Jewelry Stores Industry Profile

Companies in this industry sell jewelry, silverware, watches, and clocks through electronic home shopping and physical retail stores. Major US companies include Kay Jewelers, Tiffany and Co, and Zales Jewelers; other industry leaders include the retail operations of Chow Tai Fook Jewellery Group (Hong Kong) and Richemont and Swatch (both based in Switzerland).

The global jewelry market is expected to grow at a compound annual growth rate (CAGR) of about 5%, amounting to about $480 billion by 2030, according to Grand View Research. Asia Pacific has the largest jewelry market, with major nations such as Thailand, China, and India, according to Spherical Insights.

The US jewelry retail industry includes about 21,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion.

COMPETITIVE LANDSCAPE

Demand is driven largely by consumers' disposable income. Profitability depends on merchandising and marketing. Large companies enjoy economies of scale in purchasing. Small jewelers can compete with large chains by establishing favorable reputations. The US industry is fragmented: the 50 largest companies generate about 45% of revenue.

Jewelry stores face competition from department stores, mass merchants and warehouse clubs, home shopping TV channels, online retailers, and auction sites. Mass merchants have been able to cut prices and take market share.

Also, as marriage rates decline around the world, competition for engagement jewelry sales has become increasingly intense. The number of brides receiving a traditional diamond ...