Study: Demand for high-end jewelry grows in 2006

Imitation may be a sincere form of flattery, but it doesn't mean people will buy product that isn’t the real thing.

Jewelry and watch consumers confirmed this in 2006 by consuming more designer jewelry but buying less costume pieces, according to a New Unity Marketing study.

The study concluded that in 2006, American consumers spent $62.2 billion on jewelry and watches, a 6.5 percent increase from 2005. However, the most drastic increase was found on the luxury end of the market.

The sale of fine watches rose 39 percent and fine jewelry went up 10 percent whereas the costume segment in jewelry declined 8 percent, and sales of costume watches were down 20 percent, according to Unity Marketing's Jewelry and Watch Report, 2007.

Pam Danziger, president of Unity Marketing and author of Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience, said in a statement that more consumers bought luxurious jewelry in 2006.

"With their eye on more expensive designs, they turned more often to specialty jewelry stores where they got expert advice, which boosted their confidence to spend the substantial amounts they did for their purchases," Danziger said.

Unity Marketing surveyed 750 recent jewelry and watch consumers for its survey. The demographic breakdown of those surveyed includes an average income of $74, 400, an average age of 41.6 years, and a gender split of 60 percent female, 40 percent male. The results were compared to a similar survey conducted in 2004.

The study also showed that in 2006, men's jewelry came into its own, jewelry stores resurged, demand for gemstone jewelry increased and although the market for fine watches grew, younger customers rejected watches as a status symbol.

To access the full report, visit Unitymarketingonline.com