Independents

Squirrel Spotting: Having a Point of Differentiation

IndependentsMar 14, 2017

Squirrel Spotting: Having a Point of Differentiation

Peter Smith discusses how retailers can go about really setting themselves apart from the pack.

2016-Peter_Smith_copy.jpg
Peter Smith has more than 30 years of experience building wholesale and retail sales teams. He currently is president of Vibhor Gems.

It’s hardly news to suggest that having a point of differentiation is critical in today’s challenging retail environment. What is less clear is what that means and how to get one.


I’m currently reading Brad Stone’s new book, “The Upstarts,” which deals with some of the most successful companies to have emerged from Silicon Valley in recent years. Companies such as Uber and Airbnb have become household names, disruptors and game-changers in just a few short years.

While I have no personal experience with Airbnb, I can’t imagine not grabbing my iPhone to summon a car on Uber, without having to worry about whether I have enough cash or if they take credit cards.

And, speaking of the iPhone, I watched a movie about Steve Jobs last week and I was reminded that the iPhone, a device that has become virtually indispensable to so many of us, was only introduced in 2007.

Facebook just started in 2004 and LinkedIn began in 2002. Starbucks, which seems to have a store on every block in some cities, really didn’t get going until it moved in California in the 1990s, and didn’t open its first store outside of the U.S. until 1996.

OK, quick digression ... have you ever seen the movie “Ferris Bueller’s Day Off”? There’s a great scene where the teacher asks his students a series of questions about tariffs, revenue curves and “voodoo” economics. He teases the class with each question as the camera pans the faces of the near-comatose students … Anyone? Anyone?

So, if phones, transportation, music, coffee and all manner of other “life stuff” has changed so dramatically in such a short few years, what do you think has happened during that same time period in our industry … Anyone? Anyone?

Even with the emergence of man-made diamonds, which accounted for about 1 percent of the category last year, a consumer would be hard-pressed to notice any meaningful differences between visiting a jewelry store in the 1980s and visiting one today. The experience, moreover, would likely reflect a variation on a very recognizable theme, with the case layouts, product offerings and general approach hardly changed from years past.

So, what can retailers do? They’re hardly in a position to invent an iPhone, replace the local taxi service or develop a social media platform.

But, Starbucks is a good model to draw from. They didn’t invent the coffee shop or come

out with a previously unattainable beverage or food. They did, however, establish a clear sense of who they wanted to be--the whole notion of focusing on the experience and becoming that “third place,” as Howard Shultz aspired to, became relevant in communities, small and large, and all around this country and beyond. Starbucks’ recently reported revenues of $5.4 billion for the first quarter (ended Jan. 1), and, at about $4 per cup, that is an impressive testament to their success.

Having a point of differentiation does not mean that you have something that no other retailer has. It does not mean that you need to reinvent the wheel, the iPhone or coffee shops. This misguided idea about what having a point of differentiation means has not served our industry well. It has resulted in far too many retailers resorting (by design or default) to meaningless platitudes such as “We’re all about the best service” or “We have the lowest prices in town.”

Having a point of differentiation means that you have a compelling story to tell about your business. It means that your story holds up to reasonable scrutiny across all aspects of your retail experience; from the store, your products/brands, your people and language, your marketing (traditional, digital, community activities, etc.) and everything else you do.

Once again, it doesn’t mean that you are the only retailer in town with brand X or Y, but that the way you deliver that experience, and present that brand, differs from what anyone else is doing.

It is not unusual to walk into a store and see a brand presented in a very uninspiring way. The lighting can be poor, the energy might be low, there might not be any music or scents/aromas used in the store, and the best-sellers from the brand may be out of stock.

Contrast that with finding the same brand in another store where it is featured in a great environment, with appropriate lighting and the best-sellers in stock, and where the customers are greeted by a friendly, engaged team, with the sound of great music and a wonderful aroma. Does that sound like the same experience?

Whatever your story, it must be authentic, and it must be relevant to your target audience. Be the bridal store with the biggest selection, but make it real. Be the bridal store with great quality, but make it real. Be the bridal store with low-low pricing, but make it real (and ... good luck with that one). Be the watch store, but make it real. Be the designer fashion store, but make it real. Or, be the antique/estate store, but make it real.

(Word of caution…if you try to be all things to all people, you’re in trouble.)

Having a point of differentiation means that your message is clearly visible across all your touchpoints and that you have created and sustained an experience around that story.

For example, if we look at the last (and perhaps least likely) option, an antique/estate store. The whole experience could be built around repurposing, sustainability and uniqueness. You could create an environment with framed photographs and quotes from a by-gone era. You could feature music from a given era (Sinatra anyone?) and even have a consultant visit with your team to suggest interesting clothing choