Jewelry at the forefront of ‘revenge spending,’ expected to grow — pawnshop chain
MANILA, Philippines — Before the COVID-19 pandemic, people were scared to send their jewelry, gadgets and other valuables via courier services — but times have changed.
“Ngayon nga, ni-Lalamove, dini-DHL ang alahas. Dati hindi, ‘di ba? Dati, takot ang mga customers. So nag-change na talaga ang kanilang behavior,” Sheila Shalduga, Palawan Group of Companies Chief Commercial Officer, recalled an instance of how much consumer behavior has changed since the pandemic.
Likewise, according to her, people nowadays are more confident in buying jewelry online, resulting in a spike in jewelry sales.
“Jewelry is really one of the industries that really boomed during the pandemic and especially after. So isa ‘to sa mga tinatawag na ‘revenge spending’ categories. When consumers couldn’t go out, they decided to invest in jewelry. And even if you look at our internal sales, our jewelry business grew significantly, especially after the pandemic,” she declared at the company’s recent media conference for the launch of their new Palawan Gold bars and jewelry collection.
She noted that the jewelry market has been experiencing a double-digit growth and is expected to grow by 2026, at around 15 to 20%, depending on the source.
“This is an indication that customers now… understand that buying jewelry, buying gold is a good investment because they can rely on it in times of need.”
Carlo Castro, the company’s President and Chief Executive Officer, attested that jewelry spending during and post-pandemic has been so high, it crushed notions that people did not have money during those times.
“Even during the lockdown, we were surprised, ang daming bumibili ng alahas… and even post-pandemic,” he shared.
Bobby Castro, the company’s chairman, revealed that jewelry sales now plays a significant role in their company’s expansion into more branches and product categories, such as the new Palawan Gold bars and jewelry.
“Alam n’yo ba kung ilan ang nareremata lang? Akala kasi ng iba, ang pawnshop kumikita sa nareremata, pero actually, hindi. In our case, foreclosure is about four percent, so meaning, 96% ng mga isinasangla ay tinutubos. And ‘yung 4% na ‘yun, part ng nareremata, nililinis lang namin then ibinibenta ulit as jewelry,” he disclosed.
Shalduga affirmed that jewelry expenditures would continue to rise due to online selling.
“This is one of the things that changed sa habits ng mga customers during the pandemic na pagbili (ng alahas) sa online. Live-selling – kahit sa’n ka tumingin, may live-selling ng alahas.”
