We all have spent most of the year 2020 in the shadow of the COVID-19 pandemic. The world seems hanged with lockdowns and social distancing, and people worldwide are still habituating with the idea of prolonged indoor stays.

Out of thousands of downsides, the COVID-19 pandemic has taught an important lesson of life that nothing matters more than the safety and security of ourselves at the end of the day.

We all have started re-evaluating the relationship we share with our loved ones during these lockdowns and have reinforced the value of the people around us who genuinely care for us.

However, in terms of business perspectives, the level of activities have blown hard in the market after the COVID-19 outbreak.

If we consider the luxury diamond and jewellery industry, it was not even completely revived from the 2019 slowdown the pandemic arrived, which hit hard on the industry.

The major diamond mining companies across the world have voluntarily lowered their level of activity, considering shutdowns of major diamond manufacturing units and anticipating the lowered demand for luxurious products in the market.

Even most global diamond and jewellery trade shows are either canceled, postponed, or held virtually (but recorded lesser activity) to contain the pandemic’s transmission.

Though there’s so much to discuss the consumer conduct post-COVID-19, it’s important to note that some parts of the world are still under lockdown, and in others, the economic activity isn’t reinstated.

That’s why it’s too early to tell the extent of the consumer behavior change due to the pandemic. However, we can trace the trend of their dynamics based on the current industry insights.

Let’s look at what the industry insights glean about customer behavior change post-covid globally.

Customer behavior insights in the new normal:

• More rationalized purchase:

As discussed earlier, people have started feeling grateful for the things and relations they used to take for the granted post-covid. This feeling of kinship is reflecting in their luxury purchases.

This awareness and gratitude are on top of the customers’ minds. People feel more inclined to give a cardinal gift to someone they do love and care about than how they felt pre-covid.

Most consumers’ eyes on buying and wearing fine jewellery symbolize their love and relation for their kin. Also, it makes them feel connected to that person.

This behavior provides excellent potential for the diamond and jewellery business to improve their marketing prowess and re-engage with consumers during and after the crisis period.

• Relevancy matters the most:

Typically, consumers desire timeless classic products when they buy diamonds or jewellery. After COVID-19, this trend has changed significantly.

People are now looking for more meaningful and sentimental pieces, even more than quality or practical pieces to give their loved ones.

When it comes to emotional gifts, diamonds are the first choice of all customers as diamonds or diamond jewellery are a versatile luxury that lasts forever.

Also, living through the pandemic’s most challenging times, people are now more conscious and aware than ever about the environment and pitfalls of irresponsibility in society.

For the diamond industry, this will increase customer scrutiny over supply chain practices, Kimberley process compliances, WDC System of Warranties, and the integrity of the products they purchase.

• Buy less, but Valuable:

The pandemic has moved people to more rational spending and emotional connection. Consumers are most likely to buy fewer things but invest more in the quality of the products they do purchase.

This may lead to spending more or the same on the diamonds and jewellery over the other luxury items for investment purposes because they are more authentic and vogue than expensive.

• Safety first:

To recover from the business’s severe loss due to lockdown and unresponsiveness to e-commerce, the diamond & jewellery industry will have to face new social distancing and public safety issues during the upcoming festive seasons.

This year, the holiday season shopping trend is likely to be more pronounced, as many will avoid going to the crowded shopping areas or even be forced to stay at home if predictions about an increased transmission rate during the winter come to pass.

According to the recent De Beer’s research, consumers feel the safest when they shop online. Still, they do visit the local independent jeweller to gain an understanding of the product and quality.

To retain the business, the industry must consider more ethical and value-creating luxurious products with the best brick-and-mortar (omnichannel) approach towards sales.

Through the eyes of HK…

HK doesn’t deny that the diamond and jewellery industry has suffered from enormous financial roadblocks and reached a stagnant state as the post-covid scenario seems blurred.

After facing the slowdown and the pandemic’s adverse effects, the luxury industry is returning to tracks by focusing not on exponential goals but realistic goals in the coming holiday seasons.

As the end of the year approaches, the festivals like Diwali, Thanksgiving, Christmas, and the New Year arrive in the world, which shows the signs of increasing market recovery.

We believe that emotions and a happy state of mind play a pivotal role in buying diamonds. Currently, the fear of contagion and infection is stopping people from going out shopping.

Hence, it is crucial to adhere to all the authorities’ protocols to contain the virus-transmission during the shopping to stabilize the business.

In light of this, many countries educate people to shop safely and hold campaigns to encourage customers to shop early amidst the pandemic through various campaigns—for example, the New Holiday Tradition campaign by the National Retail Federation in the USA.

All these initiatives increased the demand for diamonds across the globe, including India, the USA, Hong Kong, and Europe. They proved that the luster of the diamond industry would never fade.

However, we must utilize this precious time to be future-ready for the upcoming era of cutting-edge technology in the industry.

This practice to train your people will ensure smoother operations even in the worst possible scenario besides increased business soon when things get back on track.

Are you looking forward to greeting your loved ones with precious diamonds?