The COVID-19 pandemic that occurred in 2020 has crippled the World's economy. Due to COVID, industries across the globe are at a stalemate. Like many other industries, the jewelry industry underwent a catastrophic turn of events. From postponed events, shows, exhibitions to major control on weddings, hefty losses in the jewelry industry.
A few years back, the industry's surge predicted that 2020 would be a doorway to a plethora of business opportunities. The production, export, and supply were aligned to encounter the desired goals. Conversely, the outspread of coronavirus took everyone by shock. It turned the smooth manoeuvres upside down. The jewelry business dipped significantly. The high-value diamond pieces and the high-end chunky jewelry widely popular in the Middle-East and far-east agonized a huge downfall. As profitability went ashtray, the management of key players duly intervened to deal with the crisis.
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How did COVID-19 have changed the Gems and Jewellery business?
The lockdown period instigated the feeling of uncertainty. The uncertain economic future caused an imbalance in the sale and export in context with the gem and jewelry industry. As per the GJEPC (Gem and Jewellery Export Promotion Council), COVID-19 declined gem and jewelry export rate by (-) 11.32% during Dec 2019-March 2020.
The period from April 2020 – February 2021 reflected a decline of 34.58% in the overall gross exports of Gems & Jewellery as compared to the same period the previous year. The increased shortfall in the export is anticipated to recover in the upcoming year. The manufacturers, sellers, and exporters need to understand the current market and strategize accordingly. Waiting for things to improve or rely on the government to take improvising steps wouldn't pace up the recovery of previous losses.
The emergence of digitalization took place in the late 2000s. The same turned out to be an elixir for jewelry and the rest of the industries. The events that were supposed to organize live were now seen on Zoom meetings. The purchase and export completely shifted to online platforms. Even though there was a relative downfall in the sale, digital purchases and export orders saved many small manufacturers and jewellers from sinking.
Post-Covid Challenges for Manufactures and Jewellers
The key reason behind the heavy impact on the gems and jewels industry was the shutdown of physical retail stores worldwide. Another cause is that the industry is a highly labour-bounded and export-oriented sector. The labourers shifted back to their native places, and export also went down. The manufacturers and suppliers were in a fix as they had a surplus, and the impending period was hardly reflecting marginal hope of recovery.
The traditional businesses that still operate offline were facing immeasurable difficulties during and post-pandemic. However, the COVID-19 state helped in underlining the urgency of digitalization. The present situation is entirely in the hand of digitalization.
Gems & Jewellery industry needs digital strategies for post-COVID-19
The post-pandemic period pin-pointed the urgency of adopting online sale purchases. Well, as simple as it sounds, the mechanism behind the same is completely reversed. However, if the strategies are properly formed, then acing in the digital World becomes a piece of cake.
The scenario in the digital world is global. This implies that the possibilities of succeeding are beyond imagination. Following them is the competition. The same accompanies the responsibility of selecting suitable markets and carter as per the demand. The major takeaway is winning the trust of the buyers. For the physical world, a good quality product in the gem and jewelry industry is the only requirement of gaining trust. Well, the digital World works otherwise. A couple of platforms will showcase the products' certification and help increase export by advertising. These platforms are known as the business-to-business platform. Unlike the business-to-customer platform, they won't promote themselves rather inform the buyers about the respective business and their certification of the gems and jewelry. Also, a trusted business-to-business platform will boost the struggling business, especially in the current scenarios.
A very promising B2B marketplace for diamonds is Diamonds On Call. They are trusted and well established. They will help in promoting local businesses to the global platform. The independent grading of the diamonds is prominently done. Also, the export and logistics are taken good care of at Diamonds On Call.
The sales innovation has brought an exciting turn of events for others. We are optimistic that the same would get for the local manufacturers and suppliers too. It is essential to take calculated steps to survive during these difficult times– after all, desperate times call for desperate decisions.
You can also read: Why Diamonds are so Valuable?