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Retail Scope
 Affluents Plan to Spend Less on Luxury “What goes up, must come down” sums up the results of Unity Marketing’s latest Luxury Consumption Index (LCI). The LCI lost 19.4 points in January, the second-largest loss since the Great Recession in 2008, reversing
the 24.3 point jump in October 2012. Unity Marketing determined that 28 percent of affluents will reduce spending on luxury products in 2013 and 22 percent predict that they will be worse off in the next 12 months as compared to today. “It is another signal for restrained affluent consumer spending for 2013,” said Pam Danziger, the president of Unity Marketing. The affluent consumer segment represents the top 20 percent of U.S. households, based upon income beginning at $100,000 and accounts for more than 40 percent of all consumer spending in the U.S. Danziger sees opportunities for luxury brands in areas where affluents are buying, such as art, antiques and home furnishings. Spending dropped for fashion and fashion accessories, but luxury consumers spent more on spa and salon beauty services, showing they are still willing to invest in things that keep up appearances, according to Danziger. Tom Bodenberg, Unity Marketing’s chief consumer economist, advised, “Marketers need to reposition luxury goods as a value proposition. That means to keep the luxury image and connotations — advertising, creative, packaging, media and service — but communicate in a very implied, almost one-to-one way, affordable pricing. The key is an almost subliminal positioning of value. People with means want to make smart buying decisions and playing up the quality and value of a brand, while downplaying the pure ‘luxury’ of it is key for today.”
A recently released Pew Research Centers Internet & American Life Project reported that 67 percent of online American adults are Facebook users. However, the survey also revealed that 61 percent of current Facebook users say that they have voluntarily taken a break from Facebook for several weeks or more, with 21 percent citing time constraints. Lack of interest in the site was mentioned by 10 percent of respondents. More than half the entire adult population in the U.S. — 69 percent — uses an online social network. On a typical day, Pew noted that nearly half of all internet users access a social networking site.
Rio Tinto Diamonds plans to actively support its network of select diamantaires with a variety of consumer-targeted initiatives throughout the year. These initiatives will promote fashion diamond jewelry and build brand awareness about the versatility and affordability of the Argyle Diamond Jewelry Collection. The first initiative showcased the collection to celebrities, nominees and presenters prior to the Academy Awards. The company will reveal other initiatives at JCK in June.
Helzberg Diamonds launched an advertising partnership with SetforMarriange.com, an online dating website. According to the companies, the deal marks the first time an online dating site has partnered with a traditional brick-and-mortar jewelry retailer. The companies noted that they seek to take advantage of the fact that one in every four marriages results from an initial meeting online.
The Steve Elliott Marketing Research agency found that 80 percent of respondents believed that “the ring” sealed the deal, based on the results of a survey it conducted on marriage proposals for jewelry retailer Robbins Brothers. Other findings revealed that two-thirds of the male respondents were open to wearing an engagement ring made for men. Two out of three respondents surveyed would allow their proposal to be recorded and posted on YouTube and one out of ten said they would propose using the social video website. Thirty percent of the women and more than 40 percent of men believed that it was fine for the woman to be the one to ask the man to marry.
Forevermark plans to expand its reach to 130 stores in India by the end of this year, Sachin Jain, the managing director of Forevermark India, told Rapaport News. The brand was first launched in India in the southern city of Bengaluru in January 2011 and is presently in about 85 doors across the country. Forevermark recently announced its partnership with Mumbai-based Kundan Jewellers.
The Hearts On Fire diamond brand named Smales Jewellers in Western Australia as its Retailer of the Year for 2012 and selected four other jewelers for regional honors. The company noted these retailers have “gone above and beyond in their support for the brand.” Regional winners included Greenberg’s Jewelers for the midwest with locations in Iowa, Nebraska and South Dakota; Adler’s Jewelers in Westfield, New Jersey for the northeast; Thomas Markle Jewelers in Houston, Texas for the southern region and the Wedding Ring Shop in Honolulu, Hawaii for the west.
Ben Bridge Jeweler kicked off a $100,000, “Wedding of the Century” contest cosponsored by Tag Heuer, Ikuma Diamonds and Hawaiian Airlines. The contest’s prize package includes $30,000 in jewelry, cash for a “dream wedding,” a honeymoon in Hawaii, a men’s wedding band by Art Carved, earring studs by Mikimoto and his and her watches by Tag Heuer. In addition, the contest will award 100 finalists with fine jewelry, while 2,500 weekly winners will receive a $25 Ben Bridge gift card. This contest helps celebrate thousands of love stories. Couples may enter the sweepstakes before April 15 on Ben Bridge’s Facebook page. No purchase is necessary to enter.
WR Cobb Online has partnered with David’s Bridal as the exclusive platform provider of “Design Your Own Bridal and Fine Jewelry.” Through this partnership, visitors to DavidsBridal.com can design their own engagement ring and other bridal jewelry. According to comScore, an internet research firm, 41 percent of brides visiting the site have not yet received a ring and 25 percent select their own ring. When users enter their zip code, they are guided to a local jeweler to receive their custom-designed ring.Article from the Rapaport Magazine - March 2013. To subscribe click here.
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