While most brick-and-mortar jewelers still enjoy a healthy margin, online retailers are gaining on traditional brick-and-mortar competitors with millennials as the key demographic. The generation is more internet savvy than previous generations, and they often favor a good deal over loyalty to a local jeweler. According to Peter Gasca, most big box retailers have an online presence, and eBay and Amazon are still thriving. As of 2016, almost half of all retail purchases were made online, up from 48 percent in 2015.
One of the challenges of the jewelry business is the aging baby boomer generation. Many owners of retail jewelers are approaching or have already reached retirement age, and are unlikely to pass the business on to their children. Furthermore, the jewelry trade is not one that attracts many younger people, so it will be difficult for family businesses to find younger people to take over. Despite these challenges, it is important to remember that if you want to survive in the jewelry retail business, you should plan for expansion and diversify your business.
Many consumers have a limited budget. While brick-and-mortar retail jewelers can provide a high level of quality, online jewelers offer more variety, less pressure, and lower prices. In addition to the ease of purchasing and delivery of online jewels, most reputable online jewelers provide free ring sizing, lifetime warranties, and no-hassle returns. Furthermore, online jewelers offer jewelry at every budget level and can give you expert support.
Another important advantage of shopping at local jewelers is that they offer personal attention. Local jewelers, such as Brittany’s Fine Jewelry, work with every customer individually. A visit to a large retail chain will often result in a long wait time. But with expert help, you’ll be able to enjoy a personal experience that you won’t get at a big box store. So don’t be afraid to buy a unique piece – a local jeweler will most likely have the perfect piece.
Another benefit of a retail jewelry business is the chance to learn about profitable practices. The Cost of Doing Business Report helps jewelers improve their store performance by highlighting key financial performance variables. It is also useful for comparing data with other businesses in the same market segment and with those in high-profit companies. This way, you can find out which strategies are working for your competitors and improve your business. Once you have a better idea of how your retail jewelry business can improve, you can move on to implementing them in your store.
One way to improve the visual appeal of a retail jewelery is to add a little hotel vibe. The layout of the store allows customers to enter from the corner of the store, introducing each vendor at once. High-end timepieces and jewelry are presented against a backdrop of crisp white walls. The overall visual speaks of modernity and minimalism, and is a way to make a good impression on visitors. Guests can even choose to stay at Shinola’s first boutique hotel in Detroit, which opened in January.