COVID-19 made a great impact all over the world. It also cast a big shadow on the jewelry industry, which is a typical unnecessary commodity. This time, we estimate about what the post Covid-19 jewelery market in Japan.
We made 2 Market forecast figures by Optimistic and pessimistic scenarios.
Please take a look at this bar chart.
under the optimistic scenario, the pandemic end and Expansion of consumption due to rebound
on the other hand, we expect this pandemic continue until September or more and no rebound consumption under the pessimistic scenario
As a result, we have negative impact even under the optimistic scenario, and losses would be enormous under the pessimistic scenario.
Covid-19 pandemic most shocked large stores. The department store is one of the main channel for jewelry, was completely closed in April and May.
This graph is the year-on-year comparison of department store jewelry sales trend of Japan.
80% down in April which is bigger down than the 2008 financial crisis. The figure of May has not been released yet, but since the declaration of lochdown has been lifted in the local area in Japan, it is expected to be reduced by about 70%. In addition to this, many of the shopping malls were also closed in this period, and the jewelry chain stores were forced to close.
The purchase of jewelry by foreign tourists is not small share.
It occupies 10-15 % of the sale of department stores in jewelry sector.
30 million tourists come to Japan every year and some of them buy jewelry.
But any tourist has never been coming since April.
I would like to introduce some trends post covid-19.
first of all, Already know , digital shift.
Japanese hospitality is famous as “ OMOTENASHI”
Omotenashi is a traditional Japanese way of hospitality with the most dedicated and exquisite manners.
It creates an ambiance of tranquility and relaxation where the guests of visiting jewelry stores will experience unforgettable moments at ease.
For jewelery stores, customer service is most important factor.
But pandemic banned face-to-face services at the jewelry stores.
We had to change to digital communication.
Actually, TV shopping and internet sales companies has been showing sharp growth.
Advances in digital technology have made it possible to provide “hospitality” even online.
Today’s young people are digitally friendly generation.
They talk each other through smartphones even though when they are physically at the same place.
In spite of these trend, we Japanese jewelry industry have been following old business style.
Now is the time for Japan to make a digital shift.
Secondary trend is consumer Changes in purchasing behavior
changes in work styles such as Remotework cause changing shopping behavior. Up until now, the opening time and store location were conscious of commuting, but there will be shopping activities regardless of location or time.
And also change in purchasing motivation. Following this pandemic, they found importance of Family Ties.
they understand mental well-being is more important than material wealth.
So far, it will become polarized in a conflict or contrasting situation between jewelery with asset value or jewelery with spiritual value.