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Q: Onlin retail jewelry sales and demographics ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: Onlin retail jewelry sales and demographics
Category: Business and Money > Advertising and Marketing
Asked by: auminer1-ga
List Price: $200.00
Posted: 30 Apr 2004 15:15 PDT
Expires: 30 May 2004 15:15 PDT
Question ID: 339097
I have a retail jewelry website and want to narrow my marketing focus.
I want to know who makes up my ideal target audience. To this end, I
would like to know the following information for 2003 and 2002:

Regarding online fine jewelry (not costume) consumers in the United States:

Within the United States, who shops for fine jewelry (gold, platinum,
diamonds, precious gemstones, not costume or body jewelry) on the
internet and what is the total dollars spent for the group and average
dollars spent per individual in this segment?

Broken down by age group (I don?t know the standard breaks in defining
the age groups), gender, marital status, income level, ethnicity and
education level, I would like to know how much each group spends
annually on jewelry purchases online and how many times per year do
they buy? How much disposable income does each of these segments have
and spend? What percentage of total online jewelry sales does each
group represent?

Broken down by the same demographics listed above, I would like to
know how much, on average, each individual within the groups spends
annually and with what frequency?

What percentage of these online jewelry purchases are gifts and what
percentage are self-purchases?

Are there other shopping categories that have buyers that co-relate
(similar demographics) to jewelry?
Answer  
Subject: Re: Onlin retail jewelry sales and demographics
Answered By: belindalevez-ga on 01 May 2004 07:33 PDT
Rated:5 out of 5 stars
 
<Overview
U.S Fine Jewelry sales were $45 billion in 2003.
http://www.jewelryresearch.com/

According to Forrester Research, online jewelry sales were $2 billion
in 2003 and are expected to rise to $2.8 billion in 2004. According to
the Jewelry Industry Research Institute, the online diamond market
accounts for 2% of the total $29 billion for 2003. 
http://www.usatoday.com/money/industries/retail/2004-04-01-diamonds_x.htm

Forrester Research predicts that online jewelry sales will grow to $8
billion by 2008.
http://www.bizjournals.com/industries/high_tech/e_commerce/2004/03/29/seattle_story7.html?t=printable

-------------------------------------------------
Seasonal sales

May 2002 sales ? 72 million.
June 200 sales -  84 million.
http://www.bblabs.com/e-business.html

Between November 1 and December 6, 2002 spending on jewelry and
watches reached $121 million, 66% up on the same period in the
previous year.
http://www.professionaljeweler.com/archives/news/2002/121102story.html

November 2002 $80 million up almost 70 percent on 2001.
http://www.bvp.com/news/pr.asp?id=550

According to ComScore Networks Inc, first quarter of 2003, sales of
jewelry were $226 million, up 36% on last year.
http://www.bizjournals.com/seattle/stories/2003/06/23/focus6.html?page=2

November 1 to December 9 - $121 million, up 66%.
http://www.comscore.com/press/release.asp?id=290

According to ComScore Networks Inc, November 2003 online sales of
jewelry and watches reached $800 million a 38 percent increase over
last year.
http://www.ladlass.com/archives/001114.html

According to ComScore Networks Inc, online sales of jewelry and
watches reached $900 million in December 2003, an increase of 36% over
the previous year.
http://www.washingtonpost.com/ac2/wp-dyn?pagename=article&contentId=A46238-2003Dec31&notFound=true

ComScore Networks Inc. tracks online sales of jewelry. They regularly
release updated figures. Their press releases can be found here.
http://www.comscore.com/search.asp?searchCategory=0&selectSort=relevance&target=jewelry

2004 valentines day spending on jewelry and watches.
http://www.comscore.com/press/release.asp?id=426
Mother?s Day.
Over 50% of US consumers will use the web to buy or research Mother?s
Day gifts.  12% buy jewelry online for Mother?s Day gifts. Jewelry
sales leading up to Mother?s Day increased 96%.

http://www.feedbackresearch.com/press/pr/fr030509.html
------------------------------------------------------

