The boom in jewellery sales that many retailers are currently experiencing could lead to a dip in demand in the early lead-up to Christmas, a leading diamond wholesaler warns.
Nathaniel, director from NB Diamonds Ltd, says that many of the company’s retail clients are seeing a rise in sales right now, however he warned that there may be challenges ahead as the economy continues to struggle back to pre-lockdown levels of business and furlough comes to an end.
“The fear here is that Christmas time, which is a significant period in the jewellery industry will suffer as a result,” he adds.
“Having said that, there is still optimism to be taken from early figures in the current sales stats at independent stores, when taking into consideration the climate of the retail sector as a whole at present. This leaves hope for the long standing strong industry that they can still pull through.”
As a result of the market shift, NB Diamonds is offering second hand items as this segment continues to grow; “we feel our clients can capitalise on purchasing second hand diamonds which can be re – set into contemporary designs,” Nathaniel says.
Despite this, demand for luxury jewellery and quality natural diamonds will always be strong due to its ‘inherent long term value’ as investment pieces, he says.
“We are offering our clients ranges of investment diamonds alongside ways to promote them; we feel the public is looking to put their money into more secure areas with potential higher returns in these challenging times.
“We are hopeful that where our clients are able to adapt to the market changes, and with confidence in the retail sector building as a result of government policies these obstacles can be overcome,” Nathaniel explains. “My personal feelings are that the industry will surpass this phase If we all continue to support and work together , as it has done thorough previous economic turns.”
NB Diamonds has been supporting its retail partners throughout the crisis and has been working hard to adapt to the evolving market, offering extra credit terms and discounts, now as businesses emerge from the nationwide lockdown.
“We have been speaking regularly to our clients to hear how things have been going and ensure they know we are working as hard as we can to accommodate their own changes and obstacles,” explains Nathaniel. “We know times have been challenging for our retail stores during lock down and we want to support them through this time so they will know we are behind them.
“We have been enabling extra discounts wherever possible by lowering our margins so our clients can still discount and keep their margins to make it through the financial burdens they are facing.
“These are a few areas in which at nbdiamonds we feel we need to work closely with our clients to help them overcome the potential challenging times ahead, and we are doing so” he says.