The wedding business was significantly impacted by the COVID-19 outbreak. Many people in 2020 were forced to cancel, lose weight, or virtualize their weddings due to social pressure and governmental constraints.
According to The Knot Real Weddings Study, as a result, the average cost of a wedding decreased by approximately $10,000 in 2020, to $19,000. However, as health concerns and limits decrease and inflation is driven by demand, it is possible that this number will increase dramatically in the future. As a result, it is an excellent moment to think about investing in businesses that profit from the wedding sector.
Top Wedding Industry Stocks
The wedding business is fairly dispersed. Numerous expensive wedding-related products are purchased from regional stores, businesses, and venues. As a result, there aren’t many well-known wedding goods available. Here is a closer look at the ways in which these businesses profit from the wedding market.
Pinterest is a social media site for online sharing, looking for, and finding of photos and ideas. By the middle of 2021, the company had 454 million active monthly users, an increase of 9% over the previous year. As it works to make money from all those eyes, the amount of money it makes per user is rising.
A wedding planner’s best friend is also Pinterest. On the platform, there are more than 38 million wedding-specific boards where those organizing or daydreaming about their big day can find customized suggestions to make it extra special. The fact that Pinterest is progressively making money off of these highly engaged users makes it a fantastic method to invest in the resurgence of the wedding market.
Etsy is an online marketplace where individuals may purchase and sell one-of-a-kind items. Millions of consumers and merchants from practically every nation on earth are connected through it. The business focuses on offering unique products that bring “pleasure into the daily.”
A wedding is the most special occasion. Because of this, Etsy is a fantastic location for people who are getting married to find special items for their big day, like jewelry, bachelorette party favors, or another decor for the wedding cake or venue. A wedding planner might use the platform to uncover something distinctive to make their event stand out.
Urban Outfitters is a retailer that specializes in general items and consumer goods with a lifestyle theme. It has numerous brands, including Urban Outfitters and Anthropologie. Even though the pandemic had an impact on the business, it still managed to post record revenues and profits in the second quarter of 2021, demonstrating its resilience and operational success.
Urban Outfitters doesn’t concentrate on weddings alone. However, its Anthropologie brand is quickly becoming a favorite for purchasing wedding-related attire. Everything from maid of honor and wedding dresses for the bridal party to other outfits and suits for guests at weddings is sold there. Urban Outfitters should gain as more people begin to plan and attend weddings.
The top specialty jewelry shop in the United States, the United Kingdom, and Canada is Signet Jewelers, the world’s largest retailer of diamond jewelry. Under the brands of Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples Jewellers, Banter by Piercing Pagoda, Rocksbox, and James Allen, it manages about 2,800 retail locations. Each year, it sells more than $5 billion worth of jewelry, timepieces, and related services.
One of the closest things to a pure-play wedding industry stock is Signet because of its emphasis on diamond jewelry. The business offers a variety of wedding and engagement rings. It can serve various consumer categories, including those on a budget or seeking more elaborate, higher-quality gems and metals, thanks to its varied brands.
Mot Hennessy LVMH With more than 75 brands, Louis Vuitton is the largest luxury goods company in the world. It also has a huge retail network with more than 5,000 locations across the globe. Wines and spirits, fashion and leather products, fragrances and cosmetics, watches and jewelry, selective retailing, and other businesses are the company’s six main areas of focus.
Everything is available at LVMH to make a wedding truly unforgettable. For instance, it added Tiffany & Co. to its portfolio of renowned brands in early 2021, giving it another way to profit from rising sales of wedding and engagement rings. In addition, it produces premium wine and beverages like Dom Perignon Champagne, as well as high-end bridal dresses under the Givenchy and Louis Vuitton labels. Because of this, LVMH has the brands to make any wedding a special occasion.
Many couples were forced to alter their wedding plans for 2020 as a result of the epidemic. However, the epidemic is becoming easier to control as new treatments and vaccines become available, enabling more couples to proceed with more elaborate nuptials. The trend toward larger weddings is anticipated to continue in the upcoming years, making this the ideal time to think about investing in businesses that stand to gain from the corresponding increase in wedding-related spending.
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