How can the Russian jewellery industry survive the crisis?

Affected by the new crown pneumonia epidemic, all Russian jewelry physical retail stores closed for more than one month, and jewelry sales fell by 94%. According to previous data, the retail value of jewellery in Russia is about 240 billion rubles per year, and the industry lost 20 billion rubles a month during the outbreak.   Before the outbreak, online jewelry purchases accounted for 5%-6% of the entire industry. Although the online sales continued to increase after the outbreak, it was still difficult to reverse the decline in the overall sales of the industry, and only in the few months before the epidemic, the Russian jewelry online sales were legalized.

People in the industry believe that factors such as declining purchasing power and low costs of foreign producers will affect the subsequent development of the Russian jewelry industry. The market for jewelry consumption market depends on the recovery of Russian national income, that is, the process of national economic recovery. The epidemic situation in China, the world's largest jewellery consumer market, is gradually stabilizing, allowing jewellery demand growth to be expected. But pessimists believe that the recovery period after the epidemic is long, or it will last 2-3 years. Russia’s most ideal state will take at least one year to achieve economic recovery.

Due to factors such as the impact of the epidemic on income levels, the depreciation of the ruble, and the rise in the price of precious metals, consumers are now more inclined to choose silver inlaid with synthetic gems rather than gold inlaid with diamonds. At the same time, jewelers will also adjust product structure and positioning in line with the new situation.