Despite economic pitfalls and international tensions affecting different industries, the jewellery market is still very much alive and well. Reports from Industry Research Biz show that the global market size for jewellery is expected to hit a readjusted size of over $370 million (£304 million) by 2028.
Much of this continued success can largely be attributed to the power of ecommerce. Research from Statista has even found that the majority of Gen Z and millennial shoppers in the United Kingdom prefer to shop online for jewellery and accessories. Despite the lasting appeal of in-store browsing, the shift to ecommerce has clearly been the life force of the industry in recent years. If you’re wondering how this became the case, read on.
Premium has been made more affordable
Much of what has barred consumers from the jewellery industry is the supposed Sophie’s choice between cheap options that don’t last and expensive choices that are hard to access. Because of the internet, premium jewellery still retains its social appeal while becoming decidedly more affordable. This is because of lower overhead costs in maintaining an online presence compared to a physical store. Additionally, online deals are in rich supply and let more people get legitimate pieces of jewellery at a fraction of the cost straight from the source.
If you look at the selection of diamond engagement rings on 77 Diamonds, you get all of the same quality pieces that you’d find in their showrooms but there are various pricing options at your disposal. You’ll also likely see that there are many more sale prices on offer without sacrificing the conditions or standards of the gems. With an expanded market, more transactions follow suit.
Shopping has become more accessible
The accessibility and availability of ecommerce have made shopping more accessible to consumers of every age. It also opens the platform for different types of purchases, be it for oneself or another. Basically, everybody loves to shop online and a huge chunk of their activity has to do with buying jewellery.
If you look at information from the International Trade Administration, you’ll see that 82% of the UK population bought at least one product online in 2021. This accounts for more than a fourth of the total retail market in the UK. Furthermore, more than half of Brits aged 16 to 64 shopped online every week in the third quarter of 2022 alone.
Wider selections draw in more people
People are drawn in when there are more options and even more deals to boot. This is the very concept that has driven the success of Prime Day, which has become one of the biggest ecommerce events every year. Amazon’s borderline monopoly of online retail is largely driven by its ability to pool different manufacturers and sellers into one platform that consumers can easily browse through.
People want to have more options and freedom, while still being offered the convenience of a singular space and discounts. Add the personalised algorithm that caters to a user’s taste, and it’s clear why ecommerce has become the driving force for the industry as of late.
The impulse buy continues to reign
Ecommerce is practically built on the power of the impulse buy. Algorithms and social media cater very much to marketing and spending, so users are more likely to buy something just because it’s very easy to do so. With a simple click of one link or button, you’ve bought yourself a glorious new piece of jewellery that will arrive in no more than a few days.
This rings even truer for users who have brand loyalty. Consumers will be more likely to buy from trusted brands that constantly engage them. A lot of modern retail has to do with ‘Leveraging Subscriptions to Grow Revenue and Loyalty’, and the return on investment is most evident in email marketing. The average conversion rate for email marketing is around eight to 10 per cent, which is already very good considering today’s digital habits.
As such, jewellery brands have thrived off of reaching out to new and existing customers on a personalised level. From there, all it takes is to get that click and rake in those profits. With a Finder survey revealing that 78% of British adults have succumbed to impulse buying, it’s obviously working.