While recent times have seen difficult economic conditions with stores needing to deal with a decline in discretionary spending, there is a silver lining!
Cost of living pressures, interest rates, and a troubled housing market have all led to declining consumer confidence, and in these circumstances, spending on jewellery and watches – a luxury and not a necessity – is often first on the chopping block when it comes time to budget.
This leaves retailers facing an important ultimatum – stay the course and hope for smoother sailing or experiment with new stock.
If you’re reading this and believe you belong to the second camp – how much consideration have you put into your sterling silver offerings targeting a more price-conscious customer?
Faithful and reliable
According to recent research from The Silver Institute, 52 per cent of jewellers who completed a US-based survey said their silver jewellery sales increased in 2022.
Survey respondents said the best-selling opportunity for silver jewellery was with the demographic of ‘self-purchasing’ women (34 per cent). In comparison, 26 per cent said silver jewellery was purchased predominantly as a gift.
The most important figure was as follows: 78 per cent of retailers said silver jewellery was either essential or very important to their business.
A further 88 per cent of retailers reported that they were optimistic that silver sales would increase in the coming year.
This demand is far from a new phenomenon – in fact, about as far back as you can go, you’ll discover cultures that have revered silver adornments.
Approximately 6,000 years ago in Mesopotamia, silver was used as a currency. This was before coins were adopted as the standard, so silver was traded by weight or in the form of rings.
Silver was also popular in Ancient Egypt. The Egyptians adored rare and exotic gemstones, and travellers would acquire silver along the trade route for the prized lapis lazuli of Central Asia.
In Ancient Roman and Greek civilisations, silver was vital to the currency in the form of minted coins. Pliny the Elder, a Roman author and philosopher, extensively documented the importance of silver to the culture of the day.
“It is a remarkable fact that the art of chasing gold should have conferred no celebrity upon any person, while that of embossing silver has rendered many illustrious,” he wrote.
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Why silver?
In its purest form, silver is soft and malleable and subsequently is perfect for moulding into any form of jewellery.
Archaeologists studying Mesopotamia have unearthed figurines and jewellery indicating that silver with high purity was used, yielding quite soft objects.
To improve the sales of silver jewellery at your store, you must educate your customers on the following advantages.
Sterling silver has the classic silver ‘sparkle’ and improves the quality of the metal – so there’s no reason for customers to feel that they are getting a ‘watered down’ product.
Sterling silver is ideal for an elegant or ‘classy’ look, long-lasting and perhaps most importantly, more affordable than other metals.
It’s not just the price point and innate beauty of silver jewellery that makes it a wise choice for retailers – it’s also in style.
According to research by Depop, an e-commerce company based in London, searches for silver jewellery increased by 300 per cent month-on-month earlier this year.
“After years as stalwart gold jewellery devotees, it's time to try the metal's subtler, sleeker sister: silver,” writes Daisy Murray of Elle.
"Not since skinny jeans' much-publicised demise have we felt so torn by a sartorial shift, but after seasons of hints on and off the runway, we're willing to try and swap out at least some of our gold for silver.
Less glam and more grit certainly does feel very 2023 to us; in fact, we think it's the lack of flash that has everyone drawn to silver in the first place.”
What do jewellers think?
Zoe Richardson owns Zoe Alexandria – a Sydney-based business that takes pride in restoring overlooked jewellery into timeless pieces.
She says silver jewellery is always popular with her customers for many reasons.
“Silver is the most popular white metal with my customers, followed by white gold,” she says.
“I think it’s mostly popular due to its affordable price point and the fact that most people recognise silver as a metal, but a lot of them don’t really know much about white gold.”
Nearly 900 kilometres away in Melbourne, Rebecca Shearer, owner of Scarlett Jewellery Label, says that silver jewellery is an ideal offering to price-sensitive customers.
“Silver presents an opportunity for lower-priced, more affordable pieces, which can be worn more casually,” she says.
In South Australia, Simone Walsh, a jewellery designer and founder of Simone Walsh Designs, says that the natural qualities of silver jewellery shine bright when compared with other metals.
“Sterling silver jewellery is an excellent, high-quality choice in most circumstances,” she says.
