RAPAPORT... One only needs to turn on the television or pick up a magazine or newspaper to be bombarded by a barrage of economic forecasts of doom and gloom. All of this bad news has consumers worried, scared, paralyzed. People are terrified of spending money. The media is playing into that fear on a daily basis by reporting stories on how to best save, or not spend, money. It certainly does not make for an environment conducive to shopping. Even those who have money don’t want to spend it. There is a whole psychological effect that is taking place. People with money don’t want to appear insensitive to a neighbor or friend who may be unemployed, have taken a pay cut or lost major money in the stock market. Spending money seems wrong in this economic environment.
Although consumers have lost their confidence, there is hope. Economists polled for a Wall Street Journal forecasting survey in March indicated that there will be a turnaround in the economy in October. Maybe then, just in time for the holiday season, consumers will start to cautiously spend money again. In the meantime, diamonds are better off than many other products. The core of the jewelry business has always been bridal and people continue to get married and buy diamond engagement rings. According to theweddingreport.com, the value of the bridal jewelry market is estimated at $8.1 billion for 2008 and is expected to rise to $9.2 billion by 2013.Bridal is an area that may help to carry the industry through the next few months and beyond.
Article from the Rapaport Magazine - April 2009. To subscribe click here.