Jewelry: 2007 Key Retail Trends

• Jewelry was a bit “all over the place” in 2007, and the best-performing categories (namely bracelets) couldn’t drive the entire department.



• The lead content issue continued to plague the industry. While the Fashion Jewelry Trade Association (FJTA) made headway, conflicting state-by-state laws challenged manufacturers who sell nationally.



• Rising labor costs in the Far East, lead testing expenses, the weak U.S. dollar and higher shipping costs hurt low-end manufacturers who often absorbed profit margins to keep retail prices steady (one manufacturer noted such increases could drive up costs of the same item 20% this year over last). In response, manufacturers launched better goods with unique designs that warranted higher prices and made “per component” lead testing cost efficient.



• Focus moved from neck to hand. Pendants raised expectations and ultimately disappointed, while bracelets surged. Earrings slowed the most.



• While always selling in bare-armed, warm-weather months, bracelets sold throughout the year, with consumers wearing stretch versions or cuffs over sweaters or long gloves. Three-quarter sleeved jackets also boosted bracelet sales—stacks of enamel bracelets, resin and jeweled metal cuffs.



• Oversized cocktail rings, while all over the fashion magazine, yielded a mixed response, selling best in trendy stores. Merchandising displays encouraged women to wear them year-round, even over long gloves.



• Enameled surfaces — a popular way to show color—will continuing strongly into 2008 as well, with Pucci-inspired brights.



• Designers rolled out licensed or in-house jewelry lines this year—including D&G, Just Cavalli, Miss Sixty, ABS by Allen Schwartz, Nicole Miller, Jessica Simpson and Fossil.



• Spectator/Nautical styling outperformed expectations by capturing a younger customer. Enamel was a key element, with red a surprising success. Black, white, blue, green and yellow were also popular.



• This was also the year that gold finally took hold, driving fashion jewelry in all forms. For summer, clear Lucite sold well, while Fall saw ’60s-inspired silver neckwires that captured the mod trend.



• The real excitement was at the higher end, and dramatic costume — or “couture”—jewelry grew in popularity at luxe pricepoints.



• Less common treatments (i.e., rose gold finishes, steel composition, rubber or silicon) gained popularity. Stainless steel emerged as a new material, particularly in European lines.



• Natural stones reappeared, with raw druzy and geodes looking new. Woods and naturals will trend into 2008.

Bridge Jewelry: 2007 Key Retail Trends

• Precious metal prices surged (at press time, silver was $14.31/oz. and gold was $803/oz.) bridge jewelry sales took a bit of a beating. In response, bridge prices went up, resulting in consumer sticker shock (although some manufacturers absorbed the price increases for retailers). Some industry experts, however, predict gold to reach $1,000/oz.—which could actually boost demand for lower-priced silver and vermeil.



• Some bridge departments shrank slightly as retailers didn’t necessarily increase their open-to-buys in response to higher wholesale prices.



• Low-priced bridge merchandise looked “cheap” as manufacturers sought to reduce production costs. Going forward, bridge manufacturers are planning bolder looks to further grow the price discrepancy with fine jewelry and give consumers a reason to purchase silver or vermeil.



• Fashion “items” took a higher position this year (one manufacturer “blew out” its CZ-adorned dog tag pendants, despite initial trepidation among retailers. However, basic hoops surged. Sentiment jewelry (engraved inspirational messages, religious and iconic symbols) captured the nation’s current mood.