Welcome a New Year

To say this holiday shopping season will be unlike any other is obvious—it’s how this season will be different that is more the unknown. Beyond that, it’s hard to know precisely how retailers can plan for their 2021 ahead, without being able to look back on reliable trends from years past.

Whether or not to open physical brick-and-mortar locations, operate on an appointment basis, test employees regularly, take customer temperatures—there are all a lot of new questions to factor into the equation that weren’t a part of it before. It can all be a bit much when retailers should really just be worrying about what to stock and whether or not to take on a new jewelry trend—important considerations to be sure, but seemingly less daunting decisions. 

It hasn’t been an easy year for anyone, jewelry retailers included. Two recent surveys conducted by RELX, parent company to JCK, found that attendees of JCK Las Vegas and Luxury shows (comprising retail jewelers, among other industry members), were hit pretty hard by the COVID pandemic: Just over half of JCK attendees said their businesses had experienced a high/medium impact from the pandemic to date. Luxury retailers (or those attendees of JCK’s Luxury shows), were hit slightly less, with approximately 30% saying their business had experienced a high/medium impact from COVID-19 to date.

And yet, retailers have and will continue to persevere, adapting their businesses in ways that suit their customers, their staff, and their sales. With news of successful vaccines in the pipeline and the hope that a return to some form of normalcy is on the horizon, the transition throughout 2021 will be something jewelers will have to navigate on their own terms, as well as on the terms of their customers and what they’re comfortable with. According to the same surveys conducted by RELX, a good portion of the jewelry audience is already eager to get back to it: Approximately 65% of JCK attendees surveyed said they were comfortable attending in-person shows under the current circumstances (note: the surveys were performed in Q2 and Q3 of 2020); while an even higher 80% of Luxury attendees said they’d be comfortable doing the same.

In the meantime, retailers have shown an incredible ability to adapt to the challenges this year has brought, despite their skepticism of what remains of this year, at least. According to the results of the 2020 JCK State of the Jewelry Industry survey, only 19% of respondents described themselves as very optimistic about their business over the new year (compared with 36% when asked pre-COVID). In addition, 16% of respondents asked during the pandemic said they predicted their revenue would fall by 50% of more in the next year, while a majority (58%) expect it will take more than eight months for business to recuperate.

We’re in the process of recuperating. At the time of the JCK Industry Survey, there was no cure or preventative path for the virus, only the knowledge that it would happen eventually. But that’s beginning to change. And while some experts predict a return to normalcy won’t come until summer of 2021, that gives us something to look forward to, something to plan for, and cause to celebrate.

Retailers should keep their focuses on internet sales for the time being—even with a customer base that may be comfortable shopping in-store, the opportunity to reach new and existing customers online is massive. Jewelry purchases aren’t as simple as shopping for groceries, however, and extra attention is due to a company’s online presence. Share side-by-side comparisons of jewelry for size and scale; model the jewelry on an ear, finger, or neck, to show how it lays. Add video, if possible, to show movement. And don’t treat this as a temporary solution: Shoppers will be eager to get back in stores once it feels safe to do so again, but we’ve had ample time to experience the convenience of shopping online while witnessing that it’s possible to offer a certain amount of valuable customer care even virtually. This will prove a permanent adaptation, and one that’s worth investing in just as much as the brick-and-mortar model is. Still, retailers are no strangers to the power of face-to-face interaction, and will no doubt be ready to embrace those fully as soon as possible.

As for what to stock come the new year, a focus on bridal and diamonds is a smart move: we know from the JCK State of the Industry Survey that bridal and diamond purchases are still very much alive, with 23% of respondents reportedly seeing increases in engagement purchases during COVID, and 20.3% of respondents reporting an increase in diamond sales.

Another big category to consider is custom pieces, whether offering the service in-store or partnering with designers that do. Custom pieces were reportedly up 70% pre-COVID from 2019, and though only 38% reported an increase during the pandemic, it was still the highest sales category, beating out colored stones, bridal, diamonds, and fashion/bridge jewelry.

As we spring from this typically busy holiday season into 2021, hang in there—continue to focus on the customer as best as possible and make every interaction, face-to-face or virtual, a special one. Hope is high and help is on the way, and if any industry can endure, especially during a time when people want to express themselves through special purchases, it’s the jewelry industry.

Restock after the holidays and prepare for a successful year ahead at the JCK 2021 Show — save the date for June 4-7, 2021! Pre-register today.