What awaits the jewelry industry after coronavirus?
What awaits the jewelry industry after coronavirus?
Creation 02 June 2020 Update 17:07
What awaits the jewelry industry, which received the biggest blow during the Corona crisis, in the new order? Check out the detailed analysis of the jewelery world.The sparkling jewelery world was one of the hardest hit during the Corona crisis. Prestigious jewelry events around the world have been canceled. These very special events brought customers, brands, influencers, manufacturers and suppliers together and turned the wheel. Although it is not for anyone to think of buying jewelry at a time when the numbers of people who are infected and lost their lives on TV every night, there is no need to be too pessimistic about the future of the industry.
Luxury as an Investment Tool
Putting all this aside, the jewelry industry has a great advantage compared to sectors such as fashion and beauty. Although the products belonging to these sectors have a spoiledness for those with extra disposable money, the oldest category of luxury is a kind of investment tool. It has preserved this feature even during the ages, wars, and economic crises. In the past 20 years, while increasing the value of gold by 472%, some of the gems have increased by 900% in the same period. Despite this advantageous situation, according to the report of Boston Consulting Group BCG, jewelry brands will not be easy if the customers in America and Europe want to reduce their expenses for the next six months.
Those who suffer from this situation are not only jewelry brands, but also companies that supply them with precious stones. As in the fashion industry, every point of the production chain faces a great danger. While the diamond exchanges around the world close their doors, the import rates of precious stones are decreasing rapidly. While this decrease rate is 55% in Belgium, it reaches 70% in Israel. (Rapaport) India and Hong Kong, which make most of their imports to China, also face a major problem.
Who will survive after a pandemic?
Compared with many different sectors of luxury, it is more important than ever to be a reliable brand in the jewelry sector, which is one of the few products that have second-hand value. Even with its name, Maison’s designs and second-hand designs, and very special jewelry designers, will be the priority of the customers. Difficult days determine the fast-consuming jewelry brands that turn to almost bijouterie. Not only for financial reasons but also for emotional reasons, people will shop from strong brands that have a strong history and make sense for themselves, which they will always use with love and even inherit to future generations. In this period, where history, trust and cultural heritage will be more important, Bulgari, who refers to his strong history in social media by saying “We are opening our doors to our history while the world closes to their homes,” seems to understand well the spirit of the period. Young designers will be the most fortunate of this period. Even if the prices are available and the designs are beautiful, many people will not use their votes in favor of the jewelry sector because of its investment value.
The Most Radiant E-Commerce
Jewelery brands are also trying to deal with rapidly falling sales. As in the fashion industry, the resort is seen as digital platforms. According to Jean Christophe Babin, CEO of Bulgari, these platforms also work. The brand, which continues to sell on its website and wechat, has never had a day when it could not sell products in China. However, it is of course not possible for these online sales to cover the total loss of the brand. Nevertheless, brands that want to make maximum use of these platforms are trying to take care of their customers one-to-one and make sales as much as possible through video speech applications.
Auction houses. Shining the Star in the Pandemic Period
In particular, categories such as jewelry with high investment value continue to attract attention in this period. An example of this was the Cartier Tutti Frutti bracelet, which recently received $ 1.3 million at an online auction held by Sotheby. At the online auction held on March 27, he made a sale of almost $ 740,000 and signed one of the very successful online auctions. Considering that the expected revenue before the auction is about 671,000 dollars, 97% of all lots are sold and 20% of the buyers are new names, it is possible to see the magnitude of the success more clearly in this period.
Will Big Purchases Continue?
The most important agreements expected to grow the jewelery sector were also hit in this period. An example of this is the $ 16 billion deal between Tiffany and LVMH in December 2019. This great deal, which is planned to be completed in the middle of 2020 and anticipated by the whole jewelery world, is currently not progressing due to the corona measures of the relevant institutions.
Who Knows His Responsibility Will Win
Even if brands such as Graff, Tiffany and De Beers supported health institutions and foundations during the Pandemic period, the small size of these numbers was welcomed by many customers. In this sense, the fastest moving brand was Bulgari. By the end of March, together with its historical fragrance partner ICR, it had already transformed its facilities to produce and donate hand sanitizer gel to hospitals and medical facilities in Italy, Switzerland and the UK instead of smell production. Committed to combating Covid-19 since the first day, Bulgari continued to support hospitals and medical facilities with 1,200 blankets and more than 5,000 personal care product donations.