How does the product life cycle of jewelry affect final pricing? Fashion designs based on trendy styling can be in high demand with a select group of shoppers who will be willing to pay more to acquire the items. However, there tends to be a correlation between how trendy a fashion piece is and the limited amount of time these designs will be in favor with consumers. In general, the trendier the jewelry, the more the design is based on distinctive styling. This can be very appealing to a unique group of customers. Knowing which designs best serve the interests and desires of each jewelry store’s unique customer base helps create more product turnover and represents more potential gross profit.
Jewelry fashions are accepted by consumers based on the appeal of the design and the popularity of the styling. Jewelry design and styling do affect the life cycle of jewelry inventory. The distinctiveness of jewelry designs based on unique styling can be excellent means for attracting trendsetter shoppers. These consumers place a high preference on their ability to be first to find new fashion designs. These customers will pay more to be the first person in their reference group to have a new fashion piece. They are known for their fresh approach to fashion and abilities to be first with hype new fashion designs. They relate to their fashion style. This is the sort of inventory that needs in-store promotion. Highly trendy jewelry needs to be supported with sales training to maximize the appeal of the uniqueness of the design and styling of each item. Sales presentations that emphasize new and fresh approaches to the design and style of the jewelry and how it relates to trendy fashion can be very powerful. How much of your jewelry inventory meets this criteria of being highly trendy?
The second group of inventory attracts consumers who are more reserved and may not put as much effort into searching for the very latest fashion trend. These consumers appreciate fashion designs that are recognized for being in style. Consider the inventory that is based on designs that emulate other jewelry designs. A strong benefit of these types of jewelry designs is that they already have historic sales and proven demand. These designs are still in high demand and have the advantage of being recognized as being in style by more customers. Classic designs enhanced with fresh approaches through the use of different materials and colors meet this criteria. How much of your jewelry inventory meets this criteria?
The third grouping of inventory based on design and styling includes jewelry with designs that are widely available and easily substitutable. These are the designs that have very recognized styling that can be found in many jewelry outlets. Odds are sales representatives are most familiar with this type of jewelry. However, sales training is very necessary to help sales associates create differentiation in the shoppers mind and minimize price discounting. These items tend to be more price-sensitive because the jewelry is so easily substituted by competitive offerings. How much of your inventory would meet these criteria?
Fashions are accepted and popular due to their product styling. The life cycle of jewelry involves a distinctiveness stage in which trendsetters adopt the style, followed by an emulation stage in which more customers purchase the style to also be trendsetters. The economic stage is reflected in the capabilities of manufacturers to more efficiently produce specific jewelry items. No one-off designs here! The tradeoff for jewelry retailers is that there will be lots of competing inventory and that can often reduce profit margins.
Some consumers who have not developed a keen eye for jewelry design and styling have critically stated that all jewelry looks alike. The challenge for jewelers is to create a recognizable motif for their store based on the designs and styling of jewelry inventory. All stores will have a mix of shoppers that range in their approach to jewelry from trendsetting to fashion conservative. These preferences can change by product category too. This all requires well trained, knowledgeable and highly motivated sales professionals who have the talent, skill and know-how to help shoppers find the right jewelry designs and styling to match their individual fashion preferences. When this happens for shoppers their view of what is affordable tends to be less limited. Design and styling are very powerful selling attributes.