How do shops go online?

By ibcsz 2020.03

01. on The Offline Channel, Online Channel Needs to Be Developed

In the beginning of 2020, the pandemic of COVID-19 badly affected the offline channel which was a great damage to the jewelry industry. During this period, some adventurous companies choose to move online.

Difficulties are often encountered during business transformation. For jewelry companies, it is always difficult to find a way to internet.

1.As large-scale multi-brand jewelry companies with thousands of stores across the country, it is extremely difficult for them to make a U-turn.

2.The traditional retail system is not able to make a full digital analysis. The previous system has been used offline for a long time and was the inertia of success path dependence.

3.The industry is traditional. It is also true that jewelry is expensive, in low purchase frequency and experience-oriented, which is not easy to be sold online.

At present, the most common question for jewelry companies is: Should We Go Internet?

On one hand, the post-90s generation has become the main part of consumers, and they have become accustomed to online shopping. On the other hand, there are many middle links in the jewelry industry. Going online will de-intermediate these links and leave more profits to customers.

After thinking, a new retail line which is independent of the offline one was born--all products are different from the needs of the original offline customer group, and the weight, style, and concept are all based on the needs of online customers.

1.Coexistence of quality and beauty: Focusing on young people's aesthetics and matching causal life and emotion.

2.Brand-new selection and pricing system: Online products are concentrated on affordable luxury goods around 1,000 yuan, and diamond rings are around 3,000 yuan.

3.Compared with offline, products for online sales would have more styles with fast updating speed.

With the new retailing channel, shops and shopping guide can get better service as online and offline channel are complementary that using existing private domain traffic to increase the sales volume.

02. Empower the Stores to Encourage the Enthusiasm of Shopping Guides

Retail stores across the country can share the general warehouse inventory, and "salesperson" is a key role of the warehouse. Store guides can register as “salesperson” to enter the general warehouse and select goods to share product links in their WeChat groups and WeChat Moments. When customers successfully place an order, “salesperson” can get commissions. With this way, the store guides have become sales experts, and the store's ability to acquire customers has increased sharply by offline stores online distribution strategy.

How to manage it?

The most important thing is, focusing on the best-selling categories in the selection and adding high-value-added jewelry to increase the unit price per customer. Here are two steps: First, expand the inventory by selecting a large amount of goods throughout the industry and focus on supplementing the young fashion products with high value and affordable prices. The second is to add some high-value jewelry with a heavy weight, more like luxury products with design sense as supplement.

Secondly, take the store as a unit to ensure the interests of franchisees and improve the enthusiasm of employees. Adding franchisee to the new retail system and putting the total sales of all the shopping guides under the shop’s performance while the franchise can enjoy the share of goods.

Finally, provide a high percentage of commission for shopping guides. For example, at present, the commission rate of most of the shopping guides is about 3%. Under the “salesperson” system, the commissions of shopping guides may increase to 10% to 20%, which will encourage them to sell product.

03. Thousands of Hosts and Shop Selling Jewelry Online

Sales expert upgrade to “Influencer of driving sales”

During this time, the live broadcast has also become one of the popular choices for "self-rescue" in jewelry stores. On one hand, livestreaming is conducive to interaction, which is easy to attract new customers and to maintain the relationship of old customers. This is a good way to break through the difficulties of shutting down period. On the other hand, the team is also able to see real performance in the industry.

1. Define Style by the Characteristics of the Region and Consumption of the Store.
The areas with strong consumption power are mainly based on professional content instruction. In counties and prefecture-level cities, more promotion information will be released more in live broadcasts. There are three specific styles:
a) Designer Background ——Expert
b) Drainage of Emotional Topics ——Spiritual Masters
c) Attraction of Benefits and Discounts ——Direct Sales

2. Establish a Training System for Influencer.
Jewelry e-commerce livestreaming is still a nascent field that talents are missing. A qualified influencer requires professional knowledge and good communication skill, so the cultivation of influencer is very important.
a) Comprehensive Course: including live mentality, literacy, mentality, skills and how to set up a live broadcast room, how to start a live, the rhythm control, stock up, product selection. This is a whole set of system which covers all aspects.
b) Personalized Layering for Shopping Guides: entry level, advanced level, professional level of novice division lead to different training contents.
c) The Content is Based on Experience Sharing: instead of lectures by lecturers, professional anchors of the industry are invited to share experience.

04. Built the Communities of High Conversion

Due to the store's customer accumulation, most of the members in the community are old customers. Usually, shopping guides will maintain old customers through birthday benefits and product recommendations. For this group of people, the foundation of trust of the brands will be the key of joining the community group. The retention and maintenance are also critical. What should the store do? Please refer to the following practices:

First, regular carry-out of community activities, such as calendar sign-in and lottery to improve community activity.

Third, hot selling atmosphere creation and conversion path cut-down.
a) The lightning sale creates a "panic buying" atmosphere.
b) Connect live broadcast with the community to drive sales quickly.
c) Spread the poster with the QR code to customers for order placing by OR code scanning to shorten the conversion path. In addition, the format of posters reduces the barriers of sharing.

The epidemic interrupted the "field" in "people, goods, and markets" chain which also prompted retailers to think quickly. When offline business is damaged, building online transaction is particularly critical. Moving stores to live broadcast room and communities is not only for quick self-rescue and loss recovery, but also for the long-term layout and formation of the "immunity system".