Monday, April 30, 2012

Jewelry sales continue to grow in the United States and China in 2012

Recent studies seem to show that jewelry sales continue to grow in the United States and China.  In fact, famous international jeweler, Harry Winston Diamond Corp.  reported a 19 percent overall increase in sales last Wednesday during the first week in April.
The company’s sales reached $411.9 million during the last fiscal year and operating profit increased 30 percent from $14.9 million to $19.4 million.  These sales numbers account for both watch and jewelry sales during the year ended January 31st. Harry Winston even has plans open a new flagship store in Shanghai, China during the upcoming year.
According to Harry Winston Chairman Robert Gannicott, jewelry sales continue to show strong growth in the bridal and collection jewelry segments that the company has targeted as a keystone of expansion plans for new markets.
Although jewelry sales were high, the company sold fewer carats of diamonds than usual with a drop from 2.6 million in 2010 to 2.1 million in the 2012 fiscal year.  Industry experts blame the drop in the company’s mining segment on increases in the rough prices of diamonds.  The average price per carat shot up from $106 to $137 during 2012 squeezing margins for retail and wholesale jewelers and making some diamond jewelry less affordable for consumers.
With jewelry demand remaining increasingly high while diamond prices continue to rise, jewelry companies may want to consider designing and marketing jewelry using diamond substitutes like cubic zirconia.  Using both colored wholesale CZ gemstones and clear wholesale CZ gemstones in their designs can help jewelry companies to offer affordable pieces to their customer while gaining market share.

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