CJ

OVER YEARS IN THE BUSINESS OF RETAILING JEWELLERY

SEPTEMBER • OCTOBER 2008

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Holiday Trends
STYLES AND CATEGORIES YOU NEED TO STOCK

canadian jeweller magazine

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MINDHAM FINE JEWELLERY’S MYLES MINDHAM

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ALL THE LATEST MARKET NEWS, TRENDS

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marketwatch

Geomarketing Comes to

Jewellery
Di Modolo, Milano 18K gold Triadra necklace.

In every business, the ability to put the right product into the right market at the right time is the proverbial ‘Holy Grail.’ And from the point of view of any business analyst, the jewellery industry has been massively inefficient in this regard since the dawn of large-scale jewellery manufacturing.
B Y R OBIN G AMBHIR

P

roducing any piece of jewellery is a capital intensive business requiring expensive input costs in raw materials such as precious metals, diamonds, gemstones and labour. In addition, jewellery is a luxury item which asks consumers to spend discretionary income on a something that appeals on an emotional level — something which adds a greater degree of uncertainty to a product’s success in the market.

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most consumers still “Happily,purchase their jewellery prefer to from a store in their community; local jewellers provide a level of service that online-only retailers will never be able to match.

With the advent of online shopping, the process of tracking consumer behaviour and preferences became easier for online retailers, who could track product sales from their website. That was fine for online-only plays such as Blue Nile, but what about independent jewellers who do the majority of their sales in a store? Happily, most consumers still prefer to purchase their jewellery from a store in their community; local jewellers provide a level of service that online-only retailers will never be able to match. But independent jewellers and their suppliers need new tools to compete in markets that are faster and smarter than ever before.
Giving Local Jewellers the Tools to Compete OpenBlue’s raison d’etre has always been to provide those local, independent jewellers with modern websites that give them the ability to compete by leveraging their suppliers’ inventory. This approach provides consumers shopping online with an inventory that is wider and deeper than any online-only retailer could match. And since OpenBlue sites drive traffic into the store (displaying an average of 10,000 items

of finished jewellery, loose diamonds, watches, clocks and giftware on a retail site), it gives independent retailers more inventory to drive a sale than any other jewellers’ website. Every time consumers shop on a site powered by OpenBlue, everything they click on is recorded and fed back to the retailer and their suppliers. When a supplier’s rep visits the store, there is no doubt about the items that should be held in stock by the retailer. Using this data, suppliers can deploy the right product into the right market. Retailers who want to give it a try, can go to www.openbluestores.com. See the Market Up until now, readers of CJ have had the benefit of seeing the market for different categories of jewellery through statistics; these statistics and the magazine’s consumer-driven lists of the top 10 and top 100 are unprecedented in the industry. With this edition of Canadian Jeweller, OpenBlue is pleased to show the next level of market data — maps. In this and upcoming editions of “Market Watch,” you will be able to actually see the market for jewellery.

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marketwatch

Map 1. A world map where each balloon represents one or more consumers from the particular city that clicked on the Canadian diamonds category. Noticeably, there is a lot of traffic from the United States.

screen snapshot

screen snapshot

Map 2. Results for consumers searching for loose Canadian diamonds. The map depicts interest in Canadian diamonds/ diamond jewellery across the country, as well as central and eastern United States.

Map 3. In this map, there is a different distribution pattern for a particular style. There is some interest from the west coast of the United States, as well as heavy concentrations in Ontario and Alberta.

screen snapshot

Using this new technology, OpenBlue can now map market data for any category of jeweller, any loose diamond, watch, clock or giftware item. This serves as a broad step towards that ‘Holy Grail’ of putting the right product into the right market at the right time. Using geographical data to guide sales and marketing is known as Geomarketing. OpenBlue will make this data available to the industry as a free service this fall at www.thewiredjeweller.com. Detailed statistics, along with our top 10/100 lists, will continue to be available in the pages of Canadian Jeweller. Mapping The Market For Canadian Diamonds So-called “blood diamonds” have led to an increased demand for Canadian diamonds as their “conflict-free” status seems unimpeachable amongst consumers. Indeed, Canadian diamonds have become the “brand” for diamonds free of the blood diamond stigma. So while retailers offer Canadian diamonds, and diamond jewellery made with Canadian diamonds are largely based in Canada, the demand for them could extend outside of North America.

OpenBlue retail sites have a category of finished jewellery called “Made with Canadian Diamonds.” Shown on this page is a world map (Map 1) where each balloon represents one or more consumer(s) from the particular city that clicked on this category. While the majority of OpenBlue-powered retail sites are based in Canada, there is a lot of traffic from the United States and some scattered distribution across the globe. That means that a lot of Americans are finding these Canadian retailers and shopping at their sites. Many OpenBlue retailers also have loose diamond searches on their sites and one of the options on those searches is to only show Canadian diamonds. Map 2 shows all the consumers who selected that option when searching for loose diamonds. Maps 1 and 2 depict a lot of interest in Canadian diamonds and Canadian diamond jewellery across Canada and in central and eastern United States. These maps represent broad trends and in the online version of the mapping system, you can zoom in on any area and pick out specific areas of concentration.

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marketwatch

takes a lot of the guesswork out of deploying products for both retailers and manufacturers.

“Applying this sort of Geomarketing technology to jewellery ”

For a supplier trying to decide where to market a specific style and for a retailer who is trying to decide what to stock, they need very specific information. To illustrate, we selected a Polar Ice Canadian diamond solitaire. When we look at map 3 on the previous page, we can see that this particular style has a different distribution pattern, compared to the broader maps which show general interest in Canadian diamonds. Here, the style of the ring itself comes into play and we can see some interest from the west coast of the United States. In Canada, there is strong interest across the country, with heavy concentrations in Ontario and Alberta. Applying this sort of Geomarketing technology to jewellery takes a lot of the guesswork out of deploying products for both retailers and manufacturers. Over time, geomarketing will yield efficiencies and save everyone time and money by putting the right products in the right markets. [CJ]

Polar Ice Canadian diamond solitaire

Dall'Avo for Gold Expressions 18K gold white cromo collection with hardened white ceramic.

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For details, write #126 on Free Info Page, page 104.