The pandemic has caused a massive downfall to many businesses including the jewelry industry. It put a stop to countless business operations from diamond miners, to the manufacturers themselves. Many physical stores were forced to close down as governments of most countries imposed quarantine protocols that limited person-to-person contact.
Sales have dropped dramatically as the effect of the pandemic continues to affect the global economy. High-end conglomerates have seen a drop of 18% from their total sales and a decline of 30% in stock market valuation. The worldwide demand for jewelry especially luxury brands has plummeted.
As the world continues to find a way to adapt to the new normal, many entrepreneurs are looking forward to start selling their products again. With that in mind, is it still worth investing in a small-scale jewelry business post COVID-19?
In this article, we will be discussing the ups and downs of opening a jewelry business today, as well as important points for business-owners.
What are the risks in opening a jewelry business?
The new normal is, without a doubt, different from what used to be in the “old normal.” More startups are foreseen to shut their door for good as the economic shift goes on. Big business brands are not safe from this threat, either. The risk is high, regardless of the scale of one’s business. However, there are risks that can return profits, given the right business model. That said, one should realign their long and short-term goals while the pandemic is still here. Risk assessment is done better when the threat is still there and not when the crisis is over.
Entrepreneurs should understand that being adaptable and agile in making smart business decisions could make or break their chances in running a successful business — pandemic or otherwise. These business decisions include but are not limited to the following:
Cost of Operation and Cutting Expenses
In this new normal, businesses have moved operations online from operating in a physical store. This doesn’t mean that house expenses have gone down. Expenses are just re-routed to e-commerce platforms and other paraphernalia that comes with it.
Acquiring raw materials can make a huge cut on the operational budget as well. As much as possible, purchased materials are to be utilized to the very last. One way to acquire raw materials at a lower cost is to get them in large numbers. Small-scale operators can partner with local suppliers or source from wholesale jewelry suppliers. Take for example, Susila Jewelry. They are a Bali-based wholesale jewelry supplier with products all handmade by artisan Balinese women. Sourcing ready-made jewelries from them could mean a lower cost to spend on the labor of the jewelries.
Paper receipts are minor expenses that can be cut down too. Even before the pandemic, paperless transactions have already started in an effort to care for the environment. Shifting to paperless transactions fully can be a money-saving move for startups.
A product’s packaging can attract customers, but it can leave a dent on the budget for production. There are, however, sustainable materials which cost lesser than plastic packaging. This circles back to wholesale suppliers. Raw materials for packaging can be purchased in bulk to reduce the final cost of the product. In fact, suppliers like Susila Jewelry also offer custom-made packaging in every handmade jewelry. This means one can import jewelries to sell under their label already packed the way they want, ready to be sold off to their own customers.
Sales Channels in the New Normal
The numbers have changed when it comes to target revenues (even for Cartier) which means a business’ approach to its customers should adapt to the changes too. Sales, while it is important, is not the only thing that matters for businesses. Post-crisis, jewelry business-owners should turn their focus on showing their value to their customers. Why should one buy from them? What makes their jewelry a must-have purchase during and after a pandemic? Above all, how do they continue shopping without risking their health safety?
Customers have become more conscious when it comes to the sanitation of products and person-to-person transaction. Now that access to stores are limited by protocols, moving and maintaining business online make the best choice for start-ups. Thanks to modern technology, diverse selling platforms are made available and accessible to sellers and buyers worldwide, with payments in different methods and currencies.
Marketing Opportunities and Promotions
The global health crisis has not cut off marketing opportunities even for startups. In fact, the new normal gives a brilliant opportunity to entrepreneurs to pilot strategies that may work for their jewelry business. It gives the window of opportunity for startups to touch base with their clientele, address their needs in a way where the products they are selling make a satisfactory solution.
One of the goals of marketing is to present the brand as a solutions provider. How can a jewelry address the pain point of customers after the pandemic? How can it provide value to the lives of the customers? These are just a few of the many important aspects a startup has to consider when organizing marketing campaigns and creating promotional materials.
Furthermore, post-pandemic is a good time to rebrand or polish an existing brand. How a business establishes itself and act during an economic crisis can pave the way for its future when the global economy eventually recovers. In a way, one can picture a seed being planted towards the end of a season. As a new one starts, the produce starts growing alongside it.
All things considered, is a jewelry business after COVID-19 still worth it? Of course, it is! With the right business decisions coupled with useful skills and feasible plans, a small-scale jewelry business can still thrive even in the new normal. This is what makes innovators and entrepreneurs important, especially at this time. They don’t make a difference in their community just by sitting down and waiting for solutions — they go out and create it.
Join the community of Susila Jewelry wholesalers today! Aside from ethically-sourced jewelries, they also provide 100% plastic-free products in bulk. Talk to us to learn more!