During the past decade, the retail jewelers industry has undergone several changes. The most significant of which is the rise of online shopping. Online sales account for less than 1 percent of total retail sales, but they are projected to increase exponentially in the next century. Online jewelers have a much lower overhead and offer same quality products and customer support as brick and mortar stores.
But how can retail jewelers compete in the online marketplace? To answer this question, the first thing you should know is that the industry is highly fragmented. There are several different types of jewelry retailers, including chain stores, mono-brand retailers, and independent family-owned stores. Each has its own unique business model and retail challenges.
Chain stores offer mass-produced jewelry. Their prices are typically marked up anywhere from 300% to 500%. This means they pass their jewelry through more hands before reaching the consumer, and they may not check the jewelry before they sell it. The jewelry may also be of lesser quality than that of an independent jeweler. The store may also have high staffing costs due to employee turnover.
The biggest advantage of online shopping is the ability to compare prices and find the best deal. The internet has made price comparisons easier than ever. In fact, two-thirds of luxury shoppers are more likely to conduct online research before making an in-store purchase.
Retail jewelers may also want to look into having their own mobile POS system, which can be used to manage sales operations from a remote location. Wireless POS solutions are particularly popular among jewelers that participate in trade shows and events. In addition, jewelers should look for advanced business intelligence tools that allow them to monitor business performance in real time.
In addition to advanced business intelligence capabilities, jewelers may also want to look into an online inventory management solution. An interactive dashboard can help jewelers monitor inventory levels to ensure optimal stock levels. These tools also enable jewelers to generate reports that provide key insights about their business.
Aside from the obvious, jewelers should also look into the advantages of using social media to engage with their customers. Social media platforms can be used to target niche segments, and they can also help shape a jewelers brand identity. A jewelry store may also want to consider creating an interactive window display that highlights their shop space.
Retail jewelers may also want to consider offering discounts as a way to attract and retain customers. This is one of the most effective ways to increase revenue. It is important to be aware of market fluctuations and be willing to adapt to the changing retail landscape.
During the next decade, retail jewelers will have to become more digital to stay competitive. They should consider offering online sales, run promotional campaigns, and provide customer service through email and social media. They also need to consider a software solution for product creation and serialization.
