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    Jewellery | Luxury Goods

    Jewellery | Luxury Goods

    I) Challenges faced by the Jewellery Retail Industry

    a) Omnichannel

    Online sales of jewellery constitute a growing size of the market share, although there is variation across regions, types and brands of jewellery. While customers prefer to touch and feel the merchandise at brick and mortar stores, online sales will predominate the affordable branded jewellery. Jewellery retailers also need to use digital platforms for conveying data, shaping the identity of the brand and building customer relationships. With more customers carrying out online research, one to two-thirds say they turn to social media for advice and information. Offline landscapes are also growing. Monobrand stores are gaining ground while multi-brand boutiques are also coming up. In 1990, for example, there were 2 Swarovski boutiques, now there are over 900+. Pandora quadrupled the size of stores in a span of 4 years from 2009 to 2012. Focusing on omni-channel reach offers jewellery retailers a greater control over the customer connect and higher margin potentials. Multi brand boutique chains offer carefully curated assortment of brands and products, along with a unique shopping experience. To achieve sufficient margins, concepts are needed to operate on a global scale through the Omnichannel approach. To check the feasibility for selling online, an online jewellery business plan shall play a vital role.

    b) Changing Patterns of Consumption

    The jewellery industry is also noting hybrid consumption. Some parts of the world see more people trading what is considered to be a standard one-carat diamond engagement ring to three or even 4 carats. Premium brands are attracting people with huge disposable incomes, as jewellery retailers are engaging in price wars.

    The boundaries between fine jewellery and fashion jewellery are also blurring. Fine jewellery was once viewed as a gift purchase, but consumers are now increasingly pampering themselves. Fine jewellery is also available at bargain prices. In contrast, brands such as Lanvin sell fashion jewellery for 1000s of Euros. So, segments are set to be defined by brand positioning and price points. New product lines require SOPs for jewellery business. In fact, SOP for the jewellery manufacturing industry is a big requirement these days, for this reason. Jewellery brands are also communicating their messages through in-store experiences, customer service and advertising.

    c) New Fashion Trends

    Fast fashion is especially important for the fashion jewellery market. H&M, as part of its guest designer collaborations, introducing designer jewellery and accessories collections. In a world of rapidly-evolving fashion trends, flexible companies with adaptive business systems reap rewards. Innovative jewellery players emulate fast fashion, reacting to trends and adjusting their product-development cycle times accordingly. To facilitate closer collaboration with partners along the entire value chain, from suppliers to designers and logistics providers, brands are looking for a retail jewellery consultants who understand the business plan for jewellery business.

    d) Need for Well-Defined Processes

    Jewellery businesses have been associated with traditional family-driven operations. So, for brands that value growth, the whole idea is they require a jewellery consultant to “expand our business.” Lack of SOP’s (Standard Operating Procedures) are the biggest challenge in jewellery retail management. For processes that are not well-defined, luxury retail jewelry brand expansion becomes hard to achieve.

    e) Personnel Selection, Recruitment & Training

    Another challenge every jewellery retail brand faces is personnel training and recruitment. Staff are a valuable asset for any organization, and must be trained so skillets are honed, and they are oriented in an effective way.

    f) Imparting Product Knowledge

    Imparting product knowledge and domain expertise to staff is essential. Domestic brands are getting outpaced by international brands. Building or expanding the global presence has become mission-critical. Retail business consulting or looking for jewelry consulting for retail stores & ecommerce for jewelry business can be a solution to the challenge of expansion. Top brands capture a small percentage of local markets still. For domestic players, there is an undeniable advantage in hiring a skilled retail consultant. Given the amount of competition, brands urgently need luxury retail consulting.

    g) Acquiring Skilled, Quality Workers

    Acquiring skilled and quality workers with an eye for detailing is important. The parameters must be in place to assess the performance and upgrade skills accordingly.

    h) Developing Accurate, Effective Systems

    Developing accurate and effective systems for all departments, right from sale to purchase, accounts, marketing etc are required for a 360 degree view for expansion. YRC experts have implemented Business Process Management (BPM) solutions which helps to gain better control on your daily operation and jewelry inventory management. Implementing BPM for shaping and building customer relationships has become a basic necessity, and achieving process automation is not an overnight process. To get to the point where you can expand your offline & online retail jewelry store, or grow your business in international markets, you need a jewelry consultant you can rely on.

    II) How YRC Can Help?

