If you’re in the jewellery industry, you probably know very well that the COVID-19 pandemic has put an end to in-person shopping across a wide array of industries. Not being able to open your jewellery store for weeks has taken a heavy toll on your revenue. Even though retail stores, such as Silver and Pewter Gifts, have been allowed to reopen, your business is probably far from being as lucrative as it was before the coronavirus outbreak. Here are a few tips to help you stop the decline and reverse the trend to set your business on the right track again.
Jewellery Sales during the Coronavirus Pandemic
Industry sources have revealed that jewellery sales dropped by a whopping 82% during the early stages of the outbreak, when people weren’t allowed to leave their homes and retail shops worldwide were struggling to survive. According to Edahn Golan, jewellery sales accounted for $2.65 billion in February 2020 but collapsed to less than $500 million in April. Even though April is known as one of the slower months in the jewellery business, such low levels of sales hadn’t been recorded since the 1980s. During May things got a bit better. This has made experts predict that the jewellery business is likely to bounce back by the end of 2020.
Weddings and Jewel Sales during COVID-19
The coronavirus pandemic has led to a 72% drop of the sales of lab-grown diamonds, due to the fact that many people postponed their weddings and engagements. Nevertheless, sales of lab-grown diamonds have seen an impressive recovery in May, with a 150% increase. This is a sign that the market will probably bounce back before the end of the year, as people start again to buy engagement rings and to book weddings.
The Impact of the Health Crisis on Independent Jewellery Sales and Small Businesses
The COVID-19 pandemic determined small jewellery businesses to move their operations online. This shift that has emerged as a result of the pandemic is probably here to stay. It will impact the way these small businesses are operating for many years to come.
Virtual Networking
The pandemic brought another important change in the way people run their businesses. Everyone has shifted towards virtual ways of managing their operations. The jewellery industry is no exception. During the quarantine period, proactive brands invested a lot of time in building their online presence on social media. Some of them reached out to potential clients on Instagram, thus managing to attract high-quality leads to secure their future sales and a healthy profitability level.
What Makes Customers Keep Buying Jewellery
As things start returning to normal, consumer sales start rising again. Creative jewellery business brands that spent time bonding with potential customers online are now reaping the fruit of their efforts. Targeting specific customers proved to be a winning strategy, as these people have already started to make purchases as a result of their special relationship with these brands. This is something big brands have understood from the very beginning, hence the huge popularity of some of them.
The reason why this strategy works is that people want to feel important and valued. Businesses that are able to tailor their offer to cater to the specific needs of their potential customers are currently thriving.
Many businesses have seen both positive and negative impact on their evolution. While the first couple of months brought extremely low sales, businesses found creative ways of reaching out to their potential customers, thus being able to improve their performance and to keep their operations afloat in such challenging times. The newly acquired consumer targeting strategies and tactics will probably become the norm, even after the pandemic comes to an end.
