Jewelry retail is an investment-intensive industry, but the profits in the trade make it a lucrative business domain. The demand for precious metals and gemstones will never slow down, giving entrepreneurs another valid reason to dive in. Before joining the bandwagon, you need to understand the ins and outs of the market.
Let’s start with some statistics. The revenue in the segment amounts to a whopping US$60.42bn in 2023. Almost 60% of this revenue belongs to offline channels, while the remaining goes to online sales. That means you may have to deal with stiff competition (both offline and online) if you open a brick-and-mortar retail store.
These numbers represent a mix of opportunities and challenges for a retail seller. A strategic approach can help you maximize the opportunities and overcome the challenges to set up your retail store for success. According to a recent survey, 63% of buyers still prefer to purchase jewelry in-store, and 25% single out a local jeweler. Clearly, traditional brick-and-mortar retail still has many more years of life.
Success in the jewelry retail market takes more than having a store in a high-traffic location and building visibility through attractive signage. It is more about gaining trust and credibility for your brand because that’s what you need to attract and retain clients. While there are no shortcuts to establishing trust, a few strategies can help you achieve the goal.
Here are a few expert-recommended tips you can rely on to win the trust game:
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Have the Right Connections
Having the right connections in the industry is the best start when it comes to building trust for your jewelry brand. Collaborate with renowned names, such as the Responsible Jewellery Council and GIA, to gain credibility as a seller. Just being associated with them gives your brand store an immediate impression of legitimacy.
Customers are willing to deal with a company having the right connections. Further, selling jewelry with certificates of trust, such as a Hallmark Certificate and GIA Certificate, gets you more brownie points with trust. Buyers feel confident about purchasing high-ticket items coming with these seals of authenticity.
Highlight Values and Responsibilities
Selling authentic and high-quality products is a surefire way to win customer trust, but you can do more with brand values and responsibility. Sustainability sells these days, with consumers being more conscious about the environmental impact of their purchases. Retailers can capitalize on the trend by highlighting sustainability as a core value.
The ‘Thank You, By The Way’ campaign launched in 2021 by the Natural Diamond Council (NDC) is an example of the jewelry industry’s longstanding commitment to sustainability. Leading brands, from local retailers to multi-national chains, joined the campaign to expand its reach and impact. While doing so, they enhanced their core values and ethos. That’s an easy way to gain trust.
Go the Extra Mile With In-Store Experience
Although online shopping is super-convenient, jewelry buyers still want to visit brick-and-mortar stores for the sheer joy of the experience. Nothing feels better than trying precious pieces before buying them. An excellent in-store experience can help you establish trust in your store.
Buyers should feel special from the moment they step in. Give them special treatment while showing products. Choose people with a pleasant demeanor and good knowledge to ensure buyer satisfaction. Use high-quality weighing scales to ensure precision and credibility.
Ohaus scales are available in sophisticated digital models to measure the lightest weights with a high degree of accuracy.
According to Scales Galore, retailers should opt for reliable, industry-leading measurement equipment. It is even more crucial in industries like jewelry, where the smallest deviation can make a difference in product price and consumer trust.
Leverage Word-Of-Mouth
Word-of-mouth recommendations are perhaps the most critical element of credibility-building for brands. Statistics show that 88% of customers have the highest level of trust in the recommendations from someone they know.
You may spend thousands on brand promotions, but they seldom get you the credibility you want for your brand. Conversely, a single recommendation or positive review is far more impactful than expensive marketing campaigns.
The best way to get word-of-mouth recommendations is by ensuring top-notch product quality and customer experience for every buyer visiting your store. You can incentivize them to spread the word by sharing online reviews, social media posts, and offline recommendations. Remember to promote these user-generated content elements online to get the trust boost.
Wrapping Up
Quality products are the cornerstone of jewelry retail. Beyond the design, authenticity, and pricing of products, retailers must also focus on building brand credibility to maximize their sales and retention in the long run. These actionable tips can help you gain the trust advantage for your brick-and-mortar jewelry business.
