As a manufacturer producing Adina Watches for the retail Australian market, we have been keeping up with the news and have seen that Australia is currently experiencing its worst retail slump since the start of the 90s. It seems the recent tax cuts haven’t had quite the effect the Josh Frydenberg was hoping for, and retail jewellery businesses are feeling the strain.
Why is this? There is of course a raft of reasons, that could be argued over deep into any dinner party over of a couple of bottles of red. From unemployment to wage growth, housing affordability to a wide spread brutal drought. Alongside this is a desire to embrace a more deliberate and conscious style of consumerism.
A Joyful Unique Experience
Could it be argued then that jewellery industry is perfectly positioned to make the most from consumer wishing to buy less, but potentially spend more?
When it comes to shopping in Victoria as an example, the value of clothing and footwear sales have grown 5.6% over the past year. While this may not necessarily mean Victorians are shopping more, it certainly means however they are still willing to spend. But instead of looking for the cheapest items, they are only opening their wallets and purses for the things that will create a ‘joyful unique’ experience.
Re-evaluate your customers
In short, Australians want to buy something that means something to them that will last. As stated in my opinion the jewellery industry is in the box seat, but how to explain this to the wider market? All too often, especially at this time of year it is SALE, SALE, SALE! But what may have worked in previous years may not and probably won’t work anymore. The market has changed, as the trends and figures have indicated.
To truly prosper in this evolving market, you need to re-evaluate your customers. Get inside their heads and hearts and understand what it really is they’re looking for. You ought already to know what kind of content resonates with them, and where you can find them online, but do you know what’s important to them at what time of year? The jewellery industry is all about sentimentally, get busy finding out what drives the sentiment in your store.
Social Media Conversations
If you’re not sure, don’t be afraid to ask. Social media platforms are perfect sounding boards for this, get busy starting conversations with your customers which also builds trust and authenticity.
Once you’ve got the information you need, it’s time to deliver on it, really deliver on it!
Personalisation is nothing new in jewellery and watches from an industry point of view but apparently it is, “the next big thing” to hit marketing. How wonderful is it to receive, the gift of a watches with some beautiful words engraved on the back?! This is a trend that isn’t going away any time soon. If anything, it’s only getting bigger and becoming a more important part of your digital and in-store marketing strategy.
If you really want efforts on line to make an impact on your overall sales, you need to start getting personal. This means segmenting your databases and tailoring your content – and potentially even your offers – to match what your customers and potential customers want to see. Ultimately, it all comes down to delighting your customers!
Your Facebook and Instagram posts are running nonstop and performing well. You’re delighting your customers left, right and centre with your personalised content and you are replying to any messages within the hour. Most people are satisfied with the experience – great job!
Bricks & Mortar Retailers
But then, rather than completing a sale online, one of your customers decide they would rather go in store so they don’t have to wait for your product in the post or actually try the item on and interact with real person!
Except your store is understaffed, or they’re not prepared for the influx of foot traffic as a result of your online marketing – and what should’ve been an easy win for your shop has become a devastating loss.
Lately bricks and mortar retailers are shooting themselves in the foot by cutting down on staff and focusing purely online. Instead, the two need to work together.
It’s clear that we respond positively to online personalisation. While the slow increase in volume of sales across the country is a concern, it’s not one that can’t be overcome by the savvy jewellery retailer. All it takes is a diversified approach to your in-store and online marketing.
This nothing new, essentially, when we shop, we want to be given the “special treatment”. We want to feel valued. By ensuring that your digital marketing matches the treatment you provide in your bricks and mortar store, you’re far more likely to see a growth in revenue.
Sale, Sale, Sale? Old School
As I said, SALE, SALE, SALE. We’re bombarded with it every year, and the proof is in the slump – the message just isn’t getting through anymore. Instead, retailers need to focus on providing an “experience” – why should your customers choose to shop with you over your competitors? Are the brands you are stocking authentic and have a “real” story behind them or are they just more re-hashed homogenous “same old, same old”? What are you doing that delights them or gives them a joyful unique experience?
Whether you’re a retailer operating in Victoria or elsewhere in Australia, there’s an opportunity to get ahead of the curve and fight off the retail slump. Don’t let the figures dissuade you – it’s a challenge that can be overcome, with the right digital marketing, the right in store experience and of course the right watch brand!