Running a jewelry business is no small feat. And this is largely due to the advent of e-commerce. Attracting customers to the store is becoming an increasingly difficult task. However, despite the popularity of online shopping, when it comes to the luxury jewelry sector, a physical presence is still critical and valued.
According to the Office for National Statistics, 2022 saw a record share of online spending in the UK, rising to 18.2% in August. However, despite our strong online presence, consumers still spent the majority of their money in stores. A significant portion of online spending was made at retail outlets that do not have any physical stores. This means retailers with beautiful stores still have a good chance of success.
Here are some reliable and innovative ways to help you increase your traffic and profits. You probably already know some of them, but there are certainly others worth trying.
Collective brainstorming to find creative ideas
No one knows your jewelry brand better than your team of salespeople, craftsmen and directors. So before you embark on a large and expensive marketing analysis, gather your team and brainstorm ideas as a group. Focus, think outside the box, and you will find real gold nuggets.
To brainstorm, discuss the following points:
- What are your competitors doing and what could you learn from them?
- When was the last time you updated your window display?
- How have you tried to attract people to your store in the past, and how effective were your methods?
- What are your unique selling propositions?
- How much can you afford to spend on events that will bring people to your store?
- What events, promotions or activations can you run in the store? What promotions or activations could you run online, on your website or on social media?
Email elements that attract attention and entertain subscribers
To make a promotional letter more lively and dynamic, you can add the following elements to it:
- Gif animation;
- counters/countdown timers;
- Competitions and drawings of valuable gifts.
Examples:
Gif animation on the banner:
2 competitions in one letter, one for subscribers of the Vkontakte group, the second for subscribers of the Facebook page. Both blocks are placed in the footer above the social media icons:
A countdown timer in an email can create a sense of urgency and create excitement among shoppers:
Create your first email newsletter
Reviews from current clients
Another great resource you can take advantage of is your existing customer base because whatever you're currently doing, they can get involved. Create an online survey and send it to customers on your mailing list, or ask store visitors a few quick questions. Find out what they like best about the products you provide, where they heard about you, whether they will return, and what they think you can improve when it comes to setting up a physical store. Collect all the feedback and think about what you could improve.
Financial section
One-time investments in starting a business directly depend on the set of tools that the master will need to work. Purchasing a minimum set of tools will cost approximately 1.5 million rubles. The purchase of expensive equipment will triple this amount.
Considering the instability of income, and at first its unprofitability, which will be noticeable in the discrepancy between the enterprise’s income and the wages of employees, it is better to refuse to rent premises. It is more expedient to purchase a one-room apartment on the first floor of a residential building and remove it from the housing stock. When paying for your own premises, the monthly expense for it will be reduced to the payment of utility bills.
Monthly expenses:
- Utility payments or rent of premises;
- Employee salaries;
- Purchase of consumables.
It is not possible to plan income in the first 2-3 months. Presumably 55-60 thousand rubles per month. With the gradual development of a client base. It is planned to receive a monthly income of at least 180 thousand rubles.
Under favorable circumstances, the payback of the business is planned for 1.5 years. Weak demand for services delays the payback period by 3 to 4.5 years.
Promote your story
The most successful brands are those with great values and a great story. And the jewelry business is no different. Take some time and think carefully about your company's history. What makes it special and why other people might want to buy it. Perhaps you run a family business that was created in the past generation? Or does your firm specialize in a particular area, such as rare stones or recycled metals? Are you able to remain resilient? How did your business come about? Think about all of these questions and make sure your story is at the center of everything you do. It should be reflected on the company website, on social networks, and also in the process of communicating with customers in the store. The more people resonate with your story, the more likely they are to want to meet you and buy your brand.
Create a seasonal calendar of events and promotions
Don't underestimate the power of seasonal promotion. Even the most high-end jewelry businesses can take advantage of a seasonal discount, although it may be offered exclusively to existing customers in some form of “members” or “loyalty program.” At the same time, you will not “cheapen” the overall offer.
To attract people to the store, present offers that are only valid on certain collections or items. If you want to increase sales during weekdays or weekends, make offers available only on days when you want to be busy. If clients are interested and the deal is good, they will put in the effort.
If you're running a seasonal promotion, draw attention to your company's products and go all out. Don't offer minor discounts. It's better to have one really effective and attractive promotion a year that will attract a lot of people than many small promotions that cost next to nothing.
A holiday every day - create the mood
Luxury goods in general and jewelry in particular are in high demand during the holiday period. For example, the Price.ua portal announced the following interesting facts about Valentine’s Day: 2 weeks before the event, traffic to the “Gifts” section increases by 8-10 times, and site traffic by 200-300%. Every year, most online stores prepare promotions for Valentine's Day, offering gifts and significant discounts, the size of which can reach up to 70%.
A good idea is to make a separate landing page with holiday symbols and thematic selections of products:
- By gender - for men and women,
- By price - expensive, average, affordable,
- By type of product: rings, earrings, pendants, necklaces.
You can place promotional offers and gift certificates separately.
