Why Is Your Jewellery Business Failing?
While we have explored one end of the spectrum by discussing, “How to start a jewelry business” and “How to Grow your jewelry business online”, it is essential we understand the many pitfalls and missteps that can dramatically tilt the scales in the opposite direction. Or perhaps, your jewelry business is currently failing and you desperately need to understand why. We are happy to discuss our many experiences of 3 decades in the business that have helped us evolve with the times.
Here is a comprehensive guide to why your jewelry business may be failing.
(a) Insufficient research
Analysing any failed business model often pinpoints improper planning and research as the main culprit. Here’s where you may be going wrong:
You don’t have sufficient understanding of your customer niche
Solution: The success of your jewellery business is closely interlinked to your customer demographics. Identifying your ideal customer is pivotal to boost your jewellery sales. Besides, it will help you understand what they’re looking for. Take help of customer reviews and surveys from existing customers to pinpoint where you’re going wrong.
A survey by Ringspo suggests that nearly 27% of the demographic prefer to buy their jewels from an independent retailer. Narrowing down these target buyers can be of great help. Instead of targeting masses, focus on your own customer niche.
You aren’t well-versed to answer your customer’s queries
Solution: Today’s consumers make their own choices and are highly opinionated on the pieces they purchase. Many research the products extensively before buying them. Hence, it is essential for you to have an extensive knowledge on the products you’re trying to sell. This is where a degree from GIA or any recognized institute may help. You can also employ a certified gemologist to help you with this.
In the last 5 years, there has been significant interest generated for both alternative engagement rings and diamond alternatives. Coincidentally, this time gap is concurrent with most millennials getting married around this time. (Graph Courtesy: Google Trends)
(b) Poor quality/collection of products
To gain a loyal customer base, your brand needs to be memorable. Your products need to have that unique selling point that makes them different from that of your competitors. This is possible only if you offer your buyers something that’s worth buying. So being in tune with current market trends is extremely necessary. When running your own jewellery business, never compromise on the quality of the products you choose to endorse. Listed below are aspects you need to watch out for and rectify:
Poor quality of products
Solution: Many jewellery retailers obtain their raw materials from wholesale vendors as they are cost effective. When choosing a wholesale retailer, make sure they are certified and genuine. Verify their sources to avoid any unethical trade. This is precisely the reason that diamonds have fallen out of favour today.
Hire a certified gemologist or take help from a certification lab to assure the authenticity of your gems. This will help gain your customer’s trust as well.
You don’t have a good collection of products
Solution: Keeping up with the current trends in gemstones and jewellery is equally important for any business to be successful. To keep your customers engaged, you need to have a collection that is regularly updated as per their needs. Research the web to have an understanding of what is popular and what is not.
Teal sapphires are a strong contender in today’s engagement ring market along with parti and mermaid sapphires.
For example, there are many jewellery retailers who still strongly urge their customers to opt for diamonds. However, the customers of late prefer their jewellery with a dash of personality. They expect their gems to tell a story that reflects their being. The rage for classic diamond solitaire is witnessing a steady decline. The reducing numbers in the diamond sales globally suggest that the consumers are now ready to embrace stones other diamonds as part of their jewellery collections. According to the global diamond report, the rough diamond production has been declining by 5% every year from 2017.
(c) Bad marketing strategies
A poorly planned business almost always leads to failure. You need to have a solid business plan before you begin any retail venture. Even if your store is doing fairly well locally, you may miss out on a global outreach if you do not promote your products digitally. We cover business strategies in detail in our previous article on “How to Start your jewelry business.”
Failure in digital marketing
This is the era where most of the trade happens online. The consumers are always online – they do their research, browse collections and make purchases online. An article published in Retail Dive in 2018 suggested that nearly 87% of the shoppers began their product search online. Even if they chose to buy at the store later on, the majority of the planning and decision making was made online. Utilising digital media to aid in marketing and promoting your products can be highly effective in engaging your consumers. There are several ways you can do this:
- Social media
- Search engine optimization (SEO)
- Mobile applications
- Marketing through Email
- Customer reviews
To know more, read our article on how to grow your jewellery business online.
Invest time in developing a good website that portrays all your collections in a visually appealing manner. Include clear, high quality photographs of your products in various angles to make your customer’s shopping experience easy. Actively engaging with influencers on social media can be another way to reach out to your buyers. You can also conduct polls to identify which pieces in your collection are more in demand or cater to your buyers’ specific needs.
In conclusion, it is important to isolate and address the EXACT root of the problem. Your products might be great but they are virtually invisible if your marketing strategies aren’t in place. You might have a lot of a certain gemstone but there are nowhere in trend and hence aren’t really selling. Revamping your business may seem like a hard and impossible job but it is important to keep evolving and adapting and not get stuck in a rut because it has worked before. So, don’t give up! Give it your all, one more time and see where it gets you.