Earlier this year, retail jewelers faced a tough challenge in the marketplace. E-commerce grew 12 to 15 percent annually over the last 15 years. Online stores are gaining ground in the marketplace and will continue to grow exponentially. This has been driven by a generation of millennials. These consumers are more Internet savvy and they prefer to get the best price over loyalty to local stores.
As a result, retail jewelers need to develop a unique business model and software solution. They need to be able to manage their product creation, warranty management, and serial number management. They also need to be able to communicate with their customers and provide custom orders.
Today’s jewelry customers are mostly millennials. They prefer the online experience, which offers free shipping and no hassle returns. These customers also prefer to make their purchases online as a way to save money. In addition, they want a reliable online jeweler with quality products and expert customer support.
Retail jewelers must also ensure the health and well-being of their employees. They need to communicate to their customers that the products they sell are not tampered with or harmed in any way. They need to educate their customers on cleaning and maintaining their jewelry. Retail jewelers should consider creating a product line that is affordable and can appeal to younger consumers and less affluent consumers. They also need to consider a more global approach. In addition, jewelers should consider creating a brand or mono-brand retail strategy. These strategies give jewelry players more control over the brands they sell and give them a closer connection with their consumers.
The best way for a jewelry retailer to stay competitive is to create a robust online presence. Online jewelers offer low markups and lower overhead costs, which gives them an edge over brick and mortar retailers. They also know that the success of their online store depends on customer reviews. It’s also important to offer expert support, including free ring sizing and lifetime warranties.
Retail jewelers can also take advantage of the omnichannel future. Direct-to-consumer jewelry brands are re-inventing the jewelry store experience. These brands offer quality products at affordable prices, and provide a unique shopping experience. They are also more focused on sustainable practices.
Retail jewelers can also consider multibrand boutique chains, which offer carefully curated collections of different brands. They have an advantage over big box retailers in that they can offer an experience that is unique to each brand. Retail jewelers can also communicate a high-end message through in-store experience, advertising, and customer service. In addition, multibrand boutique chains can operate on a global scale and offer a more specialized shopping experience.
In addition to the aforementioned challenges, retail jewelers face other challenges as well. Aside from the physical location of their store, they must also consider the security and maintenance costs. They also must ensure that their jewelry is not damaged through careless handling or store pilfering. This is especially important if they are operating craft shows.