How to open a jewelry store?

The production of jewelry and its sale is quite a popular trend in the fashion industry, which, if properly organized, brings good profits to the owners of jewelry stores. How to successfully start a jewelry business?

Fashion for jewelry has been and will be. Products made of artificial materials are inexpensive and can perfectly complement the wardrobe and emphasize the character of the image. Due to the low cost, women regularly buy jewelry, according to the chosen style.

The jewelry business is also widespread in Ukraine. Even during the war, the demand for an alternative to jewelry is only growing. Opening a store of artificial jewelry is a promising business idea, which, if you have the start-up capital and understanding of certain subtleties, can be implemented by anyone.

In this article we will consider the questions:

1. What types of artificial jewelry are there?
2. What is needed to open a jewelry store: registration, choice of location, store format, equipment, window decoration.
3. What assortment to choose?
4. Alternative formats of jewelry store.
5. Costs.

Types of jewelry

All jewelry can be divided into three main price groups: cheap, medium and expensive. Prices for it depend mainly on the material of the product and belonging to the brand. Cheap products cost from 25 to 200 UAH. The price range of the middle group is 200-700 UAH, and the expensive segment - 700 UAH and above.

By purpose, there are women's, men's, wedding, children's, elite or premium jewelry. Jewelry is made of wood, leather, plastic, synthetic or natural fabrics (linen, silk), metal (steel, copper, gilding), jewelry and medical metal alloy.

Jewelry products may contain artificial or inexpensive stones, such as pearls, zirconium, cubic zirconia, etc.; inserts made of beads, marble, glass, velvet, enamel, acrylic, etc.

The most popular among women are gilded earrings, clip-rings, bracelets, brooches, pendants, chokers, rings (evening, wide, rings with stones, rings on the phalanges), etc.

What do you need to open a jewelry store?

Registration

First of all, the owner of the outlet needs to register it. To do this in Ukraine, it is enough to open a sole proprietorship or a legal entity. Carefully choose KVEDs for jewelry and jewelry products.

Formats of jewelry store

It is important for retailers to find optimal sales schemes for specific price categories.

Cheap jewelry is usually sold through street stalls or kiosks. In store retail, especially in megacities, such goods are sold poorly. Therefore, if you aim to open a small point with cheap goods from Chinese manufacturers, the cash & carry format, when the products are freely available, is optimal.

More expensive assortment is best sold in large shopping centers, supermarkets, or in chain jewelry stores, which is facilitated by the close proximity of clothing, footwear and accessories boutiques in haberdashery departments. This format is called shop-in-shop - shop in shop.

The best option for selling jewelry of the middle price group is an outlet in the form of an island. It can compactly place the entire range in a prominent place, and you will have to pay only for a few square meters.

Exquisite jewelry of famous brands are usually sold in prestigious outlets that sell clothes of the same brands, and are designed for their fans. These are jewelry brands - Yves Saint Laurent, Christian Dior, Ted Lapidus, Christian Lacroix, Kenzo and others. The niche of exclusive jewelry is the fate of importers of expensive clothes and perfumes.

The format of jewelry supermarkets are rare, they can afford large retail chains. To minimize the cost of rent, the assortment is diluted with various accessories (glasses, hats, umbrellas, scarves, gloves, etc.).

The idea to open a large jewelry store at once can be a losing one if you do not think over the placement of goods in it correctly. After all, the more showcases, the more complicated the choice of consumers.

Location of the jewelry store

When choosing the location of the outlet, you should take into account the fact that people often buy jewelry spontaneously, so the goods should be in front of your eyes. Best of all, jewelry is sold at the intersection of trade lines in the mall, in passageways, at spontaneous markets, as well as along pedestrian routes.

Regarding the area of the store, use the rule: 2000 units of goods occupy 4 m2 of retail space. It should be borne in mind that the smaller the area of the premises, the more expensive per square meter. However, renting a retail outlet even in expensive supermarkets, but in the passage zone, can quickly justify itself.

Design of a jewelry store

To show jewelry in the most advantageous position, it is worth laying them out in an attractive mosaic. If your own efforts are not enough, you can invite decorators.

