u.s. shoppers set to trade down with holiday jewels - sterling silver necklace and earring sets
NEW YORK (Reuters)-
Affected by economic concerns such as rising oil prices, the collapse of the real estate market and the decline in Wall Street bonuses, the United StatesS.
Shoppers may not be willing to splurge on the most expensive gadgets this holiday season.
On the contrary, as the times are getting harder and harder, jewelry retailers are beginning to face cautious consumers who may abandon expensive gold and diamonds and buy more affordable pearls this season, half
Precious stones and silver.
"Overall, they will all see customers choosing cheaper jewelry," said Pam danzier, president of Unity Marketing, a market research firm focused on luxury goods.
"This season is going to be a violent season for everyone," dzige said . ". U. S.
Consumers have recently tightened their wallets, hit hard by the dizzying subprime mortgage crisis, Wall Street's huge losses, and the soaring cost of food and gas.
"We are about to have a very strong summer, but what we have seen in the past few months is very weak growth," said Kamalesh Rao, director of expenditure pulse Economic Research, retail data services for MasterCard consultants.
Jewelry sales grew lessthan-dazzling 3.
4% October and 1.
Rao said it was 1% in September.
He expects sales to grow by 3-4% during the holidays. “The lower-
"Revenue consumers may not even go to stores this year," said Kenneth Gassman, director of the jewelry industry research institute . ".
Industry watchers point out that, on the other hand, the rich will still splurge $50,000 in jewelry gifts this holiday season.
"The strongest part is at a very high end.
This is the healthiest part of the market, "said Mark Vadon, chief executive of online jeweler Blue Nile Inc. , which expects strong holiday sales.
Tiffany expects sales to hit an astonishing level during November and December.
Tiffany improved in August.
Sales will grow by 14% this year, he said.
In the fourth quarter of 2006, Tiffany's revenue exceeded $0. 986 billion.
But apparently even the rich are worried.
While gas prices or mortgages are less worrying, the rich are worried about the stock market that has experienced several months of volatility, and they even notice their investments when they consume, experts say.
In large part, jewelers can make up 25% of their sales in December, Rao said.
In the United States, while there is a high demand for engagement rings, people also flock to shops to buy a gold or diamond for themselves or for others.
This season, the impulse of consumers to cut prices for cheap goods may indicate higher prices --
End stores that develop strategies and goals for different shopper groups.
"The strategy of some luxury retailers has been very successful. . .
This involves marketing to a lower tier than its customer base, "Rao said. New York-
For example, jewelry based in Tiffany --
For shoppers, the price is lower and the profit is higher.
"We call it a flash of cash," Gassman said . ".
"Sterling Silver flashed, but it didn't cost a lot of cash.
For Tiffany, the flagship store on Fifth Avenue is also a huge source of revenue.
Considering the weakness of the US economyS.
With the appreciation of the dollar and the influx of European tourists, the region will remain strong.
For others, like more affordable rivals Zale Corp. and smaller families
Holiday sales are likely to be disappointing this year.
And the core of Zale, mall-
In the face of economic difficulties, retailers, especially independent stores, also face record difficulties.
Gold is high.
Gold settled at $786.
40 an ounce in New York on Friday, under 28-year-high of $845.
40 sets last week
"They are already under siege and into Christmas," said garsman . ".
But taking the online route may be a success for some during the holiday season, as consumers focus on bargains, not necessarily buying experiences.
Rao called it a "hot spot" for jewelry this year ".
"A lot of these luxury retailers really put a lot of support behind online sales to reach a segment that is not their traditional customer base," Rao said . ".