Wal-Mart Has Risen to Number One in Jewelry Retailing, yet the Prime Target Market for Jewelry...

STEVENS, Pa. -- Today's Jewelry Market Is Getting More Complex as the Market Fragments

In 2003 half of American consumers bought jewelry and/or watches and spent $53.6 billion. Jewelry sales rose 5.1 percent over previous year, corresponding with renewed strength in the luxury market.

"Today there isn't just one jewelry market. Rather when we talk about jewelry consumers, we need to look at discreet segments characterized by entirely different patterns of buying behavior. There are men buyers vs. women buyers; fine jewelry vs. costume jewelry buyers; gift purchasers vs. self purchasers. These segments overlap and intersect, requiring marketers and retailers to shift and turn in response to which type of customer is in view. Whereas the jewelry business used to be simple, today it is much more complex due to increasing market fragmentation," explains Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need.

Among the key findings revealed in Unity Marketing's Jewelry Report 2004: The Who, What, Where, How Much and Why of Jewelry Shopping, based upon qualitative focus groups and a survey of nearly 600 recent jewelry buyers:

Mass trumps 'class': Wal-Mart is the nation's top retailer of jewelry, the most luxurious of luxury goods

For the last several years Wal-Mart has been the nation's #1 retailer of jewelry, a finding confirmed in Unity's survey. Wal-Mart has risen to leadership in the jewelry market despite the fact that the prime target market for jewelry -- high-income women from 25 to 54 years -- almost never shops for jewelry in discount channels.

That means lower-income consumers who spend under $100 on a piece of jewelry have propelled Wal-Mart to their dominant position.

Internet and other non-store channels are reaching critical mass in the jewelry market

About 20 percent of jewelry shoppers used non-store channels, either internet, mail order or television shopping, to buy jewelry in the past year. Jewelry shoppers are increasingly comfortable buying jewelry through direct channels, with EBay being the leading brand for non-store shoppers.

For the most recent jewelry item bought, non-store channels rank among the top three shopping sources for buyers of jewelry priced under $500. And for those spending more than $500, non-store is the second most popular source.

Department stores are shoppers' overall favorite for jewelry

For most jewelry shoppers except the highest-spending buyers, department stores are the favored channel, with JC Penney's and Sears being the top store brands. When selecting a store for jewelry shopping, shoppers first look for good prices and second the quality of merchandise. But good prices don't necessarily mean 'cheap prices.' What jewelry shoppers value most of all is getting a good value for a reasonable price.

For more information about the study, use this link http://www.unitymarketingonline.com/reports2/jewelry/jewelry2.html

About Unity Marketing

Founded in 1992, Unity Marketing (www.unitymarketingonline.com) is a marketing consulting firm specializing in consumer insights. Pam Danziger is the company's founder and author of Why People Buy Things They Don't Need (Chicago: Dearborn Trade Publishing, 2004) which uncovers the motivations, desires and emotional needs that drive consumers to buy. Unity also publishes market research studies on the luxury market, jewelry, garden, pet accessories, home furnishings, gifts and collectibles, greeting card and stationery, tabletop, art and wall decor markets, as well as the Luxury Business newsletter. Pam has just completed her second book, Let Them Eat Cake: Marketing Luxury to the Masses -- as well as the Classes, to be in the bookstores in January 2005.

For media, Unity Marketing can make tables, charts and graphs available about consumer holiday decorating and spending upon request.