Lighting is of great importance in the design of a jewelry store. To make jewelry look expensive, the lighting equipment must be correct and of high quality. As a backlight, you can use halogen 

Lighting is of great importance in the design of a jewelry store. To make jewelry look expensive, the lighting equipment must be correct and of high quality. Halogen lamps, LED strips or spotlights can be used as backlighting.

Equipment

For the functioning of this type of store, simple equipment is needed - trade equipment, showcases, if necessary - shelves with lighting. Prices for equipment depend on the manufacturer (for example, branded stands are more expensive) and material. Some suppliers offer their demonstration stands to customers inexpensively.

And in order to automate sales at the point of sale, you need to install the accounting program for a jewelry store - Torgsoft on your computer. It will help not only to keep records of the warehouse, print small price tags, keep records of weights and measures, income, expenses, warehouse balances, utility bills and employee salaries, but also simplifies the life of the sellers themselves. For example, they can quickly serve customers, issue fiscal checks, monitor daily revenue and cash reporting.

Choose the assortment of the store

It is worth starting the formation of the assortment with the selection of suppliers. Chinese and Korean jewelry is of low quality and sold anywhere. Therefore, to maintain the constant interest of customers in your store and increase sales revenue, it is better to include original products in your assortment. You can find suppliers of Ukrainian, European and American jewelry products with whom to conclude an agreement on the exclusive right to trade.

When establishing contact with suppliers, it should be borne in mind that not all direct suppliers are ready to cooperate with small retail outlets. In this case, you will have to order goods from intermediaries and often overpay for the supply. The best option is to try to sell jewelry through dropshipping. This is a popular scheme of earning money on the Internet without direct sales.

Since jewelry is usually bought for a specific event or outfit, regularly update your jewelry collections to encourage customers to visit the store more often.

To diversify the assortment, order products from handmade masters who mainly provide their services on social networks. Handmade is unique and exclusive and is in demand among many women who appreciate quality and style.

To the price of traditional women's and men's jewelry you can add related products: haberdashery, accessories: bags, clutches, scarves, umbrellas, sunglasses, etc.

Alternative trade options

Online jewelry store

Opening an online jewelry store in Ukraine in the current realities is quite a reasonable and justified decision. Although jewelry is a product that you need to touch and twist from different sides before buying, it is quite possible to sell it online. To do this, you need to hire great developers and designers who could accurately convey the realism of the images and properly configure the site interface.

An online jewelry store will not only save money on rent and purchase of commercial equipment, but also significantly expand the circle of customers for whom online shopping is commonplace.

Ideally - to combine different formats: offline points where "copies" of jewelry will be sold and an online store where you can sell goods both wholesale and retail.

Franchising

Another format of trade is franchising. This scheme in the jewelry market promises minimal investment and guaranteed income. The store owner does not need to look for suppliers on his own, you can simply join a well-known retail chain and do business under their brand.

Franchisors sell goods to reliable customers with deferred payment, and some are ready to take back unsold parts of old collections from retailers in exchange for new ones - of course, with a certain discount from the initial wholesale price.

Usually, pilot franchise projects are exempt from lump sum payment and royalties. The partner is provided with a full range of marketing activities to enter the market. You can use ready-made franchise offers for opening an online jewelry store, for example, from Accessories Agency.

Investments in the organization of the store are from $ 20 thousand, excluding the cost of purchasing goods.

Initial capital for opening a store

Basic costs:

• Jewelry store automation - from $ 500,
• Trade module for jewelry - from $ 3000,
• Goods (2000 units) about $ 5000.

Monthly expenses:

• Salary to sellers - from $ 400-800,
• Rent for premises (based on 4 m2) - from $ 500,
• Operating costs - $ 100.

What is needed to automate a jewelry store?

Accounting program for a jewelry store - Torgsoft Ultra or Terminal.

Barcode scanner.

Label printer for marking goods.

Check printer for issuing fiscal and non-fiscal checks.

Jewelry scales (if necessary).

Additional options to help keep records in the jewelry store

Software PTR for the sale of fiscal goods.

Connection of a bank terminal.

Accounting of weights and measures, which will allow you to create a measurement system with conversion factors to the standard unit of measurement.

Synchronization with an online store for online sales.

Bonus system with expiration date for attracting and regular work with clients.

Mass mailing via Viber, SMS and e-mail.