Still concerned about a lack of cash flow and the economy in general, consumers remain hesitant to make non-essential purchases, the latest study from the Jewelry Consumer Opinion Council (JCOC) shows, according to www.nationaljewelernetwork.com.
The study, titled "When Will You Purchase Again?" was conducted between April 16 and 21 and was taken by 787 JCOC U.S.-based panelists. It was a relaunch of a study originally deployed in May 2009 with the goal of measuring consumers' purchasing sentiments annually.
The 2010 study showed that 96 percent of respondents said they had significantly cut back on their purchasing of non-essential products and services, up slightly from 95 percent in 2009.
The main reason survey-takers said they were skipping non-essentials: uncertain cash flow, cited by 20 percent of respondents. Having too much debt and being worried about the economy garnered results of 17 percent each as the main reasons for cutting back on non-essential spending. Unemployment was an issue for 11 percent who said that they or their spouse had lost their jobs.
So, with all the concerns over cash flow and the economy in general, what will get survey-takers shopping again?
The study shows that the greatest percentage of respondents, 24 percent, said paying off their debt would get them spending on non-essentials, followed by the economy improving, at 19 percent, and being able to put money into savings again, at 12 percent.
Unfortunately for retailers, the study shows that the majority of respondents (57 percent) have no idea when they will feel free to buy non-essential products and services, and the second-greatest percentage of respondents, 13 percent, said they would wait more than a year to crack open their wallets for non-essentials.
While the study shows that respondents are still holding on tight to those discretionary dollars, they do have an idea of what they would like to spend their money on when they begin buying non-essentials again.
Apparently, the recession has left some consumers with the urge to get away for a while: Vacation/personal travel topped the list, at 21 percent. Buying a car was important for 18 percent of those surveyed, with 9 percent indicating they would buy a used car, and 9 percent indicating thy would buy a new car.
Home furnishings and going out to a nice dinner were the next on the list, tied at 10 percent, and 8 percent said they would select a new computer as their first non-essential, post-recession purchase.
Seven percent of respondents said fine jewelry would be their first purchase when they start spending on non-essentials again, and only 1 percent said their first purchase would be a fine watch.
"When Will You Purchase Again" is available to download for free here.
The JCOC is an Internet-based market research service for the gem, watch and jewelry industries. It is the consumer research division of Paso Robles, Calif.-based MVI Marketing.
