Observations

RAPAPORT… There’s a rumor going around that the U.S. market is dead…never to be revived.  While the U.S. has certainly hit a major economic pothole, it is far from over. Signs point to an economic recovery — a strengthening stock market, a stabilizing housing market and a gross domestic product that is expanding. On the other hand, it is taking longer than expected for these positive indicators to trickle down to the average Joe on the street — unemployment remains high, as do energy and food costs. Yet the American consumer is not deterred.

The U.S. economy is built on consumerism, and shopping is a national pastime, a social event. People are starting to spend again. However, that spending is not the same as in previous years. It is more controlled, more thought out, as opposed to the devil-may-care, have-it-at-any-cost attitude that previously prevailed. More notably, people are saving money.

After the Great Recession — probably better named the Great Economic Scare — U.S. consumers are emerging with a new attitude: They are considering need versus want and quality versus fad. A top priority now is value, which does not necessarily mean inexpensive; it means getting your money’s worth. There are plenty of people with discretionary income. While they may not want to flaunt their wealth, they still want the luxuries and comforts that come with having money, and that includes diamond jewelry. Those who can will, of course, buy higher-ticket items; others will buy what they can afford. Providing well-designed choices that are value oriented and wallet friendly is key. In the final analysis, the U.S. is still the largest consumer market of diamonds — even during the downturn in the economy, the U.S. still consumed more diamonds than the gangbuster growth markets of India and China combined. With that kind of volume, one must believe in the U.S. market’s ability to move forward and thrive in the future.