The grave Covid-19 pandemic has forced people to spend more time at home. They worked, attended meetings, and shopped online more. These activities have been conveniently done through online platforms. This tendency has developed an economic model called Stay-at-Home Economy, which included meetings via applications, e-commerce business, and shopping technologies through virtual reality. As a result, the e-commerce industry has been booming significantly since 2020. According to Statista, in 2020, worldwide e-commerce business value reached USD 4.28 trillion, a 28% jump from the previous year. As for Thailand, data from KKP Research reveals that e-commerce market value was around USD 9 billion, an 80% surge compared to that of 2019.
Lockdown restrictions, social distancing, and public health protection guidelines compelled the jewelry business to migrate to digital world after consumers have progressively shifted to buy products online. According to McKinsey & Co. has assessed that worldwide jewelry industry will grow at 3-4% rate annually from 2021 to 2025, with retail value of around USD 340-360 billion. Rising demand will come from younger generations as well as domestic markets since travel restrictions will still in effect. The firm has also anticipated that by 2025 online jewelry trade value will account for 21% of worldwide jewelry trade value. Meanwhile, according to a research study of Research and Markets states that worldwide online jewelry trade market hit USD 21,500 million in 2020. It is estimated to reach USD 58.9 billion by 2027 with an average annual growth rate of around 15.5% from 2020 to 2027.
Furthermore, a McKinsey & Co. survey of European customers’ jewelry buying during the pandemic conducted in the first quarter of 2021 discovered that around 48% of survey respondents in the UK, Germany, Italy, Spain, and France purchased jewelry online since the pandemic began. After the pandamic, 17% stated that they would continue shopping online. The majority of buyers intend to continue their behaviors in digital usage, which include engaging in more online shopping and using technology integrated tools in jewelry shopping.
Augmented reality software technology or AR has increasingly become more important in gem and jewelry industry. The technology helps customers to design their jewelry by choosing gemstones, metals for settings, and other desirable components before converting a design into a 3D image using AR. The image is, then, sent to a 3D printer at a jewelry shop to instantly produce a wax model or sent to a company’s factory to produce a finished jewelry. According to Statista, there will be 2,400 AR users through mobile phones by 2023. Therefore, customized jewelry and digital channels for customer communication have cut down a gap between online selling platforms and brick-and-mortar shops. Furthermore, online payment has been gaining more share in the market during the pandemic. It will remain significant in the new way of living as people have become more confident in e-wallet system and increasingly shopped online.
