Jeweller - April 2020

STRATEGY FEATURE | Coronavirus Survival Guide
Illustrating this phenomenon is the
trend for engagements to increase
during recessions and in wartime.
While jewellery retailers may wish to focus
their marketing efforts on this theme of
love and family, even more important is
keeping the channels of communication
with customers open in any way possible.
Some may be tempted to cut
advertising and communication
costs, yet retail experts advise
that a more useful strategy is
remaining ‘front of mind’.
Some may be tempted to cut advertising
and communication costs, yet retail
experts advise that a more useful strategy
is remaining ‘front of mind’.
Ellen Fruchtman, director of Fruchtman
Marketing, advises retailers to “think
ahead”, telling US jewellery industry
publication The Centurion, “I can tell
you from experience that the retailers
that remained front and centre in [the
US recession of] 2008 got stronger.
“Sales volumes increased, without a
doubt… I’m not saying that because
I’m in advertising, I’m saying it because
we’ve seen it.”
While she acknowledged that recent
weakness in the stock market – the
ASX200 recently fell to its lowest level
since 2013, while the Australian Dollar
dipped below $US0.60 – has left many
consumers “not in the mood to buy
jewellery”, the effects are likely to
be temporary.
“The bigger picture is that we don’t know
when the stock market will rebound,”
Fruchtman explains. “It always does,
but the question is when, which no-one
knows. Will that have an impact on the
psyche of the consumer? That’s what all
retailers need to be thinking about now.”
In the meantime, others advise retailers
to embrace the e-commerce side of
their business, both in terms of digital
marketing and online shopping.
“You must have a strong online presence
during this period,” says Jeff Gordon,
director of The Gordon Company,
a jewellery sales, strategy and
promotion business based in Florida.
“Let customers know you have options
[beyond] in-store shopping.”
Jewellery retail and training expert Jimmy
De Groot advises retailers to “stay in the
game”: “Stay in contact, keep the faith,
and always be doing something to stay in
touch with customers.”
He cites texting, phone calls, social media
videos, FaceTime, and video-conferencing
with a printed 3D design as some of
the ways retail jewellers can interact
with customers who aren’t able to visit
the store.
Indeed, with many consumers working
from home or limiting their outdoor
activities, researchers are predicting a
boost to the consumption of digital media.
MARKETING
FOR LEAD
GENERATION
Organic posts
on Facebook
and Instagram
are ideal for
communicating
with existing
customers
Social media
advertising –
paid and
promoted posts
– reaches a
wider audience
of potential new
customers
YouTube
advertising can
be very costeffective
and
is both targeted
and far-reaching
Email marketing
and newsletters
keep a brand
front of mind
for regular
customers
SMS and
WhatsApp
messages have
a far higher
open rate than
emails and feel
more personal
In its recent report The Biggest Business
Impacts of the Coronavirus, international
digital marketing research firm eMarketer
predicted “digital media consumption to
increase across social media, over-the-top
video and online gaming – similar to what
we’ve already seen in China.
“Social networks could be a major beneficiary,
as people turn to these platforms to connect
with friends and family who may be at a
distance or to access news content.”
It also stated that video streaming apps
like YouTube would likely see an increase
in usage. These trends present an
opportunity for retailers to advertise
at low cost on these platforms.
“Stay in the game, stay in contact,
keep the faith, and always be
doing something to stay in touch
with customers”
– Jimmy De Groot, jewelrystoretraining.com
The eMarketer report also noted that
“changes in online shopping habits may
be particularly prevalent among older
customers – the group most susceptible to
the coronavirus and most likely to avoid stores
because of it, but least likely to shop online.”
This shift could not only provide shortterm
sales, but permanently shift their
purchasing pattern to online shopping.
Meanwhile, the ARA has advised members
to invest in delivery services: “The retailers
that have an advantage will be those who
are set up to dispatch from local stores and
E XPERIENCED
PERSPECTIVE
Dealing
With Crisis
JIMMY DE GROOT
The morning of 9/11 [Sep 11,
2001], my team and I were
about to step on a plane to
go to a Hearts On Fire event
in Las Vegas. We were soon
told there would be no flights to
Vegas – or any flights at all.
In the ensuing weeks we had
meetings and discussions
about what we should do
about our Christmas plans,
our promotions, our inventory
coming in, our flyers, and
our business in general.
We decided to stay all in –
in fact, increase our efforts.
The result was the best
holiday season to date.
We didn’t know what was
going to happen in our
country or the world, but we
chose not to let fear govern
our lives and our business.
I completely understand your
trepidation and the trepidation
in many people’s minds about
the future, but I do know one
thing for sure.
If we start letting fear rule our
lives and our businesses, and
if we start pulling back on
all of our efforts, from
marketing to planning to
customer service, and just
the day-to-wonderful things
that happen in our stores, then
our actions will become selffulfilling
prophecies.
When we went through one of
the most uncertain periods in
our country’s history, we knew
we owed it to our customers
to continue doing what we do
best, and that’s being a crucial
part of our customers’ most
important moments.
12 | April 2020