Here's how it's implemented on the Gold.ua website:
When promoting such promotions through the email newsletter channel, it is important to create a festive atmosphere and maintain it for as long as possible. To achieve this, a series of letters are launched in advance, at least a month before the date of the announced event, be it New Year, Valentine's Day or March 8th. If there is a thematic landing page, the letters use a similar design:
Multichannel marketing works more efficiently, so it is advisable to add other means of communication to email, in particular, SMS and push notifications. Here is an example of a push mailing with a special heart symbol in the subject:
Encourage customers before they buy
The jewelry sector is inevitably an area where consumers spend significant amounts of money on a product. This means you have a great opportunity to bring customers into your store and let them see, touch and try on a sample. When communicating with potential buyers online and responding to inquiries, play on the sentimentality of jewelry shopping and the emotions that often go hand in hand with gifting or purchasing jewelry for a special occasion.
Impress the buyer. Reassure him that viewing, trying on, or designing a custom piece is just as important as buying, giving, or wearing. Investing time and money in purchasing jewelry will only increase its sentimental value. This item will mean even more to the intended recipient.
You can also encourage potential customers to visit your store to determine exactly what they want and give them the opportunity to learn more about your products, their origins and how they are made.
Business Description
A business that develops independently can be registered as an individual entrepreneurship. Providing services to the public in this industry requires certain knowledge and skills of a certified specialist. A license to work with precious metals and stones is also required.
To provide services directly on the territory of a jewelry store, closely interacting with its employees in terms of drawing up reports of manufacturing defects, the status of the enterprise must be at least LLC. The conclusion of a specialist or the provision of services to provide warranty repairs for products of a certain manufacturer are carried out only upon conclusion of an agreement.
Attention! A jeweler with a special education and sufficient work experience can be engaged as an expert, that is, private individuals, as well as law enforcement agencies, can turn to him for an independent examination.
Tools needed for a jewelry repair shop
Jewelry electronic scales are high-precision measuring objects. You need to look for them among licensed laboratory equipment. Their cost varies from 9 to 90 thousand rubles.
Many jewelers use cheaper equipment - mechanical scales with weights. The peculiarity of the operation of dispensary equipment is complicated by the fact that the weights can only be taken with tweezers, so that skin fat and dirt do not weigh down the weights.
Gold is an expensive material, every tenth of a gram counts. Calculation of the cost of a product is directly related to the weight of the metal and the size of precious and semi-precious stones.
Build relationships with customers so they come back again
If you're experiencing a period of low activity, it can be tempting to stop paying attention to customers as soon as they come in and reach your sales level. But at the same time, you don't want people to come to you just to have a quick look, even if they have no intention of spending money. A review today could turn into a purchase later, so make sure you give customers the opportunity to just look without feeling pressured to buy anything.
Organizational plan
For the convenience of clients, the workshop reception will be open 12 hours on weekdays from 9-00 to 21-00. The work of a master is limited to a 40-hour work week (the working day is not standardized).
Payment for receptionist services – 15,000 rubles. per month.
1 receptionist: Working day from 13-00 to 21-00, five-day week.
2nd receptionist: Working day from 9-00 to 13-00 on weekdays, Saturday, Sunday from 10-00 to 17-00.
Saturday, Sunday working hours from 10-00 to 17-00 – foreman is on duty.
The presence of the master in the reception area is not necessary.
Diversify your store with free lessons or creative workshops
There is no better way to attract people than with a variety of offers. Attract new clients and speed up step by step. Look out for things like jewelry-making workshops, talks with experts on myth-busting topics like ethical diamond sourcing, guided tours, open days, and creative sessions where guests can try their hand at creating your own custom item (however, do not pressure the client into buying something).
Holding these sessions for free (or at an affordable price) after business hours is a great way to attract customers to your store and get them to know your brand better. You can start doing these sessions at small events, receptions and parties. Gently invite people to view the exhibits at the exhibition. Try to obtain the email addresses of all participants at any such events. You can then add them to your mailing list and send offers, updates, and news about new collections. Always ask for feedback. This will allow you to improve in the future.
Meet your neighbors and collaborate
Whether you're in a thriving historic jewelery district such as Hatton Garden, or on a quieter street, market, town or village, chances are you belong to the community of retailers and businesses in the area. Some may be direct competitors, but ultimately, when it comes to pooling your resources to host events, close deals, and put together trade shows, teamwork may be more successful.
Let's say you want to host an open party with drinks and food. Are there local businesses that could provide you with what you need? If they advertise their products to their customers and social media followers, you will simply double your reach.
If you're thinking about getting involved with a charity or want to hold an auction, do other businesses in your community have items they can offer as prizes?
Connect, talk to people and take advantage of other businesses near you.
Work with your applications and local stakeholders to make the most of local events.
Most areas within cities have their own local Business Improvement District, which organizes certain events and strives to make the place a better place. If you have a physical store, you will have to pay taxes, which will go towards the needs of the district. So make the most of the activations they (and you!) pay for.
Please ensure you are subscribed to relevant mailing lists to receive news and updates. This will help you take part in the right activities. You will also follow social media accounts in your area. Use local events and exhibitions they organize to introduce your brand and attract people to the store. This is a great resource.
Outdoor advertising
So, initially, outdoor advertising should appear within walking distance from the salon itself. It shouldn’t be difficult for people who are interested to come and see: “What kind of salon opened there?”
Banners and posters themselves already to some extent change the appearance of the area where they will be located, and this cannot leave passers-by indifferent. Especially if we talk about residents, for example, of residential areas, who are always interested in learning new places.
