How Jewelry Buying Has Changed!
Walking into the jewelry store to make that special purchase for yourself or a loved one used to be quite daunting. In the midst of the array of fine and expensive jewelry pieces stood the expert jeweler with all the facts about the quality of the craftsmanship and the true value of the products on display. When sharing this information with you the customer they sometimes made you feel that without their expert knowledge and advice you could not possibly be expected to make the right choice.
The jeweler was in a very unique position - not only was he the one with all the important information on value for money pieces, he was the only retail outlet for the supply of jewelry. Yes there was competition from other jewelry retailers but this was mostly focused on the atmosphere within the store and the individuality of the pieces rather than on the price. When it came to trying to negotiate a price reduction the customer found it virtually unlikely, even though the profit margins for the jeweler could be more than 50% on the retail price.
But then a change in the market took place ” a change that has affected many industries and businesses and one that generates more changes almost each day. The Internet. Within a very short space of time, competition expanded dramatically. Internet businesses had lower costs, so they could afford to charge less for their products. Even more alarming for the jeweler, all of a sudden they enabled the customer to carry out some quiet and thorough research before committing to any purchase or before he was subjected to any sort of sales pitch.
Customers no longer felt at a disadvantage when visiting a jewelry store. Through careful research they knew about details such as carat weights, the purity of gold, diamond colors and independent appraisals. They were prepared to negotiate lower prices and shorter delivery times as they could now make comparisons of these with other Mall stores and on the Internet to ensure they got the best deal available.
The traditional jeweler was faced with an enormous change. His preferred way of doing business was as it had always been - greeting the customer as he or she came through the door, providing guidance and encouragement while steering them towards the highly profitable pieces of jewelry on display.
These online jewelers turned the traditional jewelry business on its head. Much more customer focused, the new online stores were prepared to offer customer the information he needed to make a decision as well as matching products to the customer’s needs. They used this approach to attract customers to this new way of doing business. Because of their lower overheads they were also able to compete on prices offering customers a good deal.
Market competition due to the development and advancement of the Internet has met the customers needs. The jewelry buyer is much more informed and so able to demand a better deal because of this way of doing business.
