If you run a jewelry business, you probably know how COVID-19 has prevented personal shopping in many industries. You will find that your sales have fallen because your store may not open for at least a few weeks. Although many places around the world allow retail stores to be reopened, you may still see the impact of COVID-19 on your business. There are some good ways to reverse the situation and return to normal working conditions.
Jewelry sales during COVID-19
According to some reports, in the initial stages of the coronavirus infection, people were isolated at home, retail stores around the world were closed, and jewelry sales fell by 82%. According to professional authorities, jewelry sales in February 2020 were US$2.65 billion, but in April it had fallen to only US$470 million. Although sales in the jewelry industry tend to slow in April, this level of sales has never been seen since the 1980s. According to reports in May, jewelry sales have increased. Experts predict that as 2020 progresses, the jewelry industry will continue to rebound.
Weddings and Jewel Sales During the Pandemic
Because many weddings and engagements were postponed due to the coronavirus pandemic, the sales of lab grown diamonds dropped by 72 percent, which brought the prices of such jewels down by about 13 percent. However, in May, the increase in lab grown diamond sales went up by 150 percent, indicating that the market is set to bounce back in the coming months as people start again to book weddings and buy engagement rings.
Independently operate jewelry sales and small businesses
For those who run a small jewelry business, the impact of COVID-19 has shifted from in-person sales to online sales. This may be the biggest indication of the development direction of the jewelry industry from the epidemic. For many small businesses, learning a new normal happens almost overnight, making changes and figuring out how to continue, which will affect how these small businesses operate for many years to come.
One of the biggest trends that can be seen from the pandemic is the shift in business operations to more virtual ones. During the quarantine period, proactive brands will spend time building their online presence through social media. For example, some of them have established a connection on Instagram, and the opportunity to secure future customers is created on the basis of this relationship.
Another way to succeed is for jewelers to use their own websites, social media platforms and YouTube to sell diamonds. For example, video technology used by leading online jewelers connects sales channels, allowing customers to see products as close to personal inspections as possible without going to a physical store.
During the quarantine period, many brands had record online sales, and Sotheby’s was one of them. This may be because consumers cannot go to the physical store to shop, but they have extra money on hand because they cannot spend the money on dining out, vacations and traditional shopping.
Why consumers are still buying
Although jewelry sales fell sharply in March and April 2020, the situation seems to be getting better again. Data published by business magazines show that people use isolation time to evaluate their lives and value. Many people now buy jewelry as a means of self-care to reward their lives during isolation. Some people are buying jewelry for their loved ones to express the difficulties we experienced during the epidemic. Another reason for the growth in jewelry sales is that people shop to escape what is happening in the real world.
Direct to consumer jewelry sales
As the situation continues to return to normal, people in the jewelry industry see another trend that direct-to-consumer sales are rising. Because jewelry brands must be creative during the quarantine period, they need to spend more time attracting specific customers. This approach is effective because it allows these potential buyers to feel their value and importance. By customizing products, these brands can attract specific customers and bring the products they need to the market. Most experts believe that this situation will continue even if traditional jewelry stores can resume operations.