Effects Of The Credit Crunch On Jewellery Sales
The media is awash with economic doom and gloom. The credit crunch that has affected most of the world in the last 3 months is threatening to have severe knock-on effects on many industries. But what will it mean to the diamond jewellery trade?
Although The Diamond Store is not best indicator of the world economy, with its amazing success in a very short time, they have definitely see a pattern emerging; people are opting for higher quality jewellery.
On the surface, people spending more money when credit is tighter doesn't seem to make sense but on further analysis, it can possibly be explained.
Retail Therapy - When people are unhappy, they search for a way to be happy. Going shopping is well known to uplift spirits. However, with tighter credit, these people want to make each item they buy, count more. So out goes impulsive purchases to be replaced with considered purchases. People will focus more on quality and the selling experience to gain the emotional uplift that results in their therapy!
This will explain why The Diamond Store has seen an astonishing 55% increase in the average order value in 2008 compared to 2007. The Diamond Store, with its emphasis on quality of product and customer service, is proving that their strategies are working well. Just read some of their customer's testimonials here.
Entry level diamond jewellery such as low value diamond rings and gem-stone jewellery, have made way for more expensive diamond rings (especially full eternity rings), diamond bracelets, and diamond earrings.
Mary Portas, best known for her television series Mary Queen of Shops and her weekly mystery shopping reports for The Daily Telegraph, has been quoted to say that retailers need to know their customers. "In a saturated consumer society, the customer is asking "what makes me happy?" she said. "The future of retailing will be defined by those who know their customer's emotional needs. It is much less about what you sell and much more about how you sell it.
This is a core focus for The Diamond Store - you can gauge just how well they do this everytime their jewellery boxes are opened...
Although The Diamond Store is not best indicator of the world economy, with its amazing success in a very short time, they have definitely see a pattern emerging; people are opting for higher quality jewellery.
On the surface, people spending more money when credit is tighter doesn't seem to make sense but on further analysis, it can possibly be explained.
Retail Therapy - When people are unhappy, they search for a way to be happy. Going shopping is well known to uplift spirits. However, with tighter credit, these people want to make each item they buy, count more. So out goes impulsive purchases to be replaced with considered purchases. People will focus more on quality and the selling experience to gain the emotional uplift that results in their therapy!
This will explain why The Diamond Store has seen an astonishing 55% increase in the average order value in 2008 compared to 2007. The Diamond Store, with its emphasis on quality of product and customer service, is proving that their strategies are working well. Just read some of their customer's testimonials here.
Entry level diamond jewellery such as low value diamond rings and gem-stone jewellery, have made way for more expensive diamond rings (especially full eternity rings), diamond bracelets, and diamond earrings.
Mary Portas, best known for her television series Mary Queen of Shops and her weekly mystery shopping reports for The Daily Telegraph, has been quoted to say that retailers need to know their customers. "In a saturated consumer society, the customer is asking "what makes me happy?" she said. "The future of retailing will be defined by those who know their customer's emotional needs. It is much less about what you sell and much more about how you sell it.
This is a core focus for The Diamond Store - you can gauge just how well they do this everytime their jewellery boxes are opened...
posted by The Diamond Fanatic at 8:46 AM
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