Lagos was among the brands that respondents cited as generating the most sales in their stores. This "Gemstone Rope Bracelet" from Lagos features a cushion-cut gemstone set in sterling silver and accented with 18-karat gold; suggested retail price is $550. Lagos.com

The results of National Jeweler’s latest Product Panel indicate growing interest in the designer jewelry sector. Nearly half, 48 percent, of the retail jewelers who took the survey indicated that their branded jewelry sales are increasing as a percentage of overall sales, while 22 percent said the category is holding steady.

Margins appear to be on the higher side, too, with 52 percent of retailers surveyed saying that they attain at least a 50 percent overall gross margin on designer jewelry. Click here to see the full results of the Product Panel survey.

With results like these, it is not surprising that many retailers are continuing to grow their inventory volume of designer jewelry. Still, the brunt of the economic downturn has prompted others to focus on their own store brands.

Love ‘em or hate ‘em

When asked how their feelings about carrying brands have evolved in recent years, retail panelists were divided. Brand fans say that designers’ high-profile marketing and exposure helps to bring in traffic, while others say that customers no longer care for names, they just want quality.

“The consumer is more brand-aware right now and the way our designer brands are promoting [themselves] on the social networks has made a huge difference in the consumer’s shopping decisions,” one panelist wrote.

Another retailer who felt differently wrote, “I’m starting to go in a new direction. I want to market myself instead of brand names. It is too expensive and my customers don’t see the value in brand-name [jewelry].”

The economy’s impact

Designer jewelry wasn’t spared in the turbulent year in jewelry that was 2009. A handful of retail panelists said that the crisis slowed designer jewelry sales, with one retailer noting, “The impulse purchase has declined and many of those were for designer jewelry.”

Among the retail jewelers that have managed to succeed in the branded category, it seems that a focus on unique designs and smaller brands, has helped.

One panelist noted, “When there is a particular story to tell about a designer, it enhances the piece, and combined with our reputation makes the purchase easier for the customer. In this atmosphere, the designer jewelry has sold well even in a challenging market.”

Source: National Jeweler Network