Rules of Engagement: The perfect ring
2.8 k views | By Gretel Hunnerup
The quest for a perfect ring, that unique symbol of love, is today burdened by
the weight of expectation. Let's not get all sentimental.
Engagement is serious business to the jeweller. The ring is often the most expensive piece of jewellery that woman will acquire in her lifetime and men are forking out record amounts before getting down on bended knee. But getting hitched is not so fashionable anymore. In 2004, just over five people in every 1,000 got married, down from seven in 1984. This steadily declining marriage rate in Australia could eventually translate into fewer profits in the lucrative engagement ring market, no matter what the average spend. An understanding of fashion and modern purchasing trends is crucial Today's woman wants input
There will always be a steady stream of die-hard romantics who pop the question with ring in hand, and indeed, lots of women welcome the surprise.
But the overwhelming trend is for today's woman to make her own decisions, and the design of her ring is one of those choices.
"I have seen an incredible push towards women having a say in the design," says Makers Mark head designer Shaylee McKenzie. "She's in the driver's seat nowadays because she's used to making more decisions in all areas of her life."
McKenzie says lots of ladies plan their rings before she even opens her sketchbook.
"Women often do the scouting first, even if they aren't engaged yet. They pick up our brochures and place them strategically around the house. And the man is usually thrilled because he knows his partner is getting exactly what she wants."
The same trend is happening at the chainstore level also. Prouds diamond buyer Tony Browne estimates it's a woman who comes into the store eight out of ten times. "Even when it's a man, often the woman has told him what to look for," Browne states.
Popular styles are not so popular anymore
No woman likes to arrive at a party to see another woman wearing the same outfit.fact, For many women, the same rule applies with engagement rings: "It's not just a symbol of love anymore," McKenzie says. "It's a symbol of your personality too. Women want a touch of themselves in a ring."
Non-standard cuts and coloured diamonds have never been more popular, as have gemstones other than diamonds, according to Jeff Acheson, group project manager, Hardy Bros: "People are far more broad-minded about what constitutes an engagement ring. It really could be anything now and we're finding there's no such thing as a standard purchase."
Simon West of Melbourne's Simon West Jewellers has come to the same conclusion: "I recently advertised a new design with Argyle pink diamonds that looks like a dress ring. I sold four straight away as engagement rings and three of those women will also wear it as a wedding ring because it's a large band with no protruding stones."
Despite this push for individuality, there is one staple in engagement ring sales: the diamond solitaire ring will always sell. A recent poll carried out by Gemex, an online provider of jewellery industry information, found that the vast majority of women still prefer round and princess-cut diamonds, and there's still a desire for clean lines and a central feature. Mostly, women are keen to introduce a little flair into a classic design, building around the initial structure with small changes rather than creating something that completely flaunts conventions.
Rules? What rules?
Even until last year, it was routinely suggested by diamond companies that a man should spend two or three month's salary on an engagement ring. While the salary rule is still bandied around, most now consider it a perpetuation of the industry that is neither an accurate nor realistic guide.
"There's a tremendous variation in what people feel is the right amount to spend," McKenzie says, adding that Makers Mark produces product to suit most incomes.
Still, Australian diamantaires believe men from all financial categories are digging deeper than before. At Makers Mark, the lowest spend has risen from $3,000 to $6,000 over four years; at Prouds, the number of purchases under $1,000 have dropped.
They do their research
When a couple walks into your store, it's a safe bet you're not the first jeweller they've consulted, and you probably won't be the last.
"In my experience, the woman wants to try on different designs and get an idea of what's out there before narrowing it down to one business," West explains.
Shopping around for an engagement ring is nothing new, but what is changing is the scope of the search. The number of stores a couple will visit is growing, as are the number of areas couples will seek consumer information. The same Gemex poll found that 73 per cent of participants learnt most about purchasing a diamond from the internet. With a click of the mouse, potential buyers are learning about retailers, scouring online catalogues and comparing costs locally and internationally.
