Economic divides have always existed and this has become more evident during the global crisis, especially with the jewelry business. Rich people are buying even more diamonds and gold than the previous year, leading to a rise in fine jewelry sales by nearly 10%, reaching $5.25 billion in August.
The value of the jewelry industry is indeed massive — in the US alone, it’s worth a staggering $78 billion. That’s why many aim to start their own jewelry business because it can be a highly profitable venture depending on the product you’re selling, where, and to whom. Even with the uncertainties brought on by the pandemic, jewelry has managed to retain its luster as businesses seemed to have adapted well and are somewhat unaffected.
Transition to E-Commerce
Like most industries, jewelry has shifted to e-commerce, though it seems to be doing much better than the others so far. Initial losses incurred from the lockdowns at the onset of the pandemic had been quickly compensated by online sales come June and July, surprising business owners of the strong rebound. A noteworthy trend has started to emerge from digital sales as well, with the rise in interest for engagement rings. Typically, sales would peak in December, but the lockdowns seemed to have changed that. Tough times sure paved the way for couples to spend more quality time at home and plan their futures together, and thus, getting engaged conveniently with digital help.
The jewelry business has greatly relied on technology in terms of production efficiency. Laser-cutting technology, for instance, has been useful in making the process of cutting, welding, and decorating jewelry more efficient. But as the pandemic has led technology to advance further and faster, wearables and 3D printing have transformed jewelry in different ways. While handmade jewelry have higher value, wearable technology in the form of fitness trackers and trainer sensors offer more functionality and convenience, consequently earning the favor of the target market.
However, 3D printing technology has opened doors for customizable jewelry, as it can involve customers in the design process. Since this can generally lower the price of jewelry, sales are expected to increase. And with more people treating themselves to jewelry during depressing times, customers will either go for this more affordable option, or still consider the uniqueness and sentimental value of handmade jewelry.
More environment-friendly processes are being initiated. Just as ethical practices in fashion and food production are now common, jewelers have also started to commit to responsible sourcing. Better and safer processes are being pushed not only to stop poisoning the environment through mercury in gold mining, but also for fair wages for miners and craft workers. Using fully traceable materials with no ethical mining issues have started to become a practice. And so is the transparency on supply chains, with jewelers revealing where their gemstones are being mined from, and that the miners shall benefit directly.
In a time when social distancing is prevalent, we need more connections to the people we love than ever before. Jewelry can have many symbolic meanings, providing deeper connections with people. So maybe this is the reason why the jewelry industry as a whole is flourishing right now?
Exclusively for sitaracollections.com
By Nicole Carrs