In this article, I’m taking a deep dive into the jewellery market in 2022. I want to present an overview of the jewellery industry, jewellery trends, identifying key drivers and opportunities, while also inspecting the challenges and customer-focused service. I want to help you understand this popular industry with critical statistical data.
From manufacturing to ethical mining and niche opportunities I will provide key information to know what’s affecting this industry. This way you can make more informed decisions for your own eCommerce store regarding attracting customers, understanding pain points, identifying your target market, and uncovering sales possibilities. Plus, we will be focusing on customer service touchpoints to deliver the best service for your base.
THE GLOBAL JEWELLERY MARKET
Due to the lockdown and brick and mortar closures, the global jewellery industry fell by 33% in 2020. Gold, silver, and diamonds saw large drops in supply during this time, and the 2021 HGV driver shortage exacerbated the problem even further. Trade shows and large events were also completely cancelled.
However, the online market for jewellery managed to make a late quarter comeback in 2021 and was valued at approximately 60 billion. Thanks to a lot of free time to think and ponder new possibilities of life during the current crisis, many experts believe covid encouraged more people to get married – thus increasing sales in the global jewellery industry. Many couples that were due to be married in 2020/21 even decided to put the savings into upgrading their rings instead.
Looking forward, 2022 eCommerce Jewellery sales are stable again. Global supply issues are improving, and pandemic shopping behaviours remain consistent. The increased comfortability with making jewellery purchases online carries on, even high-ticket purchases. The push towards an online focus made many jewellery retailers consider new innovative options towards marketing their products – and they’re benefiting from it.
“An oracle survey revealed 47% of sellers recognise that sales strategies involving smartphones have increased the value of their average user’s shopping basket.”
Since customers can’t physically hold the products, they innovated and acquired AR technology to better showcase their items on a phone, desktop, or tablet. More brands have gotten social as well – attracting more customers from all ages and backgrounds that they may not have acquired within typical brick-and-mortar retail. It’s reasonable to assume a new age of technology combined with modern online shopping behaviours changed the future of the jewellery industry forever. Not only that, but new markets are emerging and it’s an exciting time.
JEWELLERY TRENDS
The jewellery industry consists of hundreds of thousands of items from necklaces to rings, bracelets to watches, earrings, brooches and others. Whether for themselves or a gift for a loved one or friend, jewellery historically has a lot of significance to it for various reasons. They help demonstrate significance, love, friendship, celebration and more. It’s about values as well as eye-catching wearable aesthetics and a dynamic form of self-expression. The latest trends in the jewellery market are not only expanding demographically but socially.
For example, though women historically have always been the largest customers and purveyors of fine jewellery, one of the biggest contemporary trends is more men embracing jewellery purchases.
MEN’S JEWELLERY TRENDS
Over the past couple of years, there has been a major trend in men’s jewellery. Generation Z and millennials are quickly becoming the focus for retailers and brands. Lots of notable collections feature gender-fluid designs that add to a non-binary approach to fashion. In a more gender-neutral society brands are quickly expanding their demographics.
This cultural shift is booming sales. Global sales of men’s luxury fine jewellery reached 5.3 billion just a few years ago, an increase of 22% from the year prior. More men seem to be focusing on decorative rings, bracelets, necklaces, and earrings. Luxury jewellery seems to be more vehicles of self-expression today with very unique pieces. It’s even attracting celebrity attention. Notable celebrities like Jaden Smith and Harry Styles publicly display their new genderfluid “bling” with rings and earrings and endorse these product designs, creating a trend that is sure to expand even further in 2022.
JEWELLERY CUSTOMISATION
Customised jewellery is any piece that has a unique design to it with a single customer in mind. Customised jewellery is unique with a one-of-a-kind gift relationship. Whether for personal use or a gift, there is a collaboration aspect to this. Now there is a process online with retailers where customers can design their own jewellery online. This popular trend was valued at 32.9 billion in 2019 and is estimated to reach 59.7 billion by 2027.
Customised jewellery uses fewer precious materials, unlike golds and diamonds or gems. They focus on using materials such as: Glass, plastic, semi-precious stones, beads, leather, and aluminium. Because of the low cost to produce these trending items and materials they are quicker to market and popular, incentivizing more frugal customers in the jewellery industry. The most popular custom jewellery is necklaces, chains, and bracelets, which held 41% in the global jewellery market just two years ago.
DEMI-FINE JEWELLERY
Demi-Fine Jewellery is just a category below fine Jewellery in terms of materials used. Much of it uses cheaper crafted designs with gold plated silver. It’s jewellery created with precious metals and vermeil plating (a thick plating of gold on top of a silver base). It bridges the gap between high-street jewellery and everything else. Jewellery for casual everyday use should not have to be as expensive as a pure gold product, so manufacturers and retailers are using this popular method. It’s good for retailers and it’s good for customers for less expensive options.
The Demi-fine jewellery market was 16% CAGR in 2021. Experts say this percentage will most likely increase in 2022. Popular companies with Demi-fine Jewellery include Missoma, Otiumberg, Astley Clarke, and Felt London.
ETHICAL AND SUSTAINABLE PRODUCTION
The pandemic had disastrous effects on workers and communities worldwide in the mining sector. Global distribution within various small to medium mining operations were forced to cut staff and hire more child labour in some morally inept regions. This has shined a light again on unethical mining practices around the world. Illegal gold mining in Africa and Latin America threatens the environment and human rights protections, forcing more government monitoring and enforcement. Gold mining is also having devastating effects on deforestation in the Amazon. Companies like NameScan help legitimize more mining operations today around the world, holding illegal operations and criminals accountable for violating laws in their country.
