Structural Analysis of the U.S. Retail Jewelry Market

Irina Sheveleva

III. Estimation of the jewelry companies by the market

A key indicator of the companies’ position in the market, enabling to estimate their attractiveness for investors, is a dynamics of their shares’ prices and the data on profitability.

3.1 Jewelry companies estimation based on the share price dynamics analysis
Almost all subjects on the jewelry market are public firms, which shares are listed at stock exchanges. This makes it possible to estimate their activity on the basis of the share price trends. According to the “North American Industry Classification System”, companies of the jewelry market refer to a business sector called “Retail– Jewelry Stores” (NAICS 44831). Alongside with jewelry sales, some jewelry market companies can be involved in a wholesale segment (NAICS 423,424), nonmetallic mineral mining (NAICS 212399), and some other sectors of the U.S. consumer market. While analyzing the companies from the category “Retail– Jewelry Stores” (NAICS44831), it is expedient to single out the firms applying innovation marketing techniques (Internet).
To simplify the analysis of the jewelry companies’ share price dynamics, we shall formulate a quantitative criterion of estimation. Let’s name it a Composite Stock Index (CSI). It is calculated as a simple average of several companies’ share prices. The structure of the composite stock indices on three groups of companies combined according to a sectoral criterion is shown in table 9, and the quarterly values of the composite stock indices on these groups of companies are given in table 10.

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