In 2022, 5 major issues that jewellers should be concerned about
In 2022, 5 major issues that jewellers should be concerned about
Because of the pandemic-related uncertainties that will continue to hover in the air, 2022 will be a unique year for the jewellery sector. Sure, there may be fewer closures in 2022 and more consumer confidence in 2022 than in 2021, but jewellery sector participants cannot simply trust that the world will return to its previous state in 2019.
The digital transformation epidemic has arrived; what had been simmering before the COVID-19 hit has now reached a boiling point. If you don’t jump on the digital bandwagon by 2022, you’ll miss out on the predicted prosperity that the jewelry sector is expected to achieve in the following years.
The jewellery industry’s current troubles are real. But there are remedies in the digital realm as well. Let’s look at both here and create a picture of the jewellery sector in 2022.
The major problems in the jewellery industry
1. COVID-19-related shutdowns are one of the difficulties in the jewellery business
Nearly half of all jewelry retailers, wholesalers, and manufacturers worldwide were forced to close their doors for a month or more. And, because the industry is primarily reliant on face-to-face client interactions, firm closures have a significant negative impact on the sector.
The jewelry business might have survived if this had been a one-time occurrence. Nevertheless, various governments have enforced multiple shutdowns over the last one and a half years, exacerbating the problem. The hardest hit was dedicated brick-and-mortar stores with no online presence.
2. Consumer experience is dwindling
People lost the opportunity to try on jewellery in person before purchasing it since companies were forced to close, and the government prohibited movement. Even when enterprises were authorised to function, the severe sanitisation laws made things challenging. As a result, the customer experience in jewellery stores began to deteriorate.
Furthermore, the jewelry companies that did succeed in establishing an online presence could not provide a fully comprehensive customer experience on their virtual platforms. A picture of a neckpiece was insufficient to persuade visitors to make informed judgments. Surprisingly, few jewelry makers realize the pandemic nature of the jewelry problem and take the necessary steps to address it by 2022.
3. The giant companies are putting up a tough fight.
The large multinational firms with a robust financial backbone saw the shutdowns as an opportunity and embarked on a rapid digital makeover. In a couple of weeks, the companies went online, snatched up retail customers, and began selling in ways the jewelry industry had never seen before.
The local jewellery brands struggled as a result of this. They now have to compete with major companies that previously did not have a presence in the jewellery industry. The impact of competition is exacerbating the jewellery industry’s revenue woes. Many brands are being pushed into bankruptcy due to the cascade effect.
4. Financial restrictions
With sales dwindling, marketing was one of the first expenses that jewelers eliminated. That means they stopped focusing on social media, abandoned their websites, and did nothing to “spread the word.” The aim should have been to save the retail store, but the consequences will be unpleasant in 2022.
During the epidemic, online traffic grew at an exponential rate. People left the streets and spent more time on social media. Jewellers that cut back on their marketing budgets were unable to be present where their clients went and are now suffering the price.
5. High-priced limited-edition designs
The Pandemic also pushed precious metals prices to new highs. Given the status of the economy, not as many people were purchasing jewelry as they formerly did. Only engagement rings witnessed a spike in sales, while the rest of the categories remained unchanged. People were not convinced enough to purchase jewelry, and the tendency continued.
Add in the fact that jewelry design innovation is dwindling. Because of the epidemic, jewelers had to reduce their workforce, which meant output had to be reduced. Customers are clamoring for new designs and more selections, and this has caused the inventory to dry up. Jewelers will need to consider this element again in 2022.
Taking on these issues
The obvious solution to all of these issues is widespread digital transformation. In the United States alone, eCommerce shopping increased by about 32% in 2020, and the rest of the world followed suit. The ideal method to address challenges in the jewelry sector is to go online first, then use cutting-edge technologies and digital tools to improve the consumer experience.
1. Create a website
The epidemic of COVID-19 has made online purchasing a habit. People aren’t giving up the comfort of shopping from home in 2022. Restart your marketing activities, create an online store, and take your brand or business to the people to recover quickly.
Customers will not stop coming to your stores, but you must attract those who want to stay at home. The year 2022 will be all about being a hybrid business.
2. Adopt mobile application technologies
Before the Pandemic arrived, big players like Rohtak chains, Damara, Raia Jewels ORO, and many other jewellery businesses predicted the evolution of jewellery business experience and adopted the App based business model. This approach gave them additional identity and helped them retain and expand their B2B and B2C jewellery sales and growth. Since Pandemic, we have worked with more than 300 global jewellers who saw and redeemed the opportunity and got built their personalised jewellery application by us.
Read more about their experience here.
3. Use social media to your advantage
Nearly 72 percent of jewelry brand owners believed that social media is one of their most successful business tactics, according to a JCK poll performed in 2019. The PandemicPandemic accelerated this tendency, with people’s social media participation reaching all-time highs in 2020.
Millennials love to shop on social media platforms. Even if individuals aren’t buying jewelry on Facebook or Instagram, they are looking for or investigating your brand. Holding a solid social media presence can assist you in developing your company’s authority and finishing your Pandemic digital transformation.
Final Thoughts of the Major issues faced by Jewellers
The above are some of the issues that jewelers will have to deal with in 2022. However, as previously stated, simple and apparent initiatives, such as the adoption of technologies like the Jewellery cataloguing app, can help jewellers on their way to success. If you own a jewelry store, you’ll need to step up your game to be ready for what’s next.