Fine Jewelry Sales Went Up during the Pandemic

The pandemic has led to an economic problem that affected many countries worldwide, including the United States. In 2020, millions of Americans lost their jobs and had to collect unemployment benefits from the federal government to survive. When the virus, which was first detected in Wuhan, China, started spreading widely and rapidly, many countries had to go into lockdown. People had to stay home to be safe and prevent the virus from reaping through the entire population.

Life, therefore, changed for many people. They were no longer going out every day to go to school or work. That has to be done from the comforts of their home. There were no events, either. All types of celebrations had to be virtual. Because of the danger, people were discouraged from meeting people outside of their household bubble.

This sudden shift in what is normal is evident in how people spend their money. Glamorous dresses had zero demand now that there are no in-person events to attend. Pants meant to be worn at the office were no longer necessary because meetings are virtual, and co-workers can only see the top half of your body anyway.

Instead, sales of comfortable clothing such as loungewear and athleisure increased. There was so much demand that many brands had to immediately release their own lines of loungewear and athleisure.

But, what was surprising was the sale of fine jewelry throughout the pandemic.

The Fine Things in Life

Early into the pandemic, there have been anecdotal reports from jewelers that revealed the steady and, for some, increased demand for fine jewelry. Around May, two months after the World Health Organization (WHO) declared a pandemic, Moda Operandi disclosed that there had been a 35 percent uptick of fine jewelry sales compared to the year before. Meanwhile, Kinn, a direct-to-consumer fine jewelry brand, said that the post-pandemic sales have been higher than before COVID-19, even compared to the holiday shopping season the years before. Moreover, the brand also saw more new users sign up on the site.

The same was experienced by The Last Line, also a direct-to-consumer jewelry brand. The brand reported that gift purchases for fine jewelry jumped by 35 percent. Rainbow-hued pieces, in particular, were popular, with the brand seeing a 40 percent growth in colorful jewelry.Data shows that the sales of fine jewelry recovered immediately during the early months of the pandemic. Then, as the months passed, sales further increased. By August 2020, fine jewelry sales were up by 10 percent compared to the same period the year before.

However, Tiffany saw a decline in sales because of the disappearance of tourist visits to its physical stores.

Why the Uptick

No one knows exactly why, despite the economic downturn, people were spending their money on fine jewelry. However, there are a few theories. <br>

Moda Operandi says that consumers see fine jewelry as an investment. Meanwhile, the Last Line’s founder suggested that people want something bright and joyful to boost their mood amid the gloom of living through a pandemic.</br>

An economic forecaster for Deloitte explained that the popularity of fine jewelry during the pandemic could be because the crisis affected the population in different ways. While those in the lower end of the labor market lost their jobs, some of those in the higher ranks have more financial capabilities. They were not traveling, going to parties, and eating at restaurants. They have more savings.

What the Future Holds

However, now that the restrictions have been lifted and life is going back to normal, there is concern over whether fine jewelry sales will not move.

And, the forecast has been positive. According to Mastercard’s SpendingPulse, jewelry sales will continue to surge from September to December 2021.

Jewelers will not only recover from the pandemic but likely post a higher revenue this year. However, trying to stand out in the competitive market may pose a challenge. Businesses should consider hiring a jewelry photo retouching service to improve their e-commerce platform and social media pages.

Spending Pulse also predicted that online sales would go up by 59 percent this coming holiday season compared to the same period in 2019. Moreover, consumers are expected to spend 8 percent more this year than in 2020.

In addition, brick-and-mortar stores will not be as empty as it was last year. Shopping in-store will recover and increase by 7 percent compared to the previous year.

The popularity of fine jewelry came as a surprise during the pandemic. However, the increase in sales will likely be maintained despite the lifting of restrictions and the end of the global health crisis.