Keep the conversation going…

The vital thing in problem-solving is finding the right kind of people/experts who can help solve them and that’s where The Retail Jeweller can help. Take a look at some of the questions asked by the retailers and how it has been answered by the experts.

–Manoj Chakraborty

Question: The biggest difficulty our industry faces today is a shortage of skilled labour. The sales workforce doesn’t get the training it needs to handle customers perfectly, and this hurts sales. Experts in professional training are few in number and would be expensive for us with our large workforce. The typical one-day training session, I think, is not sufficient to give the workforce all the skills it needs. What is the best way to deal with this situation?

Amol Bansal, Director, B K Saraf Jewellers, Lucknow, UP

Answer: A shortage of trained workers certainly can impact a brand negatively, even if it possesses the other advantages of right products and pricing.

There are three ways to address the issue:

1) Find a group of like-minded retailers who share your concerns and believe in the power of training. Together you can form a large batch, and bring down the cost per head. Beyond cost savings, such a grouping will allow your staffers to absorb the best practices from the other retailers. Try to collaborate with progressive-minded jewellers, even if they are located in another city in your region. It is likely that they will welcome this opportunity to upskill.

2) If a collaborative approach proves difficult, try “training the trainer”. Pick your star performer and invest in upskilling them. Not only will this motivate and energise a valuable employee, they can then help train your other staffers. Combine this approach with a one-to-one mentorship programme that connects junior and senior staff, to set off a virtuous cycle of human resource capacity-building.

3) You can also have regular role-plays and self-study time for the staff members, to be followed up with mandatory tests. Developing study material is a one-time expense, and the content can include almost anything you wish your staff to know: product knowledge, brand history, sales techniques, etc. Many retailers have developed such course material in-house, and are using it very effectively.

The Retail Jeweller Market Intelligence unit.

Question: By dealing directly with consumers, some manufacturers today are able to bill lower making charges. This practice affects our sales and profits. As retailers, we can’t afford to lower our prices, and as a result we risk losing our customers. What should we do?

Deepak Jain, proprietor, Sanmati Jewellers, Delhi

Answer: Such a scenario, where suppliers look to make a quick profit at the cost of retailers, is unique to the jewellery industry. No other retail industry worries about its suppliers becoming its competition.

But you have to understand, manufacturers do not have any brand equity. As a retailer, you have the advantage of continuously engaging with your consumers.

You can create a conversation, and use it to market your brand’s history and lineage as well as your services. You can indulge your consumers more regularly by organising more in-store events. At these events you can showcase the variety of your products, which is likely to be greater than anyone manufacturer can marshall. Manufacturers typically specialise in specific categories and are also not adept at handling customers.

The Retail Jeweller Market Intelligence unit.

Question: With the sudden spike in gold prices over the past month, the appeal of gold has diminished. People have almost stopped buying gold. They buy only when there is a need. What can we do to prevent gold from sliding further in the coming days?

Rajesh Sahoo,  Director, Jaihind and Sons Jewellers, Rourkela,  Odisha

Answer: First, combine two of your activities. Create designs in the everyday-wear fashion category. Simultaneously, launch a social media campaign to position/reinforce gold jewellery as a fashion product.

Second, launch a tempting exchange offer for old gold. Make it easier for consumers to bring in old gold so that you make fresh sales and keep the stock and your business turning over. You can also hold gold design festivals for specific categories like Bangle Mela, Mangalsutra Mela etc. These will give consumers that extra reason to come in.

The Retail Jeweller Market Intelligence unit.

Question: Lab-grown diamonds are entering the market in huge numbers. What will happen to the natural diamond industry?

Vikram Kapoor, owner, Ganpati Jewellers, Kolkata

Answer: The future is not predictable. These are very early days for lab-grown diamonds. You have to believe that each kind will find its own market.

Keep in mind that, even today, the supply of lab-growns is not consistent, which makes it difficult for manufacturers to plan their jewellery production. It is difficult to create a market for a category that cannot depend upon a consistent supply of gems in specific shapes, sizes and qualities. Any urgent worry on this issue, therefore, is not for the near future.

Having said that, Lab-grown diamonds gradually are increasing their presence in the market. The hope is that retailers will position this category in such a way that a new segment of consumers takes to owning these diamonds.

The Retail Jeweller Market Intelligence unit.