IN FEBRUARY 2014, McKinsey & Company published an article on what they believed the jewelry industry would look like in 2020.
Despite the article being written over seven years ago, the opening line happens to be relevant today: “The jewelry industry seems poised for a glittering future.” The article further discusses how dynamic and fast-growing the industry is and proclaims that jewelers simply can’t do business as usual and expect to thrive.
Sound familiar?
Traditionally, jewelers have been predominantly brick and mortar, focused on the in-store journey, and have adopted mass, demography-based segmentation. They engaged consumers through visual merchandizing and store layouts, and they positioned themselves to compete on price and quality.
Today, the majority of jewelry sales are still conducted in brick and mortar. However, the retail landscape has evolved exponentially, and independent jewelers now need to embrace an omnichannel experience.
The Harvard Business Review article “How ‘Buy Online, Pick Up In-Store’ Gives Retailers an Edge” reported that less than a third of U.S. retailers had implemented a digital transformation strategy as of 2019. With more than 80 percent of the American population shopping online, retailers must ramp up their online presence or risk losing business to those who are more tech-savvy.
The good news is that 70 percent of consumers shop local small business websites and 57 percent buy local to keep the money in their communities, according to Fit Small Business. Although most consumers start their shopping experience online, it is estimated that only 10-12 percent of fine jewelry is purchased online.
Jewelry retailers have so much to be excited about today. It is expected that approximately 2.5 million weddings will take place in 2022, marking a four-decade high, according to a recent CNBC retail article by Lauren Thomas. The article also stresses feel-good purchases. What better thing to make someone feel good than a beautiful piece of gifted, long-lasting fine jewelry?
The National Retail Federation and Deloitte are among a few that are projecting a strong first quarter for jewelry in 2022.
Here are five things retailers can do in 2022 to ensure continued strong growth.
Continue to ramp up your online presence and make it a priority. Create a virtual tour of your store to entice customers to visit.
Understand that all omnichannel experiences are not created equal. Determine which ones are the right fit for your business and factor in the cost to ensure it doesn’t adversely impact your gross margin.
Make sure you have an acquisition strategy to capture millennials and Gen Z. Accept that their purchases tend to follow their beliefs. They favor sustainability. Consider aligning your business practices with social issues that matter to your customers.
Utilize your data analytics to focus on targeted communication and segmented marketing.
Create holistic physical and digital experiences across the entire customer journey. It’s about making every interaction count and delivering richer experiences.
Customers expect more and more from retailers, so don’t be afraid to try new things. Remember that you can refine and tweak as necessary to drive the best results for your business.