How To Start A Jewellery Business
Starting your own jewelry business may seem daunting, especially with the ongoing pandemic. Although it seems counter-intuitive, now is the best time to launch your dream jewelry venture. Believe it or not, there has been a steep surge in the jewelry business lately, with the demand increasing each day. All you need is a solid business plan and a knack to cultivate that special, unique product, and you can probably garner success in the jewelry business in no time.
If you are an existing jewelry business owner who was forced to shut down or decrease ventures, you need to understand how to restore and revive your jewelry business after Covid-19. However, if you are starting from scratch, read on, my friends!
The 4 Ps in a business
As rewarding as the jewelry business is, remember that it is also equally easy to go wrong. It is essential to devise a detailed business plan and carry out proper research before you begin. To break down the basics of a successful venture, let’s take a look at the 4 Ps of business:
A thorough knowledge of the product you’re selling can help your business immensely in the long run. Being a certified gemologist from a reputed institution like GIA can boost your jewelry business. You can start by attending a local school or a gemology course. Most buyers seek certificates of authenticity while making purchases, hence having a tie-up with the local certification labs can be of great help.
Determine the main selling points of your products. Offer unique styles that are concurrent with the market trends. You can do so by conducting a thorough market research. Get in touch with various organizations and gem appreciation societies to know “what’s in”. Investing in products that not many others are offering can be one way to go about it. For example, you can offer alternatives to diamond engagement rings, promote unusual and quirky stones like mint tourmalines or parti sapphires.
If you’re a jewelry designer, designing your own products may enhance your product’s uniqueness and worth. You can purchase raw gemstones from wholesale retailers to cut costs. Alternatively, if you aren’t interested or willing to purchase a huge inventory to begin with, you can team up with your local jeweler who is willing to make that investment and then purchase from him.
Jewelry businesses can be an extremely profitable venture if done right. Determining the precise retail price is crucial to ensure that your business is profitable. The retail price, as a rule, must be greater than the cost of production, which is in turn determined by the price of the materials, time taken to manufacture or procure, packaging charges, and taxes. Generally, many jewelry retailers sell their products at a cost of at least 1.5- 2 times greater than the cost of production.
How to make your jewelry business profitable?
The type of business you chose to opt for can also play a role in increasing your profits. For example, operating as a wholesale retailer can increase your profits substantially. However, it does require a larger investment.
In terms of the product price, there are mines that offer gemstones which may be of lesser quality at a lesser cost. You can start your business with these gemstones in the initial period and cater to novice gem collectors, eventually scaling up your clientele with better quality products, which come at a higher price tag.
If you own a jewelry business and have been in the game for a while now, your knowledge and insight of the industry can be an educational tool in your armamentarium. Conducting small group seminars on various aspects of gem sciences like quality and clarity, not only establishes you as an authority but helps you reach your niche of clientele in a single go.
Customer research is another important aspect of the jewelry business. It is important to identify your potential customers and cater to their specific needs. Test out your product, within a smaller circle, say your friends, family and peers, to assess the basic appeal of your gemstone in terms of quality, beauty and price. You can also conduct polls on social media to keep up with current trends and customer demands. Existing customers can also help in understanding the mindset of potential buyers and how they prefer to shop. For example, when we started our marketing of teal sapphires in 2020, we conducted a short survey to asses its appeal in the market , which ultimately gave us our target customer demographic.
The location of your business is also largely dependent on the target buyers. Customer research can also help you determine the ideal location and type of business. According to the demand, you can decide whether to start a retail venture or pursue online commerce. Ultimately, finding your own niche of customers is what will help develop your business.
A good way to begin this research is with the help of free existing statistics like Google Analytics that give a clear image of market trends. Since our main focus had been teal sapphires, we wanted to conduct a research that proved that our observations had been correct. This in-depth analysis of the popularity of teal sapphires helped us with just that.
Setting up trade fairs and exhibitions locally can help in finding your customer niche. (Source: Navneet Gems & Minerals)
Now that you’ve done your research, it is time to make things actionable. A big part of this is promoting your jewelry business actively. Start by creating a website for your business. This includes purchasing a domain name or a web hosting server with built in e-commerce software if you wish to carry out online retail. The website also needs to provide details on how to purchase the products and the contact information of your business.
Your website needs to be a good portal for displaying your product catalogues and attracting customers. It is essential to have high quality photographs of your products on your website, especially since the jewelry business is largely visual. Blurry, unappealing images can hamper your business – being consistent is key. Consider hiring a professional photographer to help you with this.
Engaging digitally is a must in this day and age. A good social media presence can amplify your reach and gather potential buyers. You can do this either through various social media channels like Instagram or Facebook or develop your own mobile application to enhance the buyer’s experience. To know more, you can read our article on how to use technology to change your jewelry business.
To sum up, your jewelry business is dependent on these four variables – product, people, price and promotion. Think of various different ways that make your brand different from what the others are selling. Identify the main selling points of your products and also the needs of your target buyers to establish a positive impact on your business. Take advantage of social media and other digital means to reach out to potential buyers and determine fair prices for your products to give your business the boost it needs. Lastly, remember that consistency is key in the jewelry business – do not compromise on any aspect of the trade.