The jewelry retail industry includes companies that sell rings, necklaces, earrings, watches, and other fashion accessories through electronic home shopping and brick-and-mortar stores. Jewelry retailers also compete with department stores, mass merchants and warehouse clubs, home shopping television channels, and online jewelry sellers. Large chains gain advantage by economies of scale, while small jewelers rely on service and reputation to attract consumers.
Jewelers are a type of retailer that sells jewelry at a discount to the manufacturer’s recommended retail price (MSRP). These discounts may be misleading as some jewelers inflate the MSRP, allowing them to claim huge discounts while still making more money than they would if they sold their merchandise at its true value. As a result, consumers should always shop with a jeweler that is reputable and has a fair price structure.
In addition to traditional jewelry stores, many people today find that they are able to purchase jewelry from online retailers such as Amazon and Blue Nile. These online retailers can offer lower prices because they do not have the overhead associated with maintaining a storefront and paying for employees to sell their goods. However, there are pros and cons to purchasing jewelry from online retailers.
Some people prefer to visit a jewelry store because they like to be able to see the piece of jewelry that they are interested in purchasing. Many times, a jeweler can work with the customer to customize the piece of jewelry or even have it custom made. Other people prefer the convenience and wide selection offered by a big box jewelry store. However, the customer service is often not as great as you will receive from a local jeweler.
A big difference between buying jewelry from a chain or local jeweler is the quality of the piece that is purchased. When purchasing from a local jeweler, you can be sure that the diamond or gemstones in the ring have been inspected by an expert and are of the best quality. Large chains and mall-based jewelers often buy their pieces in bulk, meaning that they have not been inspected before being sold to the customer.
Many independent designers have transitioned from selling wholesale to the jewelry industry to having their jewelry sold in retail settings. Some of these designers are successful in both areas, while others are struggling to make a living. This transition has led to confusion about whether it is more beneficial to sell their jewelry in a retail setting or wholesale.
With the current marriage rate declining, some jewelers are reporting a slower than usual increase in sales for bridal jewelry. Bridal rings and other wedding-related jewelry can account for up to half of a jeweler’s revenue, so the trends in these areas are important to watch.
