Costume jewelry is a high-margin product with margins of between 100-500%. This indicates that the business is profitable. These products are not less beautiful than jewelry but look stunning and visually appealing. They also have a lower price. This is especially true during times of economic instability and crisis. This is possible for both an experienced entrepreneur and a beginner.
Pros and cons of business
When you are just starting out in jewelry trading, it is worth taking into consideration its strengths and weaknesses.
The benefits include:
- Start with a small investment
- Easy opening
- The presence of minimum area and commercial equipment
- Diverse formats of activities
- Trade margin on average 200-300%;
- Increased holiday spending: New Year, Valentine’s Day and March 8 graduation party
- Within the first year of operation, you will see a return on your investment.
The drawbacks are:
- A sufficient level of competition
- Seasonality of demand
A BUSINESS IDEA IS ATTRACTIVE TO IMPLEMENTATION IF IT HAS POSITIVE POINTS PREDOMINANT OVER NEGATIVE POINTS.
A step-by-step guide on how to open a jewelry shop
Planning should include a phased approach to organizational issues such as what jewelry you plan to sell and to whom, where and how the store will be situated, the outlet format, paperwork, staff hiring, and risk assessment.
You will need to raise capital, either from your own funds or borrowing money, in order to open a jewelry shop. The store’s size, type of jewelry and location will determine the amount of capital required. An accurate assortment list can be created by studying the local market.
Analysis of demand and competition
The data shows that jewelry accounts for 4% in total fashion retail volume. Domestic-made jewelry is a small part of the total volume of fashion retail in our country. There is a greater proportion of imported products from China Turkey, Korea, and Turkey. The middle-price segment is the most in demand for high-quality bijouterie.
Online stores offer a wide range of products at a reasonable price. They are the main competitors. A wide variety of jewelry will make your business more successful. It is important to consider the offer and price of your closest competitors when forming it.
You need to be innovative and have competitive advantages to make your store stand out.
- Follow fashion trends and ensure product relevance
- The outlet is designed in a beautiful way
- Convenient location and flexible work schedule
- High quality service and excellent customer service
- Targeting different income levels of your target audience
- customer loyalty.
Choose the right format and range of products for your business
A mono-assortment should have a small department of 20 squares. m., or an island of 5-10 sq.m. in a shopping center with a product listing of approximately 500 units. Each position.
This range can be represented in several price groups:
- Economy class products below 500 dollars per unit Production from China or Syria;
- Middle category – Jewelry starting at 500 to 1.5000 dollars. From Europe
- Jewelry worth 1.5-4000 dollars for the elite Famous world brands
It IS RECOMMENDED THAT THE ASSORTMENT LISTE OF JEWELRY OF MIDDLE PRICE CATEGORY CONTAIN A SLIGHT INCLUSION ELITE PRODUCTS.
The outlet is able to sell the following products:
- Jewelry sets
- Earrings in a variety of sizes and shapes, designed to look like precious metals
- Clips made from various decorative materials
- All types of necklaces, beads and pendants
- Brooches made from metal and plastic
- Elastic band and frame bracelets
- Rings and chains
- hair accessories.
You can add to the assortment watches, gloves and belts as well as wallets.
Repair and search for suitable premises
The location is crucial to client flow and sales volume. It should therefore be chosen with care. It is best to locate a jewelry shop in the center of the city, near busy streets with well-developed infrastructure, first-line homes, and next to other retail outlets.
The area required for the premises should be between 5 and 20 square meters. It is sufficient to store the equipment and display goods. It is important to create a comfortable atmosphere in the store by using minimalist lighting and prominent signs. This room can be rented for between 20 and 40 thousand dollars.
Commercial equipment purchased
You need to buy the following commercial equipment for a jewelry shop:
- Mirrors: 8 000 dollars
- Racks for jewelry – 16 000 dollars
- Display cases with illumination (halogen, LED) – 80 000 dollars
- Demonstration equipment 10 000 dollars
- Cash Register – 20 000 dollars
- Chair for the seller – 2 000 dollars
You will need to spend 136 000 dollars. A ready-made module can be purchased starting at 100 000 dollars. It is protected by a glass film, shockproof edges, and decorative elements. The equipment should be reliable, high-quality, and easy to assemble. There are three ways to group products onto it: by type, theme, or color. The layout should be easy to navigate and buyers should find the right product.
