42394 - Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
When it comes to the wholesale trade of luxury items like fine jewelry, watches, precious stones, and metals, NAICS code 42394 plays a vital role in defining the industry's scope and operations. Whether you're a business owner, supplier, or government contractor, understanding this classification can help you identify market opportunities, ensure compliance, and connect with the right partners in the wholesale trade sector.
What Is NAICS Code 42394?
NAICS Code 42394 represents establishments primarily engaged in the merchant wholesale distribution of:
- Jewelry
- Watches
- Precious stones (e.g., diamonds, emeralds, sapphires)
- Precious metals (e.g., gold, silver, platinum)
These wholesalers typically sell their products to retailers, other wholesalers, or commercial users. Unlike retail sales, transactions under this code do not generally include direct consumer purchases.
Sector Overview: Wholesale Trade
NAICS 42394 falls under the Wholesale Trade sector, which involves the resale of goods to businesses rather than end-consumers. This sector supports the supply chain by acting as an intermediary, facilitating the flow of luxury goods like jewelry and precious metals from manufacturers to various business customers.
Typical Business Activities Under NAICS 42394
Businesses under this NAICS classification commonly engage in activities such as:
- Wholesale distribution of fine jewelry and watches
- Supplying precious stones and diamonds, including certification and grading services
- Merchant trading of gold, silver, platinum, and other precious metals
- Inventory management and product sourcing for retail jewelers and commercial users
- Specialized logistics for securing high-value luxury items
Size Standards for NAICS Code 42394
To qualify for small business status under NAICS 42394, the U.S. Small Business Administration (SBA) establishes size standards based primarily on annual receipts.
- Small Business Size Standard:
- Maximum annual receipts of $30 million.
Meeting this size standard enables businesses to access federal government contracts and small business programs tailored to the wholesale trade industry.
Examples of Businesses Under NAICS 42394
- Wholesale distributors specializing in fine jewelry brands, dealing with retailers nationwide.
- Suppliers offering certified precious stones and diamonds to jewelry manufacturers and jewelers.
- Merchants handling bulk sales of gold and silver bullion, catering to both investment firms and craft jewelers.
- Watch wholesalers distributing luxury or fashion watch brands to boutiques and department stores.
Detailed NAICS 42394 Information Table
| Attribute | Details |
|---|---|
| NAICS Code | 42394 |
| Industry Title | Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers |
| Sector | Wholesale Trade |
| Description | Merchant wholesalers engaged in distributing jewelry, watches, precious stones, and precious metals to retailers, wholesalers, or commercial users. |
| Typical Business Activities | Distributing fine jewelry and watches; supplying precious stones and metals; trading gold, silver, and platinum. |
| Small Business Size Standard | Annual receipts not exceeding $30 million |
| Primary Customers | Retailers, other wholesalers, and commercial users |
Frequently Asked Questions (FAQ)
What types of products do businesses in NAICS 42394 typically sell?
Businesses distribute items such as fine jewelry, watches, diamonds, gemstones, gold, silver, and other precious metals.
Do NAICS 42394 businesses sell directly to consumers?
No, this classification primarily covers merchant wholesalers selling to retailers, other wholesalers, or commercial users, not to end consumers.
How does NAICS 42394 fit within the Wholesale Trade sector?
It is a specialized part of wholesale trade that focuses on high-value luxury goods and precious materials distributed through business-to-business channels.
What is the SBA small business size standard for NAICS 42394?
Businesses must have annual receipts of $30 million or less to qualify as small businesses under this code.
Can NAICS 42394 businesses participate in government contracting opportunities?
Yes, especially if they meet the SBA's size standards, making them eligible for small business set-asides and related federal programs.
Conclusion
NAICS 42394 — Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers — represents a unique and specialized segment of the wholesale trade sector. Whether you’re seeking to enter this market, partner with wholesalers, or pursue government contracts, understanding this code’s scope, size standards, and typical business activities is essential. By leveraging this knowledge, businesses can navigate the luxury goods distribution landscape more effectively and capitalize on emerging opportunities.
Keywords: NAICS code 42394, Jewelry wholesalers, Watch wholesalers, Precious stone distribution, Precious metal merchant wholesalers, Wholesale trade sector, Small business size standards, Jewelry industry NAICS
