By now you’ve read that nearly 900 jewelry businesses shut their doors in 2017. These included 706 retailers, 109 wholesalers, and 71 manufacturers. Another 151 companies either merged or consolidated and there were 29 companies that filed for bankruptcy. Although these figures represent a large decrease from 2016, it still says a lot about the state of the industry.
But what does it say to you? Are you in the mood to stay in or go out?
One of the most frequent questions we get in our consultations with fine jewelers is what the future of the jewelry industry is going to look like. Is this the beginning of the end for independent retail jewelers? Will synthetic diamonds overtake natural diamonds like cultured pearls replaced natural pearls? How do I attract and retain the loyalty of the Millennial Generation? Is bricks and clicks really the way to go? Will the Internet continue to take market share at its current pace? Will margins continue to shrink in other categories like they have in diamonds?
These are all legitimate questions that demand an answer for those jewelers who are passing the torch to a younger generation while still dependent on a retirement income from the business. The majority of businesses that are closing today are doing so because many jewelers are reaching retirement age and there is no “next generation” to take over. It’s a natural process, and people must do what they need to do. At the same time, when jewelers decide to shutter their doors in your community, what are you doing to capture the market share that they have left behind?
I can’t tell you what to do, but I can suggest a host of options that are available. At The Gordon Company, we are here to help you navigate the challenges ahead with recommendations that will help you go out with financial freedom or stay in to compete for the added market share left by your competitors. The choice is yours, and we are here to help.
If you need a second opinion or an outline of options at your disposal, please let us know. Our goal in business and in life is to help fine jewelers achieve the results they desire. We look forward to serving you.