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It’s estimated that by 2025, the global jewelry market will be worth just over £206 billion. As an entrepreneur looking to leverage that growth, you may be interested in establishing an online jewelry business. Maybe you have a penchant for opulence. Perhaps you want to realize your vision of the perfect collection. In any case, now is an ideal time to make your mark in the industry. Of course, creating and running your own jewelry store can be a daunting task. If you’re up for the challenge, keep the following 8 essentials in mind as you begin.
Know Your Market
The last thing you want is to spend time and money designing a product line, only to find out there aren’t any buyers. Therefore, it’s important to perform research and gather information that will help you identify a market opportunity. You can use resources such as Neilsen, NDP Group and MarketResearch.com to get existing reports on your sector. It can be costly to purchase market reports, though. Take a moment to consider the different types of companies you can start. Are you interested in fine jewelry, for example, or do you see a gap on the budget end for affordable accessories?
There are several ways to carry out your own product research as well. You can:
- Conduct a competitor analysis to determine how to differentiate your brand
- Send surveys or use forums to obtain answers and opinions
- Visit blogs and news publications for expert insights
- Use the Google Trends tool
Identify Your Audience
After compiling enough information and finding an opportunity, you can move on to defining your target audience. Whether you plan to sell handcrafted necklaces or rare metal rings, your offers won’t appeal to everyone. Think about who will most likely be attracted to the kind of products you’re making and where they stand in the economy.
Be sure to collect details such as demographics including age, gender, income and location. Also use psychographics like interests, lifestyle and shopping preferences. Then think about their pain points. What problems are you solving? Why is your solution better? You may need to narrow in on a specific, more targeted niche.
Create a Business Plan
It’s no surprise that a business plan is crucial. A well-written document that outlines your projected growth will ensure that you stay on track and maintain a clear idea of the next step. Your business plan can also serve as a reminder of the purpose and values that drive your company.
In addition, the document is a must-have for approaching investors and loan providers. People willing to invest in your business need assurance that you’ll be able to successfully make and sell jewelry. There are plenty of templates on the internet that you can use to draw up your business plan. It should comprise the following sections:
- Company description
- Executive summary
- Product information
- Funding sources
- Marketing strategy
Build Concepts
Here’s where the fun begins for creative jewelry makers. Now that you’ve settled on the kind of business you’re starting and who you’re selling to, bring your vision to life with some product concepts.
By making your jewelry more tangible, you’ll be able to think deeply about each piece and how it defines your brand. A jewelry product can lead to stronger relationships with customers, especially on the higher end. For example, companies such as Bvlgari focus on telling a story through collections inspired by history and heritage.
Depending on your current position and access to resources, it’s not always possible to manufacture full-scale concepts of your product. This is where an online 3D jewelry configurator comes in. With specialized software, such as the SaaS solution from Apviz, you can quickly render accurate models of each product. Their 3D jewelry configurator includes:
- Augmented reality (AR) visualization
- Large library of materials
- Realistic environments and lighting
- API and automation capabilities
When you’re ready to turn your models into physical prototypes, some knowledge on production methods and tools can go a long way. If it’s your first foray into jewelry making, websites like All Free Jewelry Making and Jewelers Academy feature courses with relevant content. You might want to also create samples for product images.
Partner Up
The next few steps involve finding an affordable and reliable company to manufacture your first collection. Perhaps your business specializes in handcrafted goods that you plan to make yourself or with the help of on-site employees. While this may be viable in the early stages, chances are that you’ll need to outsource the job.
To launch and scale quickly, identifying the right manufacturer is vital. As an online business, your aim might be to find a smaller partner capable of making custom pieces, or to purchase stock from a wholesaler. It’s important to consider shipping and fulfilment as well. Here are a couple of pointers for selecting good partners:
- Assess product quality and ensure that materials are genuine
- Request samples to check products before ordering
- Compare local and overseas partners
Another approach is to skip the design and production process in favor of the dropshipping business model. This entails setting up your online store and listing items that are supplied by a third-party. When a customer buys a product, the order will be handled by said supplier, giving you time to focus on marketing.
Grow Your Presence
In an industry that has existed for centuries and continues expanding, setting yourself apart from the competition is key. This begins with establishing a strong brand image. Not only can it differentiate your business, but it can also develop relationships with customers who believe in your mission, vision and what you offer.
The basics of an effective brand include an impactful name, a memorable logo, an attractive website and unique details such as a striking color palette. As always, the internet is your friend here. You can use the services on Shopify to create logos, slogans and videos, along with business and domain name suggestions.
If you’re struggling with branding assets or you’re unsure about your brand image, some freelance talent can be useful. From logo design to marketing content, you can find a range of services on websites such as DesignCrowd, Fiverr and Upwork.
Determine Pricing
With rings, bracelets and necklaces occupying every price point in the jewelry market, setting the right asking price is both a crucial and challenging step. Ask for too much and you might send customers running. Put the price too low and your products can appear less valuable.
Of course, you’ll need to consider expenses including labor, production and materials. Then there are overhead costs like marketing, customer support and running your website. It’s ultimately your decision as to how much you charge. A look into pricing strategies for e-commerce businesses can help you set the right price.
Start Marketing
From here, it’s mostly a matter of putting your business on the map and exposing it to potential customers. Needless to say, that digital marketing is the way to go. There are many ways to advertise online on a shoestring budget. For example, setting up social media profiles is completely free and email marketing is highly affordable.
Successfully starting your own online jewelry business is no simple matter. But without enough determination and a bit of creative thinking, it’s more than possible.
