- The jewelry industry did a breakthrough digital inventories
- Online inventory revolutionized the consumption patterns
- The physical inventory is still popular
- Is there one model better than another?
- Historical jewelers and online jewelers face different challenges The jewelry industry did a breakthrough digital inventories
The online inventory represents now around 18% of the global jewelry market with an increase of 20% per year. With a french turnover of 3 billion euros, the online jewelry business is now choosing to implement either a virtual or a physical inventory model. Marketplaces follow the virtual inventory model proposing non-tangible products on the platform. Customers only pay for suppliers’ product on a secure visible platform. In contrast to the traditional marketplace, some e-commerce uses the digitalization of available products, available for everyone.
Fine jewelry is keen to propose customized engagement rings through an online shopping experience, which is not commonly used for high jewelry brands.
Online inventory revolutionized the consumption patterns
Online stock represent an opportunity for clients, both B2B and B2C. The 3D design innovation allows companies to extend their offer to customers by making virtual sketch without having any in-hand prototype. It gives the opportunity to visualize the final product in a high-quality render, still modifying some factors (the stone or the type/quality of metal). Consumers are becoming more and more demanding in their consumption patterns. Virtual inventory makes it possible to extend an intangible stock to meet demand as much as possible.
The online inventory is not adaptable to the entire customer profile. Most of the convertible customers are women aged between 30 and 45, emancipated and independent, who buy themselves a piece of jewelry. The other main target is 25 to 45 years old men, actively connected and urban who wishes to offer/ buy jewelry.
The physical inventory is still popular
As virtual inventory makes it possible to extend the offer, physical inventory becomes a more difficult activity in the exact opposite proportion. If the jeweler does not have a large inventory, the profession will become more and more difficult. However, online inventory offers as many advantages as barriers. Indeed, jewelry actors have difficulties to expand the high jewelry online inventory because some national markets as France are not mature enough to buy “non-existent” jewelry compare to another type of luxury goods. Jewelry is so unique that customers have difficulties to spend it on, virtually.
However, some website policies help people to convert from physical to online customers with offering guarantees on return, free shipping and all about authenticity as laboratories certificates on gems (GIA, HRD) or brands certificates on vintage jewelry.
Is there one model better than another?
eBay X Drouot (Online/Offline)
Jewelry inventory is as successful online as offline. The famous eBay marketplace developed online sells based on bets. Thanks to their recognition, they could make people confident to buy on the platform. The auction house Drouot also does sells on bets but physically, where people can see for real the pieces. Recently, Drouot pushed more and more the online offer around their community to speed up sales and margins.
1stdibs X physical vintage stores (Dary’s)
In some countries like the USA, people are not afraid to get expensive online vintage jewelry. American customers can buy a $10k jewel only from one or two pictures on the 1stDibs platform. However, it doesn’t mean that physical vintage stores will disappear soon! For example, French people are still attached to physical relationship to buy vintage jewelry to check what we cannot really see online as brightness and colors.
Concept store X Farfetch
Retailers like concept stores are as efficient online than offline. Indeed, the online luxury e-commerce Farfetch should create a mood of their concept digitalized with designs. They propose online inventories in a tidy menu as a concept store could do in stores.
Rapnet X International showrooms events
Diamond dealers have joined the online inventory market to extend the offer to the mass market. Rapnet have pricing based on monthly paid plan to allows the community to get the best diamond deals. This huge amount of inventory revolutionized the entire diamond dealer market to allows professional to access to a large part of the world gems.
The International HKTDC showrooms and some others provide a lot of gems offer without a paid plan but still with charges like ticket fees, Visas, transportation, and booth for events. These expenses can come to be extensive.
SwatchOn X IKEA
Online inventory model has been developed in each industry proposing to shop samples in two different models. The textile company SwatchOn propose free sample shipment to customers to order a big quantity of fabrics later on. To compare, IKEA offers a customer experience of a perfect home composed of the physical products they sell. This strategy is a typical provocation to impulse-buy before finishing the tour in the warehouse, next to the cashier.
Historical jewelers and online jewelers face different challenges
Online inventory revolutionized the consumption patterns404 Place Vendome (an example of many newcomers) belongs to the new online jewelers’ wave proposing customizable products to their client. Their main strength is to reduce the physical inventory to avoid sleeping stocks and only produce jewelry as it demands. In addition, 404 Place Vendôme doesn’t take any risk by proposing sketches services before starting productions. Nevertheless, this model is not scalable to luxurious conglomerates like Cartier which need to create a branded experience to their customers.
Exjewel is developing the first online inventory platform to allow jewelers and manufacturers in order to give another life to their stock.
8 reason why exjewel uses virtual inventory :
- Virtual inventory: Exjewel scan clients inventories to digitalize their stock.
- Global Market: Exjewel gives the opportunity to make client inventory visible on the marketplace
- Quantitive inventory: We ensure to divide equally the inventory to make it as much competitive.
- Traceability: Our client’s online inventory is completely tracked
- Automated: We developed the 1st advanced algorithm able to give an accurate appraisal of the jewels upload on our platform.
- Responsible: Exjewel is committed in the sustainable goals in proposing recycled inventory of the supply chain and unsold goods of manufacturers.
- Competitive price: Right appraisal for delivering the right price to our customers.
- Complementary model: Exjewel believe in the entire digital inventories expansion to avoid security failures
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