US jewelry sales rose 3% in November, below the double-digit increases of the last two months and the year-to-date average. According to Tenoris, US jewelry consumers keep spending on pricier jewelry, with prices up 14.5% year over year.
This is a long-term trend, lasting more than a year so far. On the downside, unit sales fell 10% during the month.
It Was All About Finished Jewelry and Pricier Jewelry
Demand for finished jewelry dictated the month’s results, with revenue rising nearly 5% and unit sales falling more than 10%. Consumers taste for pricier jewelry played out here as well, spending 17% more than a year ago.
The rising price of gold had a hand in that, but consumers were also willing to pay more. In fact, the share of demand for gold, silver, and platinum was unchanged in the past year, indicating that consumers were not looking for gold alternatives.
Finished Diamond Jewelry Sales Dip
Finished diamond jewelry sales softened 0.7%, despite a preference for pricier jewelry, hurt by a drop in the number of units sold. Consumers’ average spending on finished diamond jewelry leaped 13%.
The drop in revenue is surprising, considering the constant rise in demand over the past few months.
Finished Lab Diamond Captures Lower Price
Lab-grown diamond jewelry is becoming much more popular in jewelry priced below $500, expanding the overall diamond category into new areas.
After years of declining average prices, recently prices of LGD-set jewelry are starting to inch up. Here too, the rising cost of gold is playing a part.
Not a Diamond Holiday?
Loose diamonds did not do as well as in October, dashing retailers’ hopes for a diamond-studded holiday season.
Natural Diamonds Decline
Demand for natural diamonds declined in November, falling 10%. And yet, consumer willingness to invest in pricier jewelry led to a 12% rise in average spending on diamonds.
This is another example of diamond consumers’ shift towards pricier jewelry, especially those set with natural diamonds. These items are usually set in either engagement rings or custom jewelry.
The issue the diamond industry is facing is that the declines are almost across the board. Diamonds selling below $2,500 declined sharply in November, which explains why diamond polishers and Sightholders prefer buying larger rough diamonds from diamond miners.
Lab Diamond Sales Hurting
Lab diamonds are where consumers go when they are not seeking pricier jewelry. In November, revenue declined to a mid-single digit as consumers spent less per item. This is an ongoing trend lasting more than three years.
Among the drivers of declining prices are stiff retailer competition on the lower end market, consumer expectations, and constant decreases in jewelers’ lab diamond costs.
Unit sales, which until recently enjoyed double-digit growth, increased by a low single digit in November. This too is an extended trend.
Tenoris US Jewelry Sales Data
The US jewelry market is an unusually fragmented one, posing challenges to identifying changes in consumer demand, retailer inventory, and pricing trends.
Tenoris is a trend analytics company that specializes in the US jewelry retail market. Tracking more than $20 billion in jewelry sales, we are the sole data source for US jewelry sales data. If you want to get the insights that will help you improve your competitiveness, contact us to request a demo today.
We will help you identify when consumers prefer pricier jewelry and get a heads-up as a new trend arises.
