Jewelry Shop

Industry Data

The jewelry industry is very conservative and is characterized by slow inventory rotation.  This, in addition to fashion and trend changes, results in "dead inventory".

 

Industry Sub-Division

  • Very prestigious stores- jewelry these stores will be made of 18K gold, inlaid with diamonds, hand made, and designed by well-known designers.
  • Prestigious stores- these stores carry industrially manufactured prestigious jewelry.
  • Mid-level stores- jewelry manufactured industrially locally or abroad, usually made of 14K gold.
  • Small and medium sized stores- relatively cheap and simple jewelry of local industrial production.
  • Stores also carry watches and other accessories. Most stores also offer jewelry repair and trade services, gem inlaying, and replacement straps and batteries for watches.
  • Hawkers supplying cheap, low quality jewelry.
  • Stores selling artistry, ritual objects, and designer jewelry.

 

Customers:

Customers include tourists and locals.

Israeli customers are segmented primarily according to income level and financial status.

The industry is highly affected by tourism. Israeli jewelry is highly appreciated abroad, mainly due to the significantly lower price in comparison to Europe and the United States.

 

Competition:

Jewelry stores of various levels located in the area and beyond it.

 

Vendors

Most jewelry sold in Israel is locally manufactured. Some jewelry storeowners independently import jewelry, in part, by visiting at exhibitions abroad.

 

Marketing Resources

Marketing to the Israeli public:

Strongly reliant on reputation.

Location of the store in trade areas, according to target market’s income level.

Direct marketing to quality groups.

Marketing and public relations in the media- mainly in press.

 

Tourist marketing:

Locating the store in tourism areas- hotels or areas located around tourist attractions.

Advertising in hotels and signposts and in tourist magazines.

 

Entry Barriers:

The industry’s main barrier is the high investment in inventory costs and appropriating the construction according to security requirements.

 

Industry Revenue and Profitability

Yearly revenue per business (in NIS) and raw profit percentages, for 2003:

 

Raw profit percentage including watches

Raw profit percentage from jewelry only

Very prestigious store

45-50

45-50

 Prestigious store

33-42

33-39

Good quality store

37-42

37-42

Medium sized store

30-36

27-33

Small store

27-42

27-33

 

Prestigious stores

Good quality stores

Medium sized stores

Small stores

Tax year

2,200 – 3,240

1,360 – 2,220

821 – 1,366

548 - 819

2002

2,300 – 3,375

1,415 – 2,298

850 – 1,414

567 – 848

2003

 

Note: This data does not include direct sales conducted by designers. Each designer prices his products according to artisanship level and demand.

 

Typical Terms of Payment

CUSTOMERS: Payment is usually conducted by credit card. Some stores allow up to 3 months or more of credit for large purchases.

VENDORS Payment terms depend on relationship and familiarity with the business, and credit may be given for 3-6 months.

 

Licenses and Certifications:

Local authority licensing is required.

 Licensing is stipulated upon accordance with police conditions, and authorization. A store with inventory valued under 150,000 NIS is exempt from a police permit.

 

Insurances:

Business and inventory insurance for all risks, third party insurance, and employer’s liability insurance. In addition to the above, an insurance agent should be consulted in regards to the need for additional insurance

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