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Hi, i need help with the below question: What is the annual Revenue of gold rings sold in the USA annually?
Overview of answers
Especially if you are not from US (but even if you are), after you throw out there some hypothesis like suggested in the other answer I would ask the interviewer if there is any segment that he believes you should consider and that you missed due to being unfamiliar with the market.
If he gives you an hard time and says “why, what do you think?” I would reply “A good way to check this in a real life case would be to go to jewelry stores and websites and see if they offer gold rings for other occasions than wedding and engagement bands and if so, for which, and then maybe have a chat with the store assistant and ask how their sales are roughly split”. At that point usually the interviewer helps you out by either telling you to ignore other segments or to add specific ones.
If he doesn’t give you an hard time he might ask you to add the “class rings / sports rings” market segment for example.
Hope this helps,
Andrea
Hi,
Start with the use-cases for gold rings:
- Weddings
- Jewelry
- Secondary market
and clarify whether we need to calculate both primary and secondary markets
1) For the 1st one - calculate the number of weddings in US per year (Take into account population, single people, 1st marriages, 2nd marriages, the different share of men and women wearing wedding rings)
2) Jewelry - calculate how many rings do women / men on average have (use personal experience and examples of friends and family) + share of gold rings
3) Assume a % of rings sold to / on the secondary market
Alternatively, you may split people into wealth groups and assume how many gold rings do people buy / get as a present in each of the wealth groups in a lifetime and divide by life expectancy
Best!
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