The recently launched ‘Canadian Consumer Insights March 2023 Pulse Survey‘ from PwC highlights the evolving preferences of Canadian consumers, and in this article we’ll be shedding light on how these shifts impact the jewellery trade in Canada.
We’ll unravel the cautious approach of consumers towards luxury purchases amidst the backdrop of financial concerns, how attitudes to in-store shopping are driven by a quest for authenticity and a tangible engagement with the products and whether Canadians are willing to pay more for locally-sourced and ethically-produced jewellery.
Shifting Canadian Spending Habits: A Cautious Approach to Luxury Purchases
While a substantial segment of consumers anticipate stable or increased spending across several product categories, there’s a discernible uptick in the number who intend to tighten their belts.
This trend of cautious spending is evident across various sectors, from travel to fashion. Notably for the luxury sector, including the jewellery market, there’s been a slight dip in the percentage of consumers planning on luxury or designer purchases.
In December 2022, 30% of respondents considered such purchases, a decrease from 32% in March 2022. This trend reflects growing concerns among Canadians about their personal financial situation
Canadians planning on decreasing their spending:
In-Store Shopping Preferences and Implications for the Jewellery Trade
Canadian consumers are signaling a clear preference for in-store shopping, and this has several implications for the jewellery trade.
The primary reason for this preference is a desire for authenticity. Over half of the consumers (56%) expressed that they shop in-store to ensure the product they’re buying isn’t faulty or misrepresented.
This sentiment is especially poignant in the jewellery sector. When making significant investments in items like jewellery, customers need to be certain of their authenticity and quality.
Closely tied to this is the experience of the product. 52% of consumers prefer to see, touch, and feel products before they purchase them. For jewellery, this tactile experience is crucial. The weight of a necklace, the shimmer of a gemstone, or the fit of a ring can’t be truly understood from a picture online. This tangible interaction often makes or breaks a sale in the jewellery industry.
Then there’s the emotional connection. For 44% of consumers, shopping in physical stores evokes a sense of nostalgia and enjoyment, particularly after the isolation many experienced during the COVID-19 lockdowns. Buying jewellery is a deeply personal and often emotional decision, making the in-store experience even more valuable. Retailers can harness this sentiment by crafting memorable in-store atmospheres and experiences.
However, it’s not all about the in-store experience. Online shopping has its downsides which further push consumers to physical stores. 35% find the delivery costs of online products too high, and 21% believe the delivery times are too lengthy. Given the value and often delicate nature of jewellery, shipping can be expensive, further deterring potential online buyers.
There’s also a growing sense of safety and trust in physical shopping post-pandemic. 24% of consumers are less concerned about COVID-19 and have become more comfortable with health and safety measures in stores. This trust might be even higher in smaller, intimate environments like jewellery stores, which are often less crowded than larger retail outlets.
Yet, challenges loom on the horizon. Rising prices in the wider market may lead to cost concerns in the jewellery sector. Furthermore, with the potential for increased staff turnover in 2023, there might be longer waiting times and a perceived decline in service quality. Here, the jewellery trade can pivot by integrating technology. Employing methods like virtual try-ons, digital catalogues, and automated payment systems could streamline the shopping experience, balancing modern efficiency with the age-old allure of jewellery shopping.
Local and Ethical Edge
The report shows that values drive purchasing decisions more than ever before.
Canadian consumers are signaling a strong preference for products that resonate with their ethical, environmental, and local sentiments. For the jewellery industry, this evolving mindset offers a unique chance to reposition its offerings and build deeper connections with its customers.
Delving into the latest data, we uncover the profound opportunities awaiting the jewellery sector in catering to these changing consumer preferences.
Canadian Proclivity for Local Products
Leading the chart with a significant 72% is the consumers’ willingness to pay a premium for locally produced or sourced items.
This preference holds immense potential for jewellery retailers, especially when considering diamonds of Canadian origin. Canada, with its rich diamond mines, is renowned for producing high-quality, ethically sourced gems. By promoting these as a central feature of their offerings, Canadian jewellers can cater directly to this consumer sentiment.
Additionally, local sourcing also assures consumers of the authenticity and quality of the product, a vital factor in jewellery purchasing decisions.
Ethical Sourcing: Beyond Just Locality
Beyond locality, ethical practices in sourcing and production hold sway over consumer choices. A combined focus on products made avoiding animal cruelty (64%), those from companies known for ethical practices (63%), and those with transparent origins (56%) underscores this trend.
Jewellers can seize this momentum by offering pieces made from recycled materials, embracing eco-friendly practices, or ensuring traceability of their gems, particularly diamonds.
The Role of Knowledgeable Associates
In this landscape, where consumer values are shifting towards responsibility and authenticity, the role of sales associates is pivotal. 52% of consumers highlight the importance of knowledgeable in-store staff.
Retailers in the jewellery sector can thus benefit from upskilling their employees to understand and communicate the unique stories behind locally-sourced or ethically produced pieces. By doing so, they can tap into the premium many consumers are willing to pay for such products.
Merging Technology with Authenticity
While the emphasis on local and ethical sourcing is clear, the modern consumer’s journey is intertwined with technology. Sales associates, equipped with the right technological tools, can provide a seamless shopping experience. Whether it’s price-matching an in-store product with an online price or navigating the history and origin of a specific diamond, integrating technology can elevate the in-store experience for consumers.
Upskilling employees in this domain and providing them with modern tools can ensure retailers remain competitive, even amidst challenges like a tight labour market or higher staff turnover.
In conclusion, the jewellery trade stands at the cusp of a golden opportunity. By aligning their offerings with the clear consumer preferences for local and ethical products, and by ensuring their staff is well-equipped to communicate these values, Canadian jewellers can carve a niche that resonates deeply with modern consumers.
