Valentine’s Day creates buzz for jewellers

Posted February 07, 2012 | By Aaron Weinman

After a tough festive season, jewellers are hoping for a successful Valentine’s Day next week, as new research shows the importance of the event each year.

In the build up to Valentine’s Day retailers have said branded jewellery has been the biggest winner because of its personal nature and friendly pricing. Corinne Knoll, of Melbourne-based Jewels of Eden, said she prepared her store well in advance expecting many Valentine’s sales.

“We decorated our store with hearts and a lot of red décor about three weeks after Christmas,” Knoll told Jeweller. “Not enough jewellers do it unfortunately, but we find it’s a great way to remind men about special events and turning these events into early sales opportunities.”

Knoll added that too many people left Valentine’s sales until too late, but with her in-store appearance she said many younger couples were making purchases earlier.

“While we don’t want to prepare too close after Christmas, it’s important to try and tap into this market at an early stage, especially young couples who don’t have a lot of money to spend,” Knoll added.

The inclination to spend less on Valentine’s Day has led jewellers to promote many sterling silver products, particularly branded jewellery easily recognised by consumers. Ballina Jewel Centre’s Derek Forkgen said Valentine’s Day wasn’t an event that drew big spenders, but continues to prepare intensely for the day.

“I’ve stocked a lot more branded silver jewellery and found this to be a winner for Valentine’s Day,” Forkgen told Jeweller. “Brands like Ellani and Hot Diamonds have sold well but gold jewellery seems to have died and made way for more branded silver.”

Knoll said traditionally within two to three days prior men were inclined to purchase engagement rings with the intention of a proposal on the romantic day.

“We try to remind customers in our database to prepare for the day at an early stage as the majority of our sales are made two to three days before Valentine’s Day,” Knoll said. “While it’s not a huge seller, we do get a few engagement ring sales around the event which is always a financial bonus.”

Judy Cameron, owner of Cameron’s Fine Jewellers in Victoria, said Valentine’s Day was always promising for her, especially for custom-made engagement rings.

“Everything performs including gold and diamond hearts as well as Thomas Sabo jewellery,” Cameron said. “We sold more engagement rings than ever.”

Valentine’s Day Research
Recent studies in the US conducted by American Express (AMEX), Sears and the National Retail Federation (NRF) predicted jewellery sales would account for 18.9 per cent of total Valentine’s purchases.

According to the survey, men are expected to spend an average of USD$169 (AUD$158) on their partners – nearly twice as much as women, expected to average USD$86 (AUD$80).

According to the NRF 18.9 per cent will be spent on jewellery compared to last year’s 17.3 per cent. In addition, total spending across the US is expected to reach USD$4.1 billion (AUD$3.8 billion), up from last year’s figures of USD$3.5 billion (AUD$3.2 billion).

Nearly 20 per cent of survey participants said they would buy jewellery this year, the highest per cent in the survey’s history.

American department store, Sears, expanded its assortment of jewellery by 60 per cent this year in order to feature a greater selection of pendants, engagement rings and watches.

American Express meanwhile predicts approximately four million people in the US plan to get engaged this February 14 and jewellers around Australia will be hoping similar predictions come to fruition this year.

Engagement Time - WATCH VIDEO

Valentine’s Day has become a popular date for men to propose to women and there’s been a long, and growing tradition for men to create a memorable moment to ask for her hand in marriage.

The US retailer, Zales Jewellers, created a wonderful TV commercial capturing the moment. The commercial, titled ’Love Rocks’, first aired in 2008, and while it successfully tugs at your heart strings, it’s not tacky or cheesy, something many jewellery ads tend to be.