Understanding the customer needs, competitors’ strong and weak points is the basis of marketing. Without it, all efforts of a company are fruitless: mapping the development strategy, expanding the product range, improving the distribution system…
The RusJewellerExpert analysts conducted a traditional trade visitor poll at JUNWEX St. Petersburg 2009. It included 530 respondents practically from all Russian regions. The poll questions mainly concerned the past year’s results, future expectations and specific aspects of jewellery retail in the crisis period.

During its study, RusJewellerExpert tried to find out the reaction of jewellery shops to the situation and anti-crisis measures taken by them. Partly the answers were predictable, but some of them were surprising. 48% of the interviewed sales companies noted that they were not taking any anti-crisis measures, which coincides with the polls conducted before the exhibition. 43% of the respondents noted an increase in the average purchase amount compared to the previous year. Eclectic assessments of the crisis influence on sales in different regions were presented by RusJewellerExpert in its newsreels in December and according to the New Year sales in January (www.rjexpert.ru). On the eve of the exhibition its Secretariat, based on opinions of renowned members of the Jewellery Trade Club, pointed out at the industry site a decrease in the average purchase amount alongside an increase in the total number of consumers. The difference in the opinions on the average purchase amount might have been conditioned by increased manufacturer prices and respective increase in retail prices. The opinions on retail customers also differed: one half of the polled retailers said that their number versus last year grew by 18%, while the other half said, on the contrary, that this number decreased by 17%.
In any case, the majority of retailers assessed their work profitability in 2008 as satisfactory, and only the lesser part of retailers noted decreased sales in October-November.
Last December was a favourable month according to the overwhelming majority of the respondents. The results from the poll of retailers (over 62%) and manufacturing enterprises (74%) evidence an increased interest in the products of the lower price segment, as well as insufficient supply of products with large diamonds and diamonds themselves.
Manufacturers’ dissatisfaction with decreased orders before the New Year holidays is attributed by the respondents to saturation of the retail stock (32%). In the situation full of rumours about the crisis, retailers have changed their attitude to selecting the product assortment. The selection has become more demanding evidencing retailers’ responsibility to suppliers who bear serious credit burden. The motivation for decreasing payments for the previous supplies was clearly expressed by one of the respondents “In case of any complaints retailers are ready to return the unsold products…”
Despite the crisis, retailers still have an interest in novelties: this is confirmed both by the polls and results of the trade visitor accreditation. The number of regional trade representatives at the exhibition remained practically the same compared to last year. The exhibition revealed a new group of trade visitors which by 18-20% changed the usual set up of retailers.
The answers to the question “What is the motivation of consumers buying jewellery, in your opinion?” allowed to determine for whom consumers buy jewellery. The prevailing answer was jewellery purchase for oneself (55%), while those who purchase jewellery for a present make up 48% of all consumers in shops.
This year 66% of trade representatives for the first time indicated that the famous brand influences on product sales. The importance of this factor was also confirmed by the visitor poll (40%). RusJewellerExpert expects the brand significance not only to continue growing, but also to play a decisive motivating role.
The following tendency can be clearly traced: from November 2008 to February 2009 the consumer preferences have changed in selection of jewellery stones. The demand for diamonds has grown (by 49%): probably the promotional campaigns stimulating investments in gold and diamonds have yielded positive results. Colour precious stones of Group I are less popular now, many decided to choose cubic zirconia (25%), topazes (9%) and pearls (4%).
Despite the fact that many domestic manufacturers decided to produce silver products, the study shows that consumers primarily prefer gold jewellery, although sales of silver jewellery have grown versus last year.
According to trade representatives, in whole Russia about 10% of consumers prefer products up to 3000 roubles, the demand is equal (approximately 20%) for products up to 5000 roubles and up to 10,000 roubles, jewellery in the price segment up to 30,000 roubles is purchased by 15% of consumers and only 6% of consumers choose exclusive expensive products costing over 50,000 roubles. Jewellery costing from 30,000 to 50,000 roubles is purchased by 5% of consumers. 24% of trade visitors noted the closure of several shops of large jewellery networks such as 585 and Yashma-Zoloto. The February poll gave the following explanation to this: the discount policy has become outdated, and persistent offers of discounts now result in consumers’ questions regarding the product quality.