“The metal will not rust or perish; plus, if you look after your jewellery, it will look great well into the future. You should even be able to pass your silver jewellery on to future generations.
“On top of those benefits, having silver jewellery in your collection will add to its style, value, longevity and versatility. Silver jewellery is a truly excellent choice.”
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| Lucy Quartermaine | Eva Remenyi |
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| Kasun London | Kasun London |
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Youth movement
That same by The Silver Institute study found that of those purchasing silver jewellery, 52 per cent of customers were between the age of 20-40.
The second most prominent demographic was those younger than 20, who comprised 17 per cent of consumers. Research has suggested that today’s youngest consumers value this personalisation more than previous generations.
One study found that 62 per cent of ‘Gen Z’ consumers surveyed said they would spend more on products emphasising personalisation. Another study found that 75 per cent of Gen Z consumers are more likely to purchase a product if it can be customised.
Because of its soft and malleable nature, silver is an ideal opportunity for retailers to offer personalised pieces targeting younger consumers.
For retailers and consumers, the attractive price is a significant additional advantage of this strategy.
For an example of a brand that has capitalised on the advantages presented by personalised silver jewellery, look no further than Pandora.
Pandora is the world’s largest mass-market jewellery brand and offers an extensive range of silver products.
David Allen, Pandora’s outgoing Pacific and Greater Asia managing director tells Jeweller that Generation Z holds a refreshing view of personalisation in jewellery.
“When we think of personalised jewellery, we think engraving, initials, birthstones, etc. This type of jewellery has a place in the assortment for shoppers of all ages,” Allen explains.
“Gen Z, however, are looking for expression of their individual identity. This relates to the physical product as well as in alignment of values with the brand.”
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| L to R: Uno De 50, Thomas Sabo, Pandora |
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Sceptical?
Earlier this year, Jeweller investigated whether celebrity endorsements significantly impact sales for retailers, and the findings were surprising.
While many jewellers were sceptical of the influence, others insisted that sales soon follow when a ‘trendsetter’ wears a specific jewellery style.
Natasha Chipman owns Natasha Schweitzer, with stores in Sydney, Brisbane, and Melbourne, boasting a wide range of silver jewellery.
“Celebrities frequently wear Natasha Schweitzer jewellery - most recently Taylor Swift, Katie Holmes, and Miranda Kerr. For our brand, we look at celebrities as more of a branding exercise rather than a direct sales driver,” she says.
Sydney-based Enesea was launched in 2019 and carries a range of silver jewellery.
Founder Nikki Ehrlich says that celebrity endorsement has been an essential factor in the expansion of the business.
“Whenever an influencer posts an Enesea piece, we see a spike in sales for that particular item,” she reveals.
“Celebrities and influencers wearing a certain brand or style of jewellery give the business or brand more ‘credibility’ in the eyes of consumers.”
Don’t miss the boat
These consumers, who might be feeling the crunch now more than ever, present an opportunity for you to review your product offering and meet new needs.
Silver jewellery is increasingly popular with younger consumers, enjoying the benefits of frequent celebrity endorsement – a critical factor in the purchasing process for that demographic.
Silver is also well suited for personalised and custom designs, which is also increasingly popular with young consumers.
Beyond the innate beauty of the metal, its popularity with young consumers, and its appealing price point – it’s also having a moment in terms of style.
“After years spent praising the wonders of gold jewellery, silver jewellery has emerged — or re-emerged— as the prominent metal of late,” writes Julia Marzovilla for Marie Claire.
“This season, I'm not only drawn to more classic articles of clothing but jewellery too. The silver pieces in my jewellery box — the pieces I’ve had since my teenage years or even before — are the ones I reached for this season, and I wasn’t alone.
“Silver jewellery has been hailed as one of 2023’s biggest jewellery trends, both on the runway and off.”
Many retailers and consumers have shied away from silver jewellery, fearing it’s the ‘cheap’ alternative to gold or platinum.
There are two sides to every story; however, what may have been considered ‘cheap’ might now be considered ‘affordable’ in light of certain adverse economic conditions.
Retailers need to be flexible and willing to change with the times. While consumers still have that timeless desire to adorn themselves with dazzling jewellery, budgets are constrained – leaving silver jewellery as the ideal candidate to meet these challenges.
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