JNA Sep/ Oct 2021

SPECIAL FEATURES 24 | JNA Sep/Oct 2021 The auction house saw unprecedented client participation in online sales from over 150 countries during the first half of 2020. Its Jewels Online sales in particular achieved sell-through rates ranging from 89 per cent to 99 per cent, with overall sales doubling from pre-sale estimates. “The new scenario has enabled us to fully embrace the digital realm, making it a ‘new normal’ within our business in current times,” remarked Chiang. “Our business can remain functional and creative while operating remotely.” Buyers have also become more accustomed to bidding online, revealed Nicola Whittaker, business development manager at UK-based Fellows Auctioneers. Fellows Auctioneers allows in-person bidding and via phone or its own online platform for most of its auctions. But by shifting majority of its sales to online-only timed auctions, customers can view and place bids virtually, shared the company official. Digital auctions are likely to stay since these provide a user-friendly and efficient avenue to buy jewellery anytime, anywhere. Fellows Auctioneers also offers free international postage. “We are putting ourselves in line with the e-commerce experience our customers enjoy with other luxury brands. Online condition reports and catalogues are so detailed now that the online trend is very likely to continue,” remarked Whittaker. Yu of Sotheby’s also cited the pivotal role that digitalisation played in Sotheby’s jewellery business last year. The company generated US$69 million from more than 47 online sales in 2020 – an almost eight-fold increase in value from 2019. Interestingly, 90 per cent of jewellery lots sold in 2020 were snapped up by online buyers. In May this year, Sotheby’s set a record price for any jewel sold online when a 50.03-carat diamond achieved US$2.7 million. Huw Daniel, CEO at PGI, said consumers in the US, China and India intend to increase their online jewellery purchases during Covid-19 compared to pre-crisis periods. More and more brands, for their part, are using digital channels and social media platforms to promote and sell goods. Face-to-face transactions however continue to be a vital element of the retail narrative. Buyers still prefer to make luxury purchases in physical stores where they can experience the jewellery in person. “An integrated omnichannel strategy is needed to best target and engage consumers to improve sales conversion by addressing multiple touchpoints,” added Daniel. Covid-related challenges can also be viewed as a watershed moment for the jewellery sector since these further reinforced the need to incorporate an e-commerce component to the business. Pascal Martin, a partner at OC&C Strategy Consultants, said jewellery trails behind other luxury categories such as beauty or ready-to-wear when it comes to digital penetration. As such, the business suffered tremendously during the initial lockdown. “Coming out of Covid and as restrictions eased, people can again go back to physical stores. At the same time though, brands have become conscious that it is no longer possible to operate without a digital presence,” noted Martin. “We are going to see a wave of jewellery businesses getting into e-commerce.” LVMH brand Bulgari for instance recently partnered with e-commerce firm JD.com to further boost its digital foothold in China. Omnichannel interactions that effectively combine more personalised offline and online experiences could bode well for jewellery industry players, added Martin. US$340 B to US$360 B Potential value of fine jewellery market by 2025, according to McKinsey & Co 根據 McKinsey & Co 的數據， 2025 年的高級珠寶市場潛在價值 15.81-carat ‘Sakura’ purple-pink diamond sold by Christie’s in May 佳士得 5 月售出的 15.81 克拉“櫻花”紫粉紅鑽石