Jewelry businesses are rapidly evolving to become luxury brands in the dynamic markets of today. The global jewelry market is expected to grow at an 8.5% CAGR between 2022-2030. Luxury jewelry, especially diamonds, leads this growth.
The brands that continue to be successful in the market, protect and follow a certain set of secrets that you can exploit. Such secrets are discussed in this article that can help you become successful in the jewelry business.
Tips to be Successful in the Jewelry Business
Stay Updated With the Designs
In the jewelry business, trends change with the changing taste of your customers. The wedding rings that were trendy in the late 70s are now either obsolete or antique. And as your objective with your diamond business isn’t to run a museum, consider sourcing or manufacturing jewelry that is fresh.
Keeping an outdated inventory in the jewelry business can be detrimental. Try to match your sales with your jewelry stock to find the sweet spot. Regardless, if you still have a huge inventory left, consider remodeling them to rediscover their value.
Furthermore, if your business model is based on custom jewelry, not having a huge inventory makes the most sense. A design of custom earrings may have been the bestseller in the past week, but that shouldn’t make you pile up on it.
In the initial stages, you may find classic and trendy jewelry designs by following social media pages and hashtags. But once you start learning the business, what may or may not work will come to you naturally.
Keep a Range of Unique Collections
Being in the jewelry business, especially in retail, means catering to most customers that come to your store. Regardless of what type of store you have, it’s essential to keep a collection that satisfies customers of a wide range of budgets and preferences.
Keeping a collection isn’t synonymous with keeping a huge inventory. It also doesn’t mean having hundreds of physical copies of the jewelry. If your supply chain is efficient enough, you can take orders from your customers and deliver them to their doorstep without unsatisfying them. For example:
Consider empowering your inventory with antique necklaces fitted with topaz, diamonds, or other gems. These necklaces may be antique but haven’t lost their charm and elegance over the years.
Enchanted Diamond Earrings
Enchanted diamond earrings are heavier and more prominent. Usually fitted with two or three huge diamonds, these earrings allow the wearer to show their worth off to their peers very uniquely.
Butterfly Diamond Rings
Butterfly diamond rings often house a butterfly wing made from topaz and yellow gold. The ring itself holds small diamonds to complement the colorful butterfly wings that give the jewelry an unmatched look.
If you are a specialized brand that sells wedding jewelry, don’t limit yourself to diamond engagement rings and pendants. Try to include stud earrings and bracelets. They may need a full set of jewelry for their wedding, and having to find that in different stores, is deterring. Aside from diamonds, you may also offer other precious gemstones such as rubies, sapphires, and emeralds for variation.
The objective behind keeping a collection is to retain the customers. Being a luxury consumer, a customer may not want to visit different stores for different kinds of jewelry. They expect the best experience from your shop.
Understand the Price Analysis
Jewelry prices frequently keep changing. With the dynamic price of metals and diamonds used in the jewelry, the final cost varies. As a business, you need to understand how the price analysis of jewelry works. For instance, in the case of diamonds, the final price of a polished piece depends upon the 4Cs: cut, clarity, color, and carat.
However, price analysis isn’t only about applying a formula to the jewelry. You need to calculate your fixed costs, variable costs, profits, competition, and other economic factors to determine the final price of your products.
In the case of custom jewelry, your labor and variable costs may increase, but you can earn a greater profit with these products. The price analysis factor for any business concludes down to developing a strategy that promotes sustainability and competitiveness.
Create a Luxury Brand
A luxury brand revolves around a high level of quality, high price, and exclusivity. As jewelry consumers, your customers already expect a high level of quality and high price. But, they don’t often get the rich experience of exclusivity from the jewelry industry that they deserve. Create a luxury brand around your business by associating symbolic value and exclusivity with your products.
Another attribute that defines luxury brands is customer loyalty. Usually, customer loyalty is the result of long-term delivery of quality and commitment. But, if you can promote your jewelry business as a dependable and trusted source of trust, you can ride the ladder pretty fast.
Brands usually offer either a symbolic value or a functional value through their products. As a luxury jewelry brand, you should focus more on providing the former to your customers. Symbolic value emanates the social value that the products offer and not the baseline usage derived from general products.
Once you’ve gained the status, your competition reduces significantly. You don’t compete against other jewelry sellers anymore and start competing with luxury brands.
Embrace Marketing for Jewelry
Don’t expect customers to visit and buy from your online store without you marketing yourself. Digital marketing means for the jewelry industry involves:
Build a Great Website
Building a great website with lots of excellent graphics and jewelry options. Consider developing your website as per the premium standards set by the industry.
Consider SEO-friendly Content
Make your website SEO-friendly by uploading a huge amount of helpful content and videos.
Utilize Social Media
Promote your products, new arrivals, business model, and testimonials on social media. With the growth of short video formats, you can create content around it to reach a wide range of audiences. Also, interact with your customers through the platforms and make sure that their complaints (and compliments) are acknowledged.
Fall back on paid ads. PPC and impression ads are effective ways to reach your target customers without investing time and resources in SEO. Yet, don’t neglect it. As SEO is the most trustable source of organic traffic that you can get for free.
Build Email Lists
Build an email list. Encourage your existing or potential customers to leave their emails with you for an incentive in the form of useful content or a discount. Distribute regular content and product arrivals with them to encourage brand loyalty and repeat purchases.
Offer a Range of Services
A customer, when buying jewelry from you, expects the same premium after-sales services from you. That may include jewelry repair services, consultations, and maintenance. It’s tragic to see a lot of jewelers failing in this aspect.
Don’t expect your customers to buy from you if you can’t offer them compelling services. They’ll pivot towards your competitors without a second thought if they have to find another jewelry store that offers these facilities.
The Bottom Line
You, hopefully, have understood what it takes to make your jewelry business successful. Staying updated with the designs and offering a range of services is the key. Keeping a diverse collection of jewelry and employing digital marketing to the mix can also help you develop a sustainable jewelry business.
If, and as you must, achieve a luxury business status with your jewelry business, price analysis and placement are equally important.