You have a jewellery showroom with a large Jewellery collection. Hallmarked gold jewellery, Certified Diamond jewellery, Solitaires, all vie for space in your counter display. The collections look very attractive but you know the huge investment you have made. But tell me, how much of this is deadstock? How much of this jewellery has been lying under lock and key for several months, escalating your inventory costs? Is the deadstock of inventory in the showroom, your #1 problem? Here are the few Retail Inventory Management Tips to manage Deadstock in the Jewellery Showroom.
Deadstock in the jewellery industry
Every retail industry has retail inventory management problems but this is extremely acute in the jewellery industry due to the following reasons.
- A sizeable amount of jewellery stock in various designs is a must for jewellery showrooms in order to have a good display as well as compete with the neighbouring jewellers.
- Jewellery is a high investment business running into crores of rupees and many kgs of gold and cannot be kept in inventory for months together as it equates to locked capital and rising interest on loans taken.
- The jewellery trade is a fluctuating market with fluctuating gold prices which requires quick liquidation of stocks to avoid loss.
- Customers are always on the lookout for new trends and designs in jewellery.
10 ways to Retail inventory management – clearing deadstock of inventory in jewellery showrooms.
1. Offer a bundled bargain
- One way to get rid of deadstock in a particular category is to bind it to a product which is fast moving. For instance, let us assume that gold bracelets are not moving fast right now. But gold chains and rings are always sought after. Offer all 3 – a gold chain, a bracelet and a ring – together as a package at a discount price.
- Specify clearly that this discount is valid only for the group purchase and not individually.
- Highlight that it is a limited period offer.
Watch your bracelet stocks plummet as this campaign takes off.
2. Offer daily deals
- List out your inventory on a daily basis. Target the “really dead” ones and offer discounts on these as daily deals.
- Keep these deals changing on a daily basis to create an urgency and limit the products on daily deals to just one or two. By this, you are limiting the shopper’s choice and creating a rush to make them shop the product, today!
3. Create a hype or urgency
- One trick to offload excess stock is to create a hype for it. For instance, ” Rajasthani Kundan goes rare!” — this could be your marketing byline.
- Evolve a promotional strategy around Kundan jewellery and offer special discounts for a limited time period.
- You can also create an urgency by declaring “Kundan stocks- Limited! Only 2 chokers and 3 kangans left!”
- Emphasize the cost savings during this offer.
Your kundan collection will soon be empty after this propaganda.
4. Discount coupons
Create a webpage with discount coupon codes. List the coupon codes only for deadstock items offering them for a limited period. Some shoppers are crazy on deals and these discount coupons will surely lure them.
5. Discount sales at jewellery expos
Participate in jewellery exhibitions and offer special discounts on sales made at your counters there.
6. Sell it in bulk to other retailers
Some retailers might be willing to procure your deadstock at a lesser rate. If you sell your deadstock in bulk, you will not feel the pinch.
7. Shift stock to another location
If you have a chain of jewellery outlets at different locations, this idea will work out for you. Shift all your deadstock to another branch where this might be needed. By doing this, you can even create a “demand” for this stock.
8. Return stock to the supplier
Always have an agreement with your wholesale supplier to return stock which is immobile for more than 6 months at a marginal cost difference.
9. Separate stones and gold
Melt the jewels, extract the precious stones and use gold separately to sell as coins or to make new designs.
10. Old designs in a new dimension
Revamp old designs by making minor changes in their design. Or simply rename them as new and exotic style statements with a powerful social media campaign.
Jewels are precious ornaments glittering with life and lustre. Don’t allow them to accumulate dust as deadstock. Enrol in the Retail Gurukul’s online course on Retail Inventory Management today to gain such valuable inputs.