Retail jewelers have a number of challenges. Competition from big box retailers, luxury brands, and the rising costs of running a brick and mortar store have all affected their operations. In addition, they must also contend with the rise of online retail. However, a well-managed online presence can help them survive the changing landscape.
The omnichannel experience is the concept of offering customers multiple ways to shop for and interact with their products. For instance, shoppers can visit a jeweler in person or online, or they can choose to order from a catalog. A jewelry retailer’s online presence can be a major factor in whether they are successful in the long term.
Online jewelers are becoming increasingly popular with consumers. They offer lower markups and are often easier to shop. Additionally, they offer free ring sizing, lifetime warranties, and no-hassle returns. This makes the shopping experience easier for shoppers and guarantees they receive top-quality products.
Another benefit of selling through the Internet is that it allows jewelers to reach a global audience. Online jewelry stores are often able to compete with the larger, more established retailers. Despite this, they must still pay attention to market fluctuations.
One of the biggest challenges of operating a retail jewelry business is the price of the materials used to make the pieces. Since the price of these materials has been going up for the past year, the margins for retailers have decreased.
Despite these challenges, a large portion of the population shops online. Consumers can compare prices for hundreds of different jewelry items. Whether they shop in person or online, the price of the item has the most influence on their purchase decision. Therefore, it’s important for retailers to determine if their product lines are affordable for their target consumer.
When it comes to attracting a younger demographic, one of the best strategies is to offer a more affordable line of products. By offering a more affordable line of jewelry, younger consumers are more likely to find their perfect piece. Furthermore, it’s more likely they’ll buy their jewelry at an e-commerce site than they would from a brick and mortar store.
Retail jewelers should also consider launching a mono-brand. Mono-brand retail gives jewelry players more control over their brand message and allows them to better connect with their consumers. Some mono-brand jewelry retailers offer affordable product lines, which are attractive to less affluent consumers.
In addition, jewelers who run craft shows must consider the risks of shoplifting and employee pilferage. To minimize these risks, some have moved toward appointment-only shopping. While this strategy has proven effective, many jewelers have closed their stores, leaving shoppers without a place to go. Those who want to stay in the business must ensure they are maximizing their online presence, as a lack of optimization could lead to hundreds of retail jewelers shutting down.
The baby boomer generation of retail jewelers is now retiring. This can be difficult for these businesses, as they will not have children to pass the business on to. If a family business is not able to fill this void, they may have to resort to a sale or close their doors.
