The jewelry eCommerce sector is a promising market experiencing swift growth. According to statistics, the global eCommerce jewelry market is currently valued at about 57.4 billion USD and is anticipated to reach approximately 117 billion USD by 2027.

What is Jewelry eCommerce?

Jewelry eCommerce involves selling various jewelry items, including necklaces, rings, earrings, bracelets, gold, silver, diamonds, pearls, gemstones, and other pieces, conducted through online channels. 

This type of eCommerce involves the purchase and sale of jewelry products through websites, applications, or online marketplaces.

Opportunities for the jewelry eCommerce

Jewelry eCommerce is increasingly thriving, especially in the context of the COVID-19 pandemic. According to a report from the Vietnam eCommerce Association (VECOM), the Vietnamese jewelry eCommerce market is estimated to reach 10 trillion VND in 2022, showing a growth of 25% compared to 2021.

Several factors are driving the potential of jewelry eCommerce, including:

Growth in the Middle-Class Segment

According to the World Bank report, the middle class in Vietnam is steadily increasing, from 13% of the population in 2016 to 26% in 2026. It is expected that the middle class in Vietnam will continue to grow in the coming years.

On a global scale, according to the McKinsey Global Institute report, the global middle class is projected to increase from 1.8 billion people in 2020 to 4.9 billion people in 2030. This growth will generate significant demand for premium products and services, including jewelry and gemstones.

Surge in Online Shopping Channels

According to Metric report, as of June 2023, Vietnam has over 100,000 eCommerce websites, a 20% increase compared to 2022. The most popular product categories on Vietnam’s online marketplaces include fashion, home appliances, electronics, and jewelry.

On the international market, according to Statista’s report, as of June 2023, there are over 280 million active eCommerce websites worldwide.

The growth of online shopping channels, specifically individual eCommerce websites, has created many opportunities for jewelry eCommerce businesses to reach a larger audience, including customers in distant regions away from the main stores.

Advancements in Technology 

The advancement of technology is one of the crucial factors driving the potential of jewelry eCommerce. When integrating innovative technologies like VR/AR, and AI into your jewelry website will enrich the online shopping experience, making it more engaging and appealing to customers. 

• Using VR/AR: To create a shopping experience similar to traditional stores, making it easy for customers to choose and shop for jewelry online. 
• Using AI: To develop algorithms to recommend jewelry products tailored to customer’s preferences and needs.
• Using chatbot: For enhancing 24/7 customer service, helping staff address customers’ inquiries or issues effectively.

Challenges of Jewelry eCommerce

Alongside the opportunities, jewelry brands still have to confront the challenges of the market

Market Saturation

The jewelry industry faces intense competition, with numerous businesses, both large and small, vying for market share. This requires jewelry brands to exert efforts to compete in terms of pricing, product quality, and the services they provide on their eCommerce website.

Counterfeit Risks

Counterfeit goods are often made from low-quality materials and are significantly cheaper than genuine products. This poses a significant challenge for the online jewelry market, as consumers struggle to differentiate between authentic and fake items, leading to adverse effects on jewelry brands.

Market Trend Shifts

Market trends are always changing, particularly in the jewelry eCommerce industry. It requires you to stay constantly updated to cater to evolving customer demands.

When purchasing jewelry products, customers desire an online shopping experience similar to in-store shopping. Because they want to view products directly, read reviews from other customers, and receive guidance from sales staff.

Jewelry brands deploying successful eCommerce

Tiffany & Co. (USA)

Tiffany & Co. is a premium jewelry brand headquartered in New York, USA, established in 1837 by master jeweler Charles Lewis Tiffany. The company embraced eCommerce early on and has become one of the largest online jewelry retailers globally.

Tiffany & Co.’s eCommerce website is built on the Adobe Enterprise Cloud platform, enabling the business to provide flexibility and scalability to meet customization needs and long-term development goals.

Leveraging resources from the leading Adobe Commerce eCommerce platform, the business has utilized Adobe Experience Platform Launch, Adobe Target, Adobe Experience Platform Identity Service, and more to deliver customized and personalized services for its customers.

Pandora (Denmark)

Pandora is a retail jewelry brand established in 1982 by Per Enevoldsen in Copenhagen, Denmark. The brand is known for customizable bracelets and other specially designed jewelry lines.

Pandora’s eCommerce website for the US and UK markets is built on the Salesforce Commerce Cloud platform, while the Vietnamese market utilizes Haravan. Therefore, the US and UK versions will have more specialized features such as wishlists, quick view, product comparison, loyalty programs, etc.

PNJ (Vietnam)

PNJ, or Phu Nhuan Jewelry, is a reputable jewelry brand with a long history and a widespread network of stores across Vietnam. Founded in 1988 in Phu Nhuan District, Ho Chi Minh City, Vietnam.

Initially, PNJ’s eCommerce website was built on the CS-Cart platform. As it grew, PNJ re-platform to WooCommerce to design its eCommerce website. This move benefits the PNJ website with many amazing features, including diverse payment method integration, product size customization, store location search based on province/city and district, and the flexibility of choosing between home delivery and in-store pickup.

The Bottom Line

In general, jewelry brands face numerous challenges and opportunities to make strides in the eCommerce landscape. Achieving success in this industry requires innovation, responsiveness to customer demands, and staying abreast of the latest technological trends.

Learn more: 10 Jewelry eCommerce Websites in Vietnam & Worldwide

Understanding both the opportunities and challenges when deploying jewelry eCommerce websites, SECOMM has a team of experts and a wide range of solutions to help you make it a reality. 

Contact us or call the hotline at 028 7108 9908 to get started!