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Fruchman Marketing believes jewelry sales this year may be 4%-8% higher than in 2021

24 may 2022
The jewelry marketing experts at US-based Fruchtman Marketing view jewelry sales this year go up by 4%-8% over 2021. In support of this projection the jewelry consultancy says there are important factors at play.
According to the firm, with travel opening up people are expected to spend more of their disposable income on pen-up demand for jewelry, though higher travel costs may impede the shopping spree to some extent. 
“We are likely to see continued sales growth in 2022, but not to the degree it was in 2020 and 2021. And, we believe travel will not have as great an impact on sales. One only has to look at what the cost of a roundtrip fare was pre-pandemic to now,” Fruchman Marketing said in its latest report on the State of Jewelry Retail setting expectations for the second half of 2022.
The firm does not believe this situation may be changed by new variant of COVID, as with vaccinations and medications readily available, consumers are getting back to their normal lives and habits prepandemic.
However, nearly every consumer will be affected by inflation, which is currently 8.5% year-over-year standing at a 40-year high, according to Fruchman Marketing. “If you are a lower to a moderately priced retailer, it will most likely affect you more. If your customer is more “middle class”, they’re getting squeezed the most. If your customer is more affluent, there are different factors that will impact their buying habits and decisions. Most of this will surround how the market is performing and how costs will affect their individual businesses,” the report said.
Still, jewelry retailers are unlikely to see their current or prospective customers giving up commemorating important events, though they might not spend as much.
Noting that the average engagement ring purchaser in the U.S. has crept up to 32, Fruchman Marketing predicts that this age group will be hyper-focused on “value,” so the retailers may see carat size go down or see less importance on quality in cut and color sacrificed to purchasing larger diamonds along with more inquiries about lab-grown diamonds.
“You can’t get away from politics, which have become increasingly polarizing. We see major brands taking a stance (ie. Disney, Nike, etc.) in everything from LGBTQ rights, feminism, racial politics, and immigration. Although statistics and some research on younger generations may dictate taking a stance, for a local business it is our strong opinion to avoid them. Yes, people want to do business with businesses they like, trust, and feel are aligned with their values, but there is also a tremendous risk of alienating a significant percentage of your prospective customers. Keep politics at arm’s length, no matter how strongly you feel about it. You and your employees are the faces of your brand. Have a discussion with all of them about this,” Fruchman Marketing said in conclusion.