusing on newer and less commercialized brands. Several buyers that we spoke with at Baselworld stated that they need something different that everyone cannot find down the street at every department store and competing jewelry store. Niche designers have a tremendous opportunity to position themselves among the boutique and specialty retail stores that specifically target items that rebel the mainstream.  

For designers, the colored stone section offered better than usual deals this year, specifically because of the strength of the US dollar against the Euro. It was literally like shopping with a 20 to 30 percent discount compared to the previous few years. Colored stone prices in general are higher than in years past and buyers may consider this adjustment to price as balanced due to the exchange rates. Overall, the incentive to buy from European suppliers was present within the competitive landscape.  

Many European designers and manufacturers commented on the lighter international traffic with all eyes gazing upon the US buyers that were present. Although the strengthened dollar certainly stimulated US purchasing at the show this year, several retailers commented on the concern over experiencing a drop in existing inventory values because of the changed prices. Imagine owning $1 million of commoditized inventory that is suddenly worth 20 percent less because of a price change. This may not lead to a desire to purchase more just because of the drop in price.  

We can only hope that the continued strength of sales in the sector will allow these retailers to sell through their existing stock levels so they can purchase more and benefit from the price reductions and the preferred Euro and Swiss Franc exchange rates against the US dollar.

Lisa Nikfarjam was at Baselworld in search of gems and stories. She is founder of the jewelry design firm, Lisa Nik,  a company that combines colored gemstones, diamonds, and artful elements to create fashionable jewelry that women around the world can enjoy on any occasion.

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Jewelry is Making a Comeback this Holiday Season

Jewelry has returned to many holiday wish lists, a sign that discretionary spending is back in vogue this holiday season, according to a just released survey.

A total of 23 percent of people surveyed will be asking for jewelry this holiday season, a 10 percent jump from last year’s 20.8 percent, according to the National Retail Federation’s 2010 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch.

Gift cards will remain the most requested holiday gift this year with 57 percent of people asking for plastic, followed by clothing (48.2%) and books (47.3%).

Overall, U.S. consumers plan to spend an average of $688.87 on holiday-related shopping, a slight rise from last year’s $681.83, according to the annual survey.

As in years past, most holiday gift-givers will spend the largest portion of their budget buying gifts for family ($393.55) and friends ($71.45), though they’ll still carve out room in their budget for small tokens of appreciation for both co-workers ($18.26) and others ($34.82). Total spending on gifts ($518.08) is expected to rise 2.1 percent from last year, which is in line with NRF says. Americans will also spend an average of $41.51 on decorations, $26.10 on greeting cards and postage, $86.32 on candy and food, and $16.86 on flowers.

“Consumers will still shop with the economy in the back of their minds, but we’re starting to see shoppers take baby steps toward a new normal,” said, Matthew Shay, NRF president and CEO. “As Americans open up their wallets for more discretionary gifts like jewelry or take advantage of sales to buy for themselves, retailers will begin to truly believe that the worst may be behind them.”

According to the survey, 61.7 percent of shoppers say the economy will impact their spending, down from last year’s 65.3 percent. Many shoppers say they will compensate by spending less (81.5%), comparison shopping online (30.9%) or with newspapers and circulars (28.1%), shopping for sales (54.1%) or using more coupons (40.6%). Although the economy continues to impact shoppers, a number of survey results indicate that shoppers may be ready to emerge from their shells this holiday season.

When asked which factor will be most important when shopping this holiday season, the majority of shoppers said that sales or price discounts (41.8%) or everyday low prices (12.7%) were most important. While those factors either declined or remained flat this year, two other categories rose in importance. The number of people who counted customer service as the most important factor rose from 4.4 percent last year to 5.3 percent this year, while shoppers who touted quality as the overriding factor rose from 11.8 percent to 12.7 percent.

“Price is paramount during any recession, but when the economy begins to recover other factors take on greater importance,” said Phil Rist, executive vice president, Strategic Initiatives, BIGresearch. “When shoppers consider other factors like customer service and quality in buying decisions, retailers have the ability to highlight a variety of other features to help their company stand out from the competition.”

Another sign that shoppers feel a bit of breathing room in their budget, the number of persons who say they will make a holiday purchase from a discounter dropped from 70.1 percent last year to 65.1 percent this year. Popular holiday shopping destinations will include department stores (54.5%), grocery stores (46.7%), the Internet (43.9%) and clothing stores (33.6%).

Americans aren’t only shifting where they’re shopping—how they’re shopping is changing, too. Mobile devices like iPhones and Androids are becoming more popular among consumers, and many shoppers plan to use these devices this holiday season to look for gift ideas, compare prices and find items in nearby stores. According to the survey, more than quarter of adults with a smartphone will use these devices to research or make holiday purchases, and that number jumps to 45 percent among young adults 18-24. Retailers are expected to take advantage of this trend by offering more robust mobile apps and Web sites, along with enhanced features like mobile reviews, to cater to Americans looking to shop from their phones.

Yet another hopeful indicator: the number of people who plan to take advantage of holiday sales to make non-gift purchases for themselves will rise 8 percent this year (52.9% in ’09 to 57.1% this year), with the average holiday shopper spending $107.50 on themselves, up from $101.37 last year.

Though the holiday season won’t kick off for many retailers until at least November 1, a sizeable number of shoppers are already planning ahead. According to the survey, 37.2 percent of Americans will begin holiday shopping by Halloween. Women are the most likely to begin shopping by the end of October (42.1%) while young adults 18-24 are among the least likely (27.7%).

NRF expects holiday sales to rise 2.3 percent to $447.1 billion.