    YRC Retail Consulting helps in developing SOP’s for the complete organization, right from business plan for jewelry, front to the back office operations, offering better control over jewelry inventory management, sales and operations. If you are looking for jewelry consulting services for retail store and jewelry ecommerce that can help your business to thrive, trust YRC with omnichannel solutions for offline & online jewelry store to expand & sustain business growth momentum.

    III) About Jewellery Retail Industry

    Investment in jewellery and gold is considered the safest and best option globally, especially in India, Sri Lanka, Nepal and many other Asian countries. The retail jewellery and gems industries are steadily expanding as more people are becoming enraptured by the solid returns on investment jewellery retail products represent. During festivals and the wedding season, jewellers are thriving in across the world. Banking on goodwill and creating a legacy culture sets the jewellery retail business apart from others. Annual global sales of EUR 148 billion are expected to grow at 5 to 6 percent each year, totalling EUR 250 billion by 2021, according to McKinsey. The jewellery industry is set to outshine every other economic sector. The ten biggest jewellery groups capture a mere 12% of the international market and only two of these, Cartier and Tiffany & Co, are ranking the top 100 global brands. National or regional jewellery brands are set to join top international brands by 2021. Industry experts project that the 10 largest jewellery houses will double market share by 2021. Average deal value in the jewellery industry has also been rising. The focus is on branded jewellery which accounts for a king’s share of the market. McKinsey estimates branded segments will constitute 30-40 percent of the market in 2021. Whether it is new money consumers, emerging market consumers or young consumers turning to brands for self-expression and realization, branded jewellery retailers are making the most of the opportunity. Jewellery retailers need to strengthen and differentiate brands through distinctive and unique designs.

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    We work only for Visionaries.

    PROCESS AUTOMATION

    The idea of having Ecommerce Consultants on-board from the beginning itself points towards reducing the involvement of the promoters in daily operations. Ecommerce Businesses willing to be a brand reaping profits & sustaining the competition must ensure that most of their processes should be automated. The more the manual intervention, the more would be the errors.

    In Ecommerce business, you get only 1 chance to impress the customer & if you mess up there, you lose the customer for long.

    Process automation in respect to all the activities pertaining to customers from order receiving to order fulfilment is a must for a seamless experience for the customers.

    Task Management is another grey area where most deadlines fail as 90% of the tasks are assigned manually & are forgotten, unheard, misunderstood or mistaken.

    YRC Team of Ecommerce Management Consultants helps to make maximum of the processes system-driven to ensure minimalistic manual intervention.

    VIDEOGRAPHY & PHOTOGRAPHY

    No matter how good your product is, the customer would know only if it looks good.

    Photography includes the following steps:

    • Cataloguing your products
    • Cataloguing your images
    • Backup your images (A few cloud storage solutions include Dropbox, Google Drive, Bitcasa, Apple’s Cloud Storage etc.)
    • Choose the right camera & lens (You may also outsource the photography to a third party agency)

    DIGITAL MARKETING

    Digital Marketing includes SEO & SMM. SEO i.e. Search Engine Optimization includes activities like back-linking, meta tags, blog-writing etc. to ensure your website ranks on the 1st page on Google Search.

    Next comes SMM i.e. “Social Media Marketing” which as the name suggests including promoting your products on all the social media sites, email marketing, influencer marketing & several other BTL activities.

    These activities are going to be recurring & would decide the traffic on the website, the conversions, whether the right target market is tapped, the likes, the views, the orders, the reviews & much more. YRCs Ecommerce Consultants create a budget for digital marketing right from pre-launch to launch & for each month thereafter.

    Building digital marketing strategies in coordination with the agency, selecting them to signing them off would be the role of YRC.

    This ensures seamless coordination, detailed interactions & desired execution as it is always advisable to work with a single agency than multiple of them.

    IT INTEGRATION

    Selection of the right software for smooth functioning of back-end operations right from production to webstore display would be suggested and integrated by YRC Team.

    YRC’s Team defines SOPs of Product Movement, maps it with the locations & people. They then create a blueprint of all the features required in the software & help in shortlisting & selection.

    IT Integration involves connecting your offline inventories with real-time online webstore so when a sale occurs, inventories get deducted real time across offline as well as online platforms.

    This helps in accurate inventory management, maintaining the MOQs, re-order levels & achieving the optimum inventory levels.

    Some popular software include unicommerce, viniculum for your front-end website management & Genisys for your entire back-end Purchase, Production, Accounting, Invoicing etc. management.

