A category is a group of similar or related items which the customer would ideally like to find together in a jewelry store. Categories are mainly used as organizational aids to better manager and monitor predefined groups of products. The benefits of properly assigning product categories includes inventorying the right products at the right prices at the right location at the right time to meet projected sales that generate required margins to deliver the right profits and maintain defined stock cover. Jewelers should develop product categories by defining each group based on their consumer’s needs and purchasing habits.
Does your store categorize products based on composition of materials or application of jewelry? For example, do you categorize diamond rings or wedding rings, anniversary rings, right hand rings, etc.? Consider how product categorization can compliment customer database analysis and wish lists. Consumers are demanding marketing communications to be more relevant. More effective categorization can help jewelers better understand how to present customers with more compelling offerings.
Many of today’s point of sale software systems offer business rules that include suggested product categories. Consider how your store is unique and different and customize your product categories to better track and record inventory movement by category and subcategories. Drive the details of inventory management through more effective categorization of merchandise. Use categorization to help guide and train sales associates to more effectively cross sell merchandise.
What has proven to be the most effective way for your store to categorize your merchandise?
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