“Jewelry e-tailers get personal” |
| Jewelry e-tailers get personal Posted: 08 Aug 2010 07:27 PM PDT By Catherine Dayrit May 21, 2010
The e-tailers have got the brick-and-mortars beat on price--no small consideration in these recessionary times--but the physical stores rule in customer service and the ability to let customers see and touch pricey pieces before plunking down the cash. Yet a new generation of online companies is seeking to up the ante on Web 2.0 and make the shopping experience one that is more interactive and up close and personal--albeit through the use of technology--in ways that brick-and-mortars are not. Design-it-yourself Perhaps the most salient example came in February with the launch of Gemvara, a company offering myriad customizable designs online and allowing visitors to create the jewelry of their dreams-at discounted prices. Using a virtual inventory of thousands of pre-designed fashion and bridal rings, necklaces and earrings, customers can search by style, gemstone or designer and, with the click of a mouse, customize the stones and metals to fit their tastes. A photo of the design changes with each click, as do prices, with pieces ranging from silver studs under $200 to diamond-intense engagement rings pushing six figures. For each design, Gemvara plays up the deal, with "Price" noted above a crossed-out "Retail value." If the mechanics of the site seem familiar, it's because the technology has its roots in Paragon Lake and its Virtual Display Case (VDC), which allows brick-and-mortars to offer up a virtual inventory to customers in-store. With Gemvara's launch, what was once known as "Paragon Lake" is now officially "Gemvara," and the company's sights have shifted from strictly dealing with the trade, to the opportunities offered in retailing direct to consumers. "The slowdown in in-store traffic has been big," Matt Lauzon, founder and president of Gemvara, says. "We saw an opportunity to absolutely wow consumers with an experience that goes above and beyond what they're expecting online." This is not to say the company has abandoned its retail partners, which do continue to use the VDC in-store. The difference is that Gemvara is not courting new retailers to the program. A handful have, however, partnered in the new site. "What we've done is we're focusing on retailer-designer partners who also do custom work in their stores," Lauzon says. "We see a huge opportunity for designer-retailers to get some of their work featured nationally or beyond." Test drive engagement rings Despite new levels of interactivity, some customers are simply going to be uncomfortable shopping for expensive jewelry online. That's something that Eli Rendler, chief executive officer of e-tailer Eternity Diamonds, understands well. "We don't mind if you buy the ring and return it, there's a free refund, but people don't want that headache of putting thousands of dollars on the credit card," he says. "In today's economy, no one's interested in that." Earlier this year, Eternity Diamonds launched its "Try It Before You Buy It," program, providing bridal shoppers with sample rings featuring high-quality cubic zirconia and rhodium-plated metal. After narrowing their ring selections on EternityDiamonds.com, customers have the option to checkout up to three sample replica rings, which will be delivered at no cost. Customers can keep the rings for up to 10 days before sending them back in a pre-paid return envelope. Given the program's recent launch, its full potential has yet to be seen, Rendler says, but he says the company is "happy with the response" and that so far, "customers love it." Of course, cubic zirconia and rhodium are no match for diamonds and platinum, and that is something Eternity Diamonds notes in written materials sent with the replica rings. "Obviously it doesn't compare to walking into a store, but it's one step closer to the customer," Rendler says. And with an ever-increasing number of bridal consumers researching online, it's a move that might convert online lookers into buyers. "When you see something and it's love at first sight and you feel the glitz and glamour, that's what makes the sale for the average jewelry store," Rendler says. "We know we're missing out on that, but [our] concept is the feel [of a piece]. People don't know the size-how high the diamond is, how wide the band is." Getting a feel for jewelry they may not actually buy is something that consumers can also do via Avelle, previously called Bag Borrow or Steal. The premise of the online business is that consumers can keep their options open, testing out various brands and trends by renting out jewelry and other accessories. Among the priciest of pieces is Roberto Coin's diamond "Spray Collar" necklace. The white gold design retails for $24,000, but rents for $270 a week. It's not small change, but for once-in-a-lifetime occasions, from weddings to red-carpet events, it can be well worth it, or at least plenty of consumers seem to think so. According to Dana Palzkill, senior vice president of product management, the response since launching the jewelry category in 2007 has been "tremendous." The site counts well over 1.5 million members and offers both costume and fine jewelry from the likes of Charriol, Gabriel & Co. and Judith Ripka, among many others. The typical customer is female, and "tends to love to rent the very fashion-forward items," Palzkill says. It's a trend that's not so surprising given market shifts over the last year, with retailers over the holiday season repeatedly citing sales of classic designs, such as stud earrings and diamond pendants, versus fashion pieces. Renting, of course, gives customers the chance to test-drive items that might be in style this season and out the next, and it also helps introduce new shoppers to established brands. Of course, there's always a chance that a customer could fall in love with a design, and in that case, Avelle allows purchases, though that isn't the business's focus. "We're not in the selling business," Palzkill says. "We look at it as a customer service." Expectations can make it or break it According to Gemvara's Lauzon, running a thriving online jewelry business comes down to one factor. "It's certainly all about the customer's expectations and meeting those expectations," he says. "We focus a great deal on what the customer's seeing on the Web site [and how that] reflects the high quality we're going to deliver, the great design work the designer has done." A 30-day window allows consumers to return the design if it does not meet their expectations, but to cut down on returns, the company is focusing on making the site's imagery as realistic as possible. While there will always be consumers who prefer building a relationship with jewelers in-store, Gemvara is seeking to change up the status quo of the online experience, which the company sees as being very much ripe with future potential. "Online, people are so used to seeing things as a catalog," Lauzon says. "When this piece of jewelry is in front of you and it comes alive, it's unbelievably exciting, and they're eager to purchase and talk about it. We have a really strong philosophy. It's such an emotional purchase, and people don't have to settle. We try to reinforce that all the way through." This story first appeared in the May 2010 edition of National Jeweler. Five Filters featured article: "Peace Envoy" Blair Gets an Easy Ride in the Independent. 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