Jewelry Shoppers Moving Online But Are Local Stores?
“A growing trend in jewelry retail: fine jewelry retailers are finally getting online. However, as online shoppers often remain hesitant to invest in a piece of jewelry, retailers are going to need to overcome the innate physical restrictions of e-commerce standards in order to capture a share of this growing market,” Deborah Weinswig writes for Forbes.
“Growth in the global jewelry market is being fueled by the shift to e-commerce. According to Research and Markets, the global jewelry market is expected to reach $257 billion in 2017, and grow at a rate of 5% per year over the next five years. While the online fine jewelry market currently accounts for only a fraction (4%–5%) of this, it is expected to grow at a much faster rate, and to capture 10% of the market by 2020. Online fashion jewelry sales are projected to take an even bigger slice, capturing 15% of the market by 2020, according to Connecting Dots.”
Now is the time for bricks and mortar jewelry stores to get online. The new AudienceSCAN survey found 16% of Americans plan to buy new jewelry or watches in the next 12 months.
“As global luxury e-commerce approaches a tipping point, McKinsey & Company expects the luxury category’s share of online sales to double, from 6% to 12% by 2020, and for 18% of luxury sales to be made online by 2025. That would make online luxury sales worth about $79 billion annually. Such growth has resulted in established jewelry retailers scrambling to get online and newcomers flooding into the space.”
“While the market is strong, moving luxury jewelry online presents challenges: established retailers must adapt their business to e-commerce and newcomers must establish credibility and reputation. For established jewelers, this means they have to adjust their operations for online sales by changing production, inventory and fulfillment processes.”
Established jewelers be aware: your customers are looking for you online. The new AudienceSCAN study showed 54% of Jewelry Shoppers have used the internet via browser, tablet, smartphone or other connected device to use a search engine to research a product they were considering for purchase in the past 30 days.
“For the newcomers, it means they have to establish themselves as reputable jewelry retailers. Some retailers, both established and new, have solved this by selling through other e-commerce platforms such as Net-A-Porter or Etsy. Others, such as BlueStone and Carat Lane, have adapted by offering a try-at-home service, where customers can select pieces to see in person at home before purchasing them.”
And newcomers should know that 64% of Jewelry Shoppers used the internet via browser, tablet, smartphone or other connected device to shop in the past month, according to the new AudienceSCAN data.
“Startups are quickly disrupting jewelry e-commerce as they react to the needs of the space. Plukka, an omni-channel jewelry retailer, operates on the try-at-home model as well, calling it “View On Demand.” Rather than making the large capital commitment of a full-on retail expansion, Joanne Ooi, the CEO and co-founder of Plukka, decided to pursue an innovative channel that leverages the best of both worlds. The View On Demand service allows customers to see, feel and try on jewelry before making a purchase, essentially marrying online and brick-and-mortar shopping in a unique and cost-effective way. Forbes thinks View On Demand has the potential to upset the status quo in the fine jewelry industry.”
Used luxury jewelry is trending as well. According to a report from Bain & Company, the online resale industry is expected to grow at an annual rate of 16.4%.
The new AudienceSCAN survey revealed 40% of Jewelry Shoppers are using Ebay and 27% are using Craigslist. Now is the time to advertise used/estate jewelry to get these shoppers to your site instead! Placing social ads could be the key. The new AudienceSCAN study also found 41% of Jewelry Shoppers took action after seeing ads on social networks in the past month.
“Consumers are becoming more and more comfortable shopping online, which will only add to the growth of this segment of jewelry sales. Jewelry sellers are capitalizing on the opportunity in this market by coming up with innovative ways, from personalization to curation to home trial options, to address consumers’ concerns.”