Can the jewelry industry compensate for the huge losses recorded during the pandemic

India’s economy has been devastated by the COVID-19 pandemic. the jewelry industry, like many others, has been hit hard with a long list of canceled or postponed meetings, exhibitions and weddings in the coming months. Due to the pandemic, markets in all industries have been affected. Fear of the virus spreading and disease contracting brought the country’s jewelery industry to a halt, with retailers reporting a drop in footfall even when lockdowns were lifted for a short period between the first and second wave. At the same time, retailers are hoping that as the pandemic subsides, wedding season will begin and they can make up for lost revenue.

Due to industry inertia, various investment avenues that were not pursued resulted in a significant currency crisis. Before the pandemic, businesses were booming due to constant demand, but now the industry has been severely disrupted around the world. The closure of physical retail stores around the world has had a major effect on the gemstone and jewelry industry. Another contributing factor to the predicament is the industry’s labor-intensive and export-oriented nature. Manufacturers and suppliers are in trouble because they have a surplus, and the times ahead reflect only a glimmer of hope for recovery.

Instead, it allowed jewelers to reflect on their plans, plan future strategy, and focus on how to make this step exciting and creative for customers. New rules and social norms will have to be established because resuming operations in the midst of a pandemic requires a lot of foresight and determination, as this epidemic is not yet cured. When stores reopen, there will be changes in the jewelry industry. As shoppers become more confident to transact online for nearly every product category, including jewelry, jewelry brands that previously had no online presence have begun to invest in their presence at full throttle. digital.

While the slower months had a big impact on sales, they also opened a window of opportunity to tackle contemporary lightweight jewelry for everyday wear and gift giving. With less disposable income due to the disruption in the business cycle negatively affecting profits and revenues, customers who still wanted to buy jewelry opted for lower value, more utilitarian items. This same category also performs extremely well in the gift segment. Whether for gifts for loved ones or for pampering, this category has gained favor in these times.

However, post-lockdown, the upcoming festival and wedding seasons will undoubtedly help boost domestic gemstone and jewelery sales. Focusing on selling low-cost, high-value jewelry through e-commerce would help create demand while improving profit margins.

If curfews/restrictions are lifted, the jewelry industry must ensure that its vast workforce gradually returns to work to help the engine of the economy restart. To do this, the industry should ensure the availability of work and job protection. Maintaining manufacturing operations for the next two to three months will be critical, and most businesses will need to save money to survive. Accordingly, in addition to government measures, the industry should band together to help and protect valuable human capital, coming together to drive the jewelry industry in the post-pandemic world.