Quick, smart: fast-moving fashion jewellery
Gone are the days of a clear division between fine jewellery
and costume jewellery – today, the dynamic category of fashion jewellery
reflects how consumers want to shop. In the past, jewellery could be neatly
divided into two categories: costume jewellery and fine jewellery.
The latter
featured synthetic or stimulant gems and diamonds set in the base or plated
metals, while the former combined solid, premium metals with mined, precious
gemstones.
Jump forward and the evolution of jewellery techniques has
altered the market significantly, as have the rapidly changing tastes, budgets
and buying habits of consumers.
Like fashion apparel, fashion jewellery is fast-moving and
trend-led. It is not so much defined by the materials used in its manufacture
but rather by the reason it is bought.
Primarily, consumers purchase fashion jewellery to accessories
an outfit, reflect their personal identity and sense of style, emulate
fashionable celebrities and social media personalities, and stay ‘on trend’
with peers.
Unlike fine jewellery, consumers do not invest a large
amount of time or money in the purchase; the most important factors here are an
aesthetic appeal, relevance to current fashions and styles, and how much a piece reflects the buyer’s own tastes and emotions.
“Nowadays there are so many customers looking for something
different and more affordable with the opportunity to change their jewellery
more often and select items to match certain outfits and events,”
“Although there will always be a place for traditional
jewellery, our branded jewellery offers unique designs at price points that
appeal to a wide audience.”
Indeed, the fashion jewellery category cannot be explored
without referring to one of its distinct advantages: price.
Current economic conditions of stagnant wage growth, soaring
house prices and the ongoing drought in NSW and Queensland have placed
significant downward pressure on discretionary spending, leading to flat retail
conditions.
According to the latest Retail Forecasts report by Deloitte
Access Economics, published in September, the annual rate of sales growth has
steadily declined since the beginning of 2018, and FY18-19 recorded the weakest the result since the early 1990s. At the same time, the report found that retail
inflation is increasing at the fastest rate in a decade, meaning overall prices
are higher.
Fashion jewellery generally retails below $100 and rarely
above $500, making it attractive to consumers with a limited budget.
“Fashion jewellery is generally well-priced so if you get
the mix right it is highly transactional – fast in and fast out,” Helen
Thompson-Carter, director Fabuleux Vous, says.
Yet the category defies being defined simply on price.
A standard $89 bracelet from Pandora Jewellery can hold
between 17 and 22 charms. Most charms are priced between $50 and $99, making
the total value of a complete bracelet between $939 and $2,267; however, single
charms are added over time, dividing the overall cost into manageable
increments.
Stow Lockets offers a similarly broad range, from its 15mm
classic locket in sterling silver that retails at $NZ155 ($AU143.83) to a 28mm
gold locket retailing at $NZ1,375 ($AU1,275.70). Its charms and earrings are
generally priced below $NZ100 ($AU92.80).
Louise Laing, founder Stow Lockets and Evolve Inspired
Jewellery, explains, “If you want customers to return, you need to offer
quality fashion jewellery pieces that customers still consider precious
keepsakes.”
Indeed, success in the fashion jewellery category is less
about price and more about developing a deep connection with and understanding
of one’s customers – why they shop, what they find appealing and how they buy.
As well as its quick turnover, versatility and
affordability, fashion jewellery offers several other key benefits to
retailers.
A constant evolution
Part of the appeal of fashion jewellery is it's ever-changing
nature. Curious and trend-orientated consumers from all demographics are drawn
to new collections.
This gives retailers an opportunity to regularly refresh
their merchandising and marketing both in-store and online to attract shoppers.
“Fashion jewellery brings consumers into the store as they
want to see what’s the ‘latest and greatest’,” Thompson-Carter explains.
“Stores that carry a great range of fashion jewellery can also gain a
reputation for being on trend and having the latest thing, and that’s very
important in our industry.”
Abbott agrees, advising retailers who stock fashion
jewellery to “keep their range fresh, changing their display campaign
regularly, altering the stock layout and adding new collections to keep regular
customers interested”.
“Our ranges release new collections twice yearly to keep the
brands up to date, in new fashion colors or styles,” she adds.
Kagi’s Nick Hoogwerf believes rapidly-shifting trends keep
the segment fun. “Fashion jewellery is such a popular category because it is
ever-changing; it will keep exciting both customers and sales staff,” he says.
“It’s a must for retailers to carry a range of products that
can be sold to any customer within the first five minutes of walking in. Not
all customers who visit your store are looking to invest in fine jewellery and
fashion jewellery enables you to make a sale.”
Hoogwerf continues: “Retailers benefit from a much higher
stock turn than with fine jewellery and this ultimately means your store’s
overall sales are more regular and sustainable.”
The category also has the ability to inspire loyalty and
repeat sales, not only through more affordable pricing but also through a key
consumer trend: customizable and personalized jewellery.
This has been a crucial element in Pandora Jewellery’s
repositioning strategy, known as Programme NOW. The international jewellery
company has specifically sought to re-emphasize the ‘collectability’ and customizable
nature of its jewellery offering, centred on charms – returning to the cornerstone of its early success.
“Fashion jewellery is affordable and accessible to all.
Customers are able to build up a sizeable collection of Kagi and other brands
and find enjoyment from layering and creating new looks from jewellery purchased
over a number of years,” he says. “This is beneficial not just for the customer
but also for the retailer too.”
Abbott agrees that constantly changing fashion trends offer
retailers the ability to sell multiple pieces across collections.
Mastering marketing
There’s always something new in the fashion jewellery
category, which makes it a natural partner for social media. Digital channels
can be used to communicate the latest trends as well as the products on offer
in an engaging, visual and ‘always-on’ way.
According to data from Roy Morgan, Instagram is the most
popular social media channel for Australian Millennials and Gen Z, while
Facebook is used by four in five people in all four main demographics: Gen Z,
Millennial, Gen X and Baby Boomer.
Pinterest, meanwhile, offers the most shopping-engaged user
base – split evenly over Millennials, Gen X and Baby Boomers. Worldwide, it is
the number-one driver of website traffic among all social media apps.
In designing a marketing strategy for fashion jewellery,
Thompson-Carter advises retailers to “invest time in keeping up to date with
what is on-trend and then communicate that using your digital channels and
social media. Let customers know you have the latest and greatest.”
Meanwhile, Laing emphasizes the benefits of stocking branded
fashion jewellery. Indeed, jewellery brands with their own strong social media
strategy can help retailers to cross-promote product through hashtags and
provide material like high-quality images.
When it comes to international brands, Abbott says social
media marketing plays a critical role in making consumers aware that these
products are available in Australia and New Zealand.
“All of our brands carry European heritage, whether it is
German, Danish or Italian, and all are well known and successful in not only
Europe but also in the UK, USA and Asia,” she explains. “These are brands that
have integrity and significant credentials and have stood the test of time.”
Ultimately, it’s important to communicate to consumers – and
jewellery retailers – that the fashion category is not disposable.
Instead, it offers the best of both worlds: pieces that are
highly-wearable and on-trend yet long-lasting at an affordable price point that
is accessible to all.
