It is that time of the year
Demand for jewellery is seasonal as far as India is concerned. The major demand comes by way of weddings and festivals. More than half the demand comes from the rural and semi rural area. Here the designs demanded are mostly traditional and may be smaller single purchases like bangles or a chain which has been purchased out of small savings. Pure gold jewellery dominates rural markets, though the purchase of diamond and other studded jewellery is on the increase.
Urban demand is less seasonal and is more evenly spread through the year. Says Sheetal Bhat, “In Chennai the demand is no longer seasonal, though the buying is heavier during the marriage season.” Urban demand is more westernised. The gift based buying is usually branded jewellery from malls. Even the in the marriage collection a lot of young urban brides prefer to have some lighter westernised designs which they can wear on a regular basis. Hence the trends are changing.
Even after factoring all the variables, most designers will tell you that there is no such thing as a single, homogenous Indian jewellery market. Geographic location and ethnic differences break it up into distinctly different markets with differing tastes.
Indians attach a considerable amount of emotional value to jewellery. For a woman a piece of jewellery is not just an ornament but also her security. Rarely is jewellery sold though it is often exchanged in for newer designs.
As mentioned before the Indian market is very varied from region to region. But there are some factors that help us create a structure for marketing of jewellery.
1. The most important aspect of jewellery sales is the traditionalism of it. Jewellery purchase is mostly a family decision with the budget decided by the male member of the family and the selection of the jewellery decided by the female. Ofcourse the definition of traditional varies from region to region.
2. The trends are changing slowly. Even in the more traditional markets we get women customers walking in alone to make a purchase decision. Also the average age of the customer has gone down from 35 to 28. This may not seem like a large change in terms of numbers but it is definitely a change as far as taste goes. Your products must adapt to the changing taste.
3. Jewellery is no longer considered a lifetime purchase. Lighter weight jewellery and trendy looks are in demand.
4. The jewellery marketing has to be aimed at the women. The purpose of the ornament is not that the piece is beautifully crafted or it has won awards but that it makes the wearer feel beautiful and special. This is the crux of marketing any jewellery – the women wearing it should feel beautiful when she wears it.
The 7P’s of marketing
In the times of tough competition and falling demand we must have a marketing strategy in place for taking advantage of the on coming high season. It pays to be prepared. Retail marketing is quite different from industrial marketing. One of the most popular and widely used marketing theories is one of the 7P of marketing. Marketing Gurus Bernard Booms and Mary Bitner built a model consisting of seven Ps In addition to product, price, promotion, and place, which consist of the old 4 P’s, they included people, physical evidence, and process. Let’s see the relevance of this theory in context of the Indian jewellery market.
Product
If your product does not meet the requirements of the customers then it will not sell. It is essential to have a variety to attract a customer. But yet you must have a feel of pulse of the market to avoid over stocking and blocking up your capital. To begin with, develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not its in the right business at this time. Ask critical questions such as, "Is your current product and service appropriate and suitable for the market and the customers of today? Or are the quality and designs what the customer is looking for?”
There are several nuances to the market for which keeping a ear to the ground and conducting a simple survey of inventory of your store can help you with better stocking. For example, unbranded jewellery still commands 92% of market share or earrings are the most popular jewellery item purchased. Understanding your product is essential to the success of your store.
Says Shehzad Zaveri of Minawala Jewellers, Mumbai and Dubai “Strategise the stocks in changing scenario. The trends are illusionary, a jeweller has to have and create his own identity in the market, and follow his instincts and his customers demands.”
Prices
The second P in the formula is price. Pricing is a strategic weapon. In India, where break-ups of gold, diamonds and labour are the norm, pricing should be viewed as a strategic tool. Says Sheetal Bhat, “Trust is the most important component of the success formula of a jeweller”. Transparent pricing can help you built up trust.
One might say that the price of gold is market determined and it is only the making charges which differ. True to some extend. But the customer is paying essentially for the value that he derives from the product. It is important to understand the psyche of the customer…is he looking for a simple piece of jewellery which has better resale value or is he looking for that unique designer piece which no one else has. If the customer perceives that he is getting the value from the jewellery he purchased then it is at the right price.
Promotions
Marketing and Sales form a part of promotions. They need to be updated constantly because your clients are ever changing. The new bride will not like the same approach you used on her mother years ago. So innovation is the key.
Whatever method of marketing and sales youre using today will, sooner or later, stop working. Sometimes it will stop working for reasons you know, and sometimes it will be for reasons you dont know. In either case, your methods of marketing and sales will eventually stop working, and youll have to develop new sales, marketing and advertising approaches, offerings, and strategies.
Also special promotions work well. Giving gifts with jewellery. An offer of discounts on future purchases. Discounts on making charges. Even innovative ideas like buy a whole jewellery set for Rs. 30,000/- only.
Promotions also be based on a new range of products or designs. Says Sheetal Bhat “Indo-western trend are fast catching on. We have introduced a range of day jewellery in white gold which is gaining popularity”
Place
The location of the store plays a deciding role in its success. However it is not necessary what works for one jewellery will work for you too. In the current location its self you can make several innovations which will pave the path of success.
If the store is in a busy market area then make sure you offer valet parking services. Not only does it add to the service you are offering our clients it also enhances the image of the store.
A rotation of the display is also essential to give the stock a fresh look and enhance sales.
Also make sure that the store does not have a crowded look. A customer will like to have some privacy is choosing her jewellery. Proper lighting and mirrors also enhance the store and give it a more spacious look.
You also need to understand the regional preferences of your customers. For instance the customer in the south prefers buying an entire set over smaller pieces of jewellery or urban customer buy branded jewellery more than rural ones
Positioning
The next P is positioning. You should develop the habit of thinking continually about how you are positioned in the hearts and minds of your customers. How do people think and talk about you? How do people think and talk about your store? What positioning do you have in your market, in terms of the specific words people use when they describe you and your offerings to others?
It is not possible to satisfy the needs of every customer that walks into your store.
Says Mr.Shehzad Zaveri, “. Holding on to your own and being confident in your offering to your customer is essential”
You must understand your strengths and choose to match it to the needs of your customer. You may wish to be a traditional jeweller servicing the family over generations. Or may wish to be one who offers innovative designs and be known as one who tailor-makes the designs according to the needs of your clients.
Wherever your strengths lie…choose your positioning with care and constantly improve on it.
The secret to success
The secret to a jewellers’ success seems to be trust along with great designs. Even a small thing like putting your logo or symbol is a great trust building exercise. All the Ps compliment this and help you make a great success story.
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