The e-commerce and Direct To Consumer market has significantly changed the retail game the last few years. And when you look at the jewelry market in particular — which is poised to grow nearly 20-percent by 2021 — you can see how this sector is directly benefiting from the digital-shift. Not only is there a surge in tech-savvy millennial and Gen Z shoppers, but jewelry brands are benefiting from more women buying their own jewelry than ever. So who’s leading the pack and jumping on board when it comes to DTC jewelry? We’re going to let you in on how the industry is changing and shaping itself.
The New Norm: Direct To Consumer Jewelry Brands
Leading The Pack: MejuriMejuri is the five-year-old but market-dominating DTC jewelry brand that everyone is talking about. They got in the market at just the right time, crafting accessible, fun and luxury everyday jewelry pieces that millennials and the like love to wear. They’ve done so well that this year they raised a $23-million in Series B funding thanks to half a decade of increasing growth. In fact, just last year they were able to quadruple their revenue.The digitally-forward brand also boasts an incredible 500,000-plus Instagram followers and boasts 30-percent of its clientele are return customers. It’s safe to say Mejuri is killing it when it comes to the DTC market — selling their unique and beloved designs directly to consumers in the States, Canada and 33 other countries across the world. Today, they’ve become so successful and so dominant over the DTC jewelry market that they’re expected to expand into international retail shops soon — simply because there’s room for them to reach into this traditional market, too. And for all the other DTC jewelry brands who were inspired by Mejuri’s fame and fortune, their end-game is likely to be so successful and dominant online that going brick and mortar is the only way to really expand. On the other hand, we’re seeing how companies like Mejuri are also changing the game for traditional jewelry retailers.
Brands Jumping On The Bandwagon: Alex and Ani
Alex and Ani went from a niche bangle-brand to a household name over the last decade. The jewelry brand was way ahead of the game when they launched their line of jewelry that focused on spirituality and meaningfulness, capturing the hearts and imaginations of consumers of all ages. Over the years you’ve been able to find Alex and Ani in local boutiques (approximately 1,800 across the United States) and even big-name stores like Nordstrom and Bloomingdales. Eventually they expanded into having their own brick and mortar stores, and they have plans to launch another 25. Of course, Alex and Ani also has a website; but as of 2018 just 50-percent of their revenue came from digital DTC. A staggeringly low amount given the current climate and shift in market trends. So on the heels of success from major digital DTC brands like Mejuri, Alex and Ani announced they’d spend 18-months working to get their direct to consumer revenue up to 80-percent. That means pulling out of stores and refocusing on reaching customers themselves — not just to cut out the middle man, but to better control their message. As Alex and Ani begins incorporating ‘wellness’ into their brand identity, they say DTC will give them a better opportunity to communicate their positive message directly to customers. Whether this plan will be fully realized has yet to be seen. But what’s so interesting is that such a major player in the traditional retail and brick and mortar jewelry scheme — and one who is continuing to grow in this sector — is willing to change part of their entire business plan to enter this market. If that’s not enough proof that DTC is the future, we’re not sure what is.
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