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.
Not only did the jeweler have all the facts on the best value for money products, he was also the only outlet where you could make your purchase. Although there was an element of competition with other jewelry stores, most of it was centered round the layout of the store and the uniqueness of the goods on offer rather than on price only. The profit margins on the retail price could be as much as 75% but it was virtually impossible for the customer to negotiate any price reduction.
All this was before the advent of the Internet which changed the way the consumer shopped – not just for jewelry but for lots of other items as well. It did not take long for competition to increase. Because Internet businesses had lower costs they could afford to offer their products at a lower price. Not only that but the customer was now able to do thorough research before committing to buying anything without being subjected to any high pressure selling.
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 confronted by an enormous change to the way business was done. He would prefer to run his business as usual – buy highly profitable pieces of jewelry and display them to advantage in the store, greet the customer as they entered the shop and provide advice and support in their purchase.
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.
The customer now has more choice on where to buy his jewelry thanks to market competition brought about through the technological development of the Internet. Not only that, he is much more knowledgeable on the subject and more able to command the best deal because this new way of doing business has educated him.
Tags: costume jewelry, expensive jewelry, fashion, fashion jewelry, Jewelry, online buying, online jewelry, retail