Jewelry: Why Rent when you can Buy?
July 04, 24
Why buy jewelry when you can rent it? That was the thinking behind Rocksbox when it launched its jewelry subscription service back in 2012.
This is how it worked: You pay $21 a month, select three pieces of fashion jewelry, swop them (with free shipping) for different pieces as often as you want, and buy any item you like.
It's a business model that has since been replicated by dozens of other companies - Your Bijoux Box, mintMONGOOSE, EarFleek, Glamour Jewelry Box, Cate and Chloe, Penny + Grace, Switch Jewelry, to name just a few.
But Rocksbox announced earlier this week that it was calling time on the rental service, and said it would now focus instead on online sales of new and second-hand jewelry.
The question for consumers now seems to be why rent jewelry when you buy it?
Signet acquired the company for an undisclosed sum in 2021 as part of a wider plan to attract self-purchasing women.
At the time Virginia Drosos, Signet's chief executive, was upbeat. She said: "Rocksbox has revolutionized the jewelry rental subscription marketplace by delivering personalized, online and data-driven customer experiences for jewelry lovers who prioritize fashion, online convenience and sustainability."
Under Signet's ownership Rocksbox expanded from fashion jewelry to demi-fine jewelry and pre-owned fine jewelry, it partnered with Zales (a Signet brand) in a rental program, and it launched a service for men.
So why three years later, is it exiting the jewelry rental market altogether? What does it tell us about Rocksbox in particular, and about jewelry buyers (or renters) in general?
Rocksbox says consumers are showing more of an interest in "previously-owned jewelry".
It cites a survey it carried out last year that found 78 per cent were "interested" in buying a second-hand item in the coming year.
But what it doesn't provide are any specifics on how the rental service has been performing (or under-performing), or the financial reasons for ditching it.
"Why the change and why now?" it asks in a Q&A for journalists, hinting that it's about to offer a straight-talking answer. But then it responds with some PR gymnastics that largely dodge the issue.
"We've increasingly seen customers interested in purchasing the jewelry outright and adding to their collection - especially styles that are pre-owned and from designers that represent their values," it says.
"We've also seen that the subscription rental model could be a barrier to some customers who are interested in Rocksbox jewelry but not able to commit to a monthly subscription fee.
"By removing the rental subscription requirement to purchase, we're making our expanding collection accessible to even more jewelry lovers."
The key word here is "barrier". It's a curious choice, given that it was Rocksbox who put up that "barrier" in the first place.
The annual subscription "barrier" is $252, which doesn't buy you very much these days, either in new or secondhand jewelry.
So what's really going on here? Ownership. It's my pet theory and I offer no hard evidence to back it up. But people like owning stuff - homes, cars, works of art, gadgets.
Especially in times of uncertainty and economic pressure.
Wearing jewelry that belongs to a large corporation provides short-term thrill of something new, but it's low-level satisfaction with no emotional bond.
Being able to say: "That's mine" adds a whole new dimension.
There's a whole raft of companies still renting out jewelry, and there's still a market for it.
But when you're as big as Signet you need to be ahead of the curve. And recognize the importance of ownership.
Have a fabulous weekend.