Jewelry is Making a Comeback this Holiday Season

Jewelry has returned to many holiday wish lists, a sign that discretionary spending is back in vogue this holiday season, according to a just released survey.

A total of 23 percent of people surveyed will be asking for jewelry this holiday season, a 10 percent jump from last year’s 20.8 percent, according to the National Retail Federation’s 2010 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch.

Gift cards will remain the most requested holiday gift this year with 57 percent of people asking for plastic, followed by clothing (48.2%) and books (47.3%).

Overall, U.S. consumers plan to spend an average of $688.87 on holiday-related shopping, a slight rise from last year’s $681.83, according to the annual survey.

As in years past, most holiday gift-givers will spend the largest portion of their budget buying gifts for family ($393.55) and friends ($71.45), though they’ll still carve out room in their budget for small tokens of appreciation for both co-workers ($18.26) and others ($34.82). Total spending on gifts ($518.08) is expected to rise 2.1 percent from last year, which is in line with NRF says. Americans will also spend an average of $41.51 on decorations, $26.10 on greeting cards and postage, $86.32 on candy and food, and $16.86 on flowers.

“Consumers will still shop with the economy in the back of their minds, but we’re starting to see shoppers take baby steps toward a new normal,” said, Matthew Shay, NRF president and CEO. “As Americans open up their wallets for more discretionary gifts like jewelry or take advantage of sales to buy for themselves, retailers will begin to truly believe that the worst may be behind them.”

According to the survey, 61.7 percent of shoppers say the economy will impact their spending, down from last year’s 65.3 percent. Many shoppers say they will compensate by spending less (81.5%), comparison shopping online (30.9%) or with newspapers and circulars (28.1%), shopping for sales (54.1%) or using more coupons (40.6%). Although the economy continues to impact shoppers, a number of survey results indicate that shoppers may be ready to emerge from their shells this holiday season.

When asked which factor will be most important when shopping this holiday season, the majority of shoppers said that sales or price discounts (41.8%) or everyday low prices (12.7%) were most important. While those factors either declined or remained flat this year, two other categories rose in importance. The number of people who counted customer service as the most important factor rose from 4.4 percent last year to 5.3 percent this year, while shoppers who touted quality as the overriding factor rose from 11.8 percent to 12.7 percent.

“Price is paramount during any recession, but when the economy begins to recover other factors take on greater importance,” said Phil Rist, executive vice president, Strategic Initiatives, BIGresearch. “When shoppers consider other factors like customer service and quality in buying decisions, retailers have the ability to highlight a variety of other features to help their company stand out from the competition.”

Another sign that shoppers feel a bit of breathing room in their budget, the number of persons who say they will make a holiday purchase from a discounter dropped from 70.1 percent last year to 65.1 percent this year. Popular holiday shopping destinations will include department stores (54.5%), grocery stores (46.7%), the Internet (43.9%) and clothing stores (33.6%).

Americans aren’t only shifting where they’re shopping—how they’re shopping is changing, too. Mobile devices like iPhones and Androids are becoming more popular among consumers, and many shoppers plan to use these devices this holiday season to look for gift ideas, compare prices and find items in nearby stores. According to the survey, more than quarter of adults with a smartphone will use these devices to research or make holiday purchases, and that number jumps to 45 percent among young adults 18-24. Retailers are expected to take advantage of this trend by offering more robust mobile apps and Web sites, along with enhanced features like mobile reviews, to cater to Americans looking to shop from their phones.

Yet another hopeful indicator: the number of people who plan to take advantage of holiday sales to make non-gift purchases for themselves will rise 8 percent this year (52.9% in ’09 to 57.1% this year), with the average holiday shopper spending $107.50 on themselves, up from $101.37 last year.

Though the holiday season won’t kick off for many retailers until at least November 1, a sizeable number of shoppers are already planning ahead. According to the survey, 37.2 percent of Americans will begin holiday shopping by Halloween. Women are the most likely to begin shopping by the end of October (42.1%) while young adults 18-24 are among the least likely (27.7%).

NRF expects holiday sales to rise 2.3 percent to $447.1 billion.

Timepiece Tuesday: TAG Heuer, Milus, Swatch

Tag Heuer 18k gold Carrera automatic chronograph up for auction at Bonhams

* TAG Heuer continues to celebrate its 150th anniversary with an auction and student design competition

* Milus Throws a Party

* Swatch Looks Back with its New Collection
* Magazine article questions the future of the wristwatch 

Bonhams to Auction Rare Heuer Watches
The sale of the “Haslinger Collection” of fine and rare Heuer watches will take place December 15 at Bonhams New Bond Street, London. The auction house is working in partnership with TAG Heuer for this sale to celebrate the watch brand’s 150th anniversary.

