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By Avi Krawitz
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Posted: 02/04/10 15:22
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RAPAPORT... To be honest, and at the risk of baring my soul, Valentine’s Day makes me nervous. As a self-proclaimed buck-toothed, red-headed, teenage nerd, I remember plucking up the courage to use the day to finally make my move: “Roses are red and diamonds they shine; if I had one to give, I’d make you mine," signed "Anonymous" – and with obvious good reason (wimp!).
While I may be a little older, and I like to think my writing skills have improved, some things haven’t changed. For one, some would argue that I’m still a bit of a nerd, albeit with less red and less hair. Secondly, I still feel that opportunity beckons for the single guy come February 14.
It appears I’m not alone. Fresh off the Christmas shopping season, U.S. consumers are expected to spend $17.9 billion this year for Valentine’s Day, according to the research firm IBISWorld, whose research shows a 3.3 percent rise in total spending compared with last year.
However, here’s the scoop from IBISWorld for me and my peers in “singledoom.” Spending on jewelry, candy and flowers is down this year; we’re off the hook on that awkward, cheesy gift-giving moment, the group has inadvertently advised! Spending gains are expected for clothing, greeting cards (HELP: roses are red…), a romantic getaway and dining out. In short, the shift is from retail to restaurants.
The catch, however, is that it’s difficult to read into a sustainable trend from the findings, as the calendar has much to do with the change.
“Men typically buy candies, flowers and jewelry during the work week, but since the holiday falls on a Sunday [this year], they will not feel as much pressure to purchase by Valentine’s Day,” IBISWorld explained. “As a result, they are not as likely to take the time on the weekend to shop, opting instead for a romantic dinner out.”
Privately, I’ll take the excuse and hope that she finds fast food romantic. Publicly, I’d say something seems amiss from a retail point of view, especially for the heavy-hitting items, like diamonds; there seems to have been a notable decline in advertising to capture the Valentine’s Day market. In fact, generally speaking, it appears that retailers believe that, in a way, the day speaks for itself.
In today’s economy, retailers may be picking and choosing where and when to focus their marketing dollars. At the same time, however, as IBISWorld showed, they should not take things for granted. They may be missing the boat. For the diamond industry, which so heavily relies on love – with the engagement market accounting for an estimated 40 percent of total sales – Valentine’s Day provides the perfect opportunity to market its product.
As an unofficial spokesperson for retailers’ target market, I can say that I’d much rather kill two gift-giving birds with one stone (pun intended) and make the day that much more meaningful. And while all this may explain why I will likely spend this Valentine’s Day much the way I did last, and on the same sad budget, take it from me, Valentine’s Day could well be about retail again.
Author’s disclaimer: This article is intended to reflect an aspect of the diamond industry, not the author’s social skills.
Note:This article is an excerpt from a market report that is sent to RapNet members on a weekly basis. To subscribe, go to www.rapnet.com or contact your local Rapaport office.
Disclaimer
©Copyright 2009 by Martin Rapaport. All rights reserved. Rapaport USA Inc., Suite 100 133 E. Warm Springs Rd., Las Vegas, Nevada, USA. +1.702.893.9400. This Rapaport Market Report is provided solely for your personal reading pleasure. Nothing published by The Rapaport Group of Companies and contained in this report should be deemed to be considered personalized industry or market advice. Any investment or purchase decisions should only be made after obtaining expert advice. All opinions and estimates contained in this report constitute Rapaport`s considered judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Thank you for respecting our intellectual property rights.
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