    WAREHOUSE & LOGISTICS PLANNING

    • How many cities or countries you wish to sell in?
    • Where should your Warehouse be located?
    • Should you have one warehouse in each country or city?
    • Should you be having your own delivery team in your base city?
    • Would the 3rd party vendors be reliable? What happens when they lose or misplace your product during delivery?
    • How should I manage the logistics if my goods are coming from different countries?
    • How should the goods be stored and barcoded?
    • How much space do I require for warehouse?
    • I am sure several such questions must be haunting you while you think of starting your own fashion ecommerce brand.

     

    At YRC, our warehousing and logistics experts can help you devise a strategy for all of the above mentioned queries and much more.

    We design the layout of the Warehouse considering the inward, goods processing, software entry, barcoding, outward, goods return, scrap storage, goods stacking & much more.

    Logistics route plan is devised considering the manufacturer to your warehouse and from there to last mile delivery locations.

    UI & UX DESIGNING

    This Step involves 03 distinct parts:

    Part 1: Choosing the right Platform:

    From several platforms available in the market right from Shopify to magento, woocommerce, prestoshop, wordpress etc. you must choose the one that fits best for your business

    Part 2: UX Designing:

    “UX” denotes User Experience, which if put in simple language is building the functional requirements of the website.

    UX Designing includes designing the features required in the website, customer journey map, website features, the browsing features, navigation features, ecommerce order management process flow, checkout cart features, catalogue management, ecommerce payment system, cross selling features & much more.

    “As per statistics, 68% of the customers abandon the carts before payment”

    An interesting UX ensures the customer sticks on to the website for a longer time.

    Part 3: UI Designing:

    UI stands for User Interface, which means designing the look and feel of the website. UI includes using the right colours, elements and the entire aesthetics of the website.

    A good User Interface ensures the user completes the task that he has come for. It navigates the user through the journey of the brand in the simplest but most effective way.

    The UX designer maps out the bare bones of the user journey; the UI designer then fills it in with visual and interactive elements.

    If User experience is the bare bone, user interface wraps it up with an attractive cape.

    At YRC, our team if experts can help you develop the entire User Journey to ensure it is engaging!

    SAMPLING & PRODUCTION

    This step follows the “Designing” Phase, whether you have an in-house design team, freelance designers or an outsourced design company. It is one of the most exciting phases, as here you see your designs turning into products & your ideas turning into reality.

    In most start-up cases, production is outsourced i.e. brands tie-up with the established manufacturers/ job-workers to get their products manufactured.

    Sampling involves multiple 04 Stages, Fit-Sample, Prototype Sample, Pre-Production Sample & the Production Sample.

    Prototype Sample is the first sample provided to the buyer. It can be in any fabric/ colour. This sample is just to understand whether the product design looks equally great in reality.

    Fit Sample, as the name suggests is prepared to check the fit of the garment i.e. the various sizes, length, width etc.

    Pre-production is made by the actual production line. Here the stitching quality and other aspects related to manufacturing are checked. This is the last stage where rejection can be accepted.

    Production Sample is made before the production which is the replica of what is going to be finally produced.

    Once you are through with all this, you are good to go ahead & get your goods manufactured.

    PRODUCT DESIGNING / SOURCING

    Product Designing or Sourcing is the heart of the Ecommerce Fashion Brand.

    Product Designing / Sourcing can be done in several ways, as follows:

    • In-house Design Team
    • Freelance Designers
    • Outsourced Design Team
    • Ready Product Sourcing (From Manufacturer or Wholesaler)

    At YRC, we evaluate your business strategy & business model to arrive at the decision, which of the above ways would be best-fit for your business. In certain cases, product sourcing may be a combination of the above.

    These are the people who are going to build your brand! Whether they are the designers or merchandiser, your brand look is going to be in their hands.

    If you are designing each garment from the scratch, the sourcing would play crucial role in developing design identity of your brand.

    Sourcing includes fabric, trims, lining & all the raw material required to build the garment.

    BRANDING

    Branding is the “Look of the Brand”, right from logo to tagline, the colours used, the brand story, the brand communications on social media, the packaging & all the other aspects which speak directly or indirectly to the customers. Branding constitutes the look & feel of the brand & hence must be thoughtfully planned to match with the product that we are selling.

    Branding must appeal to our target audience. Example : A golden colour logo depicting finesse, art, richness, premium, however beautiful it may be individually cannot go with a brand selling affordable kids wear products. So, your logo must be in-line with your brand positioning, whether you are an expensive brand or a luxury brand or a value for money brand, it must be depicted from your “Branding”.

