Jewelry Put into Numbers

1
State of Israel Ministry of Industry, Trade
Labour
Diamonds, Precious Stones and Jewelry
Administration
Research Economic Administration
Jewelry Put into Numbers
Heading towards the Jovella Exhibition
July 9, 2007
2
Jewelry Put into Numbers
Introduction and Key Findings The Jewelry
Industry in Israel Household Jewelry
Expenses Jewelry Purchase by Women, Special Survey
We would like to thank Howard Ross, Michal
Barel, Sigal Shidlovski, Merav Grinshtein. Moshe
Meitar and Idit Mordechai for their analysis,
writing, statistical processing and graphic
design of this publication.
3
Introduction and Key Findings
Introduction Jewels have been used by man as
decorative accessories since the dawn of time.
The value and uniqueness of a jewel are usually
determined according to the raw material it is
made from, its rareness and the level of
craftsmanship put into it. In ancient times, man
created jewelry out of wood, ivory, clams and
bones. In later times, the materials used for
making jewelry became costlier metals, such as
gold, silver and platinum, and also precious
stones, such as diamonds, agates and others. In
the past, jewelry (and other items) were used as
a means of payment for goods and services. In our
age, jewelry is a luxury product and its
significance goes beyond its primary decorative
purpose a jewel can serve as a symbol of status
and social attribution, a means for accumulating
possessions, an expression of art-work, etc. In
that light, the fact that jewelry carries a
considerable ceremonial significance in different
cultures is not surprising at all it symbolizes
marriage and engagement, as well as tribal
affiliation, and is regarded in many places as
lucky stones with extraordinary properties or
as a talisman providing protection from evil
spirits and such. The information in this
publication is divided into three chapters1) The
jewelry industry, household jewelry expenses and
jewelry purchase by women (special survey). The
statistical data in the different chapters was
gathered from the following sources Jewelry
industry A special processing of data from the
Industry Indices Compilation of Statistical
Findings, published by the Central Bureau of
Statistics in 1985, 1990, 1995, 2000 and
2005. Household jewelry expenses Key findings
of the Survey of Household Expenses, 2005, that
includes the total amounts spent by households on
goods or services, including jewelry 2). Jewelry
purchase by women - Key findings of a special
survey, conducted by the Economic Planning
Administration and the Diamonds, Precious Stones
and Jewelry Administration of the Ministry of
Industry, Trade Labor.
1) Data in the three chapters is taken from
different sources. Therefore, data from different
chapters should not be crossed and compared,
since it is based on different population
samples. 2) Data of the Central Bureau of
Statistics is based on jewelry and watches bought
for more than 100 NIS per item.
4
A joint survey of the Economic Planning
Administration and the Diamonds, Precious Stones
and Jewelry Administration was conducted
throughout April-May 2007. The survey included a
statistical sample of about a thousand women over
the age of 18 who had purchased jewelry in the
course of last year3). The purpose of this survey
was to create a basic data infrastructure,
depicting jewelry purchase trends, seasonality
and jewelry purchase scales a valuable
infrastructure unavailable until now for
decision- makers in the Ministry of Industry,
Trade Labor, as well as for manufacturers and
other businessmen in this field. The main tool
used for data capture was a designated
questionnaire, conducted via the telephone. The
questionnaire covered the following issues
Demographic information Who are the women who
buy jewelry and how is their behavior influenced
by various socio-demographic factors? What are
the preferences of target audiences and
sub-groups in the jewelry consumption market?
Consumer behavior What are the main
characteristics of women who purchase jewelry? Do
women buy jewelry for themselves or as a present
for others? Where do they buy jewelry? Why do
they prefer a certain jewelry store over another?
What are the popular purchase channels? Etc.
