Home > Sales and Marketing > How COVID-19 Has Impacted the Jewelry Industry & How Businesses Can Adapt 

How COVID-19 Has Impacted the Jewelry Industry & How Businesses Can Adapt 

By: SmallBizClub

 

a jewelry store display

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: 

  1. 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. 

  1. 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. 

  1. 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. 

  1. 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. 

  1. 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. 

  1. 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. 

  1. 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. 

  1. 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.  

Published: February 10, 2022
3031 Views

Trending Articles

Stay up to date with
small biz club logo

SmallBizClub

SmallBizClub.com is dedicated to providing small businesses and entrepreneurs the information and resources they need to start, run, and grow their businesses. The publication was founded by successful entrepreneur and NFL Hall of Fame QB Fran Tarkenton. We bring you the most insightful thinking from industry leaders, veteran business owners, and fellow entrepreneurs. Follow us on Facebook, Twitter, and LinkedIn.

Related Articles