"Through quizzing my customers, I know that a lot of women spend their lunchtimes researching rings, and that men prefer to do their browsing on the net because they don't like spending time in shops," West says. "People come up with much more knowledge than they did several years ago too. They know a lot more about the four Cs."
Looking beyond bricks and mortar
The internet's widespread use as a research channel is well known; however, it's harder to gauge its impact on sales within the engagement ring market. Johan Barry, director of online retailer Diamond Exchange agrees that information draws shoppers to the group's website, adding that Diamond Exchange receives around 150,000 unique visitors a month and this includes 60 per cent of newly-engaged couples in Australia , yet acknowledges that it's a far lesser percentage who buy.
"They come to the website not to buy, but for information," Barry says, "then about six per cent of them stick around. The bottom line is that people research on the net and buy from traditional retailers."
Despite this, business is growing rapidly for Diamond Exchange, and Barry predicts that the company will account for between 15 and 18 per cent of the engagement market within a decade.
This is possible, he suggests, because of a recent gravitation towards the comparatively lower prices of loose stones on the internet. Newly-engaged couples now know this, and are becoming more comfortable with the idea of buying a stone individually and then having it set. As such, retailers are missing out on their bread and butter.
It's all about marketing
Flick through any high-end women's fashion magazine and you'll find pages of jewellery ads. Try the same with a men's mag and you'll be lucky to see one. Retailers know women are making the decisions about style these days, and they are marketing accordingly.
"Through asking female customers, I've discovered that women buy two or three bridal magazines as soon as they get engaged. Naturally, I advertise in those titles," West says.
By taping into the tastes of the female consumer, retailers will also inadvertently please the male, whose happiness is intrinsically linked to hers when it comes to choosing a ring. Ultimately, matching a ring to a recipient is about choice, so retailers should consider stocking, making and marketing as wide a range of rings as they can.
Show your expertise
The amount of information accessed by shoppers through the internet is staggering. Couples are walking into stores with an astounding degree of technical knowledge but it's not always accurate, nor is it comprehensive.
Retailers can underline their expertise, establishing trust with the consumer in the process, by discussing the information they have found and explaining which parts of it are relevant, accurate and useful. For example, they've probably read reports about stone switching and other dicey deals, and retailers need to be ready to field these concerns.
Furthermore, knowledge of the four C's doesn't mean they're familiar with the features and benefits of your stock. Each ring has its own story to tell, and it's the retailer's job to tell it. Emphasise the delicacy and workmanship of handmade designs, or discuss the origin of the ring if it hails from a faraway destination.
Think outside the box
The diversity of design means that not all engagement rings end up as such. People may be less inclined to pop the question these days, but this doesn't have to translate into lower ring sales. Gemex found that 34 per cent of women have bought themselves a diamond ring, and 49 per cent said they would if they could afford it.
"We are seeing an increase in women's self-purchasing habits, especially for our recently launched diamond brand Celebration Rings," says Glen Schlehuber, managing director, Tiffany & Co. Australia.
It's acceptable these days for engaged, married or unattached women to treat themselves by purchasing a high-end ring; if engagement ring sales are dropping, it makes sense to market these products (minus the engagement angle) to these women. In such cases, different cuts, gemstones and metals might help the engagement designs to appeal as cocktail rings instead.
A solid example of this has been the rise of commitment rings, an initiative designed to sell rings to the growing number of couples who are dedicated to each other but remain unmarried.
Just do it
It's been said many times: for a business to survive and thrive, retailers need to craft a point of difference and promote it heavily, whether though lengthy consultations, unique stock, a visible workshop or a convenient location. There are hoards of people who won't buy a diamond over the internet and who want personalised service, and it's these people you need to attract.
Men will continue to hot-foot into jewellery stores and the diamond solitaire will continue to be a retailer's best friend. But to capture business from those who are following the new rules of engagement, it's vital for retailers to tailor their products and services accordingly.
Posted May 01, 2007