This museum-quality single owner collection comprises more than 100 lots, including iconic models such as the Silverstone, Autavia, Carrera, Daytona and Monaco. Many are new-old-stock. The watches range in value from £1,500 to £15,000 ($2,355 to $23,556).

TAG Heuer also created a watch for this auction, based on the newly launched Silverstone model and the dial. It incorporates Jack Heuer's signature. All proceeds will be donated to the Green Cross International charity. Arno Haslinger will also donate his original Silverstone to this cause and Bonhams will add a further 20 percent to the hammer price.

View more photographs and information.

TAG Heuer, Parsons Student Watch Competition
Swiss luxury watch brand TAG Heuer and Parsons design school in New York are hosting a competition called the “Art of Watchmaking,” where product design students will reinterpret the iconic Monaco Automatic Chronograph, while learning the intricacies of haute horology.

The eight-week competition combines student collaboration in the design studio with mentorship from TAG Heuer master watchmakers, culminating in the selection of three winning timepiece designs and the potential for TAG Heuer to produce the top design as a limited-edition piece. Many aspects of the timepiece are open to interpretation. However, students cannot alter the distinctive shape of the Monaco’s case.

The general public will be able to vote for its favorite creation on TAG Heuer’s Facebook page. Awards will be given in mid-November to the first, second and third-place winning teams.


Milus Celebrates its Arrival in Spain
Swiss luxury watch brand Milus hosted an event at the Palacio de Fernan Nuñez in Madrid to celebrate its arrival in Spain. The September 30 event was attended by 230 retailers, journalists, timepiece aficionados and collectors.

Milus unveiled its timepiece and accessory collection, including the Tirion Répétition Minutes, the Tirion and Merea TriRetrograde lines and the cufflinks with the 360°displayed in showcases placed in midst of the guests throughout the halls of the ancient palace for an up-close and highly personal view.

Notable guests included Remedios Cervantes, actress and former Miss Spain (pictured wearing a Milus Merea TriRetrograde), David Meca, swimmer and TV presenter, and Lorena Van Heerde, model and former Miss Spain.



A Large Colorful Collection from Swatch
The Swiss watch giant has gone retro by introducing a new men’s watch collection based on its legendary Swatch Gents Original. 

More information.

Who Wears Watches Anymore?
This is the question posed by The Atlantic magazine as it questions the future of wristwatches in an increasingly digital world.

Timepiece Tuesday: Boucheron Beautifies the ‘Time Machine’

Jwlrymachine in purple

MB&F, founded in 2005, is a small Swiss watch company that makes a limited number of elaborate and innovative wristwatches, known as “horological machines,” that are sold at astronomical prices. Their timepieces straddle the limits of modern-day engineering, architecture and technical mastery. What these watches lacked was a touch of beauty. That’s where Boucheron comes in.

HM3 Starcruiser

In what may seem to some like an unlikely collaboration, the famed 152-year-old French jewelry house was asked to create a refined, bejeweled face for MB&F’s Horological Machine No.3 (HM3). The result is Jwlrymachine, a three-dimensional owl, available either in 18k white gold, with amethyst, diamonds and blue and violet sapphires, or in 18k red gold, with pink tourmaline, rose quartz, diamonds and pink sapphires.

The owl’s eyes are large glowing cabochons, set over the twin cones. Its sparkling wings, wrapped protectively around the HM3 engine, are made of pavé-set with brilliant-cut stones. Its feathered breast is sculpted and engraved from a single block of amethyst or rose quartz. The glowing eyes, sparkling wings and gleaming breast create a carefully choreographed play of light. Beneath the owl’s breast, its heart appears to be beating. The illusion is created by the faintly perceived swings of MB&F’s solid-gold battle-axe-shaped rotor beneath the translucent stone.

HM3 Movement

For the astute regular readers of the Jewelry News Network, Boucheron’s collaboration with MB&F isn’t as unlikely as it may have first appeared. The French family dynasty, known as one of the world’s top purveyors of high jewelry, is also a company that embraces technology and innovation. It was one of the first luxury companies to use e-commerce. It has an active social media presence. Just today, JNN posted a story about Boucheron’s computer application that allows users to virtually try on its jewelry.

Innovation has always been the hallmark of truly great luxury companies. But you already knew this.

September Shows Improvement in Retail Sales

The U.S. Department of Commerce reported that U.S. September retail sales rose by 0.6 percent from its prior month on a seasonally-adjusted basis following a 0.7 percent rise in August.

