Editors

Middle class problems

EditorsJun 11, 2015

Middle class problems

Whether it’s coincidence or kismet, as soon as I slated this post for Friday’s newsletter, I began reading stories addressing the issue that’s been on my mind for some time: the shrinking of the middle class.


On Monday, Bloomberg published a story quoting Johann Rupert, the executive chairman of Richemont (Cartier, Van Cleef, Jaeger-LeCoultre, etc.) who regularly ranks among the world’s billionaires.

In a speech at a luxury summit in Monaco, Rupert listed the erosion of the middle class, and his belief that it will have negative effects on the sale of luxury goods because those who are wealthy won’t want to flaunt it, as one of the issues that keeps him up at night.

“How is society going to cope with structural unemployment and the envy, hatred and the social warfare?” he said, according to Bloomberg. “We are destroying the middle classes at this stage and it will affect us. It’s unfair.”

The story quoting Rupert came just one day after The Daily Beast published a column stating that the malls that are thriving are those that cater to the wealthiest consumers.

Mr. Rupert, I agree. The decline of the quality of life for members of the middle class concerns me not just because my job is in the fine jewelry industry, but because I am member of the middle class.

I grew up outside of Pittsburgh, in a sea of small run-down mill towns that have been in decline since the 1970s and which society long ago stopped caring about; no hipsters, breweries or shops selling $30 jars of organic mayonnaise there. It’s the just the same buildings that have been decaying since I was a kid in the 1980s.

Still, I was part of the middle class. My father worked a plant owned by Ashland that mixed and packaged oil for Valvoline. Thanks to the fact that that plant was unionized he made, as we say where I grew up, “good money.” But, he always reminded us, we were lucky. Ashland had another packaging plant in Cincinnati that wasn’t unionized, and the men there earned half of what my dad did per hour. My mother was a schoolteacher and, eventually, made “good money” too.

My parents were both able to retire early and today, still have their house in Pennsylvania and a second home in Florida where they escape to for the months of January through May. Good for them. They both deserve it.

Unfortunately, however, I think this type of life is available for fewer and fewer Americans today, and I am not alone.

A story published by USA Today on Tuesday
cited a recent study by Bank of America and Merrill Edge stating that some 74 percent of Generation Xers (my generation) and 67 percent of millennials are concerned about having enough money saved for retirement, even though members of both generations are years away from afternoons on the golf course.

Among the subjects on my/their mind: rising health care costs, hefty student loans and realization that many of us will live well into our 90s.

These days, concerns among members of the fine jewelry industry include selling to the “super rich,” there not being any generic advertising for jewelry (which is beginning to change) and how to talk to the millennial consumers.

I agree these are all issues, but they don’t tell the whole story.

You can go after the same 1 percent as everyone else, if you want, and you can master the art of social media in an effort to snag every millennial customer out there.

But here’s the bottom line: There’s a lot of people who just don’t have the money to spend on jewelry like they used to have. Many families find that by the time they are finished paying the bills and putting a little bit aside, there’s not much left.

It’s sad but it’s reality.

Another interesting point from Rupert’s speech was his assertion that, “We’re in for a huge change in society.”

That change, in my mind, already has begun. Jewelers need to change with it. This includes being willing to stock lower-priced, and higher-margin, silver and/or fashion lines alongside traditional fine jewelry that’s priced in the thousands.

Sell to the 1 percent in your town, yes, but also have something for  the millennial consumer who’s strapped for cash and saddled by college debt, or that consumer in their mid-30s, who is not assured the same bright future as her parents.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Vhernier Calla necklace
FinancialsNov 12, 2024
Cartier, Van Cleef & Arpels Continue to Shine for Richemont

Richemont’s jewelry sales ticked up 2 percent in the first half of the year, while watch sales plummeted 17 percent.

The Gemological Institute of America’s logo
GradingNov 12, 2024
GIA’s Next-Day Services Return for the Holidays

Offered by the lab since 2016, the holiday season special is good from now through mid-December.

Model wearing Mikimoto Chrome Hearts Exclusive Pearl Necklace
CollectionsNov 12, 2024
Mikimoto and Chrome Hearts Blend Aesthetics in New Collaboration

The “Mikimoto Chrome Hearts” jewelry brings pearls from Mikimoto together with distinctive motifs from Chrome Hearts.

Jewelers Mutual Group Cybersecurity
Brought to you by
Navigating Cybersecurity: Essential Guidance for Jewelers

From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.

Larkspur & Hawk Lily Tapestry Earrings
CollectionsNov 08, 2024
Piece of the Week: Larkspur & Hawk’s ‘Tapestry Lily’ Earrings

These earrings use flat-backed white quartz to create a window onto an antique ribbon embroidered with a floral design.

