Corona Impact Series: A Chelsea jeweller conveys her message of bling via Zoom and Bing
In this series, City PM looks at the financial and economic impact of the ongoing pandemic on a range of small and medium-sized businesses across London. This week: How three lockdowns forced an upmarket jewellery chain to convey a personal message of bling via Zoom and Bing.
The accelerated shift to digital has been the theme of the pandemic and retailers have had to adapt to survive. That was not any different for Monica Vinader, a luxury jewellery chain that opened its first store on South Molton Street, just south of Bond Street, nearly 13 years ago.
Founded by London Art School graduate Monica Vinader in 2008, the company has provided jewellery to primarily women looking for “affordable items that have longevity, are sustainable and are consciously crafted,” explained Richard Colbert, the business’s chief financial officer, in a conversation with City PM
The company boasts the Duchess of Cambridge and Emma Watson as its clients.
Today Monica Vinader trades across the world with boutiques in the UK, New York, Hong Kong and Singapore, and runs London stores in Chelsea, Covent Garden, Mayfair, Marylebone, Canary Wharf, the City, Westfield, Selfridges, Liberty and Manchester, making the UK by far its biggest market.
Before Covid-19, the company saw roughly 20 per cent of its sales in Asia, 20 per cent in the US and 60 per cent from the UK.
First wave
The pandemic led to a sudden shift in business model which was traditionally split between retail, e-commerce and wholesale. The forced closures took a significant toll on the stores, with the Asian market taking the biggest hit.
“In the first lockdown, all our UK retail staff were placed on furlough and our trade sales also declined. We had to rely heavily on e-commerce,” sighed Colbert.
Going digital has been the challenge for a lot of retailers and in order to operate online successfully you need to replicate the shopping experience online for your customers and move seamlessly to offer ease through next day delivery, Colbert shared.
“This is exactly what Monica did, offering intimate shopping experiences such as virtual styling appointments.”
November lockdown
Being a seasonal business, with a third of sales taking place during the Christmas trading period, the November lockdown in the UK could not have come at a worse time for Monica Vinader.
Swift action was needed to adapt to the sudden economic changes and the company moved quickly to access a multi-million-pound funding package from their banking partner HSBC.
“The funding gave us breathing room to think about how we should adapt to the situation with the reduction of our wholesale and retail trading.” said Colbert.
“It ensured we could invest in our marketing to take advantage of the boom in online sales. Our virtual styling appointments also proved to be very popular, allowing customers to try online before they bought,” he added.
As a result, Monica Vinader’s sales increased by 21 per cent during the Christmas period compared to the previous year, with e-commerce sales increasing by 68 per cent.
Jewellery is personal
Whilst buying jewellery is an extremely personal experience, customers are now used to making those choices from the comfort of their own home and it is clear that the shift to online is here to stay, Colbert said.
This shift was coming, it has just happened a lot faster than expected, he explained.
“The pandemic has accelerated change in our business as we were, in many ways, pre-adapted for the shift to serving our customers in a digital world. I can’t wait to see our customers again in person but they now have more confidence to live, shop and socialise online.”
A diverse mix of positive and able people has also been vital during these challenging times.
“The resilience and spirit of the whole team at Monica Vinader has enabled our continued success,” Colbert concluded.