UK Consumers Willing to Spend More on Jewellery from Small Businesses, Study Finds

Recent research from Capital on Tap reveals that UK consumers are willing to pay a premium for jewellery from independent businesses, particularly during the holiday shopping season. The findings highlight the value customers place on unique and personalised offerings, which could present opportunities for jewellers to adapt their marketing and product strategies.

Jewellery Among Top Items for Spending Premiums

The study surveyed 2,000 UK adults to explore shopping preferences with small businesses. Jewellery ranked as the second-highest category for additional spending, with consumers prepared to pay an average of £20.58 more for jewellery from smaller sellers. This placed jewellery just behind art (£24.65) and ahead of home décor (£18.79).

Baby boomers were the demographic most likely to spend on jewellery, with an average additional outlay of £22.50. Millennials also showed notable support for small businesses, with an average additional spend of £15.33 across product categories.

Personalisation and Unique Offerings Drive Demand

The survey found that 52% of consumers favour independent sellers because of their unique and personalised products. For jewellers, this points to an opportunity to align offerings with customer preferences for meaningful purchases, particularly during gift-giving seasons.

Supporting local economies was another key motivation for 51% of respondents who shop with small businesses, while 38% noted quality and customer service as significant factors.

Kamilla Fernandes-Pickett, Senior Marketing and Communications Manager at Capital on Tap, emphasised the importance of these factors:

“To build trust with customers and create a sense of community, small businesses should focus on three key strategies: establish an engaging online presence to keep followers informed, participate in local events to connect face-to-face, and offer personalised products or services to give customers a unique, individual experience.”

Regional Trends and Implications for Jewellers

Brighton stood out as a hub for small business support, with 38% of residents preferring to shop at independent retailers. The survey noted that 68% of shoppers in Brighton and Hove choose small businesses to support the local economy. Meanwhile, cities like Portsmouth showed lower levels of engagement, suggesting opportunities for jewellers in those areas to expand their reach through online platforms or community engagement.

Industry Implications

The findings underscore the importance of personalisation and quality in driving customer preferences for jewellery from small businesses. Jewellers can appeal to this growing demand by highlighting their craftsmanship and offering bespoke designs. Developing a strong digital presence and participating in local events can further help jewellers connect with customers during the holiday season and beyond.

For more details, visit the full study at Capital on Tap’s blog.