The JA Report: News, Tips & Trends from Jewelers of America

Seize the Opportunities within a Downturn

The dust hasn’t settled yet on Holiday 2008, but whatever the specific results, the current economic climate has likely forced you to take a closer look at your business. The hard truth is that not every retail business can make it to the other side of a downturn, but those that see the opportunity through the clouds—and capitalize on it—can emerge stronger.

Understand the Ups and Downs of Economic Cycles

For many retailers, the end of the holiday season marks the end of a tough year. With analysts expecting the current economic woes to continue, business will remain volatile in 2009. As we’ve done from the beginning, Jewelers of America will continue to offer guidance and perspective.

One critical point to keep in mind is the cyclical nature of the economy and the business. Jewelers of America’s Director of Education David Peters offers the following insights:

• Since 1948, there have been nine recessions averaging 11 months each.

Tips In Action: Retailers Who Thrive

Keep The Holiday Spirit Alive With The Right Attitude
John Green, owner Lux Bond & Green, West Hartford, CT, show how

Connecting with customers and guiding them through their most important milestones is a way of life for Jewelers of America Chairman John Green, owner of Lux Bond & Green, West Hartford, CT. The retailer’s family tradition dates back to the store’s founding in 1898, and Green (a member of the family’s fourth generation in the business) has served as President and CEO since 1992. 

More than a century later, the company -- with eight locations -- still operates on its founding principles of caring for the well being of their staff (numbering over 150) and communities. Green says that attitude is critical in these challenging economic times -- when Christmas and Hanukkah provide motivation for people to purchase -- but maintaining that attitude may be more difficult than usual.

He shares his advice on guiding the business through the season to have positive returns into the New Year:

Plan for the Future

Despite a flurry of negative news, especially in fourth quarter, don’t forget that what you do -- offering treasured, memorable and lasting gifts for individuals to give their loved ones—is relevant in both good and bad times. Looking ahead to 2009, industry analyst Ken Gassman, who contributes to IDEX Magazine, says retailers should plan for a “down” but not “dramatically down” year.

As you look to the New Year, keep in mind these industry stats from Gassman:

• It’s not the end of the world. Gassman reminds us that we’ve had worse economic challenges. He also reminds us that jewelry is no fad. People have been wearing it for 50,000 years or more.

Tips In Action: Retailers Who Thrive

Use Good Merchandising
Fine jewelry store Tanishq, Paramus, NJ, shows how

 Tanishq is a wonderland situated in an unlikely setting: a mall. The Paramus, NJ-based fine jewelry store feels more like the kind of freestanding retailer you’d find in a wealthy neighborhood.  But regardless of location, “they” get it. 

The founders and owners, originally from India, are masters of merchandising.  Because they are not native Americans, they had no preconceived notion of what a jewelry store should look like in the United States.  Therefore, they’ve stepped outside the box and created an experience that is unlike most U.S. jewelry stores . . . in a good way.   

 

Focus On The Positive

It’s time for that deep breath before the final holiday plunge. Remind yourself that this is what you’re in business for -- to make people’s lives just a little bit brighter, even during tough times. You, your staff and your store are ready. Don’t undermine all your efforts this season by letting adversity get the better of you.

Jewelers of America Director of Education David Peters offers these tips to stay positive and focused on what is important:

• Garbage in–garbage out. Likewise, good stuff in – good stuff out: Read positive books and articles, talk to positive people. Give yourself the right fuel to prepare for emotional, mental and physical challenges of a tough market.

Be A Holiday Haven For Last-Minute Shoppers

While it’s probably too late to plan an official event for last-minute shoppers, that doesn’t mean you can’t make your store a welcoming respite -- offering great ideas, a fun atmosphere and understanding -- to those hectic latecomers.

Tips on how to serve last-minute shoppers:

• Make It Personal: Ask questions of and listen closely to your customers. Find out what the customer needs, so you can provide it. Don’t forget to ask who else is on their list -- helping them get all of their last-minute gifts purchased in your store benefits you and them.

Good Credit Connections Can Encourage Repeat Business

Consumer financing doesn’t just help close sales with a new customers, it helps you build relationships and repeat business. In an editorial for InStore Magazine, Regina Leadem, Vice President of Sales for GE Money Luxury, writes that solving the “affordability conflict” for clients is just the beginning of the relationship building process that can start with credit.

