Is Bridal Important to Your Business?
National Jeweler article titled: “20 Percent Spend More Than Planned”
July 13, 2009
Eighty percent of couples are not downsizing their engagement ring as a result of the current economy, according to The Knot 2009 Jewelry Study.
National Jeweler article titled: “Bridal Revisited”
July 27, 2009
All the promotion in the world, however, can’t change the fact that bridal customers aren’t spending as much money as they used to, evident in the diamonds they are choosing as center stones.
Jewelers are convinced that no one will be buying diamonds or fine jewelry other than the one “recession proof” category– bridal. There have been a rash of articles (not just the ones above by any means) addressing this notion of putting all of your marketing eggs in the bridal basket, blah, blah, blah. All of which, lead me to ask this question:
How important is bridal to your business?
Now, before you immediately answer “very important”, or make a serious adjustment in your strategy that may turn out to be an impulsive decision, consider these facts:
The largest growing segment of the diamond industry (according to research conducted this past fall by the DPS) is diamond jewelry – which includes general diamond jewelry and what they call “Beacons” – specific marketing products such as the Three-Stone past, present, future concept, Journey and Right-hand Ring. It is not only larger, it is three times larger. It has also shown far more significant growth compared to other diamond jewelry over the last ten years.
The most important segment of your business (unless you are a true bridal-focused store) are Heavy Owners –core customers who have purchased a minimum of eight pieces; have the shortest purchase cycle; and are very likely to return to your store to purchase again. Yes, even in a recession.
If you look around your existing inventory, what percentage of current merchandise is bridal versus other diamond jewelry? If diamond jewelry is significantly higher, what will happen to this merchandise if your marketing dollars are focused on bridal?
What is your most profitable category? In a time when cash is king, is it smart to invest significant dollars in a category that has not shown the growth and has now become the battlefield for all jewelers in an already competitive landscape? Bridal is approximately 25% of the total fine jewelry market and is certainly less profitable than other categories. Heavier marketing efforts in this area can dilute important messaging needed to engage your core customer.
Before you impose a me-too marketing strategy based on impulse and a frantic need to get it right this holiday season, consider the facts; where your bread is truly buttered and what really makes sense for your business.
Maybe it is bridal. But maybe, just maybe, it isn’t.