Did you know that the holiday season accounts for $630 billion per year in retail sales? (1) During that time, fine jewelry sales totaled an estimated $4.9 billion and overall jewelry and watch sales an estimated $5.5 billion. (2) Now that consumer spending has been building, just how have retailers been seeing sales success? We did our research and found that the jewelers winning during the holiday season are focusing on three things:
Personalizing Customer Recommendations
For customers that can afford higher price point goods, personalization is key to winning business and loyalty. “In our research, we found that when a customer is shopping a store, the sales staff should be able to provide relevant customer suggestions,” said Erin O’Donnell, Director of Marketing for JA New York. “We found that in order to do this, your staff should be able to provide product information beyond the standard specifications of a piece.” Customers often buy pieces from staff when they can recommend items based on purpose, gift intent and need. “By promoting aspirational and innovative jewelry offerings across a wide range of price points, retailers can see very strong sales,” she also shared.
Make It Easy To Buy
Making products easy to purchase during the holiday season is also important. By September, retailers should be starting to merchandise their stores and their websites. In store, make sure your key zones come to life and offer interesting stories or themes brought to life by the goods found within them. Online, offer free shipping and returns in order to help facilitate online purchases. However you are planning to make holiday sales, make sure that your message is spread consistently across all your channels of customer communications. Email, social media and in-store promotions should all match the way that customers are being asked to shop. If a retailer can do that, they will stand out from the crowd during the holiday promo noise.
Do Not Discount Your Goods
While Black Friday and Cyber Monday may seem like a way to bring in sales revenue, fine jewelry is not usually an impulsive purchase (4). Jewelers who discount actually hurt themselves and their margins as consumers do not favorably perceive promotions based on cost in this category a good thing (5). Instead, focus on the steps above to make the most of this peak sales period.
Stand Out From The Crowd
While industry and economic trends say jewelers should still be cautious, the holiday season often proves to be a light in the sales cycle as consumer spending trends have not faltered in the last two years (3). As the U.S. economy has strengthened, those who can afford higher priced goods have been spending. By sticking to your principals and leveraging personalization as a key holiday sales tactics, retailers big and small can see fantastic holiday revenue.
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Information Sources
- Statista, 2015.
- Edhan Golan. Jewelry Retail Sales Are Improving. October 2015
- Jeff Green Partners. Luxury Sales Shine in Holiday Season. December 2012 – 2015.
- Jewelry Wise. Holiday Jewelry Shopping Tips, Engagement Blog.
- Rapaport Magazine, Jewelry Sales Sparked. December 2013.
- ASD Market Week. Holiday Sales Guide. June 2016.