Any industry comes with unique hurdles for businesses hoping to break into it. Startup costs, specialized licenses and certifications, distribution challenges, and brand equity are just some of the many obstacles.
Despite these barriers, newer customers expect to interact with your business via the Internet and their smartphones. Stopping advertising and promotion (or not doing so) can lead to dire consequences.
They are more likely to shop online
In the past, jewelry has been a high-end accessory that was bought for special occasions. These days, it is being purchased for the same reasons but also regularly.
These shoppers often spend time online researching products, finding discounts, and looking for educational content. They may appreciate customer reviews and user-generated content that gives them more context before purchasing.
While the industry has traditionally been very reliant on brick-and-mortar sales, many jewelers have begun to invest in their digital presence and expand their online offerings. Our research found that 54% of jewelry shoppers used the Internet to shop for a product in the past 30 days. Of those, 43% did so on a smartphone or tablet. The majority of these shoppers were women. Millennials and self-purchasing customers drive a lot of this shift.
They are more likely to shop at a specialty store.
Fashion and jewelry buyers Springfield, MA, like to shop at a specialty store for two reasons: 1) they enjoy the personal experience and expertise offered by in-store sales associates, and 2) they prefer to compare different styles and prices before purchasing. Moreover, these consumers value brands that innovate and stand out; they are 42% more likely to promote a brand they feel is innovative than other consumers.
Despite the coronavirus pandemic, which limited face-to-face interactions with customers, jewelry retailers remain optimistic about their future, with many investing in digital marketing to reach a broader audience. Meanwhile, artisan jewelers use platforms like Etsy to connect with buyers and spread their unique designs.
It takes a lot to break into any industry, with startup costs, specialized licenses, and distribution challenges being just some of the hurdles to overcome. But, navigating these barriers is especially difficult for new players entering an industry where established companies have the market share and consumer trust.
They are more likely to shop in-store
For jewelry, a small and light product that is easy to ship (unlike e-bikes), shoppers can easily research online, but when it comes time to make a purchase, many prefer to shop in-store. The reason, according to a recent survey by Instore Mag, is that buyers want to touch and feel the merchandise before buying.
Moreover, many consumers believe that it is better to buy from independent jewelers, which are known for displaying a curated collection of brands and offering excellent service. Furthermore, local independents typically donate to their community.
In addition to a higher customer experience, local jewelers can offer a lower price than larger retailers. Big stores factor overhead into their costs, while smaller and independents do not. For example, a diamond pendant sold at a large department store may have a 300 to 500 percent markup because the retailer pays for magazine advertising, shop overhead, and staffing. This is significantly higher than the average markup of an independent jeweler.
They are more likely to shop at a chain store.
Jewelry is a highly complex industry with an extensive supply chain. It goes from the sight holders, who purchase rough diamonds from mines to the manufacturers who produce the jewelry, the diamond dealers, and then the retail jeweler. Each link adds a profit margin to the final price of the product.
Consumers are willing to pay more for jewelry that is ethically sourced and sustainably produced. Almost three-quarters of jewelry buyers say they will pay for sustainability. This is an excellent opportunity for retailers to build awareness of their sourcing practices with this group.
During the COVID-19 pandemic, some jewelers scaled back their marketing budgets and focused on their stores, but for many, a solid online presence is still essential. Most jeweler respondents use their websites to drive traffic, and nearly two-thirds sell directly through their sites. Many also utilize Facebook Marketplace and Instagram Shop for additional sales channels.