Last week we did research into the jeweler of the future. the survey has six questions about sales, marketing, collaboration and innovation. Below you can read the outcome. On behalf of all those interested, we thank the 74 independent jewelers who have taken the time for this. What Do You Think? Let us know in a comment under this post.
Trends for the jeweler
ABN AMRO’s report ‘The state of retail’ was published six months ago. This shows that a growth for the jewelery industry is expected in the coming years. That is good news for the watch and jewelry industry, but why do so many self-employed people close? (respond what you think at the bottom of the page)
The growth will largely take place in the Affordable Luxury category. These are luxury products that are accessible to a larger audience. In addition, the trend of customization is visible. Consider the possibility of putting together a ring yourself.
Does the jeweler from the research choose affordable luxury or customization?
The jewelers from our research also clearly focus on the ‘customization’ trend. 54 votes (73.97%) opted for more services, including repairs and appraisals. For this question 35x “more unique products” is also checked (47.95%) and 27x “more expensive products” (36.98%).
1. My turnover will grow mainly thanks to …
Plan for the future
The margins of jewelers are on average high compared to other branches. This will probably come under pressure from the internet. Internet sales have quadrupled in turnover in recent years (from 3% in 2012 to 12.7% in 2018).
Everything becomes more transparent with the internet. The expectation is that the prices of products will fall due to this increasing transparency. In addition, brands can now go directly to the consumer more easily than before.
The jeweler’s research shows that most self-employed people do not want to compete online with large parties. Only 25.7% would like to take steps with online marketing or online sales. The largest part of this answer was in combination with ‘working more intensively with suppliers’ or ‘creating an experience store’.
Ultimately, the latter two are most needed. Creating an experience store has 34 votes (45.9%) and working more intensively with suppliers even gets 39 votes (52.7%).
2. I want to take steps with
What role does online marketing play?
A total of 89.2% of the jewelers surveyed acknowledge the importance of online marketing. However, the graph above shows that the majority prefer not to take steps here. Almost half (48.6%) cited lack of time and knowledge as the main reason. 21.6% already know a lot about online marketing and 18.9% would rather have it done. Finally, 10.8% of the self-employed are not interested in online marketing. These jewelers only want to focus on their store.
3. What do you think about online marketing?
Research jewelery industry & webshop
Most independent jewelers agree that having your own webshop is important. 78.3% want or are already working on displaying their products online. However, only 5.4% think that their webshop sales will be higher than their store sales. In addition, 6.8% indicate that they mainly focus on sales via external platforms.
This is offset by 32 votes (43.2%) who would like to sell online, but who do not expect it to replace their store. Furthermore, showing the current store stock also scores high (29.7%). These jewelers only want to show online what they are selling in the store and what they can do for customers. In addition, online checkout of items is unnecessary.
14.9% also have no interest in a webshop at all. The main reasons are that it is labor intensive and not always profitable. Too much competition and more focus on specialization and service are also mentioned. We recorded a video for this last year: webshop does not deliver its money
4. A webshop?
How does the jewelery industry view collaboration?
The retail future depends on more intensive cooperation, but what does the independent jeweler think of this? We get an answer to this in jewelery research.
Colleague or competitor
33.8% think it is high time to work together more intensively. Another 29.7% also think this is fine, as long as they can remain independent. So in total 63.5% are positive about working together. 12.2% have less good experiences and do not expect this to have added value. In addition, 24.3% think the current collaboration is sufficient.
5. Want to collaborate with other jewelers?
Collaborate with suppliers
36 voters (48.6%) think they can work better together with suppliers in the field of marketing. The vast majority of this group sees the importance of online marketing. They indicate that they lack the time and knowledge. So there are opportunities for suppliers.
The responses also showed that a supplier becomes more a competitor than a partner if he also delivers directly to the consumer. Certainly if it has substantial discounts. Retailer and supplier could therefore work better together in this area.
Furthermore, 36.5% (27 votes) think it is just fine how things are going now. Nonetheless, 10 of these 27 voters opt for easier work with suppliers in question 2. In addition, a large part of this group would like to transform its store into an experience store.
13 out of 74 voters (17.6%) also think that the purchasing process can be more effective. It currently takes a lot of time. When asked if suppliers could manage the stock in the store, 6 voters said “Yes”. This therefore also offers opportunities for both parties.
6. Collaborate with suppliers
Conclusion research jewelers
According to the ABN AMRO report, retail faces various choices. It is important to strengthen the bond with the customer and to create more contact moments. An intensification of cooperation with suppliers, online visibility and high expertise in the store are also factors in making a difference.
The survey reinforces this picture. Jewelers recognize the importance of online marketing, but time and knowledge is often lacking. They prefer to leave this to the supplier or collaborate on this. Many jewelers also want to focus on service, more unique products and creating an experience store to make a difference.
In addition, you increasingly see brands that avoid links in the chain. Large parties such as Amazon are also pushing margins down. However, both lack local support! There is an opportunity for the retailer and supplier to remain relevant. Where do you think the opportunity lies for our industry? Respond below.