When making a major purchase, such as a luxury watch or multiple-carat diamond, it might seem intuitive that shoppers would visit the store to review and obtain the items. But such options became impossible during the pandemic, and the alternative channels that luxury shoppers used when they were locked down proved so effective that they continue to embrace them.

In particular, many fine jewelers have added WhatsApp links to all their product pages on their digital retail channels. By clicking to start a conversation, potential buyers can ask experts for more details about particular stones in stock and engage in personal conversations that allow the sellers to gain detailed insights about the buyers’ needs and preferences. As a sales representative from the luxury London jeweler Hancocks explained, WhatsApp “removes the formality of email and allows you to establish rapport quickly,” such that it allows the retailer to achieve “a better success rate than any other channel, such as email or phone calls.”

The diamond conglomerate DeBeers hosts an appointment-based virtual service on its website, during which up to six potential buyers can review a particular offering. The high-definition cameras give them close insights into the color and quality of each diamond on display. The interaction also gives the company a way to communicate directly with consumers, while also encouraging a bit of competition for the best stones.

The jewelry brand Reza instead relies on advanced virtual reality (VR), such that consumers can have an image of a necklace or earrings projected onto their necks or earlobes. Rather than static images though, the sophisticated VR scales the baubles to fit the consumer and moves with them, so they can see how the earrings would swing if they shook their head, for example.

Although luxury retailers are infamously loath to share many sales figures, estimates indicate that digital channels now account for about 20 to 40 percent of luxury jewelry sales. Yet such a trend should not be taken to suggest that real-world boutiques are disappearing. Many luxury buyers are older and remain late adopters of digital channels. They also likely enjoy the pampered experience involved in visiting a jeweler and being treated like royalty. But omnichannel strategies appear especially important for this market. To reach the wealthiest people in the world, ready to spend vast sums on rare jewelry, luxury retailers need as many channels as they can support.

Discussion Questions:

1. Would you be willing to buy a very expensive watch or gemstone through a digital channel? Why or why not?
2. How should luxury brands in other sectors (e.g., clothing, vehicles, vacations) leverage similar digital channels to reach their customers more effectively?

Sources: Sarah Royce-Greensill, “Digital Interactions Are Just Part of a Jewelry Sale Now,” The New York Times, May 26, 2023