Jewelry retail business is one of the most profitable business in luxury industry. Do you love the beauty of jewelry, craftsmanship and gemstones, and the emotional value they impart? Have you decided to make your passion a reality and open a jewelry store to share your expertise and love of fine jewelry with your customers? Good news, to help you along the way, we’ve covered the main steps of opening a jewelry store in this article.
Conduct market research for jewelry stores
The first step in opening a jewelry store is conducting market research. The purpose of market research is to verify whether there is a business opportunity in the planned establishment area.
- Analysis of key market trends to identify the most promising product categories, Meet with your future customers to understand their product and price expectations and buying behavior. For example: where do they buy jewelry, for themselves or as a gift, how to seek or expect advice from a jeweler, etc.
- Estimate local-level demand levels based on demographic characteristics, age pyramids, male/female distribution, categories, family composition, etc.
- Research the offers that already exist in the established field: the number of established jewelers, the types of products offered, price levels, etc.
- Analysis of indirect competition: e-commerce sites, supermarkets, etc.
- In the face of pressure from online stores, independent jewelers threatened to attract and retain customers by expanding their business and offering ancillary services, such as cleaning or repairing jewelry and watches. They are still increasingly forced to join groups that give them better visibility by belonging to recognized brands.
- Market topology: Costume jewelry stores that provide non-precious jewelry but have no maintenance activities, Hybrid jewelry stores located in commercial districts and shopping centers, offering jewelry from low-end to high-end with watch components, High-end or luxury jewelry stores that offer precious jewelry and jewelry. These shops are in the city center.
Open a new jewelry store or franchise
Once you have conducted your jewelry market research, you will have to think about your concept and position yourself in one of the categories mentioned above: Manufactured Jewelry, Hybrid Jewelry or High-End Jewelry. Even if you have decided on a position, you must also consider opening an independent jewelry store or a franchise jewelry store. Of course, you can also take over an existing jewelry store.
If you want to open a mixed jewelry store in an area you already have, it may be easier to choose a franchised, one that will ensure brand awareness. You won’t have to search and research your suppliers. It will save you a lot of time and effort.
You can also choose to open a jewelry kiosk in a shopping mall or business center. Use a beautiful jewelry display showcase to display your perfect jewelry, You will have the best profit.
Find a Location
Location is one of the main elements in realizing your jewelry business plan. The place is a significant impact on your sales, so it’s not a decision to be taken lightly. The choice of the final location is highly dependent on your concept and the product you are selling. High-end jewelry stores have many affordable items that can find their place on shopping streets, city centers, or even malls.
On the other hand, if you decide to open a more “luxury” boutique selling relatively expensive jewelry, jewels, and fine jewelry, it is better to choose a central location or a less busy but more populated area.
Likewise, with a traditional jewelry store, you don’t need to set up the same display hall as a jewelry store. Customers will expect to enjoy service in a dedicated room, where they can view jewelry in a calm and comfortable atmosphere. However, the surface of your home is bound to affect the price of rent or store purchases.
Staff and equipment
After conducting market research, defining your concept, finding your location, and choosing the legal form of the business, the next steps in creating a jewelry store include listing and quantifying: the human and physical needs needed to run the business.
- Equipment needed to open a jewelry store
A jewelry store to sell jewelry and help customers shop. In addition to main jewelry display showcases, service counters, computer stations, and other payment terminals, one needs to invest in neat furniture and decorations to make the place enjoyable. But jewelry stores are also stores with a lot of safety restrictions. So, remember to install an alarm system and cameras to keep safe.
- Jewelry store employee
When developing budget estimates, you also need to consider staffing needs. You’ll be careful to hire salespeople and client advisors who are as passionate about jewelry as you are. If your goal is the high-end or luxury industry, consider hiring someone who can speak different languages fluently. If you provide repair services in addition to sales, you will also need personnel with the necessary qualifications.
- Additional services
In addition to your sales force, don’t forget to consider the tasks and ancillary services that is freelancer or company performs in your projected budget. Jewelry insurance is even more expensive because your items are of high value and will help you recover from unnecessary losses. To best assess the amount of these fees, don’t hesitate to ask several professionals for a quote so your business can run smoothly.
Marketing plan for jewelry store
A marketing plan is a step in creating a jewelry store after you do the market research. Goal: Acquire and Retain Customers! What you do differently to make yourself known will depend on your concept and positioning. If we envision the street-level marketing operations (such as leaflet distribution) of clothing jewelry store openings well, then for traditional jewelry and watch stores, buying advertising space can increase brand value and attract target customers.
- Build a corporate website and syndicated community
The company website has become essential no matter what type of jewelry store you want to open. Even if you don’t offer online sales, it’s necessary to have a showcase website that showcases your products, expertise, and customer opinions. You can also consider being present on social networks to create and unite communities and promote your store and holiday promotions. Don’t forget to be referenced on Google Maps on the Internet or your city’s portal.
- Develop a business plan for the jewelry store
Once the marketing plan is complete, you can move on to developing your jewelry business plan, which will summarize all the information you gathered in the previous steps. A business plan is nothing but a document detailing your project reasonably and quantitatively. This document is essential for presenting your business project to banks or potential investors. Therefore, he must explain and especially persuade! It will also allow you, the entrepreneur, to ensure that your project to create a jewelry store is financially viable.
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