Holiday 2018 is still two months away, but retailers have already charted their course for the coming season. Advertising dollars and inventory have been accounted for, and while stores face varying challenges regarding digital strategy, the consensus seems to be that personal connections will drive the upcoming December sales push — and possibly the years ahead.
The New York view
Holiday season in New York is always busy, in part because tourists come to the city for their vacations and shopping excursions.
“We see a lot of repeat clients make the trip to New York and buy a trinket during the Christmas season,” said David Borochov, manager of R&R Jewelers in the city. His store attracts customers from all over the country, something he attributes in part to his online presence. “We try and put everything on Instagram. We have almost 17,000 followers, and most people who come in the door find us on Yelp and Google.”
Still, personal connections help just as much in the Big Apple as they would in any town. “A lot of people come here because of referrals and word of mouth,” he said. “Right now, I’m working with a guy in Arkansas. I’m selling him an engagement ring over text message, because his friend had a good experience with me.”
Borochov also credited the internet with eliminating what used to be a traditional summer slowdown, at least in his store. “For most of us in the industry, the first two weeks of July were ‘jeweler’s vacation,’” he said. “But it’s so different nowadays. We’re busy all the time.”
Looking ahead to December, he said he was expecting the holidays to be good. “There are a bunch of people who have the means to purchase. And people are always looking to propose on Christmas Eve, Christmas Day and New Year’s.”
A mixed bag nationwide
In Washington, DC, Ken Stein, owner of Bensons Jewelers, was less upbeat about holiday prospects. “I’m feeling a little bit worse than I did going into [holiday 2017], since it sucked,” admitted Stein, joking that his prep work mainly consisted of “buying too much stuff, as usual, thinking I will have a great year, and then [getting] stuck with [items] I can’t pay for.”
Elsewhere, however, things were looking rosier. “Last year was our best year ever,” said Lance Buttars, owner of Molinelli’s Jewelers in Pocatello, Idaho. “This year, we’re ahead of last year. We missed last year’s number in August, but even so, we’re $50,000 to $60,000 ahead, year-to-date, and we almost broke $3 million last year.”
Buttars, who finished his holiday buying in September, already had several promotions planned for the upcoming season, including a customer appreciation event, a ladies’ night, and a men’s night. But his focus was on what he called his “whales”: the top 20 customers in his store. “We send [those customers] a card with purchase and service incentives,” he elaborated. “Then we prepare a gift basket that costs us between $500 and $1,000 each for our top four customers, whether they’ve purchased something or not.”
Online or in person?
For Buttars, advertising depends on personal connections. “It’s tough to measure in digital marketing,” he said. “Instead, we focus on reviews and trying to get people to be our ambassadors, [as well as] incentivizing referrals. In a rural area like mine, you have to brand yourself and do more guerilla-type advertising.”
Stein also struggles with digital engagement. “I’m too small to be online with any presence,” he said. “And to try to fight against the big guys is a losing game.”
But millennials are a challenging target regardless, he noted. “They are not really concerned with jewelry. They’ll buy a ring and wedding bands. Maybe earrings and a bracelet. But as a whole, the younger ones want nice cars, phones and houses. And they all wear Apple watches.”
Article from the Rapaport Magazine - October 2018. To subscribe click here.