How much has jewelry industry been affected by the pandemic? Is this industry facing a decrease or an increase in sales compared to pre-covid era? Read our original article to discover more about!
Due to the covid-19 pandemic, a lot of business areas worldwide have fallen into a crisis. The first months were the hardest. But, as history tells us, economic dynamics are always evolving: those businesses that not only are able to adjust to new situations, but that can also take advantage of them, are the ones meant to rule the world economy for the next decades.
What about jewelry industry facing the corona-crisis?
- Sales Dropping Off At The Beginning
- Recovery Through a Full Focus On Digital Marketing
- Not Only Recovery But Increase In Sales: Some Data
- About The Future Of Jewelry Industry: Fears And Changes
Sales Dropping Off At The Beginning
At the beginning of the pandemic, during the first and hardest lockdown, jewelry sales dropped off worldwide.
Mainly because stores were obliged to close, and jewelry stores, more than in other businesses, have an irreplaceable role in generating successful sales to their companies. When it comes to buying jewelry, it’s easy to understand how important it is, for the customers, to see and try on the product, especially if it’s fine jewelry.
For instance, in the United States, the biggest market for the fine jewelry industry, sales fell by 3.8 billion dollars during March 2020, compared to March 2019.
Recovery Through A Full Focus On Digital Marketing
Recovery has been possible thanks to a full focus on the chances offered by digital marketing. If, before the pandemic, attention to online marketing was only partial, things have changed quickly: the budget used for digital marketing by the main jewelry companies has seen an exponential increase.
The purpose is to refine and maximize the use of the online selling and online marketing tools. To boost for online presence and to make the most of it has become the key to success.
As Hélène Poulit-Duquesne, CEO of luxury jewelry company Boucheron, said: e-commerce is now more than ever a priority.
According to experts, another contribution to recovery was given by psychological needs of the costumers. Travel business has always been the main competitor to fine jewelry, such as expensive experiences in the catering and party industry. Since these possibilities are being limited by many restrictions, focus of luxury-enthusiast customers has moved entirely on jewelry.
Not Only Recovery But Increase In Sales: Some Data
Thanks to optimized online marketing strategies and to the difficulties of its main competitor, jewelry industry has not only seen a recovery, but it is also enjoying nowadays a flourishing time, with a general increase in sales, compared to pre-covid year 2019. Here are some data:
According to the Edahn Golan Diamond Research & Data, there was a 10% increase in fine jewelry sales in the United States in the month of August 2020, compared to August 2019.
For Compagnie Financière Richemont, the Swiss luxury group that owns Cartier and Van Cleef & Arpels, the trend was similar: jewelry sales in the second quarter of 2020 grew by 4% compared with the same months of 2019.
Signet Jewelers reported an increase of 7.8% in the 2020 Christmas sales, compared to the previous year.
In China, the second biggest market for jewelry industry, Chow Thai Fook jewelry sales grew by 18% in the fourth quarter of 2020, in comparison with 2019.
India, the leading cut diamonds producer, has been importing, on average, rough diamonds for the value of 2 thousand million dollars every month, since the beginning of the pandemic.
About The Future Of Jewelry Industry: Fears And Changes
Companies are afraid that this favorable period for jewelry industry might stop as soon as the pandemic is over: the pressure caused by the competitors’ renewed presence wouldn’t be easy to overcome.
The future and success of the jewelry industry will depend on the ability to prevail over the competitors, when it comes to being the first choice of luxury-enthusiast customers.
Customers’ requests have changed a lot since the start of the pandemic: far more engagement rings have been bought, such as luxury, simple and comfortable necklaces and earrings, perfect for work meeting via facetime.
Furthermore, sustainability is a necessary feature to consider: for instance, Pandora’s target is to use only recycled precious metals within five years.
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