Direct Selling Jewelry Sales Expected To Rise In Next 5 Years

 

The direct selling jewelry sales industry is sparkling thanks the entrance of new players and innovative applications that facilitate sales.

The industry, which relies on an army of salespeople making person-to-person or group sales away from a fixed retail location, has benefited from the economic recovery and the corresponding uptick in consumer spending. As consumers increasingly make price-premium and higher-volume purchases, profit is expected to improve over the five years to 2015.

Despite increased competition from online retailers (e-tailers), industry revenue is expected to increase over the five years to 2015.

According to IBISWorld Industry Analyst Britanny Carter, “Purchases of jewelry, watches and associated accessories are highly discretionary, meaning broad economic conditions, such as per capita income, the unemployment rate and consumer confidence, have a large effect on the ability and willingness of consumers to purchase products the industry sells.”

As income levels have risen over the past few decades, direct sellers have shifted their focus from home durables and personal care items to more expensive personal accessories, such as jewelry and watches, which offer superior returns.

A large number of direct sellers have entered the industry over the past decade to supplement their income or as a flexible and autonomous means of employment. New entrants that target younger consumers, such as Origami Owl, accelerated this trend.

The industry's growth is expected to slow over the next five years as consumers rely on alternative retail channels to purchase jewelry and similar accessories. Overall, industry revenue is projected to rise in the five years to 2020. Two broad themes will characterize the industry over the next five years.

The gradually improving economy is expected to lead to higher income levels and, consequently, higher discretionary spending. This will boost overall spending on jewelry and accessories. “However, intensifying competition from alternative retail channels, most notably e-tailers, will temper demand for products sold by direct sellers,” says Carter. For this reason, direct sellers will need to emphasize their personalized service to maximize sales.

IBISWorld industry Report Key Topics

Operators in this industry rely on a direct sales model, where salespeople are contracted by the company to market the product. Wages are commission based. Companies in this industry supply accessories, including jewelry and watches.

Industry Performance 
Executive Summary 
Key External Drivers 
Current Performance 
Industry Outlook 
Industry Life Cycle 
Products & Markets 
Supply Chain 
Products & Services 
Major Markets 
Globalization & Trade 
Business Locations 
Competitive Landscape 
Market Share Concentration 
Key Success Factors 
Cost Structure Benchmarks 
Barriers to Entry 
Major Companies 
Operating Conditions 
Capital Intensity 
Key Statistics 
Industry Data 
Annual Change 
Key Ratios

About IBISWorld Inc. 
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide.