The pandemic has changed the scenario of the jewellery sector across the world with the onus being on brands and retailers to look at other trade channels besides the physical stores most popular, especially fine jewellery and high-end brands. This is the view expressed by the Business of Fashion Magazine and McKinsey & Company in their recently released special report on global watches and jewellery.
Traditionally fine jewellery sales were associated with magical in-store experiences and bespoke services offered to the buyers, the report says, but, the scenario has gradually changed with jewellers thinking of more exciting online methods to entice jewellery lovers. Since the pandemic, there has been a surge in online jewellery sales all over the world, with the digital business capturing more of the fine jewellery market.
The fine jewellery industry generated just 13 per cent of its revenue online in 2019, but that share will increase to between 18 to 21 per cent by 2025. From 2019 to 2025, online sales of fine jewellery are expected to grow at a compound annual growth rate of 9 to 12 per cent, which is up to three times that of the overall fine jewellery market.
This trend has brands and retailers increasing their online inventories with items and price points previously reserved for physical stores. Social media has dramatically levelled the playing field, allowing younger challenger brands to disrupt the marketplace with their fluency in speaking to younger generations on social channels.
Due to these shifting dynamics, the future for fine jewellery online looks bright. However, if the start-ups and the smaller players do not act fast, the larger players will likely overtake them with their sheer strength and the benefit of their size and resources.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
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