Jewelry Can Capture Market Share from Travel, De Beers Says

Jewelry can capture consumer dollars that would have otherwise been spent on travel and other experiences, De Beers found in its latest “Diamond Insight Flash Report,” part of a series of reports it’s doing on consumer attitudes in the COVID-19 era.

In a poll of 500 Americans aged 18 and above, only 15% believe they will spend on travel in the next six months. That could be a benefit for jewelers, since, the report said, “experiences”—particularly travel—have replaced material things as millennials’ top choice of discretionary spending in recent years.

It also found that 44% of consumers had more disposable cash due to the cancellation of travel, dining, or other experiences during the year.

In addition, more than two-thirds of Americans had canceled travel plans for 2020. Of that number, 55% found themselves with extra money as a result. About one in eight consumers hoped to buy diamonds to mark a special occasion.

In general, consumers were surprisingly upbeat. The research found that almost half (46%) of consumers had an optimistic outlook overall for the near future. More than 60% said the pandemic had not affected their personal finances—though this may change now that the extra benefits from the CARES Act have lapsed.

One troubling note: 42% of consumers say overall spending will not return to normal for over six months. That’s the highest percentage to lay out such a long time frame De Beers found in its 18 weeks of polling.

The company also found that 46% of respondents said their jewelry spending was back to normal, with a further 25% expecting it would normalize in the next six months.

It also found a lot of “boredom [and] anxiety about current events,” meaning people were spending more time on social media and watching news. Some 66% said they are watching more local news than before, providing an opportunity for jewelers who want to tailor their media buys.

Top: an illusion bezel ring with 5.01 ct. emerald-cut diamond by Rahaminov Diamonds (image courtesy of Rahaminov Diamonds)

 

 

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JCK News Director