Bridal jewelry generates the largest portion of sales—more than 40 percent—for U.S. jewelers and is a stable evergreen market. Engagement rings, along with wedding bands, represent nearly 90 percent of bridal jewelry market sales.
Bridal jewelry, however, is also the most competitive market segment, and profit margins have declined, as diamonds have become a commodity.
Here’s how jewelry retailers have learned to compete successfully and generate higher profits in this critical category.
- Show the setting first, before selecting the gemstone, because mountings have more profit potential than diamonds.
- Analyze your metal mix—a platinum setting can generate more gross margin dollars than other precious-metal mountings.
- Understand millennial shoppers—they want value, which does not necessarily mean the least expensive product, and they seek both style and a differentiated product that can be personalized.
- Be where the consumer is—ensure your website is a destination worthy of a visit and appealing enough to drive store traffic.
- Be on trend—retail sales for platinum jewelry increased 11 percent in 2013, growing faster than total jewelry sales. The market is polarizing between two segments: the 14k price segment and the platinum value segment.