U.S. diamond retail sales up 7 percent

MAY 04, 2006 - New York -- Consumer drive for diamonds hasn't waned in the past decade, with the Diamond Information Center (DIC) at JWT reporting 2005 as the 10th consecutive year of retail diamond jewelry's growth in the U.S.Diamond jewelry sales rose in 2005 to $33.7 billion, up 7 percent from $31.5 billion in 2005.

In addition to the growth of overall U.S. sales, which comprise more than 50 percent of worldwide sales, transactions grew by 3 percent and average ticket prices were up by 4 percent, JWT said in a release issued Tuesday."Following a year of tremendous growth, we must continue to challenge ourselves to expand the diamond jewelry market—not only by creating new designs, but also by discovering new integrated ways of reaching our consumer," Richard Lennox, director-in-charge of the Diamond Marketing and Advertising Group at JWT, said in a release. While diamonds have emotional resonance for consumers, Lennox said the industry shouldn't take this for granted. "As a collective industry, we must protect these emotions if we hope to continue to move the market in 2006 and beyond," he said.

JWT has looked to accomplish this through the introduction of new products and marketing initiatives around key gift-giving holidays, which continued driving sales growth in 2005. JWT reported that in 2005, both three-stone diamond jewelry and diamond right-hand rings saw double-digit growth over 2004, up 11 percent and 15 percent, respectively. This year, JWT hopes to fuel that success with the launch of Journey Diamond Jewelry, focusing on graduated diamond jewelry. In addition, holidays remain a significant part of the diamond jewelry mix. Over the Christmas season, the Diamond Trading Co.'s (DTC) "What Will You Do for Love This Christmas?" campaign—which used integrated marketing on television, radio and the Internet to reach consumers—fueled holiday growth of 6 percent to $4.9 billion. Couples continued cementing their relationships with diamond engagement rings last year, as the category grew 7 percent to $4.8 billion.

The rings also reached their highest average price point, climbing to $2,750.Going forward, the diamond jewelry industry will face challenges, according to Lennox, as other luxury goods sectors continue vying for consumers' attention. "However, I am confident that with the support of our colleagues across the industry, the diamond group at JWT will continue to contribute strong work that will help to generate important growth in the diamond jewelry market," he said.