By Abraham Dayan
Children's jewelry is a sector of the market that has been quietly growing even though it receives little media coverage and is a much smaller part of sales than the adult sector. Traditionally, the children's jewelry sector has been composed of christening bangles and bracelets and commemorative brooches. However, it is now branching out to include earrings and charm bracelets, among other items. Meanwhile, the phenomena that is Pandora jewelry, has come about due sales largely to girls in 12-18 age group.
Macy's department store in the United States has been selling a wide range of jewelry made of gold and other precious metals and set with diamonds and gemstones for many years. And Helzberg Diamonds is another example in the US market that stocks similar items, from stud earrings to necklaces and bangles.
Jewelry items are available for a wide range of ages – from three-year-olds all the way through to late teens. Indeed, one jewelry store owner in the New York area believes that it is such a strong market with high sales that he prefers to remain anonymous in discussing the subject.
"I have been selling children's jewelry for around 20 years and the figures are rising year after year. Frankly, I am delighted that there are relatively few stores specializing in these items. Profitability is good and these are clients who return time after time!
"The level of awareness among youngsters about metals and gems is incredible. The Internet, of course, helps them to do research and then they have a strong direction regarding what they want to buy and how much they should spend. There are few options for younger girls, for example, so demand for stylish, inspirational, high-quality jewelry is strong."
Another jeweler said the way to bring about sales is by having an inventory to satisfy a wide range of gift occasions, and not simply milestone celebrations. Such jewelry is usually in the lower price range, she said, of $100-$300, but profit margins are more than reasonable.
"It's all about selling large quantities. In the very nature of this market, children are not going to be able to afford to buy high-priced goods. That's why we offer very eye-catching designs at prices that will enable them to return to buy again. Of course, parents also buy gifts for their children and in those cases, we sell higher-priced items."
“You have to understand that this is a highly specific market,” said an Israeli jewelry marketer who sells via the Internet, particularly on sites such as eBay and Etsy. "You can't include these items in your general stock and expect them to sell in a one-size-fits-all type of approach. You have to understand what kind of items youngsters can afford and what's hot at any particular moment. It's about following trends on the Internet, on social media and also on popular TV programs.
"You can't accurately forecast what's going to be popular because youngsters can have very eclectic tastes. On the other hand, you find extraordinary demand for the same type of items, but if you overstock then you are left with lots of stock that you cannot shift because demand is very brittle. Fashions can change literally overnight, and whatever you bought has to be sold at a much lower cost, if it can be sold at all."
"I would say that stud earrings and adjustable bangles are the most in demand item over time," said the New York retailer. "And jewelry pieces that can be engraved and therefore given a personal touch are even better sellers and give retailers the chance to add sentimental value to a sale. Sterling silver children’s bracelets and bangles are always good sellers, and rose gold always works well because girls really like the shiny pink effect.”
Some jewelers, such as Ikecho Pearls in Australia, have started selling baby jewelry set with pearls. Such jewelry might, at first, be regarded as unlikely to be a hot seller for children since it is usually considered a more conservative look better suited for older women. But the fact that it is so different is what may differentiate it from other more traditional styles. It also gives parents a wider variety of choice when looking for jewelry to mark a milestone event.
Sterling silver enamel jewelry of the kind made by Norwegian firm Pia & Per is also popular with youths. One jeweler suggested that it was a mixture of bright colors and hard-wearing materials that makes such items a popular sell, adding it is critical to ensure that such items are set out at the appropriate height for children.
“If they see something pretty, they tell mum ‘I want it’ and then they get it,” she states. “I love when small kids come into a store because you know retailers will get the sale straight away if they have the jewelry at their eye level. They are very quick at making decisions about what they like – unlike older people. They tend to look around and 'consult' with their friends as well as checking on social media, so they know what's hot.
"Social media has replaced magazines and TV adverts which is how their parents were made of aware of new trends. Instagram, and so-called Instagram influencers, are incredibly important in setting trends. Purchases that youngsters make are almost instantly uploaded to Instagram to show their friends and to win their friends' approval. Today, everything is much more instant. It's important to know that brands are also targeting this market very strongly via Instagram. They collect enormous amounts of information about their target markets in this way.
"And that means that retailers also have to be there. Seeing what's new and popular and monitoring trends. What are kids talking about in the school yard? If retailers are not on top of generational habits and engaging with this audience, then they won't make the sales – or even know what they are supposed to be selling. It's complicated, of coursem because in the end it is the parents who are making the final decision, and they will be looking at issues such as price, quality, guarantees and if the item is appropriate for their child.”
This will likely be boosted by the increasing trend of enterprising children and teenagers boosting their pocket money by selling items online, thus enabling their peers to buy items without the interference or control of their parents. The e-commerce boom has created online marketplaces, such as eBay, Amazon and Etsy, and given millions the power to boost their income by selling used, unwanted or homemade goods, or goods sourced from low labor cost countries and then sold in Western markets. While these sites were originally for those aged 18 or older, the trend is gripping schoolgoing teens.
Many trading sites have been created that give them the ability to sell goods to their peers, such as Depop, a mobile shopping app. The phone-based trading site has more than 7,000,000 users worldwide, with about 15 percent being under the age of 16.
Looking forward, it seems clear that the children's jewelry market is set to expand further, particularly given the rising wealth of emerging markets and their tendency to follow Western societies. Consumer trends in general are targeting younger people, so anything related to children is set to increase in strength. Younger children and teenagers will want to imitate their idols and this trend is set to show a further rise.
