Jeweller - June, Edition II 2020

Post-Pandemic Retail | FORECAST FEATURE
Most Popular
Products
Purchased
Online
Chart 2: Survey
of Australian
Consumers, Global
Online Consumer
Report, KPMG
International, 2017
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Books / Music
Electronics / Computers
Apparel (Women)
Household goods & Appliances
Accessories
Apparel (Men)
Food / Groceries
Toys / Games / Video games
Cosmetics / Skincare
Furniture / Home décor
Sporting Goods / Equipment
Shoes (Women)
Telecommunications / Phones
Shoes (Men)
Apparel (Children)
Bags / Leather goods
Perfume / Cologne
Pharmacy / Gealthcare
Wine
Shoes (Children)
Fine Jewellery / Watches
Baby Products
Eyewear
Pet Food & Supplies
Liquor
Beer
Artwork
marketing calendar template, as
planning ahead is important.
The first step in marketing is to
understand your customer profile, and to
identify the strengths of your business.
It is essential that you market to your
strengths, which may be an extensive
range, convenient location, the brands
you carry, your expertise, or the services
that you provide.
Due to the shift toward custom design
and consumer personalisation, we advise
stores to promote custom design as well
as repair services.
Jewellers need to use as many
marketing channels as possible, keeping
in mind that most mainstream media
has a reduced reach and is expensive.
While digital marketing is now the most
popular and cost-effective means of
marketing, it is essential to not simply
assume an online campaign will be
effective.
Rather, business owners must measure
results and continue to test different
marketing channels and methods.
Marketing starts with the store.
Visual merchandising and signage
are essential, alongside a factor that
can add as much as 20 per cent to a
jewellery store’s sales: price tickets on
all merchandise.
Next, every business needs a quality
website that is mobile-friendly.
It goes without saying that websites are
the modern Yellow Pages listing, with
87 per cent of consumers researching
online before shopping in a bricks-andmortar
store.
While overall online purchases are
increasing – and will continue to
do so – it is important to recognise that
the vast majority of jewellery purchases
take place in bricks-and-mortar stores.
Jewellery was the 21st most popular
online shopping category in a 2017
survey conducted by KPMG, and that
trend holds true today.
The lower proportion of total jewellery
sales conducted online is evidenced
when we look at Michael Hill
International; in the six months to
December 2019, online sales accounted
for $10 million, or 3 per cent of the
company’s total sales.
Therefore, the main purpose of jewellery
store websites, social media and digital
advertising is to attract customers into
stores.
Consumers want and appreciate a
seamless shopping experience both
offline and online.
Retailer’s priority checklist
Given the economic conditions that we
face, the important areas of focus for
retail jewellers now should be:
• Ensure that you have a quality
mobile-friendly website,
featuring a representation of
your merchandise range and the
services you provide
• A well-presented store that
ACTION NOW
Marketing Tips
Create an annual
marketing
calendar
Use a template
to plan your
marketing activities
ahead of time
Understand
your target
customer
needs, and media
habits of existing
and potential
customers
Focus on the
strengths of
your business
Promote your store
based on pointsof-difference,
such
as extensive range,
custom design, or
convenience
Use a variety
of marketing
channels
Reinforce your
message by using
online marketing
channels to drive
customers into
your store
reflects the image you are seeking to
portray, with visual merchandising
that attracts and appeals to your
target audience
• Several channels of digital media
marketing
• Training in effective selling skills and
product knowledge, ensuring that both
you and your staff are experts in all
product areas
• Effective stock management
strategies that maximise sales,
thereby improving your stock turn
rate and return on investment
• A financial structure – gross profit
percentage less labour, rent and other
expense percentages – that results
in a profit before tax of at least 10 per
cent of sales
These ‘retail science’ business strategies
that we are introducing to Nationwide
members through our Business
Management Course and webinars are
critical retail tools needed to survive and
prosper in the years ahead.
Sadly, some businesses won’t get
through the next 12 to 18 months;
however, those that implement the
strategies above will survive, and come
out a lot stronger and more prepared
for the future on the other side.
COLIN POCKLINGTON has more than 40
years of experience in strategic and business
planning in the retail jewellery industry. He
is co-founder of Australia and New Zealand’s
largest buying group, Nationwide Jewellers.
June 2020 | 35