RAPAPORT...
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Sylvie Collection
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Conservative is a word we’re hearing a lot about these days
and while politicians duke it out over who is the most conservative, one thing
is for sure…consumers are conservative in their spending. They have come out
from behind their shields of cautious spending where they only bought the
necessities and are now spending conservatively on little luxuries and desires.
People have gotten used to the instability of the economy and they are
adjusting their mind-set to the new economic reality. And there have been some
upticks in the economic outlook — unemployment is slowly getting lower, the
stock market, while it is still gyrating, has seen some nice ups and less
severe downs and the payroll tax cut has put money in people’s pockets. As a
shopping culture, that means that consumers are back out
spending…conservatively. Gone are the days of trading up. Now, people are
trading down. After all, it is better to have something than nothing. When it
comes to diamonds, that means that the average consumer is making compromises
that would not have been made in previous years. In engagement rings, that
means a smaller center stone. Consumers are spending less by buying
lower-color, lower-clarity diamonds. Designers are rising to the occasion by
creating fashion pieces that use small diamonds and creative designs to
fabricate jewelry that has a lesser total carat weight, but a big look, all the
while keeping prices wallet-friendly. Consumers are also buying smaller pieces
and adding on as the budget allows. For retailers, according to recent reports,
the trend has translated into more sales of smaller items that add up to a
satisfying profit. Rapidly rising gas prices could put a damper on this
re-emergence of consumer spending, but then again, maybe not. After all,
conservative spending means planning for a purchase and there will always be
weddings, anniversaries, babies being born and other special occasions that
will be commemorated with diamond jewelry.
Article from the Rapaport Magazine - April 2012. To subscribe click here.