Dating and the Engagement Gap
We have witnessed a rapid acceleration of digital business models across industries, albeit with varying maturity and adoption curves. Online dating is one such industry which received a huge bump-up in usage during the pandemic, as more and more people sought refuge on online dating platforms owing to social isolation.
The pandemic provided an opportune moment for these platforms to pivot, as user needs and behaviours evolved. They introduced more online features which enabled the users to undertake a higher degree of screening of potential matches which was aimed at reducing the anxiety of meeting up with a complete stranger online.
Interestingly, during this time the platforms morphed (user’s perspective) into a socialising tool rather than a dating or casual encounters playground. More and more users began exploring the platform to discover others with similar interests — making friends, playing games, planning hiking trips, music groups, and many more. This was coupled with another shift in user behaviour — users sought deeper connections, preferring the ‘slow dating’ approach (often) leading to serious relationships.
When we aggregate the above shifts from assessing the impact, one of it can be attributed to more people getting engaged, translating into a booming business for the jewellery and bridal wear industry.
Engagement rings are the defining moments in a relationship and the jewellers are the biggest beneficiaries of this. But the reality is something different and no, it is not from a user experience standpoint, but from a business (jewellery) point of view. Also, jewellers are not the only business that has an impact, even the bridal dressers have seen a similar drop in their revenues.
A case in point is David’s Bridal. One in four brides wear David’s Bridal to their wedding and now, it’s filing for bankruptcy. According to Signet Jewellers, the largest jewellery company in the United States, the pandemic dented sales of engagement rings as relationships faltered or never even blossomed in the first place due to the lockdowns.
As per their company research, couples on average, get engaged about 3.25 years after they begin dating. A lot of early relationships in particular faded as lockdowns began in the winter and spring of 2020, only to be followed by a dramatic decline in dating.
Economic uncertainty is definitely playing a role as shoppers on tight budgets seek lower prices, but an increasing number of individuals are not doing things the traditional way. Not opting for traditional wedding attire and rituals, opting for pre-owned/second-hand wedding dresses, seeking more affordable options, and much more.
This has created a phenomenon known as the “engagement gap.” It’s the gap between number of people dating and number of people getting engaged. Its the conversion, STUPID! :)
From a business design lens point of view, this once again highlights the fact that there is a need to keep an eye on the broader trends which play out not only in your own business, but also on whats happening in the parallel domain.
What are your thoughts on this one? Would love to hear them.
Until next time!
~ Sajid
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Sajid is a Strategy Consultant who works at the intersection of human behaviour, business design and innovation strategy. He blogs at sknotes and tweets @sajidkhetani.
