A wedding boom is helping to drive jewelry sales
31-year-old Marc Hostovsky ended up purchasing his fiancee’s engagement ring online, after he was bombarded with targeted social media ads.
Source: Marc Hostovsky
Before he proposed to his now-fiancee last fall, Marc Hostovsky spent weeks scouring the internet for information around the “4 Cs” of diamonds — cut, clarity, color and carat — and grading certifications.
The 31-year-old had never made such a significant purchase in his life, he said. He wanted the engagement ring to be extra special, of course. And he went to extra lengths, including reaching out directly to the owner of the e-commerce jewelry marketplace Rare Carat, before he committed to purchasing the final product online.
“The ring was by far the most expensive thing I’ve ever bought. It was nerve-racking,” said Hostovsky, an entrepreneur based in the New York City area. “I feel like I’m a jewelry-buying expert now.”
Younger consumers, like Hostovsky, are playing a growing role in helping to propel the jewelry category. That’s in part because many are either thinking about or preparing to get married. According to a forecast by The Wedding Report, next year is expected to bring about 2.5 million nuptials, which would mark a four-decade high. Couples will be splurging not only on engagement rings but also on wedding bands and other accessories for the big day.
Meanwhile, other buyers are looking for ways to show appreciation toward a loved one during the pandemic, and jewelry is a great way to do that.
“People really like giving lasting gifts that emphasize love and commitment, and especially during times of challenges, which I think everyone can certainly relate to [right now],” said Beth Gerstein, CEO of jeweler Brilliant Earth.
Last holiday season, from Oct. 11 to Dec. 24, sales in the jewelry category fell about 4.3%, according to data from Mastercard SpendingPulse. Albeit a decline, it was a notably better showing than sales at apparel retailers and department store chains, SpendingPulse said.
This holiday, however, jewelers are expecting a much stronger finish to the year. During the week of Thanksgiving, which includes Black Friday but not Cyber Monday, jewelry sales are forecast to grow a whopping 39.7% from year-ago levels, SpendingPulse said. Total retail sales, excluding autos and gas, are predicted to rise about 10% over that time frame.
‘Feel-good purchases’
According to Marie Driscoll, managing director of luxury and fashion at Coresight Research, some consumers were able to accumulate money during the pandemic since they weren’t spending on travel and other experiences last year. She explained that these consumers put the extra dollars into their bank accounts and were able to save up for aspirational purchases.
“If people still had a job and were working from home … developing this Zoom lifestyle, luxury became a way of celebrating life,” she said. “And one of the best feel-good purchases in luxury is jewelry because there are often stories behind [it].”
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