Total retail sales (not including motor vehicle and gasoline) rose by 0.4 percent in September following a 1 percent gain in August. Shopping-center sales—derived from these data by ICSC Research—rose by 0.4 percent in September compared with a gain of twice that pace in August. The Commerce Department figures were presented by  the International Council of Shopping Centers.


“On a month-over-month basis, strong sales gains for motor vehicles, which rose by 1.6 percent, and electronics up 1.5 percent helped to lift the overall pace, but there were solid across the board gains in most of the categories,” ICSC said. “On the weak side, were clothing and department stores—both off in September—and likely negatively affected by abnormally warm weather curbing demand for seasonal merchandise.”

On a year-over-year basis, total retail sales rose by a strong 7.3 percent in September, the strongest monthly performance since March. Excluding motor vehicles and gasoline, retail sales were up 5 percent for the month. Shopping-center sales in September rose by 3.5 percent.

Boucheron Allows People to Virtually Try On Jewelry at Home

French luxury jeweler Boucheron has created a way for people to virtually try on the company's collection of jewelry and watches from their home computer.

The tool works in real time via the Web, in this case the Boucheron Web site, and in selected stores through augmented reality application. Augmented reality is an engaging way of combining live video with computer-generated data and visualizations.

The application was created by a London-based company called Holition. Savvy Jewelry News Network readers may remember this company through interactive window displays they created for Tissot and De Beers.

With a Webcam and a printer, users can go to the Boucheron Web site, print a page that has a seemingly generic image (“symbol”) of a watch and ring, put them on their wrist and finger and show it onto the Webcam. On the computer screen the paper is transformed into a piece of Boucheron jewelry. It’s as if the person is looking at a mirror and wearing the luxury product. The augmented reality experience allows Boucheron’s customers around the world to virtually try on more than 20 different watches and rings from Boucheron’s collections, including the Chameleon and Quatre rings, set with sapphires, diamonds and other precious gems.

The augmented reality application integrates with social media through a “sharing” capability that allows potential customers to take a picture of them virtually wearing the jewelry and watches and then share it with family and friends via social networking sites.

Below is the demonstration video.

Pandora Joins Responsible Jewellery Council

Pandora, the Danish jewelry designer and manufacturer that recently executed a $2 billion initial public offering, is now attempting to make its mark as an ethical, humane and environmentally sensitive company by joining the Responsible Jewellery Council.

“Pandora is committed to promoting responsible practices—from the sourcing of precious metals and gemstones to the crafting and marketing of our jewelry,” said Mikkel Vendelin Olesen, CEO of what is now the world’s third largest jewelry brand. “We strongly believe in setting high common quality standards for the industry, and we look forward to actively working together with the Responsible Jewellery Council and its member organizations in order to encourage responsible practices throughout the jewelry industry.”

Added, Michael Rae, RJC’s CEO. “Pandora’s membership will strengthen RJC’s mission of responsible business practices amongst large and small industry players and will reach the youngest generations through their innovative approach.”

The Responsible Jewellery Council is an international not-for-profit organization with more than 250 member companies that promotes responsible ethical, human rights, social and environmental practices in a transparent and accountable manner throughout the jewelry industry from mine to retail. Their commitment aims to reinforce consumer and stakeholder confidence in diamond, gold and platinum group metals jewelry products.

World’s Largest Diamond Bourse Opens in India

Nearly two decades in the making, the world’s largest diamond exchange opened Sunday in Mumbai. It will no doubt challenge the dominance of traditional bourses in Antwerp and Tel Aviv. On its first day the new facility did about $7 million worth of diamond import business, according to a published report.

The 20-acre Bharat Diamond Bourse has eight interlinked nine story office towers, containing 2,500 offices, four walk-in vaults, 24,500 safe deposit boxes and a 6,200 square foot trading floor. It is designed to house exporters, importers, clearing agents, banks, and customs departments. Other amenities include restaurants and food courts for visitors, businesspersons and clients.

India is already the leading diamond manufacturer in the world. It accounts for 70 to 75 percent of world diamond exports, worth about $28 billion annually and employs approximately 850,000 people. India diamond officials are hoping that the bourse, at a cost of $200 million, will the allow country to gain dominance in the diamond trading business as well.

Disputes between the committee overseeing the diamond bourse, its architects and contractors and payment defaults by members during the 1995-99 property slump put the project on hold in 1998, according to published reports. It was restarted in 2001. The delays resulted in estimates ranging from a 20 percent to a doubling of overall costs once the project was completed.