Adapting to the Change: The Jewelry Sector's Outlook in the New Normal

The world is going through a difficult time with the ongoing crisis. The pandemic is testing the will and resilience of many people around the globe. Needless to say, since last year we are moving into a mindset where we are discovering and exploring things that we truly value. More than ever, we are closer with our inner selves, and this period is compelling us not only to revisit our priorities personally and professionally but also to get a perspective shift. The jewelry industry is no exception to this. 

We all have a newfound respect for everything natural and embracing slow fashion. We have all started to view ‘consciousness’ through a new lens. 

Looking Ahead

In the current climate, customers who do have money to spend are being mindful of how they spend it: showy excess seems inappropriate. Research in August and September showed that, as in other periods of crisis, many people are gravitating back to what they know and trust, things that last longer. 

Young buyers today are looking out for brands that are embracing naturality and purposefulness as they are defining luxury purchases beyond price. Gen Z and millennials are shaping the future of shopping and compelling brands to reinvent themselves to keep up with the new consumption habits that the pandemic imposes. They attach greater personal meaning to every luxury good purchase, and even more so if they are buying something for a loved one. 

Consumers today are aware of the impact their purchase decisions have on the environment and the community and they trust brands that respect these beliefs. Brands and consumers alike are growing more conscious as to what they purchase and what kind of impact their choices make on the environment. 

Consumers are evolving and interested in a brand's journey through different life stages and tend to purchase from a brand that shows complete transparency. A recent study shows most of Gen Z believe that brands are never honest enough when talking about how environmentally friendly their products are with more than half of millennials believing the same thing.

Creating Experience and Building Trust

In these times, the perspective through which consumers view a brand is synonymous with the trust it inspires. Last year sparked great wisdom and patience, which led to brands building experiences in ‘phygital’ form. Established brands dependent on showrooms to deliver a certain experience don’t have that option. However, the rise of e-commerce and technology and the migration of luxury brands to omnichannel and social media platforms have made it easier to switch to digital-cum-physical experiences and a new way of purchase. 

Experience will remain paramount but will have to be done mainly digitally and aesthetically. It was a revolutionary step when top jewelry retailers resorted to mediums like WhatsApp and Facetime to stay connected, recreate the -retail experience, and maintain the personal touch. They switched to digital channels for consumers to have their first point of discovery and forge a sense of community around the brand.  

Luxury today is defined as an experience or state of mind. It’s like a journey where we make our consumers feel part of something bigger – exactly what the younger audience is looking for. Ironically, social distancing has brought us closer. These tough times have made us humbler, taught us to stay connected, and to be grateful for what we have. Even as we mourn what we have lost, we are blessed with what remains, and prouder still of what we have achieved.