The Modern Jeweler - All Jewelry Information For The Modern Era!

Remember the old line from the Woody Allen movie Annie Hall? “Relationships are like sharks; they move forward or they die.”

That thought applies to the jewelry industry, too, which has to move forward, as well, or face becoming, at worst, irrelevant or, at best, an afterthought.

As we know all too well, consumers are gripped by what one might call an “electronic gizmo revolution.” How can–or how will–jewelers develop a relationship with the revolution, or at the very least capitalize on its sales and profit potential?

How can jewelers develop a framework for electronic innovation in an extremely competitive environment that is changing at warp speed?

Several innovation-focused firms, both here and overseas, have started their own electronic innovation building strategies already. There’s Paragon Lake in Lexington, Mass., which used enhanced computer technology to develop a “virtual display case” for jewelers that allows retail customers to build their own custom pieces.

Then there’s Dongwoon, based in Seoul, South Korea, which incorporates silver jewelry into flash drives for those who want to store data with style. Finally, there’s Artco Group, based in Miami, which recently designed a new Philip Stein boutique where interactive touchscreen computers allow customers to create customized timepieces.

These firms–and there are others–are among the technology leaders in an industry which has generally been late to the game in taking advantage of technology.

It’s no surprise that firms that are the first to use or offer technology have the potential for considerably higher profits or that they hold a significant competitive advantage. Just ask Microsoft and Apple. The new technology requires that jewelers do things differently; this means not only a new approach, but also a refusal to be bound by the old rules that applied to jewelers in years past. There are several ways to spur innovation in your store.

• Look outside. When faced with the need to innovate, most jewelers turn to their in-house talent. Instead of doing that, why not reach across corporate boundaries to your extended network?
• Mobilize passionate individuals. There are likely customers out there who are passionate about your designs, your ideas or just your store itself. Find these people, connect with them and tap into their ideas to innovate your business.
• Embrace new technology. Look to younger generations of employees to see what technologies they are using. Support and embrace them: They may be the source of your next innovation.
• Purchase technology from outside the industry. It is no surprise that other consumer product industries have innovative marketing, inventory or administrative systems. Keep your eyes open to purchase these systems. This, of course, may be the simplest and easiest (did I hear cheapest?) way that new technology may be acquired.
• Licensing. Certain marketing technologies that are not easily purchased can instead be licensed, for a fee. For instance, TV broadcasters license their programs for royalties. This is especially effective if the program you license stars a personality who appeals to your target consumer.
• Trade technology: A jewelry retailer could contact a cosmetic retailer and exchange (trade) technological applications such as inventory control terminals and in-store marketing deliverables.
• Partnerships and joint ventures. Jewelry stores from around the country could form partnerships or joint ventures to pursue or design specific new technology. (Independent jewelers now use such partnerships for high-volume purchasing arrangements.)

There are, of course, risks associated with developing an aggressive innovative technology campaign that frequently derail the process, including higher costs, necessary customer education, time constraints, quality issues and competitive issues.

But in the current technological environment, can the jewelry afford to let the opportunity pass?

By Jan Brassem
January 19, 2010
Jan Brassem (e-mail: jan@brassemglobalconsulting.com) is managing director of Brassem Global Consulting, a global sourcing and mergers and acquisitions firm.

via National Jeweler

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