U.S. Retail Diamond Jewelry Market Grows 8.2%

U.S. retail sales of diamond jewelry increased by 8.2 percent last year, to $31.5 billion – a rise of $2.4 billion over 2003 sales of $29.1 billion according to the Diamond Information Center (DIC) at ad agency JWT. Transactions last year grew by 4 percent over 2003 and the average ticket price also showed a 4 percent growth.

 

This is the ninth straight year U.S. retail sales have grown, as it continues to be the leading global market with over 50 percent of worldwide sales.

The DIC credits the increase in sales to the availability of diamond jewelry at all price points marketed through synergistic and relevant campaigns.

“2004 truly exemplifies how the diamond jewelry industry has become more strategic, more innovative and more impactful when developing and marketing diamond jewelry,” said Richard Lennox, Director-in-Charge of the Diamond Marketing and Advertising Group at JWT.

“Whether a diamond is $99 or $9,900, the sentiment is the same: I love you. There is a real emotional connection between consumers and diamonds that successful retailers have been able to exploit. Diamonds are perhaps the only purchase that can truly satisfy the need to symbolize an individual’s deepest and most powerful emotion.”

Three-stone diamond jewelry, dubbed the “new classic”, continues to drive sales growth for the diamond jewelry market. In addition, by launching the “I Forever Do” Anniversary campaign, the DTC is expected to continue to grow the three-stone market by re-presenting a fresh occasion, the anniversary, for which three-stone jewelry is an appropriate gift.

The three-stone category, any piece of diamond jewelry that consists of three diamonds, is now valued by the DIC at $3.1 billion. Over the last five years, three-stone diamond jewelry has posted an average annual growth in sales of almost 35 percent.

In 2004, diamond engagement rings reached their highest average price at $2,600, purchased for 82 percent of U.S. brides. The total retail value for the diamond engagement ring category was $4.5 billion, an increase of 5 percent over 2003.

The Diamond Right Hand Ring has also enjoyed handsome growth. In 2004, the Diamond Right Hand Ring drove the $3.8 billion non-bridal fashion diamond ring category from an underperforming section of the market into one that grew by 15 percent. This can be attributed to the success of the marketing campaign “The Left Hand Is For We, The Right Hand Is For Me!”

In addition, research has shown that 39 percent of women are aware of the right hand ring; a 14 percent increase from the previous year. Of those 39 percent, one third of those women want to purchase or receive a right hand ring and another one third is considering a diamond ring of some kind.