Giftware: Does it still have a place next to jewellery?

by charlene_voisin | August 1, 2013 9:00 am

By Jennifer Hopf

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Being a successful jewellery retailer involves looking past the big bling purchases. It’s about setting your store apart and giving your customers more reasons to shop.

Maybe it’s time to re-evaluate an all-but-forgotten category: giftware.

Giftware can still be a relevant category for jewellers, especially for instances when jewellery might not be an appropriate gift, says Stuller’s public relations manager, Randi Bourg. Picture a rich walnut jewellery box or an elegant fountain pen. The experts say they can be great alternatives, even heirlooms, to eventually pass down.

Elizabeth Marwick, president of Ambiente Promotions, echoes this sentiment. “Some people can’t necessarily afford an expensive watch or a really great piece of jewellery, and the accessory products are just as personal and just as fabulous a way to make a statement.”

Out with the old

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While some customers may appreciate fine gifts, industry experts believe items along the lines of silverware and crystal have simply fallen out of favour with consumers.

“For some reason, that customer has evolved into something else,” says Marwick. “And it’s a shame; it’s that traditional aspect of the jewellery business that’s just gone.”

So how have these customers evolved? They are certainly more brand-conscious. As a result, more companies are branding their products and setting up their own exclusive stores.

“You might have seen crystal in stores in the past, where now you see Swarovski stores,” says Sandi Babineaux, Stuller’s packaging and display manager. “With that said, I think as the economy went down in our industry, a lot of retailers started adding gifts back in as a way to drive traffic to their store.”

Alex Simmons, owner of Dolly Jewellers in Toronto, says it’s vital to diversify your merchandise, rather than stick to only traditional, focused product lines. Adding new products and seasonal items is a great way to keep customers interested and coming into your store.

“Many giftware items are bright and colourful, and can certainly draw attention,” Simmons says. “In some cases, this is all that is necessary to bring a passerby or window shopper into our store. While some simply like to look, others certainly choose to buy.”

Adding on and planting seeds

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Now that you have the customer in your store, it’s important to foster a relationship. Offering additional services and conveniences certainly encourage the customer to buy, while also helping to build their trust in your business.

“If they know they can come in and buy a humidor, a watch winder, a jewellery case—it’s convenience; it’s building that relationship,” says Babineaux, who adds this tactic may just help sell that next big diamond.

And once you’ve closed that sale, there’s no reason to stop there. “You’ve created that relationship and that trust in selling them the perfect engagement ring they thought so much about—why not try to sell them gifts?” she suggests.

When choosing what gift items to carry, tailor your lines to reflect the services you provide or your top-selling jewellery pieces, says Brittany Parrott, a Toronto-based jewellery appraiser and gemmologist.

“Figure out what niche your store fulfils,” she notes. “Take the watch customer, for instance, the collectors of the jewellery world. They are always looking for that next unique item.”

This is where items like watch winders can come into play. Marwick explains that as more brands create automatic watches, retailers are catching on that they are a great add-on sale. Even cigar stores and interior designers are clamouring to sell them.

Investing in collectibles

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While the old ways of the jewellery world may be fading, it is the customers with particular tastes who are spurring a resurgence of a handful of traditional gifts, albeit more useful ones.

Writing instruments are a great example of this, Marwick says. “You can have your pen with you all the time,” she explains. “Certainly with fountain pens, they have not been the norm for many years, but there is still a group of people who are very keen on them and interested in showing and sharing”¦ I think it’s because they enjoy that sort of traditional pen-to-paper experience.”

Quality products such as these have long-term value and are easily collectible, making the purchase an investment for the consumer.

Some retailers, however, are not entirely convinced. Peter Herbin, president of Herbin Jewellers in Nova Scotia, feels big-box stores have made it a challenge to sell certain products like pens. Still, he hasn’t given up entirely on the category. He does carry some higher-end giftware lines, but warns other retailers to be vigilant about staying in fashion. This goes a long way in attracting the younger demographic, as well.

Bourg agrees. “Today’s generation is ‘all about me'”¦ the more personal and intimate you can make a gift, the better.”

With technology making it possible to monogram or engrave practically anything, it’s easy for retailers to use it to their advantage.

Then there’s the classic jewellery box, a traditional gift Stuller focuses on. Through the years, it’s been the most requested because it’s directly related to jewellery. “Sell a jewellery case and help them load it up,” says Babineaux.

Real estate meets retail

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It’s essential to carry items at lower price points as well, to attract those buyers dropping in for a quick gift.

“A beautiful selection of giftware can be assembled and displayed for minimal expense,” says Simmons, who adds his customers lean toward purchasing product from Canadian suppliers. “These products may be sold at reasonable prices, while still maintaining profit margins.” The question now is how to display this inventory to optimize sales.

Marwick says it’s all about understanding the real estate within the showcase. It can be hard to justify displaying one large gift item over several smaller jewellery items that will bring in a higher profit.

One way around this is to invest in demo units. Watch winders are a perfect example, Marwick says. “It doesn’t matter if they get handled or scratched or even stolen for that matter; they can be left out on the counter,” she explains. “They show what a watch winder is and what it does. Yet, they don’t take up that coveted space within the showcase or on a display shelf.”

Set your store apart

For retailers looking to differentiate themselves, offering unique giftware is certainly one way to do so. “If you go into 10 stores, the vast majority of them all sell the same inventory, or at least the same brands,” Marwick points out.

How will customers choose which store to buy from? It’s pretty straightforward, Simmons says. “One key element is to become the destination your customers repeatedly return to—regardless of the event or occasion—knowing you will have that appropriate gift item.”

Jennifer Hopf is a copywriting specialist and freelance writer based in Toronto. A journalism graduate from Durham College, she is now focused on feature writing for magazines, with a passion for the jewellery and luxury industry. She is also savvy in social media and digital content marketing, and has a background in retail sales.

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