It might appear counterintuitive at first, but launching a jewellery business during a pandemic could end up being the best time to do so. With the majority of sales now happening online, it is not surprising to see new online jewellery stores popping up.To get more news about jewelry design software, you can visit jewelryhunt.net official website.
“Companies launching now are trying to prove they can have an edge and accelerate their growth once out of recession,” says Sarah Willersdorf, Boston Consulting Group’s global head of luxury.
Even before the pandemic, the jewellery sector attracted $5.5bn of private investment in 2018, going to 286 new companies (compared with 78 new companies in 2005). Willersdorf says the pandemic has only accelerated trends already under way, such as the surge of ecommerce and brands selling directly to consumers.
The rising volume of private investment piqued the interest of serial entrepreneur Shezan Amiji, who last year teamed up with Vishal Mehta, member of a third-generation family business specialising in diamonds, to set up Once. This is an online retailer offering jewellery from established names such as Messika and Damiani and upcoming designers such as Loquet and Milamore.
“There are two determinants used to understand profitability in ecommerce: the average order value and the take rate [the percentage charged by the marketplace to match buyers and sellers], and jewellery has the highest of both,” says Amiji, explaining the attractions of an online jewellery business. Launching at a time when bricks-and-mortar stores were forced to shut helped Once quickly secure the targeted wide range of designers.
The economics of the €132bn global jewellery industry also attracted longtime friends Mie Marie Ejdrup and Caroline Chalmer, who decided to found online retailer Finematter, headquartered in Copenhagen and London. The supposed timelessness of jewellery — rather than a “newness and sales-driven drop cycle” found in other fashion products — added to the appeal, according to the former apparel executive and management consultant duo.
The platform mimics the Farfetch business model by offering designers — primarily independent ones such as Anissa Kermiche and Charlotte Chesnais — a larger reach through its logistics infrastructure. Heartcore Capital and private investors Henrik Holmark (former chief finance officer at Danish jeweller Pandora) and Nicole Vanderbilt (former managing director at online marketplace Etsy) have backed the venture with a seed investment of €1.7m. Influencer Pernille Teisbaek is also on board as a creative adviser to spread the word on social media.