If only I would receive a penny for the times I have heard ‘I like it because it is a little bit different’. There is no doubt that independent retailers are under enormous pressure from a number of different fronts and there is a relentless quest to be distinctive and different in order to attract customers and sales. However, what if we argued that being different for the sake of being different actually increases the risk of doing business?
Let’s assume an experienced retailer who knows his customers well is constantly changing his stock in order to achieve that ever sought objective of being different. One could argue that seeking that objective per se runs the risk of potentially changing the character, feel, look, appeal or product portfolio to the point of alienating regular customers. The customers could lose the sense of what ‘the shop is all about’. We all visit shops with a pre-determined idea of what it is we are likely to find in it. If we constantly change without a strategic core to what we do, we can suddenly find ourselves in a different ‘planet’ without knowing it.
Normally the large and most professional organisations test all changes or new product entries in order to avoid mistakes. As it is the rule of thumb is that only 2 or 3 new products in10 are successful and the others are failures. Clearly, independent retailers do not have the luxury of testing, measuring and reviewing results. However, we would advocate that the pursuit of changing for changing sake is significantly more risky than sticking to one route and then optimising it to its best or until it is decidedly inappropriate.
There is no doubt Retailers face significant challenges these days. Visiting many of them across the country one hears their concerns, which are certainly diverse. When one analyses how these Retailers encounter their challenges it seemsthere is a dividing line between two camps: those shops forging forward and those that are not. So, what makes the ones going forward successful?
- Location – Yes, this is one of the ‘oldies’ in retailing and it continues to be true. Location equates to footfall and those outlets in the ‘right’ location will live through a downturn whereas those in secondary or tertiary locations will sorely feel the lower footfall
- Added Services – Offering the right products at the right price is no longer good enough. If I got one penny for the times I have heard the phrase ‘we look for something that is different’ I’d be a millionaire. The fact is there is ‘nothing new under the sun’. Unless we talk about Technology, the Gift and Jewellery industries are saturated with products which cover every single angle of the market and rather than something new it should be a new way of marketing their current products. Many of the successful retailers have been offering a service related to the products they sell as a way of differentiating themselves, and they are banking on that.
- Product Cohesion – Ideally there should be a ‘theme’ running across the retail outlet and the products should ‘build’ on this theme. To make the point it is rare to see a successful independent retailer that sells jewellery alongside kitchen utensils. For customers it is much easier to focus on a shop if subliminally know what the shop sells. This also applies to price points. There is a misguided belief that one must have ‘something for everyone’. We have not seen much evidence this route leads to success.
There are a number of other ‘learnings’ which may prove of use and we will be publishing them in this Blog overtime……keep tuned in.
Up until four years ago, the price of silver (and Gold) had been so low for so very long that many investors never ‘bothered’ with it. In fact, our dear Mr Gordon Brown as Chancellor of the Exchequer decided in 2004 it was time to get rid of the UK gold reserves at record low prices….However, since then the price of both Gold, and particularly Silver, has gone from strength to strength reaching historically record high levels in the last six months.
But this is not an economic review. This change in the price of precious metals will give precious metal jewellery a new lustre that had been missing for a very long time. In the UK silver jewellery had been under-appreciated for a very long time to the point that it was not perceived any better or more valuable than common Costume jewellery made of plastic and other man-made materials. Marjo Jewellery has a very broad range of plain as well as gem-stone jewellery in sterling silver. The classic style of the designs make this jewellery a perennial piece rather than a short term fashion burst. The important point is that as one searches for the proven designs that do sell, Marjo has a number of proven models. With silver being precious again, you will want to get those models right!
At Marjo we are getting a little bored of the doomsayers in the media constantly reporting that the world as we know it is over because of the credit crunch. So we have decided to bring a little ray of light to the party by giving you some good news and advice concerning what we believe you should do to prepare for the inevitable up turn in the economy.
Light at the end of the tunnel
Retailers have always stood up to previous recessions and the best have later prospered in the end, so what can we learn from them?
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ASDA initiative increases sales of reusable bags by 1200 %
ASDA has announced the roll out of a successful trial to remove single use carrier bags from checkouts across its 355 stores. This initiative could help retailers across the country reduce the environmental impact of plastic bags by 25% by the end of this year.
Many of Marjo’s wholesale jewellery customers in jewellery, and gift retailing businesses could consider the reusable bags as a way of not only saving the environment, but also as a good source of marketing. Consumers purchasing a re-usable bag will surely use it for longer periods of time, and in a best case scenario be seen by friends, family, and work colleagues. Giving the opportunity for them to discuss your store and products.
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