Online Niches, Stats, & Steps every entrepreneur must know !!!
Wearing jewellery is no longer restricted to women alone, times have changed and there is increasing demand amongst men to buy jewellery both online and offline. Currently, jewellery and accessories make up to 29% of the global internet purchases, according to Statista.
In addition, according to the latest estimates, global online jewellery sales are going to reach a market value of $340 billion by 2023 and an incredible $645 billion by 2035. Such healthy growth figures are encouraging many wannabe entrepreneurs who seek to sell jewellery online as a valid business. But venturing into the business without adequate knowledge and planning is a recipe for disaster.
This blog is meant for readers who are convinced about the business potential of selling jewellery online but are on the lookout for more information and clarity. Here our attempt is to equip the potential entrepreneur with a guiding document, which answers the most pertinent questions related to the planning phase of launching a jewellery business online. This blog is divided into 3 broad categories providing insights into planning an online jewelry store, these are:
- Anticipating Demand: It is quite interesting to know that when it comes to jewellery there are many micro-niches within the jewellery business. There are gold, imitation, antiques, and many other kinds of jewelry. As an entrepreneur, one needs to decide on what is the best product, providing the best ROI. You could either stick with one kind of jewelry or carry an entire range of different sets of jewelry. Once you have done that you would be required to anticipate the demand for your product online. This can be easily done with tools offered by Google and Amazon.
Both Google and Amazon are formidable players in the online space and are hugely influential when it comes to the e-commerce business. The first tool is Google Trends, which can give you accurate data on popular keywords utilized by everyday users on Google Search. These keywords have a direct correlation to the demand for a product online. Moreover, you can even filter the data to observe demand for a specific region (i.e. country, state, city). The next tool is made for Amazon and is called Keyword Tool Dominator (KTB), and it is able to provide accurate data on demand for a product country wise. When put to use both these tools will equip you with insights about the kind of product that should be carried on the online store.
- Competitor Analysis: Many of the online businesses that shut shop immediately after their launch, in most cases are unable to foresee the competition in the market. They venture into the market without any knowledge of the kind of competition they need to comprehend. When it comes to online business, getting a grasp of the competition is quite easy. All you need is to type in the product you wish to sell and the brands that figure on the first page of the search results are your competition.
When it comes to competitor analysis, you can easily get information on the competition with available online tools. These can give you information on traffic, popular keywords, most visited product pages, and much more. The first is a freemium tool and is called Ubersuggest and it gives you access to well-performing keywords and most visited pages on the competitor’s website. The second tool is called SimilarWeb and it provides detailed information on sources of traffic and details on the paid keywords used by the competition. Besides these, there are paid tools like SEMrush that can provide access to exclusive information on the competition.
- Financial Feasibility: While launching an online business, one needs to be mindful of recurring expenses and one of the most fundamental recurring expenses in online business is digital marketing. Unless an e-commerce brand is able to assert its online visibility through digital marketing, the chances of the business succeeding are extremely remote. Hence a business owner must be prepared to invest substantially in digital marketing.
Even within marketing, there are two broad categories of market namely – the red ocean and the blue ocean. The former relates to a market with high competition where notable investment is required just for marketing. The latter refers to a market with less competition with high potential for growth but with the need to invest less in marketing. Before you gauge the financial feasibility of the business, you need to be certain of the kind of market you are venturing into.
Having understood the planning framework for an online business, the entrepreneur must now focus on creating a business plan that should include – potential revenue, projected sales (next 3 years), margins, operating cost, ROI, tax implications, gross & net profit and breakeven sales. When an entrepreneur is able to provide a business plan with all these parameters, he/ she is ready to venture into the market and take on the competition.
As an entrepreneur, you are not required to do this all alone but can partner with experienced management consulting firms like YRC that comes with jewelry consulting expertise and knowledge. They have in-house jewellery consultants who can help you with every facet of the online jewelry business and even create a business plan for jewelry business. Above all, YRC will help improve your chances of succeeding in the competitive online jewellery business.