The COVID 19 has impacted businesses and industries all across the world, forcing many to shut down while others have had to become more efficient and strategic.
According to new research, New Zealand would suffer a bigger blow on its economy compared to many other countries. As of June 9 it was expected that New Zealand would experience a 30% drop in activity compared to 15% in Ireland and 25% in the US.
One of the main industries affected by the pandemic is the jewelry market. Over the last few months, there has been a significant fall in sales. While the New Zealand jewelry industry has been hard hit, it is learning to adapt in these trying times.
Let’s find out more.
Jewelry sales
Jewelry sales have taken a sharp dive since the early days of the coronavirus pandemic. According to Metal Focus gold jewelry sales dropped by 39% in the first quarter of 2020. Due to the lockdown, buyers have not been visiting jewelry shops.
What’s more, shop owners were forced to close. It was expected that the sales were going to go down.
This happened after New Zealand went on lockdown on March 25th and while the lockdown was successful at curbing the COVID 19 spread, it had an inverse effect on the jewelry industry.
What is surprising is that on August 12th the biggest city in New Zealand, Auckland went back into lockdown and this will further affect the diamond market.
Wedding sales
Another factor that has caused a major upset in jewelry sales in New Zealand is the fact that there haven’t been weddings with many couples having to cancel their weddings due to the lockdown.
In July, it was reported New Zealand was coronavirus free and for a while, it seemed like things would get back to normal. However, a recent resurgence means – back to observing coronavirus restrictions… a downside for the jewelry market.
With people observing social distancing, it has been hard for jewelry shops to maintain their usual stream of clients.
It’s not all bad
While yes, we can expect to see more declining sales in jewelry in New Zealand, there has been a glimmer of hope as people continue to buy jewelry from the comfort of their homes. Shoppers are now purchasing online.
Many of the purchases are meant for close family as a way of showing appreciation.
Moreover, people have been buying jewelry as a way of getting away from the reality outside. It offers an escape and reminds shoppers that things aren’t all too bad. How long this continues, however, is subject for debate especially with the new lockdown.
Jewelry sellers have had to change tactics
In order to stay in business and the fact that shops have been closed down for a while, many sellers of jewelry have had to change their strategy to ensure continued sales.
One of the ways they have done this is by focusing their marketing on a specific demographic. By doing this they make the target group feel appreciated and as a result continue to buy jewelry.
Final Thoughts
It has certainly been a turbulent season for the jewelry industry in New Zealand. The sharp decline in sales, however, has forced sellers to adapt to ensure continued business. With the new lockdown in Auckland, things are not looking so good for the jewelry industry in New Zealand.