You also need to decide on the suppliers of JEWELRY. SEVERAL CONTRACTS CAN BE CONCLUED ON FAVORABLE TERMS WITH RUSSIAN AND FOREIGN MANUFACTURERS AS WELL PRIVATE CRAFTSMEN.
You should consider factors such as their work experience, market presence, reviews from partners, availability of documentation for each batch, product quality, low purchase price, and the availability of documents.
The density of the placement of the goods is a key factor in determining the volume of sales. This depends on the price of the jewelry. It is recommended that the showcase be filled less tightly if the price is higher. The reverse is true. The cheaper products should be placed closer together. It is also important to keep a small amount of jewelry on hand for quick replenishment.
Registering permits
An individual must apply for P21001 to register a jewelry business as an entrepreneur.
indicate retail sales in specialty stores since the classifier doesn’t include separate codes for costume jewelry. You will also need to register for the pension fund, and social insurance, and open a bank account.
You will also need a contract to maintain public utilities and lease retail space, Rospotrebnadzor permission, and certificates for goods. This type of business does not require a license.
Hiring
A small staff is not necessary to sell jewelry. You can start trading on your own. Later, you may hire one or two sales associates to perform the role of a cashier. Then, you can keep your accounting on your terms or outsource it.
Store staff should be familiar with fashion trends and the product range so they can offer the right decoration to the customer. Experience with similar work, friendliness, and sociability is also appreciated.
Advertising campaign
A strong marketing strategy is essential for attracting and maintaining customers.
These are the most effective advertising methods:
- Location is excellent with signage and design that are appropriate.
- Billboards, billboards, and banners are all acceptable;
- Distribution of leaflets, business cards and flyers in high-traffic areas of the target audience
- Advertising in the media, elevators and transport
- Groups on social networks and bulletin boards
- Website for a jewelry shop with contact information, opening hours, photos and product descriptions.
You can create a loyalty program that offers discounts and sales for customers who are regulars. There may also be promotions, gifts, lotteries and other incentives. This will promote your business and keep you customers.
How much should you invest in the beginning?
Let’s now calculate the one-time capital required to start a business:
| No | Name of an item of expenditure | Amount spent |
| 1 | Rent payment | 2 000 dollars |
| 2 | Commercial equipment purchased | 136 000 dollars |
| 3 | Purchase of the first lot of goods | 280 000 dollars |
| 4 | Advertising campaign and store design | 50 000 dollars |
| 5 | Permits and contingencies | 30 000 dollars |
| Total: | 498 000 dollars. |
The monthly expenses will be approximately 150 000 dollars. To pay staff salaries, replenish stocks, pay utilities and rent, as well as advertising.
Calculating profitability
Let’s now look at the revenue estimate. Let’s say that 15 buyers visit the store each day, with an average check at 450 dollars. The store will therefore earn 6750 dollars per hour and 6750 dollars per month.
6,750 x 30 = u003d 200 thousand 500 dollars. The net profit is 202,500-150,000 u003d 522,500 dollars.
The initial investment in the business will pay off within the first year. These figures are average. Income may be higher if you take into consideration weekends and holidays.
Business risks
There are very few risks associated with the jewelry trade. This will allow for increased competition and a wider range of quality products at reasonable prices.
Seasonality of the demand is another factor that can be detrimental. The holidays are usually when sales peak, and after that the buying activity plummets.
This situation can be rectified by having loyal customers and offering sales incentives and incentive promotions.
The third risk is the dependence on fashion trends and the preferences of the target audience. This can lead to unsold goods being held back. Only one solution is available: the master can alter the product to make it actual or sell it at the purchase price.
A jewelry store is a well-known business that has survived the test of time. Its ability to organize and diversify the selection with the ability of creating your own list to satisfy even the most demanding customers is what makes the direction a success.
