The diamond and jewellery industry welcomed 2019 with an accelerated growth that only lasted in the first leg of the year and before the industry could resurrect to its initial form in 2020, the new wave of COVID-19 hit the world and left businesses across industries in a vulnerable state.
The industry is divided as businesses are experiencing unexpected revenue stagnation. Retail has also been temporarily sealed leading to massive cancellations of orders. The co-dependency between suppliers and buyers resulted in an unfavourable situation where stock becomes inane unless there is retail footfall. By all means, this unprecedented time brings along the priority for all patrons to ensure sufficient cash flow followed by access to consumer goods and daily essentials. While the businesses are still navigating financial challenges, the aftermath of Covid-19 on the gems and jewellery industry seems to be daunting.
From a global perspective, the most promising markets for jewellery have fallen. The entire US and Europe are partially under lockdown, the Middle East and China are picking up on slow mode as the customers are not freely venturing out to retail yet. In addition to this, 80% of the international orders remain cancelled and only 15-20 % are being supplied.
“While the industry is staring at humongous losses this year, the need of the hour is sustainability in the long run driven by a well-laid-out plan. It is essential for every firm to stay afloat, maintain sales, and keep the infrastructure intact and the efficiency of workforce in shape.” states Mr. Sanjay Kothari, Vice Chairman KGK Group.
It is evident that post Covid-19, the businesses across the globe are poised to take action for the losses incurred. Each industry is looking forward to endorsing a unique approach to address its crisis scenario. Large scale businesses are expected to adopt strategies to bear inevitable losses and work aggressively towards resurrecting back to life with a fresh outlook.
“The industry is going to pick up a global momentum post-July 2020, starting from China to Europe to the US, but volumes are anticipated to descend by about 1/3rd. Demand for goods will escalate slowly towards the third quarter of the budget year, followed by good scores in the fourth quarter of the financial year 2020-21. Principally 3rd and 4th quarter will be leveraged to offset the losses. People who have been contained for almost a quarter will look out for options to get a breather and will perhaps opt for shopping in the absence of travel opportunities, allowing markets to come into being.” Mr. Sanjay Kothari confirms while emphasizing on the growth opportunities.
While every player has a different war to fight during these uncertain times, it is essential to look at the silver lining and utilize this precious time to strengthen brand recall value and pledge unwavering support to the Covid-19 warriors.