Looking Up
A positive outlook for fourth-quarter jewelry sales
By Deborah A. Yonick
If multiple surveys and reports are any indication of how fine jewelry will fare this holiday season/fourth quarter amid COVID-19, people will be buying a lot of fine jewelry for themselves and their loved ones to wear with their sweats.
And it’s already happening: In May, New York City–based pre-order fashion e-tailer Moda Operandi found a 35 percent up-tick in fine jewelry sales compared to the same period last year.
It’s not surprising given that, after months of home confinement and a lot of uncertainty, consumers are looking for ways to find comfort and to treat themselves. This crisis has also made consumers more aware of the importance of the relationships in their lives. As a result, they’re seeking ways to honor those relationships. And it looks like for many, that means gifting themselves and their loved ones with meaningful and personal jewelry.
A number of recent industry studies support this finding, with diamonds and silver among the product categories expected to top consumers’ shopping lists this holiday season.
Diamond Desire Still Strong
In advance of the upcoming holiday gift-giving season and in the context of COVID-19, De Beers Group research offers a hopeful vision of a continuing strong desire for diamonds.
Its latest Diamond Insight Global Sentiment Report surveyed 2,800 men and women, aged 20 to 65, with household incomes of at least $75,000 in the U.S., with similar studies in China and India, who represented the key consumer markets for diamonds. The study, released in August, looked at how consumers are feeling in the current environment, their gifting intentions for the holidays, and preferences for engaging with brands and retailers in the coming months.
In the U.S., almost 60 percent of men surveyed intend to purchase diamond jewelry for a significant other, while nearly a third of women intend to buy for themselves. (In China and India, over 80 percent of both men and women intend to buy diamond jewelry.) Professionals under 35, who tend to be of middle affluence and work full time, drove high levels of intent to buy diamond jewelry during the holidays. The most important factor cited in choosing a gift this year is how special it makes the recipient feel.
In addition, over 80 percent of those intending to buy diamond jewelry this season had either self-purchased or gifted diamond jewelry in the past two years, highlighting the importance of connecting with past customers.
“While the external environment remains uncertain, jewelers have the opportunity to build more lasting and meaningful connections with consumers at the culmination of a year that has reminded us all that we cannot take relationships for granted,” says Bruce Cleaver, CEO of the De Beers Group. He recommends that holiday communications highlight both the long-understood power of diamonds to convey emotional meaning and the inherent beauty of nature’s miracles, which together result in powerful feelings of joy and positivity for both the giver and recipient—feelings that consumers sorely miss and want right now.
According to the report, in every market, consumer interest gravitated toward classic pieces, with simple solitaires most preferred. With so much uncertainty and change around us, timeless classics such as diamond solitaire earrings, necklaces, and rings have strong appeal as proven designs.
However, there is also a subset of consumers—largely those with higher household incomes who felt their lives were returning to normal—more interested in experimenting beyond classic designs, showing greater interest in diamond jewelry brands.
A fall-winter style report released by the Natural Diamond Council (NDC) cites symbolic, sentimental, and personalized diamond jewelry trending. A range of motifs is popular, including hearts, evil eyes, good luck charms, spiritual icons, celestial beings, zodiac signs, initials, and words of affirmation, all accented in diamonds.
Another key trend identified by the NDC is mix-and-match diamond earrings. The report calls it an easy way to curate personal style, as women can wear classic diamond studs with a diamond drop or geometric-shaped earrings. Jewelry designers are increasingly selling single earrings for this purpose, says the NDC, describing it as an affordable way to create a style upgrade.
Also cited as fresh and modern were gypsy-set diamond rings (a type of setting where the stone is set into, rather than on top of, the band), and east-west settings for emerald, marquise, or oval shapes (which are traditionally set north-south) in commitment and engagement rings.
Silver Continues to Shine
Sponsored by the Silver Promotion Service (SPS), a recent consumer survey conducted by MVI Marketing affirms the high level of pent-up demand for jewelry, with strong intent to buy silver jewelry during and post COVID-19.
Sixty-four percent of those surveyed indicated that they plan to purchase jewelry, with 50 percent of those intending to buy indicating that the jewelry purchased would be silver. The study found a high likelihood of self-purchase of silver jewelry for a variety of occasions, including just because, self-love, and birthdays.
“What we know is that jewelry is an emotional purchase that has always been the perfect gift to mark special occasions, express one’s love, and celebrate personal achievements and self-rewards,” says Gloria Maccaroni, director of brand development for SPS.
With gold prices hovering around $2,000 an ounce, silver is enjoying attention for its affordability as well as its fashion status in cutting-edge design and antimicrobial ability in these COVID times. While gold is the metal that typically dominates the runways, there has been a large uptick in silver pieces everywhere for the fall-winter season, in brands from Alexander McQueen to Paco Rabanne. Look out for thick tube bracelets, sculptural chokers, stacked dome rings, and unique artisanal pieces, as well as mixed metal pieces and chains in all forms, especially oversized.
According to Maccaroni, classic jewelry designs in silver are also capturing a lot of attention, with diamond studs, hoop earrings, and bangle bracelets most popular. “Just like the little black dress, every woman needs a few jewelry box essentials that can add simple elegance to any outfit and never go out of style.”
Consumers Seek Meaning
A study released in August by Platinum Guild International (PGI), examining consumer behavior during and post COVID-19, also affirms consumers’ intent to give and wear fine jewelry as a symbol of affection for their loved ones and bonds formed in those relationships. The study surveyed 1,000 jewelry consumers in the U.S., China, India, and Japan and found that “personal meaning” is the most crucial driver in all four markets.
It’s not surprising during these challenging times. With many consumers re-evaluating their priorities in life and gaining a renewed appreciation for loved ones, spending on products that represent personal meaning is a key expression of their feelings for family and friends.
“Jewelry pieces that are personally meaningful and will maintain value long term are the key drivers among consumers in all four key markets who intend to spend more than usual on jewelry for themselves and as gifts after the crisis ends,” says Huw Daniel, chief executive officer of PGI. “Jewelers need to capture the sentiment that consumers are willing to shop for jewelry but pieces need to have meaning.”
Daniel believes that platinum jewelry has an opportunity to gain a larger share of discretionary purchases that can retain value and meaning if manufacturers and retailers continue to prioritize new collections and design directions to meet changing consumer needs.