How the Jewellery Industry Has Been Impacted by COVID-19 and What Businesses can do to Adapt

If you own a jewellery business, you probably are very aware of how COVID-19 has put a stop to in-person shopping in numerous industries. Your sales have most likely gone down since you probably could not open your shop for a few weeks at least. Although retail shops selling sterling silver gifts for him and jewellery items have been permitted to re-open in numerous locations across the world, most likely you are still experiencing effects that COVID-19 has imposed on your business. The following are some great tips to help you get your business back up and running as usual and turn things around.

Jewellery Sales Throughout the COVID-19 Crisis

Some reports show that jewellery sales were reduced by up to 82 per cent during the early stages of the coronavirus when retail shops were closed across the world and people were quarantined in their houses. Edahn Golan reports that in February 2020, jewellery sales were £2 billion. In April, they dropped to just £360 million. Although April tends to be a slow month for the jewellery industry, this low level of sales has not been experienced since the 1980s. There was an increase in sales reported in May and experts are predicting that the jewellery industry will continue to come back moving forward.

Jewel Sales and Weddings During the Pandemic

Since the coronavirus pandemic caused many engagements and weddings to be postponed, lab-grown diamond sales dropped by 72 per cent. That brought these jewels’ prices down by around 13 per cent. However, during May, lab-grown diamond sales increased by 150 per cent, which indicates the market is ready to recover in the upcoming month with people starting to buy engagement rings and book weddings again.

Small Businesses and Independent Jewellery Sales

For individuals who run small jewellery businesses, the impact of COVID-19 has resulted in a shift to online sales from in-person sales. That is probably the biggest indication of the direction that the jewellery industry is moving towards as a result of the current pandemic. Many small businesses had to learn a new normal overnight. Knowing how to make changes and figure out how to move forward will significantly impact how small businesses are operated for many years into the future.

Virtual Networking

One of the major trends that have emerged as a result of the pandemic is switching to more virtual ways to run a business. During the quarantine, proactive brands took the time to build up their online presence using social media. Some used Instagram to make connections and created the opportunity to acquire future customers based on these relationships.

Why Customers are Still Making Purchases

Despite the huge decrease in jewellery sales in March and April 2020, it appears that things are on the upswing once again. The Business Weekly published data that shows that people used their quarantine time to evaluate their values and lives. Many of them are purchasing jewellery now as a self-care measure that rewards them for their time spent in quarantine.

Direct to Consumer Jewellery Sales

With things continuing to return to normal, people within the jewellery industry are beginning to see another trend, direct consumer sales, increasing. Since jewellery brands needed to get creative during the time of quarantine, they spent time trying to appeal to specific customers.

The reason this is works is that it makes these prospective buyers feel important and valued. By tailoring their products, those brands can bring specific clients in and market the specific products they are searching for.

Like many other businesses, the coronavirus pandemic has had both a negative and positive effect on the jewellery industry. Although sales might have gone down for a few months, sellers have been able to find new and innovative ways to connect with customers. This will help them move forward, even after the pandemic is over.