From high-end malls to small town jewelers, the jewelry retail industry is a diverse and vibrant one. Many stores are privately owned, and nearly a third are family-run businesses. A strong focus on customer service is a hallmark of the industry, and some retailers have even expanded to provide online sales. Jewelers retail is also a highly competitive space, with customers having the choice of purchasing from large chain jewelry retailers and big box department stores or securing unique pieces from a local jeweler.
One key factor for a successful jewelry store is its unique value proposition, or UVP. This is the differentiating factor that attracts consumers to a store and keeps them coming back. It could be a specialized shopping experience, exceptional after-sale service or exclusive jewelry lines. The key is to identify what sets a jewelry store apart from its competitors, and then communicate this message on all marketing materials, from social media to in-store signage.
While the Internet has changed the way consumers shop, many jewelry stores have remained loyal to brick and mortar locations. This is partly because of the intimate, personalized service that customers can receive when compared to online options. Many brick and mortar locations also offer financing, which can help consumers afford to purchase higher priced jewelry and accessories.
A jeweler can expand its inventory by attending jewelry trade shows, which feature manufacturers, wholesalers and distributors showcasing their latest collections. These events are an opportunity to stay up to date on the latest trends, discover new suppliers and connect with other industry professionals. Jewelers who attend these events often secure exclusive deals on inventory they would not be able to obtain at other sources.
Another key challenge for jewelers is theft, which can occur both from inside the store and from outside the store. Because of this, many jewelry stores have rigorous security systems in place to minimize the risk.
Many of the larger jewelers are attempting to differentiate themselves from their competitors by partnering with celebrities, designers and other equities to produce exclusive jewelry lines. Sterling Jewelers has found success with a Jane Seymour-branded line, while JCPenney has launched celebrity costume and fine jewelry collections. These branded jewelry lines allow larger companies to generate buzz, increase brand awareness and drive store traffic.
Personalized marketing is important for a jewelry store, as each piece of jewelry tells a story and connects with a specific consumer on a personal level. A store that understands its core demographic can use this information to create targeted, meaningful marketing messages like recognizing birthdays and anniversaries with suggested gifts. It can also use its understanding of its audience to tailor the product selection to fit the needs and values of its client base. As a result, this data can improve customer satisfaction, boost brand loyalty and increase sales. This type of data is available through a variety of resources, including sales reports, online analytics and surveys.
