Know It All: May 2012

BY THE INSTORE TEAM

Published in the May2012 issue

Specialty Jewelers’ Market Share Shrinks again
Average Engagement Ring Price Falls to $5,130
Gemesis Starts Marketing Colorless Diamonds
Belgian lab Dismiss es 4 Diamond Graders
From Blood Diamonds to Possible IPO
Study: Deep Discounts Often Antagonize clients
Hardcore Jewelry Shoppers Maintain Visits
Silver’s sales contribution rises to 27%
Bergman Becomes JBT’s First Female Board Chair
Alleged Thief Arrested After Filling out Card

01 Jewelers continued to lose market share in 2011 to other merchants — mostly mass retailers and online channels — that sell baubles. In the first eight months of 2011, specialty jewelers’ market share slipped to about 41 percent, down from 43 percent in 2010. Source: IDEX Online, 4/2/12

02 The average amount paid for an engagement ring declined 5 percent in 2011 to $5,130, even as spending on weddings increased, according to a survey by TheKnot.com and WeddingChannel. com. Source: INSTORE, 3/30/12

03 After years of manufacturing fancy yellow color diamonds in a lab, Gemesis is offering colorless diamonds. Source: IDEX Online News, 3/14/12

04 HRD Antwerp has fired four diamond graders for “unprofessional actions” and is conducting an internal probe to see if there was “possible inappropriate conduct,” according to a statement from the lab. Source: INSTORE , 3/22/12

05 Sierra Leone’s only pit diamond mine has come far from its origins as wartime booty. Ten years after the end of the country’s brutal civil war, the Koidu concession is selling gems in outlets such as Tiffany & Co. and is considering a possible public listing, which could raise hundreds of millions of dollars to fund an expansion. Source: Reuters, 4/4/12

06 Offering steep discounts can sometimes antagonize your most loyal customers, particularly if they already paid full price, according to a study carried out by Northwestern’s Kellogg School of Management. The researchers suggested retailers should keep such discount offers “private” via e-mail. Source: Time, 3/12/12

07 Hardcore jewelry shoppers kept up their visits to their favorite jewelry stores during the recession — they just spent less. Regulars at guild stores continued to visit between two and three times annually, while higher-income consumers made about five trips, and lower-end jewelry buyers made about eight visits a year to mass market stores. Bottom line: You don’t get many chances, so do it right. Source: IDEX Online, 3/15/12

08 Silver items now account for 27 percent of jewelry retailers’ sales by value, according to the Silver Promotion Service’s latest annual survey. Source: INSTORE , 3/10/12

09 The Jewelers Board of Trade has elected Phyllis Bergman, CEO of Mercury Ring, as its new chairwoman. Bergman is the first woman to lead the JBT’s board in its 128-year history. Source: Rapaport Tradewire, 4/3/12

10 A 19-year-old man was arrested for allegedly stealing a $700 diamond earring from J. Robinson Jewelers in Lincolnwood, IL, after providing his real name and address on an in-store credit card application only moments before the crime occurred. Source: JCK, 3/9/12