August 20, 2018
silver article earrings martha seely spiro stud with pearlInspiro Spiral Earrings, Martha Seely Design

Silver has many qualities that appeal to various consumer segments, and you are probably not maximizing its high margins and giftable price points. At the JA New York Show in July, Gloria Maccaroni of the Silver Promotion Service spoke on how jewelers can utilize silver jewelry to engage consumer segments that may be otherwise untapped – from the self-purchase to bridal accessories.

We know that silver is fine jewelry with low price points and high margins, but what you may not know is just how valuable silver is to your business. Gloria cited a study where, according to 57% of retailers, silver experiences the highest inventory turnover rate. Additionally, 51% of retailers say that silver also delivers the best maintained margins, according to a survey on sales results during the 2017 holiday season. Focusing on the specific consumer markets that are most likely to be receptive to marketing tactics will help your business to see the benefits of outreach.

Beyond Engagement: Bridal Gifts & Accessories

Gloria emphasized that jewelers who don’t think of bridal as more than engagement and wedding rings are missing out on significant jewelry sales, and specifically silver sales. According to research cited by Gloria, bridal party gifts can add up to over $2,630 in potential sales per wedding – not including engagement and wedding rings. When purchasing gifts for about 10 people on average, cost is an important factor. Silver jewelry allows cost to stay low without sacrificing quality and appeals to a variety of tastes within your bridal party.

How to capture bridal party gift purchases:
  • According to a 2017 survey by The Knot, brides and grooms base decisions off recommendations from loved ones and customization options
  • Some ideas for bridesmaid gifts are earrings, hair accessories and bracelets; for groomsmen, cufflinks and watches
  • Use the opportunity to take note of their wedding date and send anniversary reminders


Female Self-Purchasers

While female self-purchasers may be more reluctant to spend a higher amount on themselves, silver provides a lower cost option that’s affordable and provides enough diversity to meet different tastes.  Despite being intimidated by higher price points, self-purchasers still want to celebrate events and mark special occasions with jewelry – birthdays, career achievements, or just to treat themselves. In fact, according to a 2017 MVI Marketing study, more than half of surveyed females said that they were purchasing jewelry “just because.”

How to capture the self-purchaser:
  • Environment matters, as younger customers look for variety, color and warm environments as well as other young women like themselves working in retail stores
  • Marketing efforts to encourage and remind – offering “wish list” options to drive their family and friends when looking for gifts, as well as being promotion
  • Outreach and news about new styles, events and special promotions; especially things marketed specifically to “treat yourself”


Millennials

When it comes to silver, Gloria pointed out that 47% of retailers say that millennials are their biggest customers. Use silver to tap into the potential 80-million American millennials shopping today. Millennials are estimated to have the highest spending power of any generation, but the amount of money they spend per purchase is lower, making silver jewelry -- with its lower price points -- an appealing option to them.

How to capture the millennial market
  • Be aware that millennials pay attention to marketing strategies, rely on peers for reference and are a word-of-mouth group.
  • Millennials value social engagement and communication, and brands that show that they are invested in an important cause. This is even more of a reason why marketing is so important in engaging this group -- 65% of surveyed millennials say that if a brand engages them on social networks, they are more likely to become a loyal customer.
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