Wholesale Prices of Fashion Jewelry and Accessories Rising in 2010
December 2010

In This Issue:

More Jewelry, Accessories, and Gifts
HEART PENDANT WITH CRYSTALS
Valentine's Jewelry

Mardi Gras Favor
Mardi Gras Dolls & Favors

Rhinestone Bangles
Rhinestone Bangles

scarf hat & glove set #60
Ladies Hat, Scarf, Gloves Sets

fedora #60
Winter Fedoras & Hats






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New Arrivals
Crystal Earrings #60
Crystal Earrings


Greetings!

Wholesale prices of fashion jewelry and accessories are about to take a big jump. Let's take a quick look at why and what we can do about it.

The fashion jewelry and accessories industry has become very dependent on China over the last few years. Cheap prices were the driving force. But now Chinese manufacturers are telling wholesalers to brace for price increases. Why?

The answer is labor costs, material costs, energy costs, and the exchange of the dollar. First labor-prices are rising in China as their economy does better and workers need more money to survive. In addition, many workers are from the north and travel to the south to get work in the factories. Now factories are popping up in the north and factories in the south have to bid up the salary to get workers to come back.

Demand for materials is edging up raw material prices worldwide and this adds to the basic cost of an item. Metals are going up, cotton has seen a huge jump, and oil costs are near $90 a barrel, which means the cost of synthetics is going up. Increased oil costs also means higher transportation costs for raw materials as well as finished goods.

Finally, developed countries are pressuring China to raise the value of its currency, the yuan. This means more jobs at home in developed countries and that's a good thing. But on the downside, many items in fashion jewelry and accessories do not have local manufacturers so those goods still have to come from China and the price will be higher. Next, what can we do about it?

Once you are aware of coming higher prices, pass the information on to your customers so they can expect what is coming. Think about it. When postage hikes are coming, forever stamp sales pick up in a big way. Before the 2008 rate hike, 60 million forever stamps were being sold daily, up from 30 million stamps per day according to the Dallas News. The same thing can be true for your business. Customers can buy it cheaper now. You get the benefit of a sale without cutting prices and profits.

You can also discontinue one item in your line and add another one at a higher price. This way the price change is not as noticeable. Whenever an item rises in price for Accessory Wholesale, we weigh whether to discontinue the item or change the price. The answer is based on how important the item is to our business.

Finally, you can stock now on items you know you will need if budget allows. Then when increases come, you can use the gasoline station tactic of increasing prices with the wholesale price hike, which gives some added profit to your existing inventory, helping your profit picture slightly.

Right now, we are looking at New Years and Mardi Gras coming soon, so here are two categories that you can stock before we see any price increases.

Michael Gietl
Rhinestone Jewelry #60
New Year's Jewelry and Accessories
Dressy Jewelry and Accessories that Sell Until May

New Years is fast approaching and that means parties and dressy jewelry and accessories for customers. The good news is formal and after-five styles in jewelry and accessories continue to sell in a major way until Mother's Day. Every spring is a bonanza for dressy jewelry and accessories, starting with New Year's and continuing through Mardi Gras balls, pageant, dance competition, proms, bridal, Easter and more.

Elaborate rhinestone sets are a must for New Years Eve and Mardi Gras balls. Here's an item you probably don't need to worry about taking a big price hike. Rhinestone has remained very stable in price while other items have been going up.

Bibs and cascades are popular in necklaces with some drama in size, but not overwhelming. Always leading in popularity is clear rhinestones in silver plated settings. This delivers the most brilliant look. This season, you can also get a splash of color from numerous designs, letting rhinestone sets match gowns.

Not all eveningwear accommodates a necklace, so dramatic earrings can make the jewelry statement. Since the earrings are stealing the show, size is important and you can find striking designs under rhinestone earrings as well as crystal earrings. Finally offer a bracelet to complete the look. Bracelets are major in today's market and all indications are the trend will continue.

Evening Bags #60
Evening Bags
Evening Clutches and More

The finishing touch on a New Year's Eve look is the evening bag, and this may be hardest piece for consumers to find. Retailers are overlooking this market, which limits consumers in styles and colors to make an exciting match. This is an opening where you can outshine the competition.

Watching the red carpet on TV or glancing through fashion magazines quickly reveals the clutch is the choice evening bag for celebrities. Fortunately, most have tuck-away shoulder straps for hand-free convenience. The clutch selection is extensive with plenty of color options and some are wristlets, which are growing in popularity. The hand fits through the loop for carrying convenience.

Also popular are day-into-evening bags suitable for casual or dressy wear. Patent leather looks as well as embossed croc and snake patterns work well in this category. These bags can be larger since they serve as a regular handbag for day use. Give some serious thought to adding a selection of evening bags to your formal accessories, especially if they are hard to find in your location. New Years Eve and Mardi Gras are only the beginning for interest in evening purses with prom, bridal and more to follow.

Venetian Style Masks
Venetian Style Masks
Irresistible Art in Masks

New Years Eve parties are a big event for masks with plenty more events coming in the months after. The most exciting development in masks is the Venetian styles that are evolving into stunning designs that will take your breath. Here is an area you may want to stock now because they will definitely be seeing price increases in 2011.

Fresh designs include full-face jester masks with shapeable brocade jester hats and collars. The masks tie on with ribbons on each side and have a ribbon loop at the top so they can also serve as wall masks for home décor. Men and women's styles in the same mask can provide matching sets for couples going to masquerade.

Review the Venetian style masks for one breath-taking design after another. Reality shows on TV have mushroomed the popularity of these masks that consumers are using today for proms, weddings, masquerade parties, Sweet Sixteens, and Quinceaneras. If you feel these gorgeous masks don't fit into your merchandising scheme, use some to decorate with and you can be sure someone will want to buy your decorations.

Next Newsletter: What Sells in Winter and More Mardi Gras
Next month begins a nice run in retail with so many events that need accessories following all the way to Mother's Day. We will begin the ball rolling with winter items that sell in January and preparing for Mardi Gras, which comes late this year (March 8th). Last newsletter received most interest in brooches followed by scarves and crystal bracelets. Hope holiday sales are good and everyone enjoys a Merry Christmas.
Copyright © 2010 Accessory Wholesale Inc. Feel free to reproduce the newsletter as long as the copyright notice is included and a link to www.awnol.com

Questions or Comments? Promos@awnol.com
Phone: 504-736-0357
Web: http://www.awnol.com


Wholesale Prices of Fashion Jewelry and Accessories Rising in 2010

Accessory Wholesale Inc | 5845 River Road | Harahan | LA | 70123