Jewelers count lost income: people used to save, ring sales fell 10 times

There are no international jewelry exhibitions, so design trends and investments in improving production have stalled, and the overall situation of the jewelry market is stagnant, says Viktorija Jonutytė, creative manager of the jewelry house Premiere.

“Precious stones such as sapphires, rubies or emeralds and pearls are often bought at international exhibitions. No customer likes to overpay for stones certified by international laboratories and probably twice as expensive, and buying without a certificate is only possible by evaluating them live.

It is common in the marketplace to cheat, to sell filled or lab-treated stones of significantly lower value than the price of valuable natural stones, so a qualified buyer who has visited the exhibits with the initial inspection team can insure against this. “, He said. He says.

The jewelry business has also been affected by tourism restrictions: the company has lost around 30 percent. “In Lithuania and in our company, Russians, Belarusians and Lithuanians who returned from England, Germany and Norway accounted for at least 30 percent. of total revenue. In addition, they generally negotiated less than a regular domestic buyer. “

Turnover fell 3–4 times

Although the doors of the 4 stores of the Premiere jewelery house have already been opened to visitors, sales are growing slowly, especially in the capital.

“Trade is already taking place, in the smaller cities of Lithuania it has recovered almost 100%, Vilnius customers who have been waiting for the opening for a long time visit us every day, but sales are growing more slowly. They probably not only visit us, they compare, they are not in a hurry, which has always been an important part of buying jewelry in the capital, where there are so many options ”, says V. Jonutyt creativo, the creative director.

During the quarantine, commerce moved to the Internet, but this did not replace sales in physical stores. According to the interlocutor, online sales brought the average monthly turnover of a store when five physical stores were closed: in Vilnius in the Ozas shopping center and in the old town, Šiauliai, Mažeikiai and Riga, so the total turnover of the company fell about 3 4 times during the second quarantine.

“Our online sales were poor; we sold jewelry very well for only 200 euros. This is a safe product, if you are not satisfied you can return it and there are no very high expectations of a cheaper product anyway. At that time , more expensive goods were expected when it would be possible to come and inspect them live.

V. Jonutytė points out that the Internet in the jewelry business only serves as advertising and invitation to buyers to come to the show, but not as a direct sales channel, because jewelry is a very specific product.

“What makes jewelry different from others is an emotional product that is more like perfume. If you don’t buy them as cheaply and easily as possible, you have to compare them, feel them and see the proportions.

People buy jewelry of real value infrequently, sometimes only a few times in life, so they must be able to know and understand at least the basics: trying on sizes, different designs, understanding which jewelry reflects your soul and body, which are tailored to your needs. finger or ears, what is that comfort zone, etc. “, Explain.

Ring sales have dropped up to 10 times

It is true that, according to the representative of “Priemiere”, there was some purchase of wedding and engagement rings online, but even up to 10 times less than usual. If the clients applied, the process was very long and complicated. According to a representative from the jewelry house, customers had to submit multiple photos, live videos, and sparkling videos, and they offered generous discounts.

“Even if you bought wedding rings online, it’s a classic for sure. There was a bit of engagement ring sales up to 1000 Eur, but we felt that during the quarantine the matches were postponed for a while so that men could delve into the product in Men, in particular, do not understand engagement rings at all, they are not familiar with the scope: how wide, how big, how tall, what does that ring look like.

I think that the rings of competitors who sell products to the general public may have been bought in quarantine, because engagement rings, as a rule, up to 500 EUR, usually the customer only looks for the best deal, very rarely looks at the quality. and design aspects, and the price starts from 1000 Eur, the customer is waiting for a live knowledge of the product. Nobody took the risk of buying online, we only had a few more expensive engagement ring sales, ”says V. Jonutytė.

People are used to saving, buying only on special occasions.

At the time, the pandemic had just fueled lifetime jewelry purchases. Pendants, luxury charms, necklaces and earrings just sold more than ever. As the interlocutor points out, jewelry and real estate were the main commodities invested in after the first quarantine, so the financial situation of the company was satisfactory.

“Almost all clients admitted that, for example, they wanted a piercing for the birth of a child or an amulet for the occasion of a big anniversary or anniversary. Most of the more expensive products were characterized by thinking and the desire to buy them for a long time.

I don’t know what will happen after the second quarantine because people save. Like us, I believe that our clients’ savings are diminishing. The economic situation is depressing, people are used to saving, buying only on special holidays. We look forward to the recovery of spring and summer “, – expects the creative director of” Premiere “.

I had to close the doors of a store

However, the most painful victim of the first quarantine was the closure of an open shop on the Riga Acropolis a year ago. At the moment, according to the interlocutor, there are no plans to renew the contract for a long time, and the investment has been directed to the renewal of the online store.

Generally, the Christmas period is one of the most profitable for the jewelry business, but last year, when the stores closed, the situation was extremely difficult: “The last week before Christmas was generally very active: the jewelry more expensive were bought in the last 10 days.

We were very prepared for that, but we lost about 30 percent due to store closures. planned revenue. The biggest loss was our new Christmas collection, made specifically for Christmas. It has not been able to get to the online store and people have missed the opportunity to buy it live in stores. “

Employee support was especially spared

V. Jonutytė points out that state support (subsidies for employee downtime, some of them) is still waiting for the opportunity to return to work. Although tax deferrals are offered, the Company does not believe they will use them. Currently, the company particularly benefits from agreements with gold and diamond suppliers, who are expected to wait as long as they need to pay.

“Orders from loyal customers help us to survive to the fullest. They already know our possibilities, the nuances of the products, they trust our creative, constructive and material questions. In addition, we know the size of their fingers, the types of piercings that work best for them, etc. We were lucky because we have been working for three decades, so we have been through this difficult time, but if we were relatively young in the market, we definitely would not have survived, “he says.

More challenging is the situation with the rental of premises. The interviewee is convinced that the generalized non-regulation of rental prices affects all companies that need a premises for their activities. She notes that there is no unified approach on the part of the owners, nor does the state help here.

“Rental prices are not lowered enough, contracts are not modified or regulated and the economy is in decline. The price advantages caused by the previously aggravated economic situation are being exploited and it is not recognized that the situation has changed, it is he hopes that the owners will return to the same situation, but it will never happen again ”, says V. Jonutytė.