Jewelers retail isn’t just selling gems and metals, it’s about connecting with customers to make their dreams come true. This requires a comprehensive, well-thought-out retail strategy, and the luster of that strategy can shine just as brightly as the jewels your store sells.
The jewelry industry is a highly competitive business. Its customers are discerning, and they expect a high level of service. The success of the business depends on a number of factors, including product design and quality, customer service, store location and layout, pricing, and promotional strategies. Large companies enjoy economies of scale in purchasing, and smaller firms can compete with effective marketing and branding.
The industry is also facing increased competition from online retailers. Many consumers are choosing to avoid brick-and-mortar stores, and are instead purchasing jewelry online. According to a recent report by the Wall Street Journal, jewelry purchases made online jumped by 51 percent in 2016.
A successful jewelry store relies on a deep understanding of its customers. This can be achieved through surveys, focus groups, and social media analysis. The insights gained from this research can be used to improve customer service, product selection, and merchandising. It can also be used to identify and target potential new markets.
Moreover, successful jewelry stores can also differentiate themselves by offering an exclusive or personalized shopping experience. Unlike big box retailers, where customers can often find the same pieces on display, local jewelers have the ability to showcase unique and rare gems. This can be a draw for customers looking to buy something truly special, and is an important way to build brand loyalty.
In addition, jewelers must be vigilant about theft, as their inventory is small (easy to conceal) and expensive (lucrative to resell). They can minimize the risk of theft by keeping security systems up-to-date, and by implementing effective sales training for staff members.
Many baby boomers who run jewelry stores are reaching retirement age. This can create a challenge for the industry as they attempt to transfer ownership of their business to a younger generation. But, despite the efforts of some jewelers, it’s difficult to find young people who are willing to take on the responsibility of running a business. Especially one that involves working six or seven days a week.
A good strategy for a successful jeweler includes building a strong value proposition that defines your company’s identity, identifying and understanding your core customers, selecting products that balance variety, quality, and price, maximizing revenue through strategic pricing, merchandising, and promotional strategies, and investing in the right technology to support operations. To learn more about the challenges and opportunities of the jewelry industry, download our Industry Profile on Jewelry Stores today!