    It is an integral part to attract the target audience.

    ORGANOGRAMS & SOP’s

    Organogram is the “HR Blueprint” of the business which is created at the onset, to map out the team required across each function at various stages of the business. At the launch, only key people need to be got on board to ensure the project gets started & at this stage, all of them need to multi-task. Similarly, certain financial as well as operational goals are set for addition of the further team. Example, for the operations team, we hire 1 operations manager during the pre-launch phase & we add 1 more only when the business kicks-off & we reach a volume of selling more than 1000 pcs/ month or a turnover of more than 0.1 million USD.

    SOPs are Standard Operating Procedures, a bible to run the entire organization right from Sales, Purchase, HR, Order receiving to Order fulfilment, Inventory Management, Accounts, Warehouse, Logistics, Supply Chain, Production & all the other relevant functions for the business. Business must be organized from its first day of operations; only then the tasks can be delegated.

    At YRC, we design the organization structure, the processes, and approximate time taken to execute each process, job profile of every member within the organization, their KRAs, KPIs & the Reporting Structure.

    CRITICAL PATHWAY

    Critical Pathway Analysis (CPA), is a project management technique which cannot be overlooked while launching an ecommerce fashion brand. Brand launch process is cumbersome with multiple inter-dependent & time-bound tasks involved, which need to be tracked to ensure the project remains on track.

    CPA outlines key tasks across the project, their turnaround time (TAT) & the dependencies of tasks upon each other. It identifies the sequence of tasks, their interdependent steps from inception to completion, their criticalities, and their dates of onset, target dates of completion along with the key responsible person for the respective activities. Critical Pathway helps in understanding the unimportant & not urgent tasks which may jeopardize the execution of the project because of an unexpected snag! It also maps out the potential bottlenecks which might be posed because of the dependencies of tasks upon each other & cases where the next task cannot be commenced before the completion of the previous one.

    CPA detects the minimum & the maximum time involvement of a particular individual or team to execute the task, thereby arriving at the overall deadlines associated with the project.

    At Your Retail Coach, we design the Critical Pathway & review it periodically to ensure the project is on track & the progress is measurable.

    BUSINESS STRATEGY & BUSINESS PLAN

    Business Strategy includes the vision, mission, goals, business model, business plan & strategy for all the functions within the organization.

    Business Strategy is a well-defined plan that outlines who, what, where, why, how & when for the company; for example, who would be the target market, how to attract the target audience, when to launch new products, where to operate from, how to handle competitors, what would be the USP, what would be long term goal of the organization & several other answers to the 5Ws of Strategy.

    Business Strategy aligns the organization towards a common goal. Business SWOT helps company to identify & overcome their weaknesses & focus to sharpen the strengths. Business strategy forecasts future risks and helps business in building skillsets to overcome the potential threats.

    YRC’s Business Plan focuses on creating a “Blueprint” of the business, thereby deriving the feasibility of the concept & gauge whether the opportunity is lucrative to invest time, energy & effort. Business Plan creates cash flow understanding i.e. building inflow & outflow cash projections from Week zero to week 60 i.e. 05 year projection. Business Plan calculates the capital investment, operating costs, one-time costs, recurring costs & all the other numbers relevant to obtain the breakeven sales, return on investment, return on capital, internal rate of return & several other ratios. Business Plan is also one of the important requirements if you are targeting the “Investor Route”. Fund raising becomes extremely transparent & channelized. With business plan panned out clearly, the business will know until what point must it be stretched & where to stop, which reduces the probability of unplanned investments.

    MARKET RESEARCH

    Starting the concept of Ecommerce Fashion brand with Market Research ensures we get detailed understanding of the industry & this research report also acts as a social confirmation for your concept. Market Research helps in understanding the target locations, their population, potential online buyers for your product, competitors for each category, and top selling products of the competitors, competitors’ price range, offers & their responses & much more. Market Research helps in thorough understanding of your brand position as compared to our competitors. It helps in identifying gaps in the market, in your category along with the scope of the said product in the desired market. This will help in validation of your concept & prevents you from making the same mistakes as your fellow brands, eventually saving your time, energy & efforts. This phase is also a make or a break phase, as the market research study may at-times come up with some eye-popping numbers & statistics which might compel you to re-think on your product or category that you are planning to sell or alter your entire concept itself!! Market Research Reports analyse the competitors’ webstore for their traffic, conversion & sales. This is extremely valuable information to derive our inventory budgets & projections, which takes us to our next phase.