History The company that I did research is Riddles Jewelry. Riddles jewelry is based in Rapid City, South Dakota and was founded in 1959. Sometimes family-owned companies start small and over time become huge businesses. Riddle’s Jewelry is that type of enterprise. The company now has more than 60 outlets in nine state – Iowa, Kansas, Minnesota, Montana, Nebraska, North Dakota, Oklahoma, South Dakota and Wyoming. Industry Analysis The Jewelry Stores industry over the next four years is expected to decline from 1.6% growth to 0.5%. This is an industry that going into would not be a good idea. However, with the industry shrinking the market is growing. The United States, reported a 7% rise in jewelry sales in 2014, followed by China and India with rises of 6% and 3%, respectively. …show more content…
While increases in the prices of these commodities allow industry operators to raise their selling price and boost revenue, the cost increase also eats into profit margins. Therefore, while declines in the world price of gold hurt industry revenue over the following years, the decrease caused purchase costs to contract. Some of the challenges of jewelry industry face are that the retail jewelry market is highly dependent on macroeconomic factors. When the macroeconomic environment becomes unfavorable, it affects the luxury sector the most. In 2014, the retail jewelry industry faced the challenge of price deflation and slow sales. This resulted in lower margins for both retailers and suppliers, and these lower prices could not attract consumers, affecting