Psychological aspects What are the key factors
that motivate consumers to take a decision
regarding jewelry purchase? How can jewelry
manufacturers and sellers understand better
whats going on inside the heads of their women
target market? How does exposure to commercials
influence purchase tendencies? What are the
attitudes regarding different features of jewelry
products? Etc. At the same time, the survey
tracks the different characteristics of women who
buy jewelry in Israel, mapping and enriching
knowledge based on various consumption
aspects. The findings of this survey are of
significance for jewelry retailers who compete in
this market, as well as for whoever is intending
to enter this market in the future. In addition,
the survey presents information and insights that
can assist members of the jewelry industry in
their day-to-day activities and planning of
future steps in this field. This publication
summarizes the key findings out of the three data
sources mentioned above regarding the jewelry
industry, household jewelry expenses and patterns
of jewelry purchase by women
3) Survey sampled 2000 women, out of which 49
(about a thousand women) reported that they had
purchased jewelry in the course of that year
they were the ones who actually answered the
questionnaire. Survey included only women, since
they are the main consumers of jewelry either
buying jewelry themselves or having it purchased
for them.
5

• Key Findings
• The Jewelry Industry in Israel 4), 2005
• The jewelry industry, regarded as a traditional
  industry, is amongst the oldest industries in
  Israel. In 2005, total number of employees in the
  jewelry industry was 3,745 and industrial export
  summed up to 489 million dollars (out of which
  70 came from gold jewelry).
• The jewelry industry in Israel is characterized
  by having relatively small-sized factories and
  many small workshops. In 2005, the average number
  of employees per factory was only ten, and most
  factories (84) turnover was less than 5 million
  NIS. In addition, more than half (53) of the
  total yearly turnover comes form only 3 of the
  total number of factories.
• The relative weight of the jewelry industry in
  Israels total industrial export is between twice
  to four times higher than its relative weight in
  Israels total industrial turnover. In view of
  that, the industrys production is predominantly
  destined for foreign markets.
• The jewelry industry in Israel experienced a
  slowdown between the years 1995-2005, expressed
  in three key factors A decrease in the
  industrys number of employees, and a decrease in
  the industrys relative weight in Israels total
  industrial export and total industrial turnover.
• Household Jewelry Expenses, 2005
• In 2005, 16 of total household in Israel
  (312,000 households) purchased jewelry. Their
  total yearly expenditure on Jewelry was 950
  million NIS, 47 higher than the 645 million NIS
  that were spent on purchasing jewelry in 1997.
• A household (that purchased jewelry) spends 1.7
  of its total monthly expenses on jewelry.
• Households Average monthly expenditure on
  jewelry was 254 NIS5). It varied according to
  households socio-demographic factors 6), as
  follows
• - Muslims spent an average of 442 NIS per month
  on jewelry about twice as high as what Jewish,
  Christian and Druze households spent.
• - Average monthly expenditure on jewelry among
  native Jewish population7) was 241 NIS, compared
  to 194 NIS among new Jewish immigrants (who had
  arrived in Israel after 1990).
• - Average monthly expenditure on jewelry among
  population with an educational background of
  16 years and more was the highest 300 NIS,
  compared to 200 NIS among population with
  less than 12 years of education.

4) According to the Central Bureau of Statistics,
the jewelry industry includes gold-work,
silver-work and production of decorative jewelry
items the diamond industry is not part of it. 5)
These figures refer only to households who had
purchased jewelry. 6) Socio-Demographic factors
were determined according to head of
household. 7) Native Israelis or long-time
immigrants from before 1990.
6

• - No significant differences in jewelry expenses
  were found between different age groups, although
  population under 34 years old, spent, on average,
  a bit more than the other age groups 271 NIS
  per month.
• Households with an average monthly income of
  less than 6,500 NIS8), spent on average 134 NIS
  on jewelry less than half the amount spent on
  jewelry by households with an average income of
  over 6,500 NIS.
• Jewelry Purchase by Women 9), special survey
  2007
• 49 of women bought jewelry during the course of
  the year (about 1.2 million women10).
• Most jewels that were bought are relatively
  cheap about 60 of jewelry was bought for less
  than 200 NIS, and only 5 was purchased for an
  amount of over 2000 NIS. The relatively small
  amounts paid for jewelry might explain the
  surveys finding that women usually dont compare
  between jewelry prices and are not aware of
  relevant sales. Only 24 of women who had bought
  jewelry last year reported that they regularly or
  usually compare prices, and only 13 reported
  that they usually follow jewelry sales.
• Average jewelry item price was 573 NIS. The most
  expensive items were rings11) (907 NIS per item
  on average), followed significantly behind by
  bracelets (683 NIS) and necklaces (589 NIS).
