Modern Jewelry Trends

How much does the average wedding cost today? Some recent surveys have suggested that it’s about the cost of a car. Three recent highly-publicized surveys placed the average cost between $26,800 and $28,800. Of course, the surveys were conducted by The Knot, Conde Nast Bridal Media, and Wedding Report and the members and customers of these businesses are more interested in an elaborate wedding than the general population. (Those who opt for a civil ceremony or an impromptu elopement would bring down the average but they aren’t surveyed.) The Knot, the online wedding community, has the widest reach of the three: of the 2.2 million weddings last year, almost 40 percent involved members of The Knot. But the percentage responding to the survey is a small fraction of the number of members as a whole. The average cost of the weddings organized by the 2,014 members who responded to the survey was $27,400. But, as a recent article in The Wall Street Journal pointed out, this average is a mean: the costs of all the weddings is added up and divided by the number of respondents. This kind of average is easily skewed by a few super-expensive weddings. (If 54 weddings were under $10,000 and one was $1 million, the mean would be $28,000.) The median cost of the weddings surveyed: the response in the middle, with as many higher as lower, was $15,100. The median for the Conde Nast survey was $14,182 and the Wedding Report Survey was $14,400.

Let your customers know that half of the couples who are involved in planning the perfect wedding spend less than $14,000. Easing the peer pressure to spend the normal amount of $27,000 may free up some of the budget for the most important symbol of that union: the wedding bands. Too often, wedding bands are an afterthought, a last minute choice that the groom, in particular, is willing to economize on. According to the Wedding Report, in 2006 consumers spent only $1,739 on wedding jewelry, which they will wear for the rest of their lives. Compare this to $1,841 on wedding attire, $2,337 on their Wedding Ceremony, $1,104 on favors and gifts, $1,136 on flowers, $922 on music, $2,659 on photography and video, $13,692 on the reception, $809 on stationery, and $563 on transportation. When couples think about how long they will wear their wedding bands and how they symbolize their promises, they may decide to spend more on a symbol that will last long after the cake is eaten and the centerpieces wilt.

What item are consumers most likely to buy online? Computers, of course. In fact, in 2005, 47 percent of all computers were purchased online, according to NPD Group. Etailers like Dell are poster children for how the web will transform all retailing. But a funny thing is happening to computer buyers: they are starting to return to stores. In the first five months of this year, 60 percent of all computers were purchased the old fashioned way: in person.

So why are computer buyers returning to brick and mortar retailers? According to a recent story in The Wall Street Journal, as laptops have become more popular, “people have increasingly sought to touch and test out their computers before buying. Laptop customers, planning to carry their PCs around with them, pay more attention to styling, shape, and weight.” Anyone who has visited an Apple store, one of the nation’s leading experiential retailers understands how the store adds excitement to the computer shopping experience. It’s a fun place to just browse. And that excitement pays off. A successful retail store might reach $600 in sales per square foot annually. (In 2005, the U.S. average sales per square foot for non-anchor tenants was $366.) Tiffany & Co., the most successful large jewelry retailer, has annual sales of $2,666 per square foot. Compare this to Apple’s annual retail sales: they are $4,032 per square foot. The pleasure of shopping at an Apple store may be one reason why Apple is picking up market share and Dell is losing it.

Online retailers are fighting back by trying to improve the shopping experience on their sites. Online video, forums and customer reviews, price comparison features, and streamlined checkout. They are also adding more customer service. But one thing is clear: even in the category that consumers feel most comfortable buying online, there are limits.

Online jewelry sales, now about 6 percent of the market, clearly have a lot of growth ahead. This year, online sales of clothing were higher than computers, suggesting that consumers feel more comfortable buying fashion online. In 2006, online sales of skirts, suits and shoes were $18 billion, compared to PCs, printers, and software, which were $17 billion. That was 8 percent of all clothing sales according to Shop.org. But the transfer of sales from brick and mortar stores to online retailers isn’t unlimited, especially as more consumers consider jewelry as fashion, rather than as a commodity. And if jewelry stores can create a compelling retail experience like Apple has, consumers may even learn to enjoy shopping for jewelry.

s it a sign of a growing trend? The Wall Street Journal’s Cranky Consumer column tried out jewelry rental sites this week. The column gave rave reviews to Adornbrides.com. The WJS rented a pair of single-strand diamond earrings for two days for $90 plus shipping. The bride-oriented site has about 20 pairs of earrings, 14 necklaces, and seven bracelets. Top price is $960 to rent a diamond necklace set with 9.26 cts of diamonds the site values at $26,800. The site doesn’t encourage other renters: it asks you for your wedding date, not when you want to rent and the selection is focused on pretty conservative bride-type items. Other sites mentioned in the story are Bagborroworsteal.com, which we wrote about in Something Borrowed, in May, and two costume jewelry rental sites Borrowedbling.com and Imoveritonline.com. Bagborroworsteal.com is criticized for not including addressed return envelope.

It’s hard to think of a jewelry brand with as impressive a list of famous faces in its advertisements as Damiani. Its last campaign featured Oscar-winning golden girl Gwyneth Paltrow. Past ads have featured Jennifer Aniston, Milla Jovovich, Brad Pitt, and Isabella Rossellini. Last year, Damiani also created a collection with film and style icon Sophia Loren. But for its younger Bliss line, Damiani is taking more of a gamble. It’s not everyday that a jewelry line picks someone who’s been to prison as a spokesmodel. Yes, Damiani’s new three-year Bliss print campaign features none other than Paris Hilton, photographed by Ellen von Unwerth. The Bliss line is more affordable than the namesake Damiani collection. Materials used in the pieces include gold, stainless steel, wood and diamonds and prices will range from $60 to $3,000. Silvia Damiani, the company’s vice president, told E! that Hilton was “an icon.” damiani says: “She’s perfect. It’s our young and our very fashionable line.” Bliss hasn’t been marketed much in the U.S. yet but according to Damiani you can expect to see the Paris Hilton ads here in a year.

As you know, federal law requires jewelry stores to post minimum-wage information in a conspicuous place. Since the minimum wage just changed late last month, you need to update that poster in your backroom. If you haven’t done it yet, the National Retail Federation is offering a new version. You can order it online.