Why start a Jewelry business?
Starting your own Jewelry store is a profitable and niche business opportunity. The growing demand from the consumers has led to the widespread expansion of this market and entry of local manufacturers. Reports have suggested that the consumer demand for Jewelry will continue to grow and the market size is expected to increase by 11%.
Due to this boom in the recent years, new and emerging manufacturers are giving tight competition to decade old brands. To put a cherry on top, the global Jewelry market is expected to cross 645 US billion dollars by 2035!
All the more reason to invest in this lucrative business.
7 Easy steps to start your Jewelry business
Starting a Jewelry business is not as easy as it may sound. It involves a lot of research, analysis, and investment. Depending upon your geographical location at lot of market research and demand gap needs to be understood. Most importantly understanding the latest fashion trend and building a business prototype is crucial for to run a successful Jewelry business.
While the competition provided by big brands may cause some dismay in your new business plans, but with correct business plan and implementation you will certainly be ahead of them in few years.
Let us now review some of the important aspects to keep in mind while you are planning to start Jewelry business:
- Select your niche
- Create your brand
- Apply for License
- Define your budget
- Understand your competition
- Build your presence
Select your niche
Before planning anything else it is important to select your business category. Being a very broad category ranging from Fine Jewelries to Antiques; it is wise to narrow down and choose your niche for the right execution.
While selecting your niche, it is crucial to keep in mind the current and future market trends. Bridal Jewelry, for example is an emerging fashion trend of the east. Added to this, the purchasing and spending power on wedding ceremonies has also increased. This has opened up a lot of opportunities in this business niche. Similarly, cross-cultural jewelry designs are gaining more popularity in the west. There is a constant demand for vintage jewelries that is inspired from the tribes.
This being said, it becomes pretty obvious that choosing the right business niche vis-à-vis the market trend becomes number one priority if you are planning to start your own Jewelry business.
Create your brand
Brand name is the most valuable asset of any business. Not only does it improve the overall business efficacy, but also provides an understanding about the product line for new customers. In this line of field it is important to choose a unique and eye catching business name that includes a tag line describing the nature of business.
The brand is your reflection. It is important to create a brand name that matches your personality. One of the easiest ways to create a brand name is by compiling a list of adjectives that matches you as a person.
Apply for License
Next, you need to complete all the legal formalities and take necessary permits as per your countries legal norms. You may also need to trademark your business along with the registration.
Legalising your business has its own advantages, local economic department and small communities help small and emerging businesses by providing guidance and assistance that is required to setup an initial business.
The easiest and the safest type of business entity is an LLC that offers protection in case your business runs into any legal issues. Readers from United States can refer the website of Small Business Administration for further assistance in applying necessary permits.
Define your budget
After registering your business it is now time to set up your financials. This is the most crucial step if you are planning to run a successful Jewelry business. A recent survey revealed that more than 60% of the small businesses do not create a formal budget plan, risking their long term goals in the event of surprise expenses.
Creating a budget helps you understand how much money you have, how much you can spend, and how much money you will need in future. Without a proper budget planning it might get difficult to analyse your business performance. Besides, a comprehensive budget analysis can help you fund your project from prospective investors.
Tip: Open up a separate bank account for your business, this will help you separate your personal finances with the business expense. While starting it is also important to choose an account that has the lowest fees. Using a separate credit card for your business expenses will also make your life easier during the time of tax filing.
Post registering your business and defining your budget, it is time to put all your efforts in gathering information about target market and prospect customers. Your research should also include deep analysis on procuring raw material and its production.
Setup a meeting with local traders and resellers to understand their business model and manufacturing process. Research on the tools and equipment required to make Jewelries. These may include raw materials and precious stones, tools for packaging and labelling, and other necessary items for manufacturing (Flat Nose & Tipped Pliers, Jeweler’s Saw, Flush Cutter, Disk Punch and Cutters). Most of the raw materials can be purchased online from websites like Michaels or Amazon.
It is also important to tie up with few resellers and wholesalers that will provide an initial sales boost while you are creating your own Jewelry market. These types of tie often provide an idea about the procurement of raw materials and basic survival tips.
