Some businessman faces many uncertainties in their business because of some unknown deals. Like in the jewelry market, before the polling date, retailers from the jewelry market were asked about their about their voting plans at an industry dinner, some of them wanted to leave, some of them remain and massive were undecided. As we all know 52 percent of brit voted to leave the EU on the 23rd June 2017. A two year negotiation period has begun by following the activation of Article 50 in March 2017.To know about the UK jewellery market, we take a look at the uncertainty that faces the market and how they can deal with it.
Disruptions in business operations
As import and export regulation of trading is not confirmed however the future of the retailers of the supply chain is doubtful, 32 percent of UK businesses who work with European suppliers have said that they are now looking for UK based alternatives. Many jewelers have exported their rings and this may not be possible for a much longer time. In this case, they would have to supply their rings locally, possibly lowering the quality of the available jewelry. Some are in favor of that it may motivate more skilled workers to enter the industry and guide to more self-sufficient UK.
The weak pound
The pound has been erratic from the time of the announcement of Brexit. A weak pound is not good for jewelers as compared to precious metal and gemstones. The pound is rapidly falling in the global market. In the industry of jewelry, the turnover is less compared to others. so it is a very difficult task for a jewelry trader to sell them at high prices.
On the other hand, the price hike in jewelry encourages the visitors who are interested in such things. The fall in the value of the pound is also attracted visitors as the pound is not cheaper for them to purchase. This could help jewelers if these visitors purchase jewelry items on their vacation in the United Kingdom.
Unable to plan ahead
There are many reasons which even expert in this business cannot predict what will happen in the wake of Brexit. According to the report, if the price got increase in jewelry industry then people will still continue investing in luxury and other things in a hope to earn more and more money. As per the survey, 80 percent of people think EU Split make their long-term planning decision difficult as compared to earlier.
How should the UK jewelry market deal with uncertainty?
With the announcement of Brexit, the Jewelry market can see a growth or decline after the results. So Experts are advising the Jewelers to not make any long-term plan that can be foiled by the results of the Brexit agreement. Below are some safety measures for Jewelers so that they don’t suffer any major losses after the Brexit agreement is finalized.
1. Jewelers can increase their focus on foreign markets that are outside the effect of Brexit.
2. Maintaining open distribution channels through the different medium is necessary to ensure consistency in sales.
3. They should renew their product lines as that you can meet needs of all.
4. Uncertainty can also go towards better results so always stay positive.