Demographics

A survey by Unity Marketing in April 2002 found that the typical fine
jewelry customer is a youthful female with above average income. Women
(43%) are more likely to buy fine jewelry than men (34%). Households
with incomes over $75,000 are more likely to purchase fine jewelry.
http://www.refresher.com/!umi.html

69% of people who visit jewelry sites are women. Of the consumers who
viewed jewelry sites in the run up to Valentine?s day,  32% will buy
gifts online. This represents a 12% rise on 2002.
http://www.feedbackresearch.com/press/pr/fr030213.html

Women aged 18-34 make up 22.3% of shoppers at online jewelry sites.
http://www.internetretailer.com/dailyNews.asp?id=10617

According to ComScore, the highest percentage of those online are in
the 18-34 age group. 72% of 18 to 34 year olds are online. This age
group corresponds with the gold buyer profiles (see below).
http://www.comscore.com/press/release.asp?press=445

According to ComScore, 24% of online women aged 18-34 visit jewelry sites.
http://www.comscore.com/press/release.asp?id=361

According to a report by Toni Fitzgerald in New Media, broadband users
are 39% more likely to buy jewelry online.
http://www.medialifemagazine.com/news2003/aug03/aug04/4_thurs/news4thursday.html

US jewelry spend by age.
These figures from the US government show that the 55-64 age group
spend the highest amount on jewelry at $172 per capita.
http://www.signetgroupplc.com/signetplc/images/us_con_demos.gif

Gold consumer profiles
These profiles have been compiled by the World Gold Council. A summary
is given for each type. Further details are available at the links
given.

The passionate indulgent.
This buyer account for 20% of the U.S. female population. 53% of this
group is aged under 40. Income - $57,000. Employed ? 66%. Married ?
59%. Have children ? 71%. Ethnicity ? Caucasian (65%), African
American (26%). Average spend $580, Prefers yellow gold.
http://www.nationaljeweler.com/nationaljeweler/profitguides/gold/consumer/passionate.jsp

The Chic stylist. 
19% of the U.S female market. 61% aged under 40. Income $37,000,
employed ? 63%, married 48%, Have children ? 75%. Ethnicity Caucasian
58%, African-American 36%. Average spend $690. Prefers yellow gold.
http://www.nationaljeweler.com/nationaljeweler/profitguides/gold/consumer/chic.jsp

The Young Hedonist.
33% of the U.S. female population. Aged 15-35 years. More likely to
receive jewelry as a gift. Income $45,000. Employed 60%. Married 50%.
Ethnicity ? Caucasian 75%, African-American 16%. Average spend $160.
Prefers yellow gold 40%, white gold 30%.
http://www.nationaljeweler.com/nationaljeweler/profitguides/gold/consumer/hedonist.jsp

According to U.S. Trust, Baby boomers (those born between 1946 and
1964) rarely buy jewelry.
http://www.ustrust.com/ustrust/html/knowledge/WealthManagementInsights/SurveyofAffluentAmericans/AffluentBabyBoomers.html

Future buyers.
Generation Y (those born in 1978 or over), children of the baby
boomers are reaching the age of 25, and 27 is the current age for
getting married. According to Blue Nile, Generation Y children are
moving into their prime jewelry buying years.
http://www.bizjournals.com/industries/high_tech/e_commerce/2004/03/29/seattle_story7.html?t=printable

------------------------------------------
Average spending.