  Finally, the cheapest of all items were the
  earrings, with an average price of only 283 NIS
  per item.
• The most common place for buying jewelry is a
  non-chain jewelry store. 37 of jewelry was
  purchased there, compared to 23 that was bought
  in chains. Other places in which women had bought
  jewelry were private non-chain stand (15),
  direct purchase from a jewelry designer (6),
  clothes or fashion stores (5) and department
  stores (4).
• Key reasons for purchasing jewelry in a
  particular store or chain were stores
  credibility and quality of its jewelry. These two
  reasons were mentioned by 52 of women as the key
  reason for choosing a particular place for
  jewelry purchase.
• The most popular item of jewelry is the necklace
  72 of women, who had purchased jewelry last
  year, had bought at least one necklace. Average
  yearly expenditure on necklaces was 650 NIS,
  which was about 38 of total yearly expenses on
  jewelry. The second most popular jewel was
  earrings 62 of women had bought at least one
  pair. However, average yearly expenditure on
  earrings was about 240 NIS (14). Rings and
  bracelets are less popular, but yearly average
  expenditure on rings was quite high (about 500
  NIS), which is 2 of total annual expenses on
  jewelry.

8) Including all sources of household income.
Taken from the households expenses survey,
conducted by the Central Bureau of Statistics in
2005. 9) Data regarding jewelry item price, place
of purchase, type of product, person for which
jewel is bought and reason for purchase, is based
on the answers of women who had bought 1-4
jewelry items in the course of last year. In
cases of more than 5 items, data was included as
well. 10) Number was estimated out of the total
population of women over 18 years of age in
Israel (taken from a manpower survey of the
Central Bureau of Statistics, 2005). 11) Not
including engagement or wedding rings bought by
women for themselves or for their spouses.
7

• The main reason for preferring a certain jewel
  over another was the jewels design. More than
  half of the women (53) mentioned it as the main
  guiding factor when choosing a jewel.
• About one third (30) of total jewelry items
  bought is fashion jewelry12) another one third
  (29) is jewelry made of gold about one quarter
  (23) is jewelry made of silver and the rest is
  jewelry made of mixed raw materials (including
  diamonds and precious stones), that were not
  bought as often. However, one difference was
  found in choice of product type according to the
  purpose for which it is bought Gold jewelry is
  more popular for presents, while fashion
  jewelry is more popular when buying for oneself.
  
• 69 of jewelry purchased by women was for their
  own use, 21 for family members and only 10 for
  their spouses or friends. In addition, most
  jewelry (58) was bought with no connection to a
  specific special event. The most common occasion
  mentioned in relation to jewelry purchase was
  birthdays (24).
• - 69 of women who had purchased jewelry are
  native Israeli Jews, 11 are new Jewish
  immigrants and 19 are Arabs 13). Average yearly
  expenditure on Jewelry among Arab women was
  2,680 NIS. Veteran Israeli Jewish women, in
  comparison, spent only 1,426 NIS on average.
• - 69 of women who had purchased jewelry are
  married, 24 are single and 6 are either
  widowed or divorced. Average yearly expenditure
  on Jewelry among married women was 1,950 NIS.
  Single women, in comparison, had only spent
  1,222 NIS on average.
• Women aged 45-54 spent the highest amount per
  jewelry item (740 NIS on average) compared to
  women aged 18-24, who had only spent 433 NIS on
  average.
• - Distribution of women who purchased jewelry
  across different income groups14) is quite
  homogenous (meaning that there is no significant
  difference in the number of women buying
  jewelry among the different income groups).
  However, among women with a household income
  of more than 10,000 NIS, the average yearly
  expenditure on jewelry was 2,747 NIS, compared to
  1,500 NIS in households with an income of less
  than the above amount.
• - 69 of total women who had purchased jewelry
  were working women, and their yearly
  expenditure was 1,862 NIS on average. The
  remaining 31 were non- working women, with a
  yearly jewelry expenditure of only 1,477 NIS.
• - About half of the women who had purchased
  jewelry are secular, about quarter of them are
  traditional and the rest are religious (14) and
  religious orthodox (10). Yearly expenditure
  of secular women was 1,535 NIS on average,
  compared to a yearly expenditure of only 873
  NIS on average among religious women.

