The jewelry business is one of the most popular in this country. People from all walks of life wear pieces that represent different meanings to each person. However, in recent years, the industry has noticed a change. The traditional jewelry stores that many have gone to over the years have closed. Instead, several businesses have transitioned to the virtual world.
The following information will discuss the reasons behind traditional store closures, and the move to online businesses. You’ll also find out how they started their virtual ventures, and how they have been able to stay alive.
Stores Are Closing?
If you travel to your local mall or shopping center, you have probably noticed that the traditional jewelry stores have shut down. According to Brilliance.com, there is a reason. The industry has changed, and customers are shopping differently than in years past by using the internet. As a result, at least 400 stores closed in the fourth quarter of 2016, and many CEOs have stepped down.
Now that the Baby Boomers are reaching retirement age, they are leaving the industry, and closing their shops. However, Generation X-ers and Millennials are unwilling to pick up where they left off. As a result, family businesses involving jewelry have shut down, and the market has changed.
Millennials Are Changing Things
Millennials have helped to changed the industry. Because they use the internet so often, they are more apt to look at online deals rather than focus on what a certain store offers. In fact, they value a good deal over quality, brand, and even availability.
If you surf the internet enough, you’ll see that the number of online competitors have increased. Famous jewelry companies have joined Amazon and eBay by creating a virtual presence. They realized that the younger generation prefer to get what they want with just a few clicks on their phone or laptop. As proof, The Wall Street Journal reported that 51 percent of purchases were made online. Moreover, 10 percent of grooms are purchasing engagement rings online. As a result, traditional retailers’ sales have fallen behind.
There are two other big factors that define why online shopping for jewelry has become the popular choice. For starters, you don’t have anyone hovering you. Let’s face it. Making a big decision like getting an important piece of jewelry can be nerve wracking. You don’t need a store clerk hovering over your every move. It can make the experience worse.
The second issue affects the staff. They realize that customers now have apps on which they can give customer reviews that are read by many others. Hence, online establishments make sure to ensure quality merchandise and support throughout any customer experience.
Move To Online
However, companies like Tiffany & Co. have learned their lessons. As Forbes explains, they started collaborating with Net-A-Porter for their e-commerce transactions. Doing so will increase their presence from 13 countries to 170.
The other traditional jewelers realize they need to follow suit. If they don’t, they miss out on several customers because more purchases are being made online. In fact, the global jewelry industry is expected to increase by $257 billion in 2017, and increase five percent every year for the next five years.
Moving online does present significant hurdles. The well-known companies must adapt to a new method of business. As such, they need to adjust their operations to fit an online model. Production, inventory, and processes have to change in order to meet demand.
Newcomers, on the other hand, have to establish themselves. They need to build trust from customers. While established companies also face this problem, it is especially true for the newbies since they have yet to build a reputation.
However, when connecting with other platforms such as Net-A-Porter and Etsy, customers have the opportunity to view their merchandise in ways they weren’t able to before. There are other services like Plukka that allow you to try things at home, and view items on demand, as well as other jewelry services that you can experience.
The days of traditional jewelry shopping are coming to a close, and the online option is booming. Popular retailers have joined others in creating a virtual presence, and customers benefit from the wide array of choices that they can view from home. Convenience and price has become the important factor, and the future of the industry is changing as a result.