COVID-19 has had a significant impact on the jewelry industry. The pandemic has caused a sharp drop in demand for luxury goods, especially those from China. This has forced some businesses to close their doors temporarily or permanently.
Jewelry is a $200B+ industry worldwide. In 2019, the global jewelry market was valued at $196.1B, according to Grand View Research. According to the leading, online Moissanite company MoissaniteCo.com, demand for fine jewelry has increased over the years. This is due to rising disposable income levels and increasing consumer spending power.
As the coronavirus outbreak continues, the jewelry industry is facing unprecedented challenges. While the pandemic has impacted every aspect of our lives, its effect on the jewelry industry is particularly severe.
Jewelry Sales during the Pandemic
The coronavirus outbreak has been devastating to the jewelry industry. According to the International Council of Shopping Centers (ICSC), retail sales have fallen by more than 50% since March 15th, 2020. The ICSC estimated that US retail sales would fall by 2.5% the following year.
Many businesses are closing down because they cannot afford to keep operating during these uncertain times. Retailers are also worried about losing customers who prefer to shop online. They are trying to adapt to changing customer preferences and adjust their business models accordingly.
Reaching the new online Jewelry Customer
The coronaviruses have created a lot of uncertainty among consumers. Many people are concerned about whether they will be able to return to normal life after the pandemic ends. As a result, they are less likely to make purchases right now.
Jewelry customers are also becoming more selective when it comes to buying products. They want to know exactly what they are getting into. This means that jewelers must be transparent and honest about the quality of their products. For example, some jewelry brands are offering free returns if the buyer is not satisfied.
Jewelry Brand Marketing Strategies
To stay competitive and reach new customers, jewelry brands should consider adopting different marketing strategies. Here are some ideas:
- Create a Unique Value Proposition
To stand out from competitors, jewelry brands should create a unique value proposition. Consumers are looking for something special. In order to do this, brands should highlight their strengths. For example, some jewelry brands focus on creating high-quality pieces at affordable prices. Other brands emphasize their commitment to ethical practices and sustainable manufacturing.
- Use Social Media Channels
Social media helps jewelry brands connect with current and prospective customers. Brands can use Facebook, Instagram, Pinterest, Twitter, YouTube, and LinkedIn to promote themselves.
- Promote Products Through Influencers
Influencer marketing is another effective method of reaching new customers. Influencers are individuals who have large followings on various social media sites. Influencers can help spread the word about the products.
- Offer Free Shipping Options
Offering free shipping is an easy way to increase customer loyalty. Customers appreciate having the option to buy without paying additional fees. The best part? Payment will come for each sale.
- Provide Gift Cards
Gift cards are ideal for small businesses because they allow them to offer discounts or other incentives to their customers. Gift cards are especially helpful during these uncertain times. They give shoppers peace of mind knowing that they will not have to worry about making payments.
- Be Transparent About Quality Issues
Consumers expect transparency from companies. If a product does not meet expectations, then customers may choose not to purchase it. Jewelry brands can avoid this by being upfront about any issues with their products. They can provide details about the materials used, production methods, and other important aspects of their business.
- Show Off Commitment to Sustainability
Sustainable practices are essential to building strong relationships with customers. Jewelry brands are now showing off their commitment to sustainability by donating to charities and using recycled materials in their designs.
- Focus on Customer Service
Customers love receiving personalized service. It shows care to them. When consumers feel valued, they tend to return repeatedly. This makes them loyal customers.
Online shopping has become an increasingly popular option for consumers looking to purchase items such as jewelry. Online retailers like Amazon and eBay offer shoppers a convenient way to buy products without having to leave home over the Covid-19 period.