12) Fashion Jewelry Jewelry that is
principally made out of inexpensive materials,
such as beads, plain stones, plastic, etc. 13)
New Jewish Immigrants after 1990. Arab Women
including Muslims, Christians and Druze. 14)
Income groups include less than 6,500 NIS,
6,501-10,000 NIS and more than 10,001 NIS per
household.
8
- In addition to the jewelry that the women had
bought themselves, 32 of women reported that
in the course of the previous year they had
received jewelry as a present from one of
their family members. Cost of these additional
presents, in addition to their annual average
expenditure on jewelry, was over 2,000 NIS 15) on
average.
15) About half of women who had received jewelry
as a gift, did not know or did not want to
disclose the total cost of the jewelry,
Therefore, the amount written is based only on
the answers of women who did report the total
cost.
9
The Jewelry Industry 16 in Israel
Data from Industry Indices, 2005
218
Number of Factories
3,745
Number of Employees
m517
Total Jewelry Turnover
0.8
Proportion of Jewelry Industry Turnover to
Israels Total Industrial Turnover
Total Jewelry Export
m489
Export of Gold Jewelry
m337
Proportion of Jewelry Industry Export to Israels
Total Industrial Export 17
1.9
16) The jewelry industry includes gold jewelry,
silver jewelry and production of decorative
jewelry items. The diamond industry is not part
of it. 17) Total excluding diamonds.
10
Chart 1 - Factories Distribution according to
Turnover Volume
25-50 million NIS 2
10-25 million NIS 4
Over 50 million NIS 3
5-10 million NIS 7
100
Under 5 million NIS 84
Chart 2 - Factories Distribution according to
Turnover Volume And Contribution to Industrys
Total Employment and Turnover
Annual Turnover
Under 5 million NIS 5-10 million NIS
10-25 million NIS 25-50 million NIS
Over 50 million NIS
Relative contribution to Industrys Total
Employment
Relative contribution to Industrys Total
Turnover
11
Chart 3 - Average Number of Employees according
to Turnover Volume
Number of Employees
Average number of employees per factory 10
????? ?????? ????? - 10
Yearly Turnover In millions of NIS
Chart 4 - The Jewelry Industrys Turnover, 1985
- 2005
Turnover in millions of current dollars
Relative weight of industry in total
industrial turnover
Million of dollars
12
Chart 5 - Number and Proportion of Employees in
the Jewelry Industry, 1985 - 2005
Number of Employees Employees in
jewelry industry out of Israels total industry
employees
Number of Employees
Chart 6 - Jewelry Industry - Export, 1985 - 2005
Export in millions of current dollars
Relative weight of industry in Israels total
industrial export
Million of dollars
13
Household Jewelry Expenses 18
Data from Household Expenses Survey, 2005 19
Total households that purchased Jewelry
312,000
950 million
Total yearly households expenditure on Jewelry,
in NIS
Average monthly expenditure on Jewelry Per
household
254 NIS
Proportion of households that had purchased
Jewelry
16
Proportion of Jewelry expenditure out of
households total monthly expenditure
1.7
18) Data is taken from the Central Bureau of
Statistics survey of household expenses. The data
refers to both jewelry and watches bought for
more than a 100 NIS per item. 19) Data refers
only to households who had purchased jewelry
during 2005.
14
Chart 7 - Jewelry Expenditure per Population
Sector
Average monthly expenditure
Proportion of buyers from this sector
NIS
NIS 442
NIS 234
NIS 196
NIS 191
Jews
Druze
Christians
Muslims
Chart 8 - Jewelry Expenditure according to native
/ immigrant population
Average monthly expenditure Proportion of
buyers in population group
NIS
Native Israeli
Immigrated after 1990
Data in this chart refers only to Jews. Origin
is determined according to the head of the
household. Native Israeli Including
long-time immigrants from before 1990.
15
Chart 9 - Jewelry Expenditure according to
Educational Background
NIS
Years of education
Level of education was determined according to
the head of the household.
Chart 10 - Jewelry Expenditure according to Age
NIS
271 NIS
257 NIS
252 NIS
236 NIS
Age
Age was determined according to the head of the
household.
