Skip to main content Navigation

Articles and News

Part 2: Vantage Group Shares Key Strategies to Recession Proof your Business |  January 13, 2023 (2 comments)


Encinitas, CA--Welcome 2023! 

The jewelry industry has profited from a worldwide pandemic in ways that no one could have expected over the last two years we have all wondered how long it would last. As economic woes began to encroach on the economy, 2021 sales stayed strong, but fourth quarter 2022 showed declining results across the country. While inflation grew, economic factors such as high energy costs, rising food costs, and surging interest rates signal that the road ahead will be tenuous at best. Consumers don’t stop spending in difficult times, they simply spend differently.

There is good news! We are older and wiser now than we were during the 2008 Recession.

 It is not necessary to try and predict the future, but simply take a page from history and then work smarter not harder.

Consider how spending changes during a recession. 

1. Spending pulls inward.

During an economic downturn, people spend less money outside the home on dinner and entertainment, which often leads to increased spending to enhance in-home experiences.

Products that provide at-home entertainment and home improvement become popular because consumers are spending more time at home.

2. Customers become more price conscious.

As discretionary income shrinks, consumers rightly pause before making a luxury purchase.  Self-purchases by women slows as necessities for home expenses grow.

3. Pricing matters

In an effort to save, many consumers develop a sharper eye on and shift shopping habits to focus on more price comparison. Quality becomes key.

4. Store loyalty and reputation matter

In uncertain economic times, consumers look to familiar, trusted retailers as a safe haven. Purposeful advertising that reinforces integrity and an emotional connection always outlasts blanket advertising. 

What did jewelers learn in 2008?

Here is the formula for 2023:

It has been a monumental two years.  After experiencing growth in both sales and customers, it is now time to leverage the opportunity to survive the downturn and posture yourself for the future.

Read part 1 by following this link

Share This:

Comments (2):

Once again, you two say it like it is and maybe how it should be for the next 5-7 years before we have another windfall couple of years. Thank you for getting this message to us simple retailers.

By James Orloff on Jan 17th, 2023 at 4:23pm

Great advice thank you both so much.

By Mary Ann Orloff on Jan 17th, 2023 at 5:44pm

Leave a Comment:

Human Check