Centurion Newsletter

VOL. 8, NO. 7 May 11, 2009

Luxury Meets The Internet: 97% of Jewelry Designers Have Web Sites and Much More from a New Ray Stroup Survey

This edition of The Centurion What Jewelers Really Think Newsletter offers a close look at the status of fine Jewelry Designer Web sites, in a fascinating take on the industry by marketing expert Ray Stroup below. Also click the link to check out our new web page with 14 fresh posts of Jewelry Industry Announcements. Luxury Meets The Internet... By Ray Stroup A recent survey of jewelry designer web sites indicates virtually all designers have a presence on the Internet as part of their company business strategy. The level of sophistication varies widely as indicated by the development stages shown below: Development stage Percent of designers No site ...............3% Billboard only 8 Subtotal ..............11% Communicate online: Without ecommerce .........50% Plus B2C......................... 14 Plus B2B .........................21 Plus B2B & B2C................ 4 Sub Total............................89% Total.................................100% Billboard sites consist of a single page and may include product pictures and contact information. Others simply state the site is “coming soon” or display a company logo. Nearly 90% of sites allow email communication with the company. A few sites only list an email address. Many more use a sign-in form to collect personal or business contact information. Half the sites allow consumers and retailers to contact them by email without ecommerce. But nearly 40% conduct some type of business transactions on line. In most cases, designers use authorized retailers to market their jewelry to consumers. A quarter of the sites have password-protected sections to conduct business with these retailers. Other designers allow consumers to buy online and a select few sell consumers and include a password-protected section. Two other interactive features utilized are a retail locator and a subscription to a periodic newsletter or company news. The retail locator is much more popular with nearly 80% of sites offering this feature. Newsletters or company news feeds were available on 41%. Some sites included unique features that have a positive impact on site effectiveness. - One designer included the equivalent of a “consumer wish list” to stimulate business. Their online jewelry catalog allowed a visitor to send a jewelry picture and message to an email address. For example, “Here is what I want!” - Another site dramatically improved the appearance of jewelry featured in fashion magazines. This site included a glamour shot of the featured jewelry next to the fashion page to highlight product detail. - Only a handful of sites included information on gemstones or jewelry manufacturing techniques. Those that did were able to send a powerful message about the designer’s commitment to product quality and value. Virtually all jewelry designers serving the luxury segment of the industry include the Internet in their business strategy. Designers can use this study to benchmark their site. Finally, consumers usually compare any site they visit to sites they use to purchase other products. To keep current on web site trends, monitor classy sites outside the industry or have your web developer keep you up to date. Copyright April 20, 2009 Ray Stroup Lafayette, Louisiana Ray Stroup currently teaches marketing at the University of Louisiana at Lafayette. He previously served as Executive Vice President of Marketing for Stuller, Inc. and retired in 2005. Prior to entering the jewelry industry, his experience included marketing and sales in consumer-packaged goods (food), management consulting and financial planning and control. His interests include foreign travel, reading and raising orchids.