The macro-environment can be the reason of the desirability to jewelry sales on the attractiveness of the US jewelry business. The US jewelry industry is mainly focused in the Southeast and Mid-Atlantic regions, which account for 45 percent of total industry sales. These concentrations are directly reliant on population and per capita income. The higher these two are, the more concentrated the retail merchants will be in that particular area. Tiffany & Co. produced their jewelry focusing on demographics areas with higher annual incomes. As noted in the case, Tiffany & Co. targets the more affluent population. Social forces have also affected the attractiveness of the US jewelry industry. The Tiffany & Co. focuses on the character of its goods produced to meet the customer’s needs and desires. Wealthy Americans are still willing to spend top dollar on the Tiffany brand because they know the recipient will see that much more value when it is given to them in the little blue box. Tiffany’s competitors focus on a much wider range of consumers to sell their jewelry. Signet Group operates in the jewelry retail segment through Jared and Kay Jewelers. These two subgroups have targeted two different sets of customers. Kay Jewelers based in mall locations and targets households that have a lower annual income and Jared targets a more luxurious retail segment.
The threat of new entrants in the jewelry industry is low. There is no single dealer owning in excess of 10% of the total market, so it is not likely that retailers will enter and be able to compete. However, the threat of current rivalry is quite high, growing power of the internet creates rivalry among a mass of retailer jewelers. Consumers are able to compare prices online and with multiple competitors. Competitor Blue Nile, Inc. is an online jeweler that offers reasonable return policies in the event an item needs to