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Companies in this industry sell jewelry, silverware, watches, and clocks from physical retail establishments. Major US companies include Sterling Jewelers and Zale (both units of Bermuda-based Signet Jewelers), as well as Tiffany; other industry leaders include the retail operations of Chow Tai Fook Jewellery Group (China), Christ (Germany), and Richemont (Switzerland).
Worldwide, jewelry retailers generate about $275 billion in annual revenue, according to Euromonitor International. China and Brazil are key growth opportunities for the industry.
The US jewelry retail industry includes about 23,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $35 billion.
Demand is driven largely on consumers' disposable income. Profitability depends on merchandising and effective marketing. Large companies enjoy economies of scale in purchasing. Small jewelers can compete with large chains by establishing favorable reputations. The US industry is fragmented: the 50 largest companies generate about 45 percent of revenue.
Jewelry is sold not only by specialized jewelry retailers, but also by department stores and mass merchants. Because regular gross margins are very high, often 50 percent, mass merchants have been able to cut prices and take market share. Wal-Mart and Macy's are among the largest jewelry retailers in the US.
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Jewelry is often classified as bridal merchandise (engagement, bridal, and anniversary rings) or fashion jewelry (rings, bracelets, earrings, pins, gold chains). Other sources of revenue for retailers include watches, silver flatware, and other giftware. ...
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