TRADITIONAL VS BRANDED JEWELLERS
In Part 1: Strategies for Jewelry Retail to Acquire Customers: Data Collation, we understood the market segmentation that jewelry retail players can identify and the research methods to understand what inspires their customers to purchase jewelry.
Let us now understand the distinguishing strategic models used by traditional jewellers and the new era branded jewellers.
Jewellers heavily rely on their personal relationships with their customers. It is not restricted to a person just being a customer, but it nurtures such customers into personal relationships. The discussions go on to different arrays of life such as education, culture, family and politics. This informal way keeps them aware of the happenings with their customers and accordingly enables them to pitch the right products as and when required.
Contact details is always collected of current and prospective jewellers visiting the retail stores. Accordingly, relevant product details, including designs etc. are sent to such customers via sms, emails and whatsapp messages/group. Additionally, special messages are sent on birthdays, anniversaries and festivals usually offering discounts and giving away special gifts.
Several jewellers have initiated financial assistance (EMI option) on purchase of jewelry to their customers by tying up with financial firms such as Bajaj Finserv, etc. This helps the customers to be able to make payments in instalments.
Several jewellers in India provide exchange value of the jewelry purchased from them and allow customers to pick a new product after deducting a certain percentage from its original price.
Lucky draw schemes
Another means of increasing sales used by traditional jewellers is by have lucky draw systems in place. The winners receive a gift of high value such as a car or certain gadgets or a travel voucher.
Sponsorships of Festivals and occasions
Several jewellers promote their brand by sponsoring events in housing societies, malls, etc. Such events give a good platform for jewellers to showcase their products and designs. Generally events on festivals, etc have good footfalls.
Once cannot do away with seasonal discounts. One of the primary methods of generating revenue is seasonal discounts during festivals which culturally allow the customers to splurge. Be it Dussehra and Diwali in India, Black Friday in US, seasonal sales are here to stay.
Through the above, we can see that most of these are direct form of promotion. The focus is more on the promotion than on the product to be sold. These are sale oriented strategies instead of being customer focussed.
Though the modern branded jewelry also follow the above pattern of marketing and promotion, they have subtly found newer and more effective strategies by building a brand value of their enterprise. These have been discussed below.
Building Informed Trust
The branded and organised jewellers have cautiously been spreading and educating customers with relevant information about products, their qualities, grades, assessments, malpractices and unethical means that can occur during their purchasing experience. Use of blogs, social media and in-store booklets are helpful in creating this awareness. The customers naturally tend to get attracted towards jewellers which claim to be pioneering in ethical business.
Differentiation through designs and brands
Organised jewellers have become more design oriented. As was discussed in Part 1 of the article, the times when jewelry was bought on occasion and as an investment is not the primary motive anymore. In urban areas, jewelry is fast catching up as a fashion statement. Hence, the customer’s choice has evolved and so has the designs. Unique, theme based jewelry designs are created to cater to this new customer requirement.
Also, certain organised jewellers have successfully built separate brands to cater to different segments of customers. For example, Tanishq is built and known for heavy and wedding based jewelry and its own brand, Zoya caters to high end minimalist diamond jewelry customers.
Focus on Quality Control
Branded jewellers have taken concerted efforts to bring regular repeat customers. Additional quality check departments have been set up to review the products received from the manufacturers to ensure quality such as diamond grades, gold finishing, stone settings, etc. This ensures a positive experience for the customers who eventually become the brand ambassador for the company.
Jewelry as a fashion statement
Lightweight jewelry is one of the fast selling products in metropolitan cities. The increasing demand is accelerated by the new trend of wearing jewelry as a regular fashion statement. Hence the product life cycle period has seen a drastic reduction. The organised jewellers have quickly joined the bandwagon of the new customer choice. New jewelry lines are being launched more frequently and focus on new concept based designs have increased.
Use of Tech for production efficiency
As the focus on customer experience increases, the jewellers have been trying to reduce the delivery time of the jewelry purchases. Accordingly, cautious attempt is being made by selecting manufacturers that are using latest technology for production efficiencies. This includes latest machines for 3D printing, polishing, casting, etc.
Due to the above, the organised retailers have been able to subtly build brand awareness and attracting those customers that are easily converted to sales. New generation traditional jewellers have quickly realised the importance of the new era marketing and many are moving towards creating their brand.