She says it also lets you:

Make Your Diamond Sales Flawless

Everybody makes mistakes -- even you and your sales staff. But with a little wisdom (and advice from others), you can avoid making the kind of missteps that lead to disappointment, versus sales. In JCK’s “10 Most Common Mistakes Retailers Make in Selling Diamonds,” experts share their top selling faux pas:

• Not establishing your store “brand” first: “The first thing you need to do with any customer is to ‘sell’ them your integrity, knowledge, experience, willingness to serve them, and anything else you bring to the counter.” Terry Chandler, president and CEO of Diamond Council of America

Close Add-On Sales

Retail experts insist that the biggest missed opportunity -- especially during the holiday season when you may just focus on getting the sale -- is the add-on sale. In good times, these provide a nice boost to your regular profits. In a challenging economy, like the one we’re dealing with now, they’re essential.

Some simple ideas for thriving with add-ons:

• Ask For Them: During JCK magazine's webinar, “Surviving Holiday 2008,” Brad Huisken, president of IAS Training, noted that it's common for jewelers to be so happy to close the sale that they sprint off to the register. He suggests taking a moment to inquire: “Who else is on your holiday gift giving list?”

Handle The Holiday Hassles

Tis’ the season for…headaches? The holiday season can be filled with plenty of stress to go along with the cheer. A dilemma every retailer is hoping for in the waning weeks of Holiday ’08: Too many customers at once. We know you’re hoping for this, but the downside is that too many people for your staff to handle can mean missed opportunities.

Some ideas from the November issue of InStore Magazine:

Know Your Secret Weapon: Optimism

In the last weeks of the holiday shopping season, we encourage you to  keep in mind the attitude --positive or negative -- that you’re conveying to your staff and clients. David Peters, Director of Education for Jewelers of America, notes that how one feels on the inside generally manifests itself on the outside. Feelings shape reality.

Peters says a recent study found that optimistic sales people sold on average 37% more than their neutral or negative counterparts. That’s good news, but how can you remain upbeat in tough times?

Peters suggests the following:

• View success in the long term and failure in the short term.
• Define success based on the quality of your habits and consistency of your behavior.
• Filter all negative input.
• Stay focused on your goals; concentrate your efforts on things you can control.
• Harness the emotional energy created by tough times to fuel your commitment to excellence and performance.

 

Tips In Action: Retailers Who Thrive

Keep Your Best Customers Close
Coleman Clark, president, B.C. Clark Jewelers, Oklahoma City, OK, shows how

This holiday season, B.C. Clark Jewelers is focusing on its top customers. Coleman Clark, president and great grandson of founder B.C. Clark, says that while local business has held up, the retailer can't afford to ignore the current economic challenges.

The Oklahoma City-based store, founded in 1892, has relied on personalized customer service and good product to get it through the good and bad times. The three-store independent is Oklahoma's oldest jewelry store and the oldest retail store in the state under the same name and ownership.

This season the store is thriving by nurturing relationships and building traffic in the following ways:

Get Spiffy

When it comes to incentivizing sales with holiday spiffs, it’s important that you know how to get the most from your sales staff. Are your associates motivated by individual rewards, group goals or a combination of the two?

In “Selling: Are your staffers sharers or sharks?”, National Jeweler magazine’s Michelle Graff explores these two approaches. While some store owners told Graff that product-related cash bonuses help move items, others say individual rewards can undermine teamwork.

Regardless of your approach, the article offers ways you can thrive with holiday spiffs:

Think Diamond Value

The Diamond Promotion Service (DPS) has doubled its marketing this holiday season and smart retailers will hitch their wagons to the De Beers train. As we wrote in “Align Your Message With National Promotions,”  you can capitalize on the dollars and resources De Beers is putting into its campaign.

While there can be no doubt that the diamond and jewelry industry is facing tough times with the global economic crisis, the credit crunch and shaky consumer confidence, De Beers is pushing against the negative tide with its “Enduring Value” campaign.

DPS offers the following insight to thrive when selling diamonds this holiday season:

Take Your Business Mobile

Is your website mobile-friendly? “All signs suggest that online browsing will be done increasingly by mobile phone,” writes the Wall Street Journal online’s Kelly Spors in “Serving Your Customers With Mobile Marketing,” In fact, she notes that a report from Nielsen Mobile shows 15.6% of U.S. subscribers actively use their mobile devices at least once a month and the number is rising quickly.

Tips to help you “mobilize” your site:

Make Sure Your Store is Visible

During challenging times, consumers put more thought into what they buy. Suze Bragg writes on “Retail Online”  that this is the best time to market to consumers: “If you’re not on their radar screen now, why would you be on it after they’ve settled on a product or a store?” Now is the time to spend wisely and earn customer loyalty.