As many aspects of the retail industry struggle to stay on track, one sector is suddenly booming despite the economic recession: the diamond engagement ring resale market! Discover the cause/consequence of this booming trend we caught through Business Insider’s new article.
- Cause: Pandemic broken off mariages!
- Consequence: A mixed venture, buy or sell?
Pandemic broken off mariages!
Experts say this is because the close-quarters of quarantining has prompted some married couples to call it quits, while pushing others to deepen their commitment.
- Experts say this is because the close-quarters of quarantining has prompted some married couples to call it quits, while pushing others to deepen their commitment.
- According to an analysis conducted by Legal Templates — a company that allows users to create and track legal documents — the number of couples seeking divorce between March to June increased by 34% from the same period in 2019.
Broken marriages have gone up since January 2020 and that makes the resale market booming. For the next part of the article, we will focus more on what exactly happened that drove every jewelry resale, successful.
A mixed venture, buy or sell?
Supply and demand for engagement rings has been on the rise at luxury resale sites like The RealReal and online auction marketplaces like Worthy — a consumer-to-business service that connects high-end sellers to wholesale buyers.
- Consignment gone up: According to TheRealReal, engagement ring consignments rose by 47% in May and June compared to the prior two months, as the pandemic put couples to the test — prompting some to call it quits while others tied the knot.
- Natural diamonds gone up: According to Schneider, a lot of the demand that might otherwise be filled with new diamonds out of the earth is being filled now with items from the secondary market. The flow of new goods into the diamond market has definitely gone down, which makes secondhand that more important for our buyers.
- Sell luxury items for a quick buck: Luxury watches and ‘high-value, timeless’ investment pieces are now hot resale commodities.
- According to Sasha Skoda, head of women’s at The RealReal, as Americans stay home and buck traditional seasonal styles, they are turning away from high-end trendy pieces and are instead gravitating toward “high-value, timeless” items: “They’re spending on high-value, timeless styles with enduring resale value – knowing they can consign them in the future to recoup most of that investment or wear classic pieces for decades to come.”
- Luxury as an investment: Others, with disposable income to burn, are at the same time seeking out discounted high-value items like never before.
- The RealReal found in its recent 2020 luxury resale report that sales of luxury watches like Rolex increased by 32% in 2020, nine times more than other watch brands. Further, it reported that the average resale value for high-end watches is currently 1.6 times stronger than its lower value watches in stock.
- According to Bloomberg, the fastest growing category within Sotheby’s livestream auctions in June and July was wristwatches, with a 42% increase in new clients for the category.
- Sell to wholesale instead of consumers: According to Worthy, they sell jewelry to wholesale businesses rather than directly to consumers. The strength of bids “are at the highest levels they’ve ever been.”
Post-Covid19, the options are just becoming incredibly more competitive as the retail market is really starting to recover, slowly but surely. The resale market has finally come to become a macro trend, thanks to Covid19 😉 Remember one thing, if you are selling your jewelry, don’t forget to appraise it well. ExJewel.io is here to help you throughout the whole process.