In a survey of 15 major jewellery companies, Human Rights Watch found few had taken concrete steps to protect workers’ rights or abuses worldwide due to the pandemic.
“A recent study concluded that over 80% of customers want conflict-free environmentally friendly safe jewellery. “More transparency with safe practices will ensure more companies will benefit from this today than decades before. Expanding your customer targeting within the eco-conscious human rights space would actually benefit retailers.
Today is a chance for jewellery brands to redefine the narrative of an industry that has faced scrutiny for its impact on both the environment and the welfare of the workers that make it work.
JEWELLERY TRENDS | JEWELLERY MARKETING
Recent world events combined with the explosion of technology has adapted the way jewellery retailers have reached new audiences. Let’s discuss these very important trends.
Brick and mortar sales have always been the jewellery industry’s bread and butter for decades. With many high-ticket items for sale, it was critical for consumers to see, touch and feel those products. If it was a ring, they wanted to know what it would look like up close, especially for something that will last a lifetime. The same goes for other long-term jewellery items such as necklaces or watches. It’s a very tactile field, always has been. Therefore, with online commerce growing steadily year after year it was a natural evolution to expand the possibilities of interaction from home, bringing that old fashioned “sense” feeling back. That’s where AR technology has largely come into play.
A report by Retail Perceptions has concluded that buyers would like to use AR technology to help them make purchase decisions. This sensory technology can show you precisely what any piece of jewellery will look like on you – from necklaces to rings to watches and earrings. All you need to do is simply hold up a camera to your face on any smartphone, laptop, or desktop computer, and the technology does the rest. Pretty neat!
Revolutionary jewellery brands such as Tanishq, De Beers, and Kalyan Jewellers have embraced this technology, raising the standard for eCommerce jewellery sales and customer retention. Do you have AR yet for your products?
JEWELLERY SELLING
Selling jewellery online is already a saturated market. More brands are now understanding and embracing the power of social media influence for eCommerce sales. Also known as “social selling,” it is the logical way in 2022 to put their products in front of target audiences with the likes of Facebook, TikTok, and Instagram. Missoma for example targets women in their 20’s and 30’s.
They have used a robust influencer strategy for years to consistently sell out products and even attract a celebrity following making them one of the most popular brands in the market. More brands will be embracing this strategy further in 2022.
JEWELLERY NICHE COMPETITION
There are thousands of niches in the jewellery market. Sometimes the best way to serve a market is to create your own one. This is one of the many reasons customised jewellery trends are on the rise and more retailers are embracing this strategy. Looking beyond the run of the mill standard jewellery to something more eye-catching and unique can delight regular fans of fine jewellery. Recreating high-cost pieces with similar (but cheaper) Demi-fine pieces is also another way retailers are cleaning house and crushing the market.
In the customisation market though, higher prices can also be achieved because of the value placed on the “uniqueness.” Just like special diamonds or gems, unique sells. There are various trends that are quickly showing its commercial success. Here are 5 examples.
1) Religious Jewellery incorporating specific faith
2) School spirit jewellery with school colours
3) Birthstone jewellery
4) Body Jewellery
5) Butterfly Jewellery
When you get into the minds of your ideal customer you create a more personal relationship that cuts ties with the popular yet classically standard fine jewellery pieces. Less high end but chic and less expensive are proving commercially successful in 2022.
CUSTOMER-FOCUSED SERVICE
An obsession with the customer is paramount to any successful business. Important channels to focus on include customer service, but easily overlooked are also delivery time and ease of returns.
JEWELLERY RETURNS
An important touchpoint in jewellery industry trends is dealing with large amounts of returns. Jewellery and luxury products are the second most returned item next to clothing and accessories, a whopping 30.7%!
A solid return process is critical as well as a solid jewellery returns policy. A Pulse online shopper survey revealed 68% of shoppers view returns policies before making a purchase. On top of that, it affects business operations daily, burning away money that could be better spent in other areas. 57% of retailers also say dealing with returns has a negative impact on their day-to-day business.
By far the most convenient way is for customers to return items is from the convenience of their homes, as offered by Return robin. Customers receive packages from home, so why shouldn’t they be able to return items from home? This trend is sure to attract more attention in 2022 and could be your seller’s advantage.
DELIVERY SPEED
Another focus is the speed of delivery. Increasing dispatch speed for 3pls is critical to customer happiness as well as a competitive advantage. Next day delivery and 24-hour delivery matter in a new age of technology and efficiency. 26% of online shoppers abandon carts due to long delivery times. Making sure you work with a tech-first third-party logistics provider ensures quick and efficient deliveries. Slow deliveries will only harm your brand.
INVENTORY MANAGEMENT
Running your own medium or enterprise-level online business comes with its challenges, including storage. Warehouse storage and accurate inventory management are critical to dispatch speed and customer retention. Mismanaging products can lead to delays in getting products out to customers, reflecting badly on your business. 34 percent of businesses have shipped an order late because they inadvertently sold a product that was not in stock. Hiring a dedicated 3pl company can help more medium to large businesses stay ahead of this issue.
JEWELLERY TRENDS AND JEWELLERY MARKET CONCLUSION
Things are looking up for the jewellery industry. Certainly, embracing modern technology to change the customer experience both in-store and at home are critical today. Getting more creative and focusing on eco-conscious lifestyle minded consumers can benefit your brand. The rise of more men embracing fine jewellery shows us that the market is clearly in a new stage of growth and trending. 2022 will be a big year for the online Jewellery marketplace. Should you want to expand your services to the next level with jewellery next day delivery and returns, contact Selazar today.