As the United States approached the one-year mark of Covid-19 closures, jewelry store owners were largely upbeat. That was due in part to the shift in luxury spending, with restrictions on travel and dining giving more customers disposable income to put toward jewelry. Retailers also discovered new clients through savvy digital engagement. Even though vaccination rollouts were discouragingly slow, optimistic jewelers always found silver linings.
Remote possibilities
One of the biggest stories of 2020, continuing into 2021, was the rise in digital sales. Summer last year was unusually busy, said Zenobia Morrow, president of online store SevenJune Jewelry.
“Regular folks were buying little pick-me-ups to help cope with the shutdown, and everyone was buying online,” she said, adding that she expected this to continue. “I find the mood cautiously optimistic. People want to believe that things are getting better. I expect more of the same this year, at least through the summer, while we await the Covid-19 vaccine rollout.”
Brick-and-mortar stores were also seeing increased sales.
“We are busy,” said Stuart Benjamin, owner of Stuart Benjamin Jewelry Designs in San Diego, California. “My shop is busy, and my custom design is busy.”
He credited some of that business to the fact that malls were closed, enabling him to cater to those customers. “We’re getting 0.50-carat engagement ring sales, and we have people in the store all day long.”
Strong referrals
Store owners say it’s important to bring in new customers rather than relying only on existing ones. For Roman Malayev, owner of Forever Diamonds NY in New York, most new clients come via referrals.
“That’s the number-one way of getting clients,” he stressed. “Social media is a way to show your work. But that doesn’t mean they’ll buy a ring.” Customers who come via referrals are “looking for people who can create rings,” he observed.
Malayev’s main clients for engagement rings are between 25 and 35 years old. “The older people don’t need [my products], or they need it less. They already have everything they want.”
For Morrow, social media has been an important way to bring in new clients. “My business is primarily referrals,” she said. “Staying active on social media, and particularly having an updated Instagram, is key. I can see what posts resonate based on the analytics around saving and sharing. I have also had people find my online store through viral tweets asking for referrals to Black jewelers.”
Outreach, both online and local, has also played a big part in getting new business.
“I have a lot of new customers,” said Benjamin. “We’ve been sending postcards to our neighborhood, and people are finding us online.”
Bold moves
Morrow said earrings were doing particularly well. “Lots of women have multi-pierced ears, so smaller earrings and huggies that can be worn in second holes have been popular,” she reported, adding that more unusual products were also trending. “Creative executions of pearls will have a moment, too. Maybe it’s the Kamala Harris effect” — a reference to the new US vice president’s penchant for pearl necklaces — “or because you can get the look at a lot of price points. We’ll also be seeing more bold jewelry, like heavy hardware, bib necklaces, [and] long earrings.”
Color and custom were also popular. Benjamin pointed to colored stones, fashion diamond earrings, and anything in the bridal category as big right now. “This spring, we’re color-heavy, and what’s trending is more custom, one-of-a-kind pieces.”
Even in engagement, there’s been a move toward unusual pieces. Malayev said ovals and radiant shapes were trending, and pears were in demand. Pink diamonds were also popular, for those who could afford them. “People who buy pink either love the color, or it’s their second or third ring, because they already have everything else,” he remarked.
More than anything, Benjamin said, “people want things to get back to normal. For now, they’re spending their travel money and vacation money, and they want something nice for themselves. They can’t take a trip, so they buy jewelry. Once travel opens up, we’ll lose some business, but we’ll do repairs, and we have lot of new customers.”
The year ahead may be unpredictable, but Morrow is hopeful. “My outlook is always upbeat,” she said. “I’m personally looking forward to a return to glamour after a year of sweatpants.”
Article from the Rapaport Magazine - March 2021. To subscribe click here.