Jewelry Industry Analysis
In the Broad Industry of Jewelry, It is hard to pinpoint what stage of the lifecycle the industry is currently in. The Jewelry Industry is very old and started about 40,000 years ago with the Cro-Magnons, ancestors of Homo sapiens. It is important to note that till this day, this industry continues to grow. In Canada, jewelry sales rose by 4% in 2003. In 2006, Canadians consumers spent over 2 billion dollars on jewelry . The United States similarly experienced a rise in jewelry sales by 9% in 2005. Overall sales in the jewelry industry are expected to grow with the economy and sustain growth rates of 3-5% annually .
Due to the Industry's adaptability to fashion there is no actual maturity or decline phase. Jewelry and Fashion go hand-in-hand; a change in one usually causes a change in the other. Jewelry has existed for 40,000 years and has lived through many ancient cultures and societies such as ancient Egypt, Mesopotamia, Greece, Rome, ect. Jewelry has been a part of the evolution of humanity and is now considered a necessity.
Industry Characteristics Fig.1
Today, the jewelry industry can be subdivided into two major subcategories: Classic (high-end) jewelry and Costume (low end, Fad) jewelry (see Fig.1). Classic or fine jewelry is defined as high-end jewelry built of pricy precious metals or gemstones usually including gold, white gold, platinum, palladium, and gemstones such as diamond, ruby, emerald, ect . Costume jewelry is usually inexpensive because it is made of less valuable materials such as base metals, plastic, glass or synthetic stones instead of more valuable materials used for fine jewelry . Our entrepreneur has created a new subdivision Fashion Jewelry' which fills the gap between the two previously mentioned subdivisions.
Canadian jewelers import their jewelry from the United States, China, India, Israel and Italy. However, the import market