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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.
With the advent of the Internet a change took place in the market. This change not only affected the jewelry business but many other businesses and industries. Because of the nature of the Net, competition increased quickly and dramatically. More worrying for the jeweler was the fact that the customer could thoroughly research the products before making a purchase, making him less susceptible to any sort of sales pitch.
All of a sudden, customers were not quite so easy to control! Many of them now came into the jewelers store already informed about technical aspects such as carat weights, diamond colors and independent appraisals. They demanded shorter delivery times and lower prices and would compare these with other Mall and online stores to make sure they got the best deal.
The traditional jeweler was faced with an enormous change. His preferred way of doing business was as it had always been – greeting the customer as he or she came through the door, providing guidance and encouragement while steering them towards the highly profitable pieces of jewelry on display.
This new online breed of jewelers turned the traditional jewelry business on its head because they were much more customer focused. Not only were they happy to match the products they offered to the customer’s requirement but also to supply as much information as the customer needed to make a decision. They were willing to use this strategy to attract business in what after all was a new way of selling to the public. It was also much easier for them to compete on price because of their lower overheads.
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.