Understand your competition
One of the best ways to expand and build a successful Jewelry business is by keeping a close eye on the competition. Start taking notes from day one on their business strategy, their designs, social media and other online/offline presence, and most importantly their customers.
Although it is important to study your competition, but do not try to imitate any of their business idea. Try to implement your unique selling proposition and build your own customer market.
Starting afresh is the key due to changing trends in Jewelry industry. Once you have analysed your competition, a judgement can be made with respect to the market supply and consumer behaviour. Post this it will become much easier to decide the correct business vertical that will be lucrative.
Build your presence
You are all set to begin your start up journey. Now is the time to be creative and build your online presence. Stick to Instagram and Pinterest initially if you do not have a dedicated marketing team. As easy it may sound building a profile on Instagram or any other social media requires a lot of hard work and dedication. With time you will have your fan followings and active buyers who will promote and share your posts organically.
Equally important is having your brand’s website and a product portfolio. Website hosting platforms like Blue Host & HostGator offer cheap and reliable services for a single domain. Even if you are planning to sell your products on platforms like Etsy or Shopify, it is important to have your brand’s website.
Tip: Investing in model photo shoot is not mandatory and the photo shoot can be conducted with the help of mannequins, but there are certain limitations and we always recommend our entrepreneurs to invest some time and money in model photo shoots. Models personify the brand and the product, to showcase a perfect product which improves your brand recognition and social media traffic.
How to start Jewelry business online
There are mainly two ways to start your Jewelry business, offline and online. Offline or the traditional way of setting up your business requires a lot of investment and patience. On the other hand moving a business online lets you promote your product to all the customers without any geographical restrictions. You are able to promote your products through paid marketing programs that are beneficial for start-ups and emerging brands just by sitting at home.
An online business typically requires less investment. You only require a laptop, printer and packaging material to process any active order. As compared with the traditional brick and mortar shops where the administration costs gets huge, you can save a lot of money to invest in other areas of your business. More importantly, your products are available 24/7 allowing customers to purchase any time of the day.
From the customer’s point of view, shopping for Jewelry online is a much better option as it saves a lot of time and provides multiple options across several platforms. As per the report received from Amazon, 29% of the consumers have purchased Jewelries and accessories from their portal over a period of 1 year. It is obvious that it will take a significantly shorter time to reach among the top grossing category.
Starting an online Jewelry business is not very difficult as it may seem. With right steps and proper setup you can start your online Jewelry business from day one. Let us now review all the necessary requirements to start your online store.
- Business Registration & Bank Account
- Product Photo shoot
- Order Processing
- Marketing Budget
- Promotions and Discounts
- Multi-channel sales
Business Registration & Bank Account
Registering on any online portal requires business registration and bank account number upfront. Almost all the top ecommerce portals require legal business identification before you are provided with a seller account. You can check more details on the website of Small business administration (sba.gov) for business registration and licenses.
Post registration you will require a separate bank account under your business name. Ecommerce portals generally ask for a cancelled cheque to verify your business name with the bank account.
Product Photo shoots
Showcasing your product in the right way is the foremost requirement of any online business. Besides, a great photograph convinces customer to buy the product. 90% of online customers have agreed that photo quality is the most important deciding factor.
Agencies like Pencilone provide high quality photo shoots at reasonable prices. All you need to do is ship your products to their address! If you are planning to sell on Amazon, they can also assist you with product photoshoot by sharing the contact list of freelancers available near your vicinity.
Once you have registered your business and completed your product photo shoot, you will need tools to process your dropship orders. You will need a laptop with an active internet connection, printer, and packaging boxes. If you do not have a laptop or a computer, you can process your orders from mobile, but you will need to purchase a printer to print the invoices that goes along the order.
Unplanned marketing is like purchasing a vehicle without any steering wheel. In a competitive online environment, you will need a fixed marketing budget on a weekly or monthly basis to increase your brand awareness. You will also need to further subdivide and stretch your marketing budgets on many different channels.
You have to spend money to make money
Setting monthly goals and implementing a marketing budget will allow you to prioritize and focus more on sales rather than survival.
