How The Jewelry Industry Has Been Affected By The COVID-19 Pandemic
COVID-19 & The Jewelry Industry
If you have a business in the jewelry industry, it's almost a guarantee that you've seen some kind of negative effect on your business since March of 2020. Almost all retail stores were empty and in-store shopping completely halted due to a global shutdown. Many thought the jewelry industry would be doomed for an extensive period of time since many would consider jewelry a luxury item, but that might not have exactly been the case.
How were jewelry sales during COVID-19
During the initial stages of the pandemic when most people were being quarantined, some reports showed that sales in the industry had dropped by around 80%. In 2020 we saw a drop from over $2.5 billion in February sales to under $500 million in April. These sales were some of the lowest we've seen in 40 years.
Practical Causes of the Decline In Sales
The summer, especially June, is prime time in the amount of people getting married and engaged. As you can imagine, the majority of these events had no choice but to be cancelled or postponed to a later date. This played a significant factor in why, for example, we saw lab-grown diamond sales drop around 70%, which brought about a 13% decrease in the price of such jewels. However, as early as May, we saw the sales of lab-grown diamonds increase by 150%. This gave people a somewhat surprising hope for the industry's recovery in the near future.
A Sliver Lining
Most retail shops closed, but people still had to make a living somehow. The only solution, for many, was to advertise their products on the internet and figure out a way to sell direct to consumer virtually. This probably seemed intimidating for business owners who had no prior experience with online sales, but what it did was actually open up a whole new revenue stream for companies that previously only acquired sales through an in-person retail setting.
Why Customers Are Still Buying
It is now 2021 and for some businesses out there that have been able to open up and get back to business as usual, their sales have gone back to usual as well. The particular reasons an individual would have for purchasing jewelry could vary widely, but we have a few particular theories that make sense.
People have been quarantined up in their homes & apartments for months. They could be purchasing jewelry as possibly a comfort item to help in dealing with the stress of the situation. They could be purchasing as a gift for other people they haven't been able to see or people they know were having a tough time. It could be that some of those postponed events, like weddings, are finally starting to take place again. And a more obvious scenario is the fact that online shopping has increased tremendously since a lot of people have been sitting at home on their computers or watching TV because they haven't been able to go out and spend money on items they were purchasing before the global lockdown. The stimulus checks people have been receiving also seem to have had at least a small influence in the revival of not only the jewelry industry, but other luxury businesses as well.