The jewelry retail industry includes businesses that sell fine jewelry (which typically contains a precious metal or gemstone) as well as silverware, watches, clocks and other accessories. Jewelers often offer customization services and repair work as well. In the United States, large jewelry companies like Sterling Jewelers (Zales, Kay, Jared the Galleria of Jewelry) and Helzberg Diamonds dominate the market, with the largest firms generating about 41 percent of total industry sales. Smaller independent jewelers and family-owned businesses may compete with these larger organizations by offering a more personalized and tailored experience to customers.
The success of a jewelry store depends on its unique selling proposition, or UVP. Creating a strong UVP isn’t a one-time exercise—it should guide every aspect of the business, from product selection and pricing to customer service and store layout. For example, if your UVP is luxury and exclusivity, make sure this shines through in everything from the way you train your staff to the design of your showroom.
Jewelry retailers can find inventory through wholesalers, who purchase large quantities of jewelry from manufacturers at a discount and then sell it to retailers at a higher price. Wholesalers can also provide jewelry stores with exclusive designs that aren’t available from other distributors, which gives the store a competitive advantage. Jewelers can also attend trade shows to connect with manufacturers and wholesalers and negotiate prices directly with suppliers.
In addition to leveraging their relationships with wholesalers, many jewelry stores buy their inventory through buyer groups. These are groups of retailers that pool their purchasing power to get better deals from manufacturers on specific items. This is especially beneficial for smaller, independent jewelry stores that don’t have the negotiating clout of larger chains.
Knowing your target audience is critical to a jewelry store’s success. Developing a deep understanding of the demographics, psychographics and purchasing behaviors of your ideal customer allows you to personalize your marketing, sales and services. For example, if you know that your ideal customers value sentimental value over practicality, you can create a collection of pieces that speaks to this need.
Keeping up with your customers’ anniversaries and birthdays is another easy way to build long-term loyalty. You can do this by using your clienteling software to send targeted, compelling messages and track their responses. Having this data at your fingertips lets you improve your service and ensures your customers receive the most relevant offers.
In the world of jewelry, it’s important to keep up with trends and styles. A great place to do this is through social media, which allows you to promote your latest collections, feature special promotions and share helpful information with your followers. This is a powerful tool that can help your business grow and attract new customers. Managing your social media accounts can be time-consuming, but a clienteling system like Jewel360 can automate the process and free up your team’s schedule to focus on other areas of the business.
