If You are reading this line, I challenge you—You are dis-satisfied with your business and want to grow it further.
Whether Modi and his Uncle are finally brought to justice or not, one thing has surely changed for the jewellery industry and all businessmen in India. The good old days of business, easy bank credit, are gone. The faster we accept this, the better we will be compared to many others.
Whether it’s the bank offering credit, OD, LC or LU on a small collateral or maybe even the vendor community offering stocks on credit will slowly come down”. Nobody can say, what will happen to the external world, and we the jewellery community can no longer expect to have an easy time.
Do you agree?
Having worked with over 150+ businesses in the past 6+ years, understanding what makes them so successful and sometimes more stressful too, I believe it is the right time to “shape up” the business, when there is still time, or sooner than later, we will have to “ship out” of the business altogether.
Small independent jewellers are facing tough challenges. Fewer customers, competitive pricing, tough competitors (Zero Making, Hall Marked Jewellery, Good finish) are already a reality in the South India Market.
Competition from other categories like holidays and mobile is now old news. Besides, such competition will only increase.
Here are the top 3 things you can do, before year end.
* Inventory Management. Smart jewellers, who bargain for every rupee with their vendors and customers have inventory, that is years old. In-fact, one jeweller from Delhi, proudly told me that he has Plain gold jewellery stock that is 10 years old! All this, when the opportunity cost is about 24% at the least and the margin on gold jewellery is less than 5%.
If you calculate the opportunity cost of having 10 years old stock and sitting in the store on a Sunday evening waiting for customers to come in, then the importance of inventory management becomes a “wake up call”.
Action point: Clean UP, now.
* Customer centricity. Once upon a time (2017), you could still have customers who came to the family jeweller, because their mother, their grandmother bought from you based on trust! With the young customers, buying for themselves, they decide .They are caught in a bind of EMI—Multiple houses, cars, school kids and no time. Their jobs are no longer secure. A decision taken in USA can have an immediate impact on their jobs in India. This is for those working in some fancy MNC. Less said about the Indian IT companies, which are dependent on the USA and European industry for business.
The modern traditional buyer of jewellery—the 30 to 45-year-old working woman is feeling the stress of the job & family, and is no longer buying, unless it is necessary.
Action point: Build a program around connecting with your customers, not just when you want to sell but also on an ongoing basis. Their festivals, birthdays, family events etc.
* Staff Management. Unless, you have such a small business, where you are interacting and closing every sale, you are surely dependent on the front-end staff to make the sale and the back-end staff to make sure, the rest of the business works.
Action point: Call your staff and have a chat.
What do we need to do to achieve the business targets, and what support you need to provide them, to help them achieve in target achievement?
You will be surprised that how simple things can make a difference.
Retail Gurukul team of Consultants and Trainers can help you achieve your goals. Call Shivaram, Founder Director of Retail Gurukul on 9036036524 for a free consultation or ask to join our One Year Retail Owners Gurukul Program now.