Jewelry stores offer a range of luxury goods, including diamonds, gemstones and gold. Some also sell watches, clothing and accessories. The industry’s profits are tied to the effectiveness of marketing and merchandising, and competitive pricing is important to attracting and maintaining customers.
The US jewelry retail industry consists of about 21,300 establishments that generate $30 billion in annual revenue. Profitability depends on customer demand, which is affected by macroeconomic factors and the shift in consumer discretionary spending. Despite these challenges, jewelers can improve sales by implementing effective business practices.
Establish a Unique Value Proposition (UVP)
A powerful UVP showcases the value of your products and distinguishes your business from competitors. It should be clear and easy to understand, and it should guide all your business decisions—from product selection to marketing campaigns. To create a compelling UVP, start by understanding your target customers. Use market research to gather demographic information, as well as psychographic insights such as their values, interests, lifestyle and shopping habits. For example, if your core audience is environmentally conscious millennials, you can focus on offering handmade, sustainable jewelry.
Invest in Professional Staff
A well-trained and knowledgeable staff is critical for enhancing the customer experience. In addition to offering advice on product selection and maintenance, professional staff can build rapport with customers and increase brand trust. Ensure that all members of your team are trained and certified by industry organizations to meet your industry’s standards.
Ensure a Well-Thought-Out Pricing Strategy
An effective pricing strategy is a vital component of any successful retailer, and it’s particularly important for jewelry retailers. Whether they sell everyday fashion jewelry or custom pieces, effective pricing can help your store shine as brightly as the gems it offers.
Consider how your pricing strategy aligns with your core customer base, your store locations and other marketing initiatives. For example, if you have multiple retail locations, you can cater your marketing efforts to specific audiences and incorporate local landmarks, events or community projects into promotions. Likewise, you can tailor your store layout and design to match the needs and tastes of your local customer base.
Invest in Innovative Designs and Materials
The jewelry industry is constantly evolving with new trends and innovations. Keep an eye out for emerging styles and materials, and incorporate them into your inventory to attract new customers and keep your regulars coming back.
Invest in Technology
Depending on the nature of your business, you may need to manage inventory, warranty claims and serial numbers through software solutions. You might also need to track inventory for online sales, which requires a robust web-based portal or ecommerce solution. Additionally, since your business often customizes pieces for clients, you may need a jewelry manufacturing software solution to manage the customization process. Having the right technology in place helps you run your business smoothly and efficiently.