Weekly QuizNov 07, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
AGTA Spectrum winners
Events & AwardsNov 08, 2024
AGTA Reveals Spectrum, Cutting Edge Award Winners for 2024

This year’s AGTA Spectrum & Cutting Edge Awards included a new category for engagement rings and a new award highlighting female designers.

Brilliant Earth Jane Goodall jewelry
FinancialsNov 08, 2024
Brilliant Earth’s Q3 Sales Fall 13%

Plus, CEO Beth Gerstein shares her insight on the holiday season and the possibility of new tariffs.

Article-Top-Image.jpg
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYC

This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.

Aurelia Demark London blue topaz bow earrings
TrendsNov 07, 2024
Amanda’s Style File: Golden and Blue November Hues

The month’s birthstones, citrine and blue topaz, reflect the changing colors of the season.

Jewelry designer Sidney Garber and ceramicist Carey Lowell
CollectionsNov 07, 2024
Sidney Garber Collaborates With Carey Lowell on Capsule Collection

The “Carey Lowell x Sidney Garber” collection stems from the friendship between the jewelry designer and ceramicist.

Ritani holiday ad campaign still image
MajorsNov 07, 2024
Ritani Debuts ‘No-Fuss’ Holiday TV Campaign

The two ads highlight diamond engagement rings and diamond studs with a straightforward approach.

American India Foundation
Policies & IssuesNov 07, 2024
Diamonds Do Good To Distribute $250K+ In Grants Next Year

In 2025, the nonprofit plans to continue its support of longstanding partners while also allocating some funds to a new initiative.

Alfred ‘Al’ Giddings Rolex Submariner watches Titanic
AuctionsNov 06, 2024
Two Rolexes With Ties to Titanic Head to Auction

The Rolex watches are from the collection of “Titanic” co-producer Alfred “Al” Giddings and will go up for sale at Sotheby’s next month.

Pandora cuban link bracelet
FinancialsNov 06, 2024
Pandora Posts Double-Digit Revenue Growth in Q3

The Danish jewelry company plans to open up to 150 concept stores this fiscal year.

Gemological Institute of America logo
GradingNov 06, 2024
GIA to Close Lab in Ramat Gan, Israel

The location will close by the end of the year due to it being financially unsustainable, GIA said.

Iris Law and Hero Fiennes in Moments of Joy campaign
MajorsNov 06, 2024
David Yurman’s Holiday Campaign Celebrates ‘Moments of Joy’

The new campaign stars Sterling K. Brown, Hero Fiennes Tiffin, Winnie Harlow, Kyle Kuzma, Arizona Muse, and Iris Law.

Jacquie Aiche Lizzie Bracelet
CollectionsNov 05, 2024
Jacquie Aiche is Hosting an Online Treasure Hunt

One lucky winner will receive a “Lizzie” diamond bracelet.

Samantha Larson
IndependentsNov 05, 2024
Long's Jewelers Names New Director of Buying

Samantha Larson has joined the Boston-based retailer.

Emerging Jewelers Accelerator Program logo
Events & AwardsNov 05, 2024
JA, BIJC Now Accepting EJAP Applications for 2025

The Emerging Jewelers Accelerator Program will guide retail jewelry entrepreneurs through an eight-month educational curriculum.

Tiffany & Co. x CFDA Jewelry Designer Award
Events & AwardsNov 05, 2024
Tiffany & Co., CDFA Announce Design Award Finalists

Ten chosen designers will receive mentorship and participate in a design contest for the Tiffany & Co. x CFDA Jewelry Designer Award.

Dana J. Lorberg
MajorsNov 04, 2024
Jewelers Mutual Appoints Mastercard Exec to Its Board

Dana J. Lorberg brings 35 years of experience in finance, technology, and strategy to the role.

FBI robbery surveillance photo
CrimeNov 04, 2024
FBI Offering $15K Reward for Info on Halloween Mask-Wearing Robbers

The suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.

Models wearing Black Sand Pebble ring and Surf bracelet
CollectionsNov 04, 2024
John Hardy’s New Jewels Turn the Black Sands of Bali into Diamonds

The new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.

Jaeger-LeCoultre Reverso Tribute watch
IndependentsNov 04, 2024
Eiseman Jewels is Celebrating Watches All Month-Long

The Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.

Artist Reena Ahluwalia “Pristine” painting
SourcingNov 01, 2024
Reena Ahluwalia Donates Diamond Painting to Benefit CJA

The artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.

Gunderson’s Jewelers in Omaha, Nebraska
IndependentsNov 01, 2024
Gunderson’s Jewelers Opens New Location in Nebraska

The new store features a custom design studio and a bridal salon.

Sydney Evan x Wicked “Spell Book” coin charm
CollectionsNov 01, 2024
Piece of the Week: Sydney Evan Gets ‘Wicked’

Designer Rosanne Karmes has created a collection to coincide with the release of the movie musical, which is expected to be a blockbuster.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy