Jewelry Retail – Online vs Physical?

When it comes to buying Jewellery it is a completely different experience than buying commoditised products. Every Jewelry design is unique in terms of look, fit and sparkle and how these and other features like convenience that build up the experience have a strong influence on buying decisions. A channel preference study by A.T. Kearney indicates that online stores are important for retailers as the next step of expansion strategy. Even though major e-retailers have started operations across the world, brick and mortar stores remain and continue to attract footfalls. Study mentions that 90 percent of all retail sales are transacted in stores and 95 percent of all retail sales are captured by retailers with a brick-and-mortar presence.

Exclusive online retailers like BaubleBar and Blue Nile are now experimenting with Brick and Mortar stores. BaubleBar has raised a second round of funding and has an interesting strategy to expand to leverage existing and established stores. Blue Nile stores allow customers to try out products but to buy them customers have to visit their online site.

Brick and mortar stores provide an all-round experience for the shoppers. Shopping is also a social interaction opportunity for most people. On the other hand online shopping offers convenience and cost savings for buyers. All retailers will have to gain the delicate balance between presence across all channels, understand how each touch point adds value to the customer and aim to increase customer satisfaction and profitability.

 

1 COMMENT

  1. Fine balance is fine but as is the case with all other products, the trend is certainly inclined towards online sales. Recently, I bought a diamond ring online to gift my wife on our 25th anniversary and it was such a pleasant experience. Few years earlier, when I tried to buy a piece of jewelry by visiting stores, it was such a harrowing experience considering my limited knowledge . This time however, I could access all the required information quickly, learn about various diamonds and access several designs on a click. Brick-and-mortar stores may have its benefits but it can’t match the convenience of online shopping.

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