The Karat Gold Report
By Jennifer Heebner, Senior Associate Editor -- JCK-Jewelers Circular Keystone, 7/1/2003
A questionnaire sent to the JCK Retail Jeweler Panel in January asked about karat gold jewelry sales. The questions and responses are detailed below.
All karat gold and gems-set-in-gold jewelry accounts for what percentage of total annual sales, by dollar volume?
| Less than 10% | 8.9% |
| 10%-19% | 24.8% |
| 20%-29% | 15.4% |
| 30%-39% | 17.2% |
| More than 40% | 33.74% |
Detail the karat gold content of your entire jewelry inventory. *
| 10k | 10% |
| 14k | 80% |
| 18k | 15% |
| 22k or 24k | 4% |
| * Percentages are median responses |
Compared to five years ago, detail how this karat gold inventory (excluding bridal and watches) has shifted in terms of how much 18k vs. 14k vs. 10k you stock and sell.
| Stock/sell more 14k | 17.9% |
| Stock/sell more 18k | 38% |
| Increased both | 12.3% |
| Decreased both | 8.4% |
| No change | 27.4% |
| Added 22k or 24k lines | 1.1% |
| Sell primarily 10k | 1.7% |
| (Percentages refer to respondents) |
Compared to five years ago, detail how your karat gold bridal jewelry has shifted in terms of how much 18k vs. 14k you stock and sell.
| Stock/sell more 14k | 12.9% |
| Stock/sell more 18k | 43.3% |
| Increased both | 11.8% |
| Decreased both | 3.9% |
| No change | 32% |
| Added 22k or 24k lines | 1.1% |
| Sell primarily 10k | 0% |
Define how many units of karat gold you sell annually.
| Less than 10 | 14.8% |
| 10-19 | 14.2% |
| 20-29 | 13.5% |
| 30-39 | 10.3% |
| 40 More than | 47.1% |
Define the average margin turn for karat gold jewelry.
| 10k | 2X |
| 14k | 2X |
| 22k or 24k | 2X |
Define the average turn ratio for most karat gold jewelry.
| Bridal | 1.5X |
| Non-bridal basics (i.e., omega chain, hoop earrings, etc.) | 2X |
| Designer or 22k/24k | 1X |
| Fashion (i.e., fancy necklaces and bracelets, etc.) | 1.4X |
Name all of your best-selling 18k gold jewelry categories.
| Wedding bands | 49.2% |
| Engagement rings | 26.6% |
| Diamond and colored-stone fashion rings | 15.2% |
| Bracelets | 12.1% |
| Bridal | 9.1% |
| Rings | 9.1% |
| Semimounts | 7.7% |
| Earrings | 7.6% |
| Necklaces | 6.1% |
| Chains | 5.3% |
| Mountings | 4.5% |
| Designer jewelry | 3.8% |
| Omega chains | 3.8% |
| Pendants | 3.0% |
| Slides | 3.0% |
| Custom-designed jewelry | 2.3% |
| Charms | 2.3% |
| Watches | 2.3% |
| High-end ruby and sapphire rings | 1.5% |
| (Percentages refer to respondents) |
If you've shifted to a greater proportion of 18k (or higher) inventory, give all reasons why.
| Differentiate from mass merchants | 36.4% |
| Store has become more upscale overall | 59.1% |
| Customers ask for it | 43.6% |
| More interesting designs available | 43.6% |
| Better margins | 20% |
| Other | 18.1% |
| Other reasons include: With some overseas manufacturers, 18k is more readily in stock than 14k; many suppliers offer only 18k or platinum; the whites are whiter and the yellows are more yellow; perceived as higher quality; easier to work with; a selling tool; a richer look that accentuates custom designs; platinum usually blends with 18k; 18k comes mixed with platinum on wedding bands; Nomination uses 18k on stainless steel; use for fancier bridal and custom work; for very high-end stores. |
Do you sell karat gold watches?
| Men's | 3.5% |
| Women's | 14.6% |
| Both | 81.9% |
If so, how many do you sell per year?
| Fewer than 10 | 60% |
| 10-19 | 16.4% |
| 20-29 | 7.9% |
| 30-39 | 3.6% |
| More than 40 | 12.1% |
| (Percentages refer to respondents) |