A survey  by MVI?s Jewelry Consumer Opinion Council in 2002 found that
27% intended to buy fine jewelry in 2003. 7% indicated that they would
buy from internet retailers. 50% planned to spend between $50-$300,
26% $1,000-$10,000 and 1% over $10,000. 82% planned to spend under
$300 on gifts for mothers and 81% said they would spend under $200 on
gifts for daughters. 73% would buy for themselves, 35% for mothers,
30% for spouses and 30% for daughters.
http://www.professionaljeweler.com/archives/news/2002/071702story.html

According to Double Click, during the 2001 holiday season, average
online spending on jewelry in 2002 was $214.
http://216.239.59.104/search?q=cache:T56qgG5-H28J:www.doubleclick.com/us/knowledge_central/documents/research/dc_multichannel_holiday_0112.pdf+jewelry+respondents+internet&hl=en


Engagement and wedding rings.
According to the diamond information centre the average price of an
engagement ring was $2,500 in 2003.
http://www.jckgroup.com/article/CA406972/jck?industry=Diamonds&industryid=668


According to Bride?s Millenium Report: Wedding Love and Money, the
average engagement ring cost $3,044 and the average cost of wedding
rings for the bride and groom is $1016.
http://www.shopcherrycreek.com/infodesk/media/417.html


BlueNile an online seller of custom made engagement rings sells them
for an average price of $5,200. Chief executive Mark Vadon reports
that customers are happy to order more expensive rings online but once
they reach the $20,000-$30,000 price range they prefer to have
personal contact via the telephone.
http://www.ice.com/content/ICE_NYTimes_News.htm

Anniversary spending
According to the Diamond & Promotion Service the average price for
diamond jewelry for anniversaries is $1,176. There are 56 million
married couples in the U.S, of which 6 percent purchased diamond
jewelry as anniversary gifts in 2003.
http://www.mjsainc.com/press/press_read.php?id=8

Unity marketing found that those purchasing jewelry in 2003, spent an
average of $2000. The survey included consumers with incomes from
$50,000 - $100,000 and over $100,000.
 http://www.jckgroup.com/article/CA378141/jck?section=Retail+Roundup

Gold jewelry
The average price for gold jewelry units in 2003 was $76.17 in 2003
according to NOP World.
http://www.nationaljeweler.com/nationaljeweler/profitguides/gold/article_display.jsp?vnu_content_id=1000491412
Mothers Day.
According to the NRF?s 2004 Mother?s Day Consumer Intentions and
Actions Survey consumers, Mother?s Day average gift price for jewelry
is $62.50 and 14.6% plan to buy online.
http://www.idexonline.com/start.asp

Valentine?s day.
Valentine?s day 2004 plan to spend an average of $164 on fine jewelry.
http://www.retailforward.com/freecontent/pressreleases/press81.asp

----------------------------------------------------------
Spending on jewelry by income.

The 2003, Mendelsohn Affluent Survey shows how spending on jewelry
varies by income.
$75,000 to $99,999 - $767
$100,000 to $199,999 - $1,118
$200,000 or more - $2,544
http://www.mmrsurveys.com/a03bro.pdf

2002, Mendelsohn study.
http://www.mmrsurveys.com/a02bro.pdf



----------------------------------------------------------
The Mendelsohn Affluent survey (above) shows a correlation between art
buyers and jewelry buyers.

The reader profile for American Style Magazine shows that 75% of
readers purchased designer jewelry in the last 12 months and 90%
purchased art.
http://www.americanstyle.com/News/Political_News/Archive.html

-----------------------------------------
Preferences


A survey of preferred Valentines gifts found that 32% of women and 23%
of men preferred jewelry and watches as gifts.
http://66.102.9.104/search?q=cache:ib6Lx4DnxIEJ:www.mrweb.com/drno/news2929.htm++jewelry+%22comscore%22&hl=en


Fine jewelry industry ? breakdown of sectors.
http://66.102.11.104/search?q=cache:LkU20kRgAzgJ:www.boi.gov.ph/F_Industry/fine%2520jewelry-profile.doc++%22fine+jewelry%22+%22engagement+rings%22+average+spent&hl=en

Yellow or white gold
http://www.nationaljeweler.com/nationaljeweler/profitguides/gold/article_display.jsp?vnu_content_id=2050883

Top ten sellers, price points
http://www.tucsonshowguide.com/stories/jan04/retail.cfm

Most popular gem stones, top five gemstones, most popular price points by region.
http://www.tucsonshowguide.com/stories/jan04/retail2.cfm>



