Customers generally search on Google before heading to the retailer’s website and it has become one of the fastest-growing search tools for Shopping. But is the same true for purchasing Jewelry? Are customers willing to purchase expensive jewelry items online? To investigate, we extracted several jewelry items listed on Google Shopping for price analysis.
Jewelry can be distinguished in the market as Fine Jewelry (use of precious metals and stones) and Fashion Jewelry (made of plated alloys and crystal stones). By virtue, Fine Jewelry is more expensive than Fashion jewelry. Our analysis revealed that more than half of the jewelry items online were priced at less than $1000. This suggests that there are more Fashion than Fine Jewelry.
We then looked at the products by price bands. Price and number of products listed displayed an inverse proportion, i.e. higher the price band, lower the number of products sold online.
Jewelry items are naturally expensive than regularly purchased online products. Customers prefer buying it at a brick and mortar retail store to minimize the likelihood of counterfeit, and to customize. Additionally, the experience factor of ‘touch and feel’ during purchase also plays an important role. Customers like this and many still are not comfortable purchasing jewelry online.
A McKinsey report suggests – “Online jewelry sales are only 4 to 5 % of the market today. This figure is believed to double to 10 % for Fine Jewelry by 2020 whereas Fashion Jewelry may grow by three times to 15% by 2020.” This shows that online shopping trends for Fashion Jewelry could drastically change in the coming years.
The top 5 popular Jewelry categories online are:
- Rings (58%)
- Necklaces (15%)
- Bracelets (14%)
- Earrings (10%)
- Charms & Pendants (3%)
Rings are the most popular jewelry items followed by Necklaces and Bracelets. This can be linked to US consumer behavior. Rings happen to be the most wearable jewelry accessory and are fit for any occasion. Wearing a ring to the office is acceptable. We also found that rings had the highest number of price changes.
Another interesting trend found during the study was the timing of price changes for jewelry items. Sundays and Thursdays had the most price changes compared to the rest of the week. Read more.
Also, most price changes were seen during August.