Promotions and Discounts
Owing to its popularity, a lot more people have entered into Jewelry business lately. To distinguish yourself from other less popular brands it is important to promote your products on a regular basis. This can be done by showcasing your product in lightning deals, banner advertisements, deals of the day, or featured products.
Providing discounts are another way to attract customers, these discounts are generally showcased as slash-through price with the discounted price. While these are less effective than actual promotions, but still helps in getting some leverage over competition.
Multiple listing across several ecommerce platforms is similar to opening many offline stores, yet does not require any type of investment. Besides, selling on multi channels expands your brand presence and eliminates any single point of failure in your strategy. Platforms like Etsy & Shopify should be your number priority to list your products.
Another emerging ecommerce category launched by Amazon for artisans and crafters is Amazon Handmade. With a wide customer base (over 300 million), selling your one-of-a-kind product to customers from all around the World will unquestionably increase your brand value.
Niche Jewelry business ideas
No matter which mode of business (online/offline) and the platform you choose, unless you showcase your unique special proposition or in this case a niche, chances are your business won’t survive for two consecutive winters. This billion dollar industry is saturated with major players and strong willed business owners. To overcome this challenging barrier you need to add value to your products. Defining your niche is important to help relate your product to a particular customer segment. Without implementing your USP, chances are your marketing strategies won’t speak to anyone. Finding a niche and sticking to it will help small businesses to compete in this multi-billion dollar industry. Some of the niches in the Jewelry business include:
Most countries in Asia prefer traditional Jewelries that depict their culture and traditions. These Jewelries play an important and significant role in their lifestyle and are always in high demand.
Usually made from stones and beads, they are commonly called as costume Jewelry. These are used by most Jewelry lovers in day to day life to match their attire. They are inexpensive yet compliment your dress in a very subtle way.
These are the latest trend among young generation and can be worn by any gender. These types of Jewelries have a symbolic and emotional meaning that portrays no distinction between the sexes.
Cost involved in starting a Jewelry business
Popular ecommerce platforms like Amazon, Etsy and Shopify have made Jewelry business relatively simpler lately. If you have prior experience of selling on these platforms and have the necessary tools for processing the order, your expense will drop even more. The main cost involved in setting up an online Jewelry store includes:
- Purchasing a laptop or desktop computer ($500)
- Printer ($200)
- Packaging material ($100)
- Raw materials required for manufacturing ($1000)
- Miscellaneous expense like Photography, Registration etc. ($500)
All in all, an approximate investment to setup an online Jewelry business can go around $2300. This cost will rise to 10 times your budget if the raw material required for making Jewelry is precious or expensive. But for the basic and affordable Jewelries that are available online, the said budget is enough for you to get started.
Cost involved in starting an offline Jewelry business is much higher as it requires building up the interior of your store, showcasing the product and monthly rental. The lease of the store will also depend upon its location and the vicinity. To add to this expense, you will also need a set monthly budget for your staff, utility bills, and other miscellaneous day to day expenses. So an estimate cost to set up an offline Jewelry store will go around $20,000 -$22,000. You will need an additional $15,000 for operational expenses and for purchasing the raw materials.
Is jewellery business profitable?
As per reports, the global Jewelry market was valued at 129 billion U.S. dollars in 2018 and is expected to reach 298 billion U.S. dollars by 2035. Labs created diamonds that are relatively cheaper than real diamonds have also expanded their market size along with fashion Jewelries; all in all the entire global Jewelry market displays an upward trend in terms of their market value.
So if you are wondering whether starting a Jewelry business will be lucrative or not, the answer to your question is yes, provided you have a strong business plan and a strong hold over finances.
Running a Jewelry business is profitable and engaging. Aside to the expensive gem stones, most of the raw materials required in the manufacturing of fashion Jewelries are inexpensive and easy to source. In this article we have provided facts and figures from various trusted partners to show the real market trends and their forecasts. We have also discussed niche ideas and ecommerce platforms where you can begin this wonderful journey. Whilst we agree that the competition in the Jewelry industry is thick, but there are still some niches to be explored. Besides, with the growing competition the demand for these products is also increasing exponentially. With proper business planning and implementation, you can definitely succeed in this lucrative fashion industry.