Bridal Trends
June 21, 11
When it comes to weddings these days, it’s definitely a case of more is more. Brides and grooms are going all out for their big day, which is good news for jewelers. We take a look at the results of the recently released 2010 Real Weddings Survey, which was conducted by The Knot Inc. in conjunction with WeddingChannel.com as well as research from IDEX Online Research to see the current trends in the bridal market.
The Knot Inc. surveyed almost 19,000 U.S. couples who tied the knot in 2010 and discovered that a weak economy was not enough to put a damper on that most special of days. “Brides remain committed to planning a luxorious, memorable event and are willing to spend despite the state of the economy,” said Carley Roney, editor in chief of The Knot Inc. “In fact, approximately one in five brides are spending more than $30,000 on their wedding, and 12 percent of brides are spending more than $40,000.” That’s a lot of money; fortunately, there is massive potential for jewelers to get their share of the bridal pie.
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While the economy has been gloomy for a while now, less than a third (31 percent) of brides said the financial situation affected their event. This was slightly down compared to 2009 when 34 percent of brides were concerned about the economy, and 2011’s figures should be even better.
So while they might not admit to actually cost cutting (so terribly déclassé), it is telling that the average size of weddings actually decreased in 2010 compared to those held in 2009: 141 guests in 2010 versus 149 in 2009. Although this might seem like a tiny sacrifice, even a decrease of just eight guests – at an average of $194 per guest – can have a marked affect on a couple’s budget, leaving them with more money to spend on other things.
According to the survey, the average engagement ring price was $5,392. IDEX Online Research analyst Ken Gassman has a different figure and says that among bricks-and-mortar stores in the U.S. market, the average ticket for a diamond engagement ring is about $3,200. For specialty jewelers, the average diamond engagement ring ticket is just over $4,500, while Blue Nile’s average ticket for a diamond engagement ring is about $6,100. Although the figures released by The Knot may not be completely representative, (Ken Gassman urges caution when using figures because the company only collects data from the major metro areas) there seem to be people spending big money on their engagement rings and jewelers need to work out how to attract them into their stores.
When it comes to the amount couples spend on their weddings, it really is all a matter of location, location, location. There are no surprises in the revelation that Manhattan is the most expensive wedding area, with an average, eye-watering outlay of $70,730 – and that doesn’t even include the honeymoon.
The folks of Utah are a little more moderate when it comes to paying for their weddings. The cost of getting hitched there is the lowest in the country at $13,214. Again, that excludes the cost of the honeymoon.
One potentially negative revelation for jewelers is the news that more couples are cohabiting. Seventy-four percent in 2010 versus 70 percent in 2008 and 2009. We wonder how many couples are forgoing the nuptials altogether.
For the media shy jewelers among you, know this: online wedding planning and execution continues to increase. Since 2008, there has been a 78 percent increase in the use of social media tools to communicate wedding details, while there has been a 23 percent increase since 2008 in the number of couples setting up personal wedding websites. We’ve said it many times in the past, and we’ll continue to say it: if you are not online, you are missing out – big time.
Not Just The Bride
While the wedding day is all about the bride, don’t forget that there are huge selling opportunities within the bridal party itself. These days, the average wedding party consists of four bridesmaids and four groomsmen. Just think how much revenue there is to be earned if you can furnish the happy couple with an engagement ring, wedding ring and attendants’ gifts.
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The engagement ring market alone is worth in the region of $7.7 billion, which is 13 percent of all jewelry sales. Wedding bands, at $3.3 billion, make up 6 percent of all jewelry sales. Furthermore, wedding day jewelry sales total $1.4 billion, or 2 percent of all jewelry sales.
Just over three quarters – 76 percent – of all brides receive a diamond engagement ring. Ken Gassman estimates that in 2010, there was somewhere in the region of 2.2 million marriages taking place in the U.S., which boils down to the purchase of around 1.7 million diamond engagement rings.
Looking ahead, he estimates that the number of marriages will rise to around 2.6 million in 2016 (based on birth rate data), which will lead to the sale of a whopping 2 million diamond engagement rings.
While everyone hopes that their marriage will be forever, cynically, jewelers should be holding their collective breaths for more divorces. Why? Because the average outlay on rings for second and subsequent marriages is higher than the average amount spent on first rings. Most first time brides and grooms don’t have that much disposable income, but by the time marriage number two (or three or four) comes around, they have a lot more cash to hand.
When it comes to wedding bands, both the number of rings bought, and the amount spent on them, drop substantially compared to wedding rings. However, they still provide serious business for jewelers who get engaged couples coming in the door.
Regarding the price of wedding bands, the average ring for a female – which is more decorative and likely to be diamond-studded – is $1,500, while the simpler bands for men cost in the region of $600.
Men’s Own
Men though, are not just sticking to wedding bands these days. Eighteen percent are opting for cufflinks to add some sparkle to their morning suits. Ten percent have their eye on the time with a watch. Two percent sport necklaces. Two percent wear bracelets and one percent clearly have their eyes on the bills and carry a money clip. Another 2 percent wear “other” jewelry. All in all, one third of grooms either purchase or receive jewelry for their wedding day, with a value of nearly $600. Savvy jewelers should work on trying to sell these items in addition to the wedding bands.
While diamonds are a girl’s best friend, 10 percent of grooms consider their groomsmen, often their best friend, worthy of receiving a gift of jewelry. In 2009, the average cost of this thoughtful gift was a respectable $135. Don’t forget, however, that the average number of groomsmen per wedding has reached four, making that total more than $500, if all of the attendants are treated equally.
On their wedding day brides like to be suitably sparkly, which is why 61 percent of them wear earrings, 44 percent add a necklace or pendant, 30 percent sport hair jewelry, 24 embellish with bracelets, 2 percent add a brooch and 3 percent wear “other” jewelry. All told, some 76 percent of brides purchase or receive jewelry for their wedding day with a value of more than $750.
While 59 percent of brides favour their bridesmaids with a gift of jewelry, they are a little less generous than the guys in their gifting. Bridesmaid’s jewelry gifts carry an average ticket of more than $100.
Even so, bridesmaids are a perfect jewelry opportunity. Seventy-two percent of them wear necklaces, 65 percent accessorize with earrings. Some 26 percent add a bracelet while 4 percent wear “other” types of jewelry. No matter how they sparkle, you can bet the bride has made sure they don’t glow as brightly as she does!
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One of the mistakes that jewelers make when it comes to bridal/wedding jewelry is not maintaining contact with couples who come in to buy their engagement ring reports Gassman. Surely this is a perfect opportunity for selling the wedding rings, bridesmaids gifts or groomsmen’s presents. Unfortunately, not every jewelry is capitalizing on the potential.
According to The Knot, 40 percent surveyed said their engagement ring supplier had not stayed in touch with them. In addition, only about half of those surveyed reported that the jeweler had asked them for their wedding date, birthdays or other special occasions. What other opportunities are being missed by jewelers? Engagement rings are just the beginning. Following the usual path, engagement means wedding, means anniversary, means babies, means push presents, means christening gifts, means graduation gifts and so on.
Says Ken Gassman, in order to sell as many diamond engagement rings as possible, jewelers need to be the “bridal headquarters” in your market. Today’s ring buyers are fussy customers. They spend three months on selection and purchase, visit an average of five retailers, look at an average of 28 rings. If that wasn’t enough, somewhere in the region of 36 percent will purchase their ring’s center stone separately.
The bridal market is steady, it is growing and there is so much potential for jewelers who know how to grasp the opportunities it presents.