The beauty industry has always been touted as the one industry that’s recession-proof. And you know what? That makes sense from the most basic of human psychology.
When things are bad and you can’t do anything about it, you turn to the one thing you can control, yourself.
People simply try to look and feel good about themselves because nothing else will do that job for them.
But, there’s a new player in the market – fine jewelry. Yes, people are buying gold necklaces and bracelets, swarovski studded watches, and diamond rings more and more.
According to Edahn Golan, founder of Edahn Golan Diamond Research & Data, purchases of fine jewelry in the US recovered from the early months of the pandemic and started to gain momentum heading into the summer.
Fine jewelry sales were up nearly 10% to $5.25 billion in August from the same month last year.
Daniel Bachman, US economic forecaster with Deloitte, said the pandemic has hit the labor market unevenly. He said and I quote, “The lower end was hit hard, and frankly they are not buying jewelry. The higher end is sitting on unspent income and the savings rate is very high right now.” Jewelry sellers have a theory on why they’re seeing sales come back.
Stephen Lussier, executive vice president with De Beers, the world’s largest diamond mining firm said that in every market in the world, the number one competition to our industry is travel. If you have a wedding, a 10th or 25th wedding anniversary, a significant birthday, the romantic thing to do is travel, but now with travel in a slump, jewelry has been capturing some of the unspent travel budget.
Macy’s, in an email to CNN Business, said it has seen customers during the pandemic “gravitate toward the jewelry category, in part because it retains its value”, and we can’t agree more.
Gold, silver, and other metals have always been insulted by many experts because they are still perceived to be a luxury and luxuries are the first to go when economic disasters strike.
The beauty industry has proven these supposed experts wrong and the jewelry industry just joined the party.