GemFind Reports on Jewelry Consumer Trends

A new report from GemFind details consumer trends in the jewelry world.

The firm explains:

When reviewing the diamond click searches for 2019, it is readily apparent that education about diamond grades and the four Cs is very important in the selection and search by consumers shopping for diamonds. Time and time again consumers search based on perceived value rather than beauty. While higher diamond grades for color, cut, etc., reflect rarity and not necessarily brilliance, the consumer still prefers better grades based on certificate results.

GemFind has identified jewelry industry trends through click data for 20 years. Its online applications are designed to help retailers and suppliers sell and improve market share.

To receive a report every quarter, register at www.gemfind.com/trends-report.

Here’s what GemFind found in several key categories:

Diamond Color Searches

The G color maintains a slight lead in diamond clicks compared to the other grades. Surprisingly the F color is ranked second in diamond searches followed by H and D. All searches are within 3% of each other and make up in a majority of diamond color click searches. By taking into account all searches for each diamond color, 70% of clickable searches are in the D – H color ranges.

40% of searches surprisingly are in the D-E-F color ranges. It is remarkable that many consumers search for diamonds in the D – F color range, because to the naked eye the perceived increase in color would not be noticeable, but the price increase is dramatic. However, 30% of searches are for G-H color diamonds which make up the most popular colors at the retail counter. 11.5% of searches are in the I color ranges, which suggest they are many value-oriented shoppers.

At the virtual or in-store sales counter, a challenge for retailers is to educate consumers on diamond beauty vs. rarity, especially in diamond color. Consumers will strive for the highest possible colors without really knowing the implications of the beauty vs rarity factor in higher diamond colors.

Diamond Size Searches

Diamond size searches represent a clear and easy to understand picture of consumer preferences. 1 ct. to 1.25 ct. represent 1/5 of all searches and is one of the most popular sizes for engagement rings. .75 ct to 1 ct make up over 10% of the searches, followed by a fairly equal distribution of approximately 10% for .25 to .50 ct., .50 ct to .75 ct. and 1 1⁄2 ct. to 1.75 ct and above. While some claim “size matters”, that is not particularly the case in online diamond click searches for diamond size. More than half of diamond size searches are below 1.25 ct. This represents the full range of engagement ring diamond searches. Diamond click searches for above 1.25 ct. represent 40% of diamond searches. However, in real time purchases the larger diamond click searches appear to be more aspirational than actual real time purchases of diamonds. Given that a diamond search for an engagement ring is propelled by emotion and love, consumers will take a disproportionate amount of time looking at all categories and comparing price. However, the days of two months salary for an engagement diamond do not appear relevant to today’s millennial diamond purchaser.

Diamond Cut Searches

Consistently across the board more than 60% – 70% of searches in the diamond cut area are for an excellent cut grade. Searches for Ideal Cut and VG cut diamonds are less than a third of the searches for excellent cut. These results may reflect ongoing diamond education but not the reality.

Diamond appearance and beauty are impacted by many factors. For those in the industry most understand that the difference between a VG and EX cut in diamond appearance is at most times minimal. Yet, from the consumer perspective the excellent cut grade far outweighs consideration of even the Ideal Cut.

Diamond Clarity Searches

Diamond clarity continues to be presented as one of the key value factors to consumers in diamond searches. Almost 40% of all diamond searches are for VS 1 and VS 2. For the consumer who understands the definition of SI 1 as slightly included, the obvious preference is for a VS stone. However, 30% of all searches are for SI 1 and SI 2. For all consumers and eye clean diamond is extremely important and the majority of purchases based on diamond clicks will be SI and above. Understanding diamond clarity grades by the consumer helps clarify these choices in diamond beauty, because they are very straightforward and easier to understand compared to cut grades and D-F diamond colors.

Diamond Certificate Searches

Little has changed in this area. The GIA report continues to predominate with very few searches
for any other laboratory certificate. The perceived value of GIA and its brand identity as the
preeminent authority and gemology, continues as a value factor in diamond searches and is
reflected in diamond prices for reports.

Diamond Clicks by Month

By analyzing diamond clicks by month, it is very easy to understand and plan for sales based on holidays as well as traditional engagement ring buying periods. January – pre-Valentine’s Day generates the highest number of diamond searches. This is followed by the annual Christmas holiday buying season. It is interesting to note that other than late December after the Christmas holiday, diamond clicks are fairly steady with peaks for Christmas and Valentine’s Day shopping.

Jewelry Category Searches

With almost 1 million jewelry searches, the trends and consumer buying direction is very clear. Semi-mount Engagement rings continue to predominate with almost 30% of jewelry searches. This is encouraging for all retailers to know that bridal/engagement market remains strong. This is followed by mounted diamond ring engagement ring purchases. More than half of all jewelry searches revolve around bridal. This is not surprising as this directly correspond to the percentage of sales in this area in retail stores. 28% of searches are in the categories of necklaces earrings and watches. The challenge at the retail level is the focus on multipiece purchases that will include items that are upsell purchases after completing the bridal transaction.