Signet-owned Rocksbox has transitioned from a subscription-based jewelry rental service to an e-commerce platform specializing in pre-owned jewelry.
This shift aims to meet growing customer demand for outright purchases of pre-owned designer jewelry, rather than rental subscriptions.
Changing Business Model
Rocksbox launched in 2012 as a subscription-based rental service, offering designer jewelry for a monthly fee. However, customer interest in purchasing rather than renting has led to a significant business model change. According to a survey conducted by Rocksbox in 2023, 78% of its clients expressed a preference for buying second hand jewelry. This feedback has been instrumental in reshaping the company’s approach.
“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,” explained Rocksbox. The rental model, which required a monthly commitment, proved to be a barrier for some customers. The company will continue to honor existing subscriptions through August 2024.
Expansion of Offerings
With the transition to an e-commerce model, Rocksbox is expanding its inventory to include both new and pre-owned pieces from well-known brands such as Kendra Scott, Kate Spade, Luv AJ, and Zales Jewelers. This broader selection aims to cater to diverse customer preferences and values, particularly in the area of circular consumption.
Allison Vigil, Rocksbox president, highlighted, “As jewelry consumers continue to shop their values, we are building on our expertise in circular consumption by expanding our pre-owned and exclusive collections with designers we love and opening up our collection to even more jewelry lovers.”
Signet Jewelers’ Strategic Acquisition
Signet Jewelers acquired Rocksbox in 2021 to diversify its portfolio and reach a younger demographic. This acquisition was part of a broader strategy to extend beyond traditional mall-based retail outlets, which include brands like Kay Jewelers, Zales, Jared, and H.Samuel. Despite the recent shift, Signet’s engagement with the rental market is evident through its initiative with Zales for synthetic-diamond jewelry rentals, although the future of this program remains uncertain following Rocksbox’s business model change.
“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,” Vigil said. “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.”
Implications for the Jewelry Industry
Rocksbox’s transition to a pre-owned e-commerce platform reflects broader trends in the jewelry industry towards sustainability and value-driven consumerism. The shift towards pre-owned jewelry not only caters to changing consumer preferences but also aligns with the increasing emphasis on sustainability within the industry. For jewellers, this move signifies the growing importance of offering flexible purchasing options and the potential for integrating pre-owned collections into their business models.
