RAPAPORT... The 4Cs are not the only things that make a piece of diamond jewelry a sales winner. In an ongoing series, RDR explores the “3Ws” — what’s selling, what’s not and why — by going straight to the people who really know — jewelry retailers. Each month, we ask a sampling of retailers to comment on the important issues that are facing the industry today. Here is what they had to say when asked: How is bridal business doing? What size diamonds, styles are people asking for?
Bill Collins, President Collins Family Jewelers - San Diego, California“I’m not really seeing an increase in bridal. My business overall is down a bit but bridal has remained our strong area; we’re doing less in color and less in watches. People are still interested in micropavé-type settings but a lot less so in the invisible-type settings. It seems like more classic looks — where we have bead setting and millegrain trimming — is really popular right now.
We’re seeing a little bit of a comeback in yellow gold as opposed to just the white metals. The past few years, we have seen mostly platinum or white gold but yellow gold is definitely starting to make a comeback.
“The most popular size for centers is 1 carat to 1.50 carats. People are still very quality conscious, so if their budget doesn’t allow for a certain grade, they’re willing to go down in size rather than down in quality. Buyers are really savvy. They know not to just look at clarity and color; they’re asking about what the cut grade is and polish symmetry and things like that. It seems as if they’re more educated than they ever have been in the past.
“We’re still seeing some of the alternative metals for some of the guys — tungsten carbide or titanium. From 2005 through 2007, we saw a lot of guys going with diamonds in their wedding bands and we’re seeing a little bit less of that now. Whether it’s because of style changes or maybe they just want to put all the money toward her ring, it could be one or the other.”
Jason Druxman, General manager/vice president Avenue Jewelers -
Appleton, Wisconsin“We’ve seen a definite increase in bridal sales in all sizes of stone. I’d say 0.50 carat to 2 carats for us is where we’re going to sell a lot. The small micropavé, white gold look has been very popular.
“In terms of whether customers are choosing size over quality or vice versa, it’s been a little bit of both. Recently, a lot of people haven’t minded the warmer tones, the little bit of yellow of the diamond, as long as it was cut well. In the past, it definitely had been that we were selling better-quality goods over J, K color.”
Danny Overbey, Chief Executive Officer (CEO) Kimball’s Jewelers -
Knoxville, Tennessee“Obviously, bridal is recession proof. I’ve worked people in all price ranges. We have kids who are getting married and are very, very budget-conscious and I’ve had some anniversaries where people have wanted to do some neat things, where they’re going to spend $20,000 or $30,000 on a step-up position with their stones. And I’ve even got one guy who’s looking at a 2- or 3-carat diamond. I have people all over the spectrum, which is nice.
“It’s very interesting. People come in here looking for a specific look or they’re looking for a specific price and are willing to look at anything in that range.”
Michael Finn, Manager E.B. Horn Company - Boston, Massachusetts“Bridal is the one area where there is some activity. I have seen an increase in popularity of rounds over princess; rounds are getting a little stronger. Settings are white metal — it’s very rare to do anything in yellow — with a carat, carat and a half, carat and three quarters and occasional 2-carat stones.
“People are definitely compromising, choosing a slight increase of size over quality versus quality over size. Vintage-style settings are still popular, but maybe there is a slight decrease. Micropavé is still popular but also maybe a little less so.”
Todd Condon, Owner Condon’s Jewelers - Stuart, Florida
“Thank goodness for bridal. The rest of the business has really been lackluster. I think it’s obviously due to the economy. I carry some high-end brands. I carry Tacori, Verragio, I have some product from Simon G. and carved wedding bands from Diana. I’ve seen that some of the branded engagement rings are strong still. I think it’s enlightening to see that those companies that went out and did the advertising and set some standards have really pulled through and done what they wanted to do, positioning themselves in the market as very desirable. And, believe it or not, the price-point product that we carry has been very slow. I think it’s simply because customers who are not in as affluent a position can not afford even the price-point options.”
Harton Wolf, Director of Operations Henne Jewelers - Pittsburgh, Pennsylvania
“The real quick answer is we are still doing bridal business and customers are still getting engaged. We are still trying to make this a pleasurable event for them and working with them to make sure they get the best value possible.
“I think, from what we’re seeing, customers seem to be looking for better-quality diamonds within a budget, which in their mind at least, is predetermined. In the past, they would come in and it was like buying a TV — when they saw all the bells and whistles that they could get for more money, they would spend more. Today, they’re coming in with a preset amount and they are looking to buy the best quality within whatever their parameters are that fit within their budget. So, yes, they’re making small sacrifices in terms of size and we continue to do business.
“In our store, the average size is certainly a carat or larger. We are selling carat, carat and a half, twos and threes. The larger the stone is, though, the more willingness there is for the customer to sacrifice quality to get the size and keep within their budget. I don’t think there’s much of a change in settings; it’s still white metals, micropavé is still popular. We do a lot in classic styling — that’s what we do — so we really haven’t seen a change in what they’re looking for.”
Article from the Rapaport Magazine - April 2009. To subscribe click here.