Happy New Year
The new year is a time for reflection about what was and what will be. It’s also a time of celebration as we look forward to a new year of opportunity.
From a business perspective, this past year has been exceptionally good for the US diamond and jewelry trade, with double-digit sales growth for many of us. Business has exceeded our expectations as government stimulus has showered consumers with money.
The Covid-19 situation is having a powerful impact on our physical, social and emotional well-being. Our lives are changing as we enter a period of continuous uncertainty. We are not going back to the way things were. Covid-19 has forced us inside our homes and inside ourselves. Working from home has given us the opportunity to think about who we are and what we want out of our lives. We spend more time interacting with our families. We are more isolated and dependent on others. The race for more is becoming the search for better in terms of people, products and relationships.
What can we expect for 2022? As Covid-19 spreads, it is becoming less potent and less dangerous. It may evolve into a common flu that we will learn to live with. Yet the impact of Covid-19 on society will remain as many of us continue to work from home. Millennials are coming of age and want more than money for their work. Prices, inflation and interest rates will increase as supply chains tighten. Globalization will take a break as China and the US intensify a period of economic warfare. US elections will heighten political differences. 2022 will be a year of great change.
Change will bring opportunity as we use new technology to create, market and sell our products. As Covid-19’s impact lessens, we will integrate some of the changes into a new normal. Perhaps the most important change will be the integration of values into our products. It’s not just that millennials want more job satisfaction from their work. All of us will want our values represented in the products we buy. Pure materialism will evolve into a form of sustainable consumerism where environmental and social responsibility factors play an increasing role in consumer purchase decisions.
As society is driven inward by a rapidly changing and uncertain world, consumers will think more deeply about what they are buying. Less will be more. This is good for jewelry which is seen as sustainable. There will be good demand for the right products that communicate the right values.
While we will see great change in 2022, we will also see great opportunity for those willing to adapt to the new values of consumerism.
Wishing you and yours a happy, healthy, prosperous and peaceful new year.
martin@rapaport.comArticle from the Rapaport Magazine - January 2022. To subscribe click here.