After long discussions and stretched decisions over Brexit, on the 31st of January, the UK officially got out of EEU. Uncertainty has always been a theme since the Brexit announcement and now we have to find the best way to react to the new reality. This is a pivotal moment for all business owners and especially small retailers.
Before we talk about the “impact of Brexit” on the United Kingdom, we first must remember the history of the British jewellery industry and how it has survived rising gold prices and currency turmoil.
The jewellery market
Based on precedence, we can assume that once Brexit smoke clears, the British jewellery industry will remain strong and attractive as long as business leaders are brave and drive the customer experience agenda at a greater height in order to remain relevant and thrive on the long term.
However, it is inevitable that “uncertainty” can cause many unforeseen circumstances and therefore we must take some preventative measures to safeguard the sustainability and cash flow of the business.
Jewellery businesses need to prepare with so-called “Trade Plan” for short term and long term business sustainability.
How to prepare
Though it is very difficult to evaluate what sort of possible problems small businesses can face in any shape or form, we must prepare and adapt their strategy to be able to face whatever is to come.
The uncertainty caused by the impact of Brexit on the economy makes any tangible asset increase in price and become more desirable. Therefore, it has always been viewed as a safe haven for wealth because of their appeal of being a Store of Value.
Along with added stores of value in jewellery pieces, it also attributes to very special attractions such as Value of Workmanship and wearable assets.
As gold and diamond are purchased in dollars, the fall in the value of the pound will make those precious items far more expensive. Therefore, retailers are forced to sell it for an expensive price in order to meet their thin margin. Customers are operating between thin lines of fear and greed on how much they can save and spend due to the unknown factor of what is coming ahead.
Considering the effect of the weak pound, retailers and jewellery makers can potentially create opportunities to sell internationally and to tourists that visit the UK.
In a nutshell, the best option is to outline this time of uncertainty by “adapting” to a new way of trading in the digital era. This is, in fact, the perfect time for small retailers to invest in IT and technological capabilities or join a platform that will empower and enhance their business as a way of moving forward. Adapting is the only way to meet the reality of the UK economy, so the global economy of the future.
How MarketOrders is ahead of the curve
MarketOrders is led by an experienced team and has managed to anticipate the effects of political uncertainty on the market by early embracing new technologies such as blockchain.
Digitalising the whole jewellery supply chain and using cryptocurrency as a mean of payment, MarketOrders has adapted his processes and technology to better match tomorrow’s market and being less dependent on the political landscape and its consequences on trade and the value of money.
Developing a strong marketplace will enable us to trade globally and bring transparency and speed to an outdated industry.
We will continue to push ahead, be bold in our decisions and always make the most of the next climate we find ourselves in. We will not undergo political changes or any changes but take them as an opportunity to innovate and improve our business and how we can better serve our customers.
Our Co-Founder & COO, Sukhi Jutla, was recently invited to meet with Her Royal Highness Princess Beatrice at the royal residence St James Palace, where the Princess hosted the Good Growth Summit.
The event kicked up with a wonderful lunch reception followed by an afternoon of inspirational leaders sharing their top tips and personal journeys into the forays of tech.