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Lower Growth for the Jewelry Industry Expected in 2024. Here Are 5 Ways to Emerge Stronger.

It has long been assumed that luxury retail is a recession-proof business. Most people have to pull back spending and focus on necessities when money gets tight, the conventional wisdom goes, but luxury consumers don’t have to worry about things like inflation and recessions. In the instances where luxury consumers do cut back on their spending, the luxury market recovers more quickly and thoroughly than others. Recent trends, however, have economists questioning that line of thought.

Back in October, Forbes predicted slower growth for the luxury sector in 2024. Luxury enjoyed astronomic growth rates during the pandemic, as consumers could not spend on restaurants or vacations. So what economists expect for 2024 is not so much a downturn as a market correction. It seems that the boom times are over, but it is still possible to maintain revenue without high levels of growth. Here are six things the jewelry industry can do to remain strong despite lower sales volumes.

Focus on Your Biggest Customers

Your most important customers are the ones who will continue to spend even when others tighten their belts. Do you understand what they want and need from luxury jewelry? Styles tend to get less flashy during economic downturns. You only have to look at the “quiet luxury” trend, still going strong in 2024, for evidence of that. Tastes may change, and knowing what your best customers want and what they’re willing to still spend on will help you better focus your inventory choices and marketing efforts.

Ramp Up Marketing Efforts

Speaking of marketing, knowing your customers will also help you establish yourself in a particular niche. Your niche lies at the intersection of what your customers want and what you’re passionate about. Finding your niche will make your marketing even more effective, differentiating you from the competition, driving customer loyalty, and letting you confidently project that authenticity that is so important to today’s consumers.

For many businesses, the marketing budget is the first thing to go when growth slows. The smart businesses know that marketing is even more important in rough times. Rather than disappear completely, you have to remain visible and remind customers that you are still around.

They way you approach marketing changes in times of slower growth, as well. While consumers are more aware of what they consume, many will still be willing to splurge on a treat for themselves or a gift. Your marketing efforts should focus on reaching those customers, and it should do so through your most effective channels, whether that’s social media, a blog, an email list, or well-placed ads.

Expand Online Sales

If customers aren’t going out to shop as often, they are still online. A strong online presence focused on an easy-to-use, well-designed ecommerce website will help drive those comfort buys consumers that will still want to make even when they’re trying to save money.

Control Inventory Costs

Inventory management is a core component of business success in any economic climate. When you’re selling less volume, you can’t burden yourself with inventory that doesn’t sell. Analyze your sales and understand what your biggest-selling products are, and use jewelry industry technology to virtually expand your inventory without having to keep excess stock on-site.

Show Off Your Success Stories

When customers are spending less, it takes a little more to convince them to choose you. Focusing your marketing on creating helpful, engaging content is one way to do it, but even better is social proof. Let customers speak for themselves. Show off your most satisfied customers with user-generated content on social media and testimonials on your website.

Time to Focus and Reassess

Moving through a period of slower growth isn’t all bad. It gives you a chance to slow down, reflect, and get a clearer understanding of yourself, your business, and your customers. When the economic climate again turns toward growth, you’ll already have a head start on your competition because you took advantage of the opportunities rather than retreat into survival mode because of the risks.