16
Chart 11- Jewelry Expenditure according to
Households Income
361 NIS
303 NIS
219 NIS
134 NIS
NIS
Including all sources of household income. Data
is taken from the Central Bureau of Statistics
survey of household expenses, 2005.
17
Jewelry Purchase by Women
Data from special survey, 2007 The Economic
Planning Administration
49 of women purchased jewelry in the course of
last year (1.2 million Women) 20
Women had bought on average 5.2 jewelry items per
year.
69 of jewelry bought by women was for their own
use.
58 of jewelry was purchased with no connection
to any special occasion, and only 42 were bought
for events such as birthdays, holidays, etc.
37 of Jewelry was bought in non-chain jewelry
stores.
20) Figure was estimated out of the total
population of women in Israel over the age of 18
(taken from the Central Bureau of Statistics
survey of household expenses, 2005). Charts
12-14, 16 and 18-19 are based on the answers of
women who had bought 1-4 jewelry items in the
course of last year. In cases of more than 5
items, data was included as well.
18
Chart 12 - Expenditure Distribution for a Single
Jewelry Item
Proportion
Average price per jewelry item 573 NIS
NIS
Chart 13 - Distribution of Jewelry Expenditure by
Women According to Jewelry Type
Earrings - 14
Necklace - 38
100
Ring - 29
Bracelet - 19
Necklace expenditure includes 2 spent on other
jewelry items such as pins and medallions.
19
Chart 14 - Where do Women Shop for Jewelry?
T.V / Internet Shopping Channel
Jewelry Factory
Duty Free
Diamond Bourse
Agent / Salesman
Department Store
Clothes or Fashion Stores
Direct Purchase from a Jewelry Designer
Non-chain Private Stand
Jewelry Chain Stores
Non-chain Jewelry Store
Does not add up to 100 due to other shopping
location, not included in the chart, such as gift
shops and cosmetics stores.
Chart 15 - Key Reasons for Choosing a Particular
Jewelry Store
Level of comfort in purchase 3
Possibility of item replacement / refund 3
Possibility of a tailored order 3
A well-known and experienced store or chain 3
Selection of jewelry 19
Location inside a shopping mall 2
100
Quality of Jewelry 26
Stores credibility 27
Low prices compared to other stores 15
Question referred to choice of a jewelry store
or chain.
20
Chart 16 - Distribution of Jewelry Purchase
according to Product Type
Gold 29
Fashion Jewelry 30
100
Gold embedded with diamond/s 3
Gold embedded with precious stones 4
Silver 23
Silver embedded with precious stones 7
Combination of silver and gold 4
Fashion Jewelry is jewelry that is
principally made out of inexpensive materials,
such as beads, plain stones, plastic, etc.
Chart 17 - Key Reasons for Choosing a
Particular Jewelry Item
Hand-made jewel 1
A comfortable-to-wear jewel 6
A jewel that would last for a long time 2
A jewel that is currently fashionable 4
Jewels Price 6
Investment 2
Jewels Design 53
100
Jewels Uniqueness 12
Jewels Quality 15
21
Chart 18 - Why Do Women Buy Jewelry?
For Mothers Day 1
For the Holidays 5
For a Wedding Anniversary 1
For a Birthday 24
100
With no-connection to any special event 58
For a New Birth 1
For Marriage, Engagement 8
For a Bar/Bat Mitzvah 2
Not including engagement or wedding rings
bought by women for themselves or for their
spouses.
Chart 19 - For Whom Do Women Buy Jewelry?
For friends 6
For family members 21
For themselves 69
100
For their spouse 4
Calculated from total jewelry purchases,
meaning 69 out of jewelry purchased by women in
the course of last year were bought for their own
use.
22
Chart 20 - Proportion of Jewelry Purchase by
Women According to Jewelry Type
Earrings
Necklace
Ring
Bracelet
Total women who had bought specific item last
year (out of the total number of women who had
bought jewelry items).
23
Jewelry Purchase by Women Socio-Demographic
features
1) The total yearly expenditure was detailed by
86 of women who had purchased jewelry. This
expenditure includes jewelry bought by women for
other people, but does not include jewelry that
women had received as gifts. 2) Arabs including
Muslims, Christians and Druze. 3) Total monthly
income from all sources of the entire family.