Do you like jewelry, craftsmanship, and the beauty of stones that inspired you as much as the sentimental value often attached to them? Have you decided to make your passion a reality and open a jewelry store to share your know-how and your love of beautiful pieces with your customers? Do you want to start your own jewelry kiosk inside shopping malls?
Good news, to help you in this process, we review the main steps to start your jewelry retail business in this article.
The first step in opening a jewelry store is to do market research.
The objective of the market study is to allow you to validate the existence of a commercial opportunity in the envisaged area of the establishment.
To do this, you will need to:
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Jewelry always seduces. In 2015, the sector recorded a 3% increase in sales compared to 2014.
According to the magazine Analysis, this development is driven by the good health of watchmaking and the significant increase in silver jewelry sales (+ 5%).
With precious stones (diamonds, rubies, sapphires, emeralds), the high-end gold and platinum jewelry are in sharp decline even though they still represent 51.6% of the watchmaking market share.
This decline is explained on the one hand by the sluggish economic situation, which will push consumers to think twice before making a relatively large pleasure expenditure. On the other hand, the increase in the prices of precious metals adds to the bill.
The ring is still the best-selling piece of jewelry. The last few years have been marked by the success of personalized jewelry with its "charms," often fancy and it is sometimes more precious.
The Jewelry retail business is divided into three types of points of sale:
Facing pressure from stores organized online, independent jewelers are increasingly threatened. They must attract and retain customers by offering additional services, such as cleaning or repairing jewelry and watches.
All the same, they are increasingly forced to join groups that offer them better visibility through belonging to a recognized brand.
Strong competitive pressure characterizes the French market today, in particular following the merger of the jewelry brands of the Thom Europe group - which nevertheless represents around 490 jewelry stores in the region with Marc Orian, Tres'Or, and Histoire d'Or - and the Synalia cooperative group, which has more than 300 stores under the following banners: La Guilde des Orfèvres, Julien d'Orcel, Heures et Montres, Parfait Alibi.
Once your jewelry market research has been carried out, you will have to think about your concept and position yourself among one of the three categories previously mentioned: costume jewelry, mixed jewelry, or high-end jewelry.
Once you have defined your positioning, you will also need to consider whether you will open an independent or franchised jewelry store. You can, of course, also take back an already existing jewelry store.
Suppose you want to open a mixed jewelry store in a catchment area with already jewelry stores organized in networks. In that case, it will probably be easier to opt for a franchise opening, which will certainly ensure the brand's reputation but will allow you not to have to search for and canvass your suppliers.
Location is one of the key elements in making your jewelry business plan. Indeed, the geographical location will strongly impact your sales and is therefore not a decision to be taken lightly.
The choice of the final location will largely depend on your concept and the products offered for sale. A costume jewelry store and many affordable items can find their place in a shopping street, in the city center, or even in a shopping center. Edouard Leclerc's jewelry merry-go-round has shown that this is quite possible and even reasonable.
On the other hand, if you decide to open a more "luxury" boutique with relatively expensive jewelry, fine jewelry, and fine diamonds, it may be better to choose a location either in the city center or on a less expensive street. Busy and more residential in an upscale district of a big city, like Gemmyo, opened its first store in Paris's very chic 6th arrondissement.
Likewise, you will not need the same surface for a classic jewelry store for a jewelry store where customers expect to be received in a dedicated space to display different jewelry in a calm and peaceful atmosphere. Cozy atmosphere. However, the surface area of your premises necessarily influences the price of renting or purchasing your store.
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As with any business creation, opening a jewelry store requires creating a structure and choosing a legal form.
If the fact of plunging into the administrative constraints may put off some, it is nevertheless an essential and fundamental step in the creation of your jewelry.
The legal status indeed influences several essential elements such as:
Therefore, the choice of the legal form must be considered and consistent with your project, your concept, and how you envision the development of your jewelry store.
After you have done your market research, defined your concept, found your location, and chosen the legal form of the business. The next step in creating a jewelry store is to list and quantify: the human and material needs necessary for the operation of the company. 'business.
A jewelry store is a store intended to welcome the public in which one should feel good. Beyond the basic equipment such as displays, counters, computer stations, and other payment terminals, it will also be necessary to invest in neat furniture and decorative objects to make the place pleasant.
But a jewelry store is also a store with significant security constraints. So remember to plan the purchase of safes, install an alarm system and CCTV cameras.
Note that the law imposes a monitoring device for jewelry stores with greater than 106,000 euros HT. Your insurer will certainly have a say in this as well.
Last but not least, it will be necessary to plan the acquisition of your initial stock, which can sometimes represent a significant budget.
You will, of course, also have to take into account the staffing needs when drawing up your estimated budget.
You will take care to hire salespeople who are passionate about jewelry like you.
If you are targeting a high-end, or even luxury, sector, consider recruiting profiles who have cut their teeth in the world of luxury and who possibly master different languages.
If you offer repair services in addition to sales, you will also need staff with the necessary qualifications.
In addition to your personnel needs, do not forget to consider the missions and ancillary services carried out by freelancers or firms in your budget.
We will, of course, think of the insurance of your jewelry, an expense item all the more important as the value of your goods is high, but also maintenance (if you or your employees do not provide it yourself), the services of an accountant, or even an accountant for the proper care of your accounts, payroll, VAT and other taxes.
To best assess the amount of these expenses, do not hesitate to ask for quotes from several professionals and then, of course, to make the competition work.
The marketing plan is a fundamental step in the creation of your jewelry store. The objective: to acquire and retain customers!
The different actions to take to make yourself known will depend on your concept and positioning.
Suppose we can easily imagine street marketing operations (distributing flyers, for example) to open a costume jewelry store. In that case, it is much less appropriate for a traditional jewelry-watchmaking store that will have more interest in buying advertising space—local directories or media.
A jewelry store will have more interest in making itself known to the general public through a national campaign (why not 4 by 3 posters in the Paris metro where a pink cat presents the brand's best-selling ring, as was recently done the Gemmyo).
Whatever type of jewelry store you want to open, the internet has become essential. Even if you do not offer online sales, it is interesting to have a showcase site to highlight your customers' products, know-how, and opinions.
You can also consider having a presence on social networks to create and unite a community and communicate your news (special offer for Valentine's Day, the launch of a new range, the anniversary of the creation of the brand, etc.).
Do not forget to be referenced on the Internet on Google Maps or the portal of your city.
This list of possibilities is not exhaustive, and it's up to you to imagine the actions that can make you known to your potential customers and that could encourage those who have already walked through your door to do so again.
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Once the marketing plan has been completed, you can move on to developing a business plan for your jewelry store, which will summarize all the information you have gathered in the previous steps.
The business plan is neither more nor less than a document presenting your project in detail in a reasoned and quantified manner. This document is essential to give your business plan to banks or potential investors. He must therefore explain, and above all, convince!
It will also allow you, as an entrepreneur, to make sure that your project to create a jewelry store is financially viable.
With your business plan in hand, it's time to take the last step: finding funding.
The amount needed here will strongly depend on the commercial positioning of your jewelry store.
As an indication, to open a franchised jewelry store, you will have to count according to the concept :
Several solutions are available to you to raise this sum. You can initially turn to banks, and you can also consider launching fundraising on a crowdfunding platform or looking for private investors.
Also, think about the various support systems for business creation that often provide material assistance, support you in your administrative procedures, and refine your concept.