IDEX Online Research: U.S. Household Jewelry Spending Hit Record Levels in 2013

Jewelry Share of Wallets Up Solidly in 2013

Jewelry’s share of consumer spending was almost 1 percent of total consumer expenditures in 2013, nearing levels last seen in 1999 and 2000 when jewelry sales were booming and shopper demand for fine jewelry and fine watches was exceptionally strong.

Factors Driving Jewelry Demand in 2013

Several factors drove shoppers to retail merchants to buy jewelry in 2013, including the following:

·         Pent-up demand from the recent recession

·         Declining precious metals prices which made jewelry more affordable

·         New fashion jewelry designs which are appealing to young Millennial shoppers, a group which spends more on jewelry than any other age group of Americans.

Further, fundamental factors in the consumer market also helped boost retail spending on categories such as jewelry. Those factors include the following:

·         Growth in the number of consumer households

·         Increased per-household consumer spending

·         Increased spending on online jewelry

·         More trips by shoppers to retailers who sell jewelry

In addition, macro economic factors helped drive household spending on jewelry, such as:

·         Rising incomes among consumers

·         An improving employment market

·         Higher consumer wealth levels from a strengthening housing market and a strong stock market

2013 Consumer Expenditures Reach Record $76.9 Billion

Overall, fine jewelry and fine watch sales increased to $76.9 billion in 2013, based on final numbers from the government, a solid 6.3 percent increase over 2012 sales. After three weak years – 2008-2010 – jewelry sales showed a recovery in 2011 and have been at record levels each year since then.

Household Growth Accelerated in 2013

The number of U.S. households grew by just over 1 percent in 2013, a rate which has usually occurred only during periods of solid economic growth. In the past, household growth slows during a recession – in 2009, for example, there was virtually no growth in households – and then household growth recovers when consumer factors stabilize and the economy rebounds.

Long Term Outlook for Jewelry Demand: Two More Good Years

Since the end of World War II (1945), economic cycles in the U.S. have lasted about five years. Today, many economists think that the cycle has extended, and boom-to-bust periods are on 7-8 year cycles. If so, then it could be 2016-2017 when the current bull economy finally succumbs to the bear, and begins to slow.