-------------------------------------------------------------------

<Additional links:>

<Direct listline sells a mailing list with 325,000 jewelry buyers
including 55,000 with email addresses. Among those listed 47% buy
jewelry by mail at least three times a year, 53% do so annually. The
price is $70 per 1000.>
http://www.directmag.com/ar/marketing_direct_listline_717/

<Jewelry.com is ranked the number one online retailer of jewelry with
2 million visitors each month.>
<http://www.professionaljeweler.com/archives/news/2003/061903story.html>

<Success stories in online jewelry retailing.>
<http://www.tucsonshowguide.com/stories/sep03/retailonline.cfm>


<Search strategy:>

<" fine jewelry" comscore>
<://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF-8&q=%22+fine+jewelry%22+comscore>

<"jewelry" respondents 2004>
<://www.google.com/search?q=%22jewelry%22+respondents+2004&hl=en&lr=&ie=UTF-8&oe=UTF-8&start=20&sa=N>

<"engagement rings" average spend>
<://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF-8&q=%22engagement+rings%22+average+spend>

<"jewelry" 2004 "average price">
<://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF-8&q=jewelry+2004+%22average+price%22&btnG=Search>


<Hope this helps.>

Request for Answer Clarification by auminer1-ga on 03 May 2004 08:50 PDT
In terms of future growth and market concentration, could you please
tell me which market demographics are growing the fastest? Which ones
are expected to make up the bulk of online jewelry sales in the next
few years? Also, what characteristics of online retailers does these
groups value the most?

Clarification of Answer by belindalevez-ga on 04 May 2004 00:06 PDT
<The 18-34 age group are more frequent and active internet users than
any other age group. The females of this age group are identified by a
number of studies as jewelry buyers. There is also a relationship
between income and jewelry buying, so the more affluent females of
this age group represent a target market.

For online retailers the 18-34 age group are internet savvy, they have
grown with computers. 18 to 34 year old females are disproportionately
more likely to visit retail categories than the average internet user.

According to Professional Jeweler, Generation Y will be the next big
market segment to target.
http://www.professionaljeweler.com/archives/articles/2000/sep00/0900i2.html

According to Professional Jeweler, Generation Y is the most
jewelry-besotted generation since the Baby Boom. This report was
written in 1999, five years ago and as the article below points out
this group is now reaching its prime jewelry buying year.
http://www.professionaljeweler.com/archives/articles/1999/nov99/1199mn3.html

Generation Y (those born in 1978 or over), children of the baby
boomers are reaching the age of 25, and 27 is the current age for
getting married. According to Blue Nile, Generation Y children are
moving into their prime jewelry buying years.
http://www.bizjournals.com/industries/high_tech/e_commerce/2004/03/29/seattle_story7.html?t=printable

According to CEO Magazine, Generation Y are the biggest population
group since the baby boomers. Forrester estimates that this group will
grow to 37 million by 2006, when 90% of this demographic will be
online. The average disposable income of this group will grow to
$2,602 by 2006. The average amount spent for online purchases will
reach $755, 30% of their disposable income.
 http://www.chiefexecutive.net/dotceo-mag/p50.html>

<Hope this helps.>
auminer1-ga rated this answer:5 out of 5 stars
All of my questions were answered in a clear, organized manner with
helpful links to the sources of the information. Exactly what I
expected for the money.

Comments  
Subject: Re: Onlin retail jewelry sales and demographics
From: umiat-ga on 30 Apr 2004 21:40 PDT
 
The type of detail you require is often only available in expensive
market research reports. Perhaps you will find some of the information
you are seeking in the following reports from Unity Marketing:

"JEWELRY REPORT - The Market, The Competitors, The Trends In 2002." 
 http://www.unitymarketingonline.com/reports2/jewelry/toc1.html

"Jewelry Consumer Study 2004."
http://www.unitymarketingonline.com/reports2/jewelry/jewelry1.html

"Future Vision: Jewelry Market."
http://www.unitymarketingonline.com/reports2/jewelry/jewelry_fv.html

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