Jewelry, Watch, Precious Stones & Metals Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 6,500 Jewelry, watch, precious stone, and metal wholesalers purchase bulk quantities of merchandise from manufacturers and other intermediaries and distribute these products to retailers, ecommerce operators, jewelry stores, jewelry makers, and other businesses. The jewelry supply chain is a complex global operation that can involve numerous players, including mines, cutting and polishing centers, trading hubs, importers, trade shows, and dealers. Wholesalers may specialize in a particular product, such as loose diamonds, or offer a broad range of merchandise.
Sensitive to Economic Conditions
The jewelry, watch, precious stone, and metal wholesale industry is sensitive to changes in downstream retail activity and consumer spending, which are influenced by economic conditions.
Complex Supply Chain and Regulation
The complex and controversial nature of the jewelry supply chain has led to a demand for more transparency and increased governmental scrutiny and regulation.
Industry size & Structure
The average jewelry, watch, precious stone, and metal wholesaler operates out of a single location, employs 5-6 workers, and generates $7-8 million annually.
- The jewelry, watch, precious stone, and metal wholesale industry consists of about 6,500 firms that employ about 34,6000 workers and generate $51 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 51% of industry revenue.
- Large companies with jewelry, watch, precious stone, and metal wholesale operations include Quality Gold, Stuller, Rio Grande (Berkshire Hathaway), and JewelryBund.
- Large firms may be vertically integrated and have some manufacturing and/or consumer retail operations.
Industry Forecast
Jewelry, Watch, Precious Stones & Metals Wholesalers Industry Growth
Recent Developments
Oct 18, 2024 - Jewelry Prices Up
- Jewelry and watch prices were 5.8% higher in September 2024 compared to the previous year, according to the Consumer Price Index by the US Bureau of Labor Statistics (BLS). Prices for the category were up 4.6% from the previous month. Employment by jewelry, watch, precious stone, and metal merchant wholesalers fell 6.7% in July 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Average wages for the nonsupervisory employees in the industry grew 11.5% in July 2024 year over year, reaching $29.30 per hour. Producer inflation for miscellaneous durable goods merchant wholesalers, which includes jewelry, watch, precious stones, and metal wholesalers, was up 1.4% in July 2024 compared to a year ago, according to producer price data released by the BLS.
- The US jewelry, watch, precious stones, and metals wholesalers industry is projected to grow at a CAGR of 0.93% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected industry growth rate is slower than the overall economy‘s anticipated growth. The report noted that retail and wholesale trade sectors are driven by consumer spending along with business and government expenditures. Consumer confidence is expected to improve in the forecast period, which bodes well for the retail and wholesale industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. On a positive note, inflation is subsiding, which supports a moderate increase of real disposable income by about 1.9% in 2024 and 2.4% in 2025. Production and distribution systems have improved with many imbalances diminishing, according to the forecast.
- More jewelry businesses closed in the second quarter of 2024, according to data from the Jewelers Board of Trade (JBT) reported in Rapaport. During the three months ending June 30, 226 companies exited the sector, a 30% increase from the same quarter a year ago. The total number of companies active in the US in the second quarter was 22,760, which is 205 fewer than the previous quarter. Retailers accounted for 17,260 of the industry, a decline of 3.6% year over year. Meanwhile, wholesalers decreased 3% to 3,305, and manufacturers fell 4% to 2,195 of the total. Of the firms that exited the sector, one went bankrupt, 37 closed due to mergers or takeovers, and 188 closed for other reasons. The number of new businesses during the quarter dropped to 83, compared to 116 a year earlier.
- US jewelry demand increased 6.5% in July 2024 compared to the previous year, according to Tenoris. Products with high growth in the month included dangle earrings (70%) and tennis bracelets (30%). Consumer demand for natural diamonds also grew during July, with revenue from loose and finished natural diamond jewelry sales up 8.5%. Lab-grown diamond jewelry also performed well year over year, with revenue from sales up 52% in July.
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