The jewelry retail industry is a unique space where dreams are realized and style personified. However, it is also a highly competitive sector. Jewelers face challenges from all over, including department stores, mass merchants and warehouse clubs, home shopping TV channels, online retailers, and auction sites. To thrive in this industry, jewelers must develop a comprehensive retail strategy and focus on their customers.
Jewelers often underestimate the importance of understanding their core customer base. This leads to an unfocused and ineffective marketing strategy, which is detrimental to their business. Understanding your customer base should be a continuous process that informs all business decisions, from product selection to store layout and design.
Market Research: Analyze your target audience’s demographic and psychographic characteristics to determine what motivates them to purchase your products. This can be done through surveys, focus groups, and social media analysis. For example, if your target market is comprised of millennials who are environmentally conscious and value ethically sourced jewelry, you can align your products and marketing strategies with these traits.
Price Points: Analyze your competitors’ pricing strategies and decide whether to match them, undercut them, or premium price your jewelry to convey a greater perceived value. Keep in mind that consumers are not only aware of your prices but are also comparing your pricing to the prices offered by your competitors. This means that your pricing must be consistent and transparent to avoid alienating your consumer base.
Jewelry Collections: Maintaining a captivating jewelry collection is key to driving new consumer acquisition and maintaining existing customer loyalty. Many jewelers make the mistake of overstuffing their jewelry shelves with trendy designs that don’t necessarily resonate with their core customer base. This can cause their inventory to become stale and they may not see the return on investment they deserve.
Customer Retention: A well-defined customer retention strategy can help you build a loyal customer base and boost your brand’s reputation. Keeping your customers happy and engaged with your products will help you grow your sales, while promoting positive word of mouth is an effective way to increase brand awareness.
Managing Your Brand: Having the right software solutions in place is essential for jewelers to manage their brand and stay competitive. For example, if you create your own products, it’s important to have a solution that helps you track and manage product creation. Also, because jewelry is often cataloged with serial numbers and warranties, a tool that manages this information can save you time and money.
Ultimately, the biggest challenge that jewelers face is finding younger people willing to take over their businesses. This generation is more interested in quality of life than working hard to support their families, so they are less inclined to work six- or seven-day weeks at a jewelry store. This is one reason why so many baby boomers are closing their shops.
