The percentage of jewelery consumers buying online has grown to
42 percent over the last 9 years, according to a recent study by
JCK-Harrison Group. In 1999, just 3 percent of those questioned had
bought online. However the study also revealed that buyers are still
favouring the high street stores over online retailers by more than two
to one, with 87 percent continuing to purchase this way. This reluctance
to commit fully to shopping online for jewelery, despite huge savings
of as much as 60 percent, is a result of several factors.
This is
because the reduced prices are seen as tantamount to a lack of quality
or authenticity, neither of which is accurate. Online jewelery stores
are able to offer such discounts primarily because they do not have the
overheads tied up with operating shops. They also work on lower profit
margins because of the competitive nature of the Internet and assume
profitability through sheer quantity of sales. This buying power gives
them access to preferential rates from wholesalers which is why it is
not uncommon to find literally thousands of pounds difference between a
high street product and its' comparative online counterpart.