Key Insights from the 2025 Jewelry Industry Survey: A Comprehensive Overview

Unveiling the Gems: Essential Insights for Modern Jewelers

High Earners Thrive in the Jewelry Sector

The top tier of jewelry store proprietors continues to experience substantial financial success. Over one-fifth of those surveyed reported annual earnings exceeding $250,000. These high-performing businesses typically possess a long-standing presence, often located in downtown areas of smaller cities, with a strong emphasis on bridal jewelry. A notable demographic trend within this prosperous group is the predominant male ownership, constituting 77% of this cohort compared to 61% overall. Furthermore, a small but significant portion of respondents (4%) indicated earnings between $500,000 and $1 million, with a select few surpassing the $1 million mark.

The Growing Influence of Elite Clientele

The significance of high-value customers in the jewelry business is becoming increasingly pronounced. A substantial number of jewelers observe a concentration of wealth among their clientele, with nearly half of all respondents noting that their top 5% of customers contribute to 20-30% of their total sales. This phenomenon mirrors broader economic patterns of wealth consolidation. To effectively address this trend, jewelers are encouraged to enhance customer service, cultivate strong relationships, implement targeted marketing, and offer exclusive, high-end products.

Online Platforms Emerge as Primary Competitors

When asked to identify their most formidable competitors, online retailers were cited most frequently by jewelers, narrowly surpassing local independent jewelers. This was followed by chain stores, large-format retailers, and brands engaging in direct-to-consumer sales. Luxury retailers outside the jewelry sector and television shopping networks also featured on the list. While the competitive landscape has shifted slightly since 2021, the dominance of online competition remains a consistent factor, with chain stores improving their competitive standing and direct-to-consumer brand sales appearing to stabilize.

Leading Brands in Jewelry and Watches

Allison-Kaufman maintained its leading position as the top jewelry brand for the second consecutive year, with Gabriel & Co. and Stuller ranking second and third, respectively, based on jewelers' selections of their best-performing lines. In the watch segment, Citizen once again secured the top spot, followed by Rolex and Seiko. Consistent with previous years, watch brands heavily populated the list of desired additions to jewelers' inventories, with Rolex being the most sought-after brand.

Tariff Impacts on the Jewelry Supply Chain

The implementation of tariffs has had a discernible effect on the international nature of the jewelry trade. Almost half (46%) of survey participants reported that tariffs primarily impacted finished goods, while diamonds (13%), non-jewelry supplies and packaging (10%), and colored gemstones (3%) were also affected. Notably, nearly one-fifth of jewelers stated that the tariffs had no impact on their operations.

Strategic Markdown Practices and Inventory Management

Almost half (47%) of jewelers indicated that they reduce prices by a third or more for items deemed "underperforming" in their inventory. However, a significant proportion (37%) admitted to having 40% or more of their inventory exceeding one year in age, suggesting a reluctance among many to acknowledge or address slow-moving stock promptly.

Addressing Concerns Regarding Lab-Grown Diamond Prices

Only a small fraction (6%) of jewelers reported frequent complaints about the declining prices of lab-grown diamonds (LGDs), a figure consistent with the previous year. However, 20% noted occasional complaints, often when customers discovered friends purchasing similar-sized LGDs at significantly lower prices shortly after their own purchases. The majority of jewelers effectively manage these concerns through upfront education, emphasizing that LGDs typically lack resale value and that prices are likely to continue decreasing, similar to technological products. Transparent disclosure and managing customer expectations are key strategies to prevent widespread dissatisfaction.

Dual Challenges: Economy and Workforce

The most significant challenges identified by jewelers were a tie between recruiting skilled employees and the prevailing economic uncertainties, together accounting for 50% of the responses. Staffing difficulties also emerged as the primary source of frustration, prompting some to consider exiting small business ownership.

Experience Valued in Jewelry Store Leadership

Leadership within the jewelry retail sector is largely the domain of seasoned professionals. More than half (54%) of the survey respondents were over 60 years old, with an average age of 62 and a most common age (mean) of 68, indicating a mature and experienced demographic at the helm of many jewelry businesses.

Jewelers' Cautious Stance on Artificial Intelligence

Despite significant investments and widespread discussions about artificial intelligence (AI) in other sectors, jewelers largely remain skeptical. Only 22% reported using common large language models, such as ChatGPT or Gemini, on a daily basis. Forty percent have yet to experiment with these technologies, while the remaining 38% use them infrequently or not for business purposes, reflecting a conservative approach to AI adoption within the industry.