Post-Pandemic Engagement Frenzy: Key Changes that Mark This Period

It's been almost two years. Two full years, and possibly longer, depending on what part of the world you are from (some of us may have an idea), since the global pandemic gripped our lives. Almost no one was able to escape it or (if you were lucky) at least its effects. Its effects on governments, economies, and importantly on our personal and professional lives were tremendous. For all the wrong reasons. The adverse effects of the global pandemic have been well documented, and the less time we dwell on the negatives the better. But a few points need to be made on the effects the pandemic has had on the decisions people have made, particularly, in the context of engagement rings and fine jewellery, on their discretionary spending.

In the course of this post, we will provide an overview of the effects caused by the global pandemic that started at the end of 2019, and its effects on developed economies, with a particular focus on the main market for fine engagement rings. And we will argue, that if you are a potential ring buyer, someone who has been holding off on making the big move, now might be the best time to move forward.

Effects of the Global Pandemic on the Market for Engagement Rings

Leaving aside the human cost of the pandemic, which is terrible, an interconnected problem has been the adverse effects on world economies that resulted from the pandemic. Virtually every major economy, during the early months, or in the time afterwards, suffered some kind of economic downturn. In addition to the immediate effects cost by lockdown, and the slowdown in the economy it caused, the secondary effects of the pandemic: travel restrictions, health costs born by additional safety measures, and the administrative burden born of running with societies and home with these restrictions and for many, fears in mind.

Uncertainty a Bad Time for Proposing?

Engagement rings are about building something together. The ring symbolizes the decision to commit to making your relationship work, by taking it to the next level. It is not a simple decision. As engagements pave the way for the big (or biggest) commitment, that of marriage. To make such a commitment, and what it would portend, couples have to consider and decide on a number of factors. For it is no longer just about the two of you, the union to bring families together, and the prospect of family, all weighing on this decision. And the ill effects of the pandemic: on the economy, health, and future prospects for society, all will have an effect on this key decision. So for many who may be considering this prospect, this decision is likely to have been put on hold. Which is what happened. However, this decision, in turn, had adverse effects on businesses that are involved in fine jewellery.

Affects on The Jewelry Businesses

During the pandemic economic activity, in virtually all parts of the economy (with the possible exception of the healthcare industry) things slow down. Also, in case this point was overlooked, it had an adverse effect on jewellery businesses. In economics, when adverse factors, like fear and uncertainty, affect one part of the economy like households, its impacts will in time have an effect on another sector of the economy, like businesses. The effects of the pandemic, uncertainty about the future, and the need to wait and see, meant that people cut back on spending. Particularly on luxury, and more investment-oriented products. Engagement rings, which are valuable, generally high cost, and as a one-time purchase, were affected. And as buyers cut back, the demand slow down, and businesses in this field were affected. Affecting areas like advertising, new product development etc. Which in turn strengthens the view that things were unfavourable. And for a long time that is how things seemed. Until now.

_{jewellery businesses closed during the pandemic}

How the Pandemic Changed the Engagement Ring Landscape?

If there is one word that almost anyone would associate with the global pandemic, that would be locked owns. Almost no one was able to escape the imposed curfews and restrictions that resulted from the pandemic. In the most extreme form, this entailed locking down entire parts of the economy. With a host of, often ill effects.

But one of the bright spots to have emerged during the lockdowns is that it gave people, couples especially more time to spend together. The time to spend in the company of loved ones, for a prolonged period, had many positive effects. Such as giving potential long-term partners more time to connect and grow to strengthen the prospect of an engagement. The longer time spent inside the house has meant that people have valued the human connection and wish to take it to the next level, via an engagement ring. And somewhat seriously, the effects of the pandemic and the uncertainty about the future have indirectly strengthened couples to make the big leap and go ahead with their engagement.

The Rise in Online Jewelry Purchases

Nothing has been affected, more speaking of the fine jewellery industry, in the past few years than the shift to online jewellery purchases. The lockdowns, the restrictions on movement, travel and other safety concerns have kept most people indoors. Which has meant that brick and motor jewellery stores have naturally suffered, and businesses that have invested more in the online market rising to the occasion. The rise in online jewellery sales cannot be overstated. From major jewellery companies to regional jewellery businesses, and online-focused fine jewellery companies, bridal jewellery getting into the mix. This in turn has driven new innovations to site experience, online communication, and live gemstone inspection, followed by the need for greater security and secrecy when it comes to engagement ring delivery, packaging and sizing. The market has certainly evolved during the pandemic period. And for the better.

How things Stand in the Engagement Ring Market (They are Picking up)

As people come out of lockdowns, and out of the many restrictions that have curtailed their lives, couples, those who are romantically inclined have used this opportunity to simply let go! A lot of people have simply had enough of movement restrictions, social distancing measures and the limits to travel. People, particularly in the developed economies in the United States, Australia, United Kingdom, Canada, and elsewhere just want to come out and let their feelings flow. The ‘savings effect’ as it is referred to by some, as people have long held back on, not just luxury expenditure, but other forms of discretionary expenditure, now feel like the time is right to go and go big! Enter the market for engagement rings.

Wedding Plans Accelerated

As the economies open up, and people come out ready to experience life to the fullest, as they had before, statistics show that it is not just engagements, people appear ready to take things to the next level. An accompanying feature of the post-pandemic fine jewellery market has been needed to bring the wedding plans closer. Engagements, followed by a relatively short period, followed by wedding plans. In practice, this has led to purchase decisions like buying bridal sets as opposed to simply purchasing an engagement ring. Other changes include buying the wedding rings for the groom that the engagement ring for the bride. Things are looking up, and people are ready to make things happen.

^{wedding parties resumed after the pandemic}

Why It is the Best Time To Buying an Engagement Ring

A number of factors. First of all, is time. There is no better time than the present. And if anything people are not ready to put up with another uncertainty, at least not in global proportions. When making a key and long-lasting decision like an engagement, now is the time. For a lot of engagement ring seekers, now appears to be the best time, as the economies are opening up, the government-funded support during the pandemic in developed countries has provided some cushion, and with now opening in trade, the prospects are better. And even if they are not (i.e. inflation) people are no longer prepared to wait, and nor should they. And this is where fine jewellers come in.

Jewellery Companies are Driving the Recovery in Engagement Ring Market

For much of the time, during the pandemic jewellery businesses were retreating but also building. At least the smart ones. Particularly those with an online focus and global reach worked to strengthen their online presence, with new services; upgraded their product offering, with new engagement ring collections, and offered the new post and pre-sale services. And built up their gemstone inventories, from sapphires, diamonds, rubies and others. The smart ones. And these fast-growing companies, along with established players are now driving the growth in fine jewellery, with engagement ring sales leading the way. With more affordable, more varied ring designs, along with the need to go big and settle the decision, the time for engagement rings is the best now.