The State of E-commerce During This Year’s 618 Shopping Festival
This year, the 618 shopping festival has seen a conspicuous absence of sales data promotion from various platforms. Typically, the lack of headlines suggests a shortage of noteworthy highlights, leading to silence from all parties. However, rumors abound that the return rate for jewelry sold through live e-commerce channels has reached a staggering 90%, potentially alarming many stakeholders.
Trends in the US Diamond Jewelry E-commerce Market
In 2023, online sales of diamond jewelry accounted for 35% of the total sales in the United States, with volume accounting for 31%. This marks a significant increase from 2021, where online sales and volume were just 14% and 18%, respectively, indicating rapid growth in e-commerce business in recent years. Among Gen Z consumers, self-rewarding consumers, and single female consumers, the online purchase share is higher than average, at 42%, 40%, and 37%, respectively. Moreover, in 2021, 54% of online orders came from first-time diamond jewelry buyers. While this may be attributed to the pandemic-induced closure of offline stores, it highlights the increasing trust consumers place in e-commerce platforms for diamond jewelry. Notably, 68% of American consumers who purchased diamond jewelry online expressed intent to do so again in the future.
The Shift Towards Phygital Retail Experiences
Although offline purchases of diamond jewelry still far exceed online purchases, digital elements are increasingly influencing consumers' buying processes. Modern consumers crave a seamless blend of physical and digital retail experiences, known as "phygital." In the US, around 49% of diamond jewelry purchase research was conducted online in 2023, up from 29% in 2015. Of this 49%, 19% of the final purchases were completed online, while 30% were made in-store, underscoring the importance of a seamless online and offline integration.
Insights from an Industry Veteran
"Phygital" retail landscapes will continue to thrive. From the perspective of a seasoned Chinese internet veteran, it's essential to correctly understand the US market's definition of digital e-commerce.
- Large e-commerce platforms like Amazon are not suitable for jewelry sales.
- Online sales refer to independent sales models of various jewelry brands.
- Jewelry is a high-value item, supported by financial consumer loan services in the US.
These are just a few initial thoughts. AIDI's colleagues in the US are constantly researching the market, and more insights will be shared when available. The above data reflects the overall diamond retail market in the US. It’s noteworthy that lab-grown diamonds have already penetrated 56% of the retail market, explaining the deep-seated anxiety among natural diamond stakeholders whose vested interests are profoundly impacted.
Reflection on the Chinese Market
As the world's second-largest diamond consumer market, China needs to carefully consider how to correctly launch the lab-grown diamond consumer market. With changing consumer behaviors and various shifts, is it still viable to stick to outdated methods or rely on aggressive live streaming to drive the market? These are personal viewpoints and should be taken with caution. Interaction and discussion are welcome. This article is also published by the International Intelligent Diamond Association (AIDI).
For further discussions or inquiries, please contact us at info@aidi.org.