FEATURE / MICHAEL BEVAN
Jewellers can help their customers approach the cost of an
engagement ring in a manageable, structured and ethical
way, explains Michael Bevan
A
n engagement ring is one of the most exciting purchases many
individuals (or couples) can make. Marriage proposals are causes for joy
and celebration.
However, the average engagement ring spend in the UK stood at (a not
insignificant) £1,483 last year – a huge 89% increase on the year before,
where Brexit-related nervousness seemed to put the brakes on the luxury goods market.
The old tradition of spending three months’ wages on an engagement ring has long been
outdated, with 78% of Britons spending less than this – but that could still mean a piece of
jewellery with a four-figure price tag.
And of course, the engagement ring is just the first in a long list of expenses associated
with getting married. The average cost for a UK wedding reached a colossal £32,273 last
year, according to a survey by the website Hitched – a 15% increase on the year before. Here
again, it seems that consumer confidence in spending on luxury extras has bounced back
after initial Brexit-related jitters. Part of that cost, of course, necessitates a return visit to
the jeweller – for the wedding rings.
With all these costs mounting up, it is hardly surprising that a proposal can be a
daunting financial prospect. Many wannabe proposers are put off popping the question in
order to raise the necessary funds – whilst others bite the bullet and place these emotionally
and financially significant purchases on credit cards. It’s not necessarily the best foundation
for engaged or married life.
Our research also shows that almost all
shoppers – 94% in total – do not think to ask
retailers if POS finance is on offer
However, there is an alternative option – one which enables jewellers to help their
customers approach the cost of a proposal (and wedding) in a manageable, structured and
ethical way. Point-of-sale (POS) finance credit enables buyers to defer and spread their
payments over a specific period of time using a ‘buy now, pay later’ system. This maximises
affordability, and need not involve any interest payments.
Retailers that offer POS finance, in other words, make it smoother, simpler and more
transparent for buyers to undertake larger purchases. And given that an engagement ring
might come second only to a car in the list of expensive purchases in someone’s lifetime,
jewellers should be clamouring to get on board. Yet our own research has revealed that 42%
of shoppers believe that retailers’ offerings fall short of their expectations in this area.
There is, then, a huge opportunity for jewellers to differentiate themselves here,
positioning themselves as convenient, flexible and customer-centric throughout the
engagement ring purchase process. So, what are the key principles they should bear in mind
whilst developing and deploying a POS finance offering?
VISIBILITY
Our research also shows that almost all shoppers – 94% in total – do not think to ask
retailers if POS finance is on offer. This means that jewellers need to take a proactive stance
in communicating their POS offerings – through marketing materials, in-store and online
messaging, and staff training. These need to be carefully tailored to the jeweller context,
however – the same bold ‘0% finance’ messaging which can work fantastically for, say, a
furniture store may seem brash and indiscreet for a jeweller.
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JUNE 2019 | WWW.JEWELLERYFOCUS.CO.UK