The spreading crisis has induced jewelry companies to change their attitude towards advertising and promotion of their products. The trends which may be traced in mass media publications are not always new and not always generated by the crisis, but it is evident that it spurs the jewelry industry to concentrate its efforts pursuing well-outlined tacks.
In particular, there is an obvious change in gaining new advertising space: online companies are moving beyond the Web, while companies, which previously did not pay too much attention to it, started to use the Internet more aggressively. Viral marketing is one of the ways to use modern online technologies. Although some part of jewelry companies know how to use it, it is a relatively new thing for the jewelry industry as a whole and many companies are eager to try it out in their work. Luxury brands, many of which until recently were opposed to trading high-end products in such a democratic way, are now gradually changing their approach to online transactions. According to National Jeweler, last November online operations were started by Harry Winston. It stands to reason, that they will sell there their less expensive and less unique jewelry, which can be bought without the need to visit their store. While the highest-priced piece, a diamond "Sunflower Necklace," rings up at $135,000, many of the items, primarily small earrings and pendant necklaces, are priced below $10,000. Purchases from the site can only be made and delivered within the continental United States. The retailer's highest-end of pieces can be seen on the brand's main portal but are only available for purchase through Harry Winston's retail stores. According to the Luxury Institute's 2007 Luxury Brand Status Index, Harry Winston was rated as the leading luxury jewelry brand among uber-rich consumers, National Jeweler reminds.
TV shopping companies are vigorously trying to cultivate an advertising medium, which relatively new to them. Jewelry remains a key segment in TV trade, but in recent years it is Internet sales, not TV transactions, were the wheelwork generating profit growth more rapidly, National Jeweler informs in another article. In recent years, online sales of all the companies included on National Jeweler's $100 Million Supersellers list - HSN, QVC, ShopNBC and Jewelry Television (JTV) - have increased significantly. According to filings with the Securities and Exchange Commission, QVC's online sales as a percentage of total sales increased from 16 percent to 20 percent from 2005 to 2007, and ShopNBC's online sales jumped from 21 percent to 28 percent of total sales during the same period. JTV would not disclose online sales figures. However, Internet Retailer magazine recently named the company the fourth-largest online jewelry retailer of 2007 in its annual Top 500 listing of the largest online retailers, up from its ranking as the fifth-largest in 2006. Internet Retailer estimated that JTV's online sales were about $85.5 million in 2007 (18 percent of overall sales), compared with $70.2 million in 2006 (or 15 percent of overall sales). And while three-year figures weren't available for HSN, the retailer reported in a recent analyst presentation that e-commerce represented 33 percent of its total sales in 2007 (up from 31 percent in 2006), with Internet sales growing by 15 percent for the year. JTV completely redesigned its Web site in 2007, improving functionality and adding new features, including two new Internet properties: JewelryTelevision.com/Vault, a site for rare, high-end loose gemstones and unique jewelry, and JTVWatches.com, a site specifically for timepiece aficionados.
Some analysts and e-commerce experts believe that, while Internet sales are exploding in every retail sector, they are particularly strong in the TV shopping category because they represent the "next step" in direct selling for these companies - offering customers the same 24/7 at-home shopping convenience they have become accustomed to via TV shopping, yet presenting a more interactive experience than on-air TV shopping, National Jeweler says. Many of these same experts have maintained that on-air TV shopping reached its peak in the 1980s and 1990s and has been stagnant in recent years in the face of rising e-commerce sales. However, executives at several of the major TV shopping networks say on-air shopping has yet to hit its pinnacle, and that they believe on-air online sales are complementary in helping to increase overall sales of jewelry and other categories. In addition to on-air shopping and e-commerce, JTV sells its product through print catalogs. JTV's multichannel marketing strategy also includes online auction and clearance sections to complement its regular online sales format.
According to Rapaport News, Blue Nile is following expert search-engine-optimization advice, doing everything right to keep their name out there as consumers go online to shop for diamond rings. Search engine experts advise issuing weekly or, at the very least, monthly press releases to keep readers’ chosen brand coming up in online searches. These online press releases also boost readers’ page ranking through automatic links.
According to IdexOnline, diamonds are among the most popular categories in online trade in India. According to the report, diamonds, gemstones and jewelry were the category ‘most purchased’ by online women shoppers followed by apparel, women's accessories and health and beauty. The online retailer reports that a piece of jewelry sells every 6 minutes on eBay India, and that there are over 25,000 live listings of jewelry at any given point of time. Sellers range from established brands like Adora, Sangini and D'damas to micro-entrepreneurs. On an average day, a loose gemstone or diamond sells every 15 minutes on eBay India, a ring sells every 44 minutes, a jewelry set sells every 54 minutes, a necklace, choker or Mala sells every 65 minutes and a pendant sells every 68 minutes. Gold, Diamond and Pearl are the most searched items in the jewelry section. The guide, which analyses the online behavior of shoppers and sellers in 28 states, six union territories and the top 100 cities, notes that over 2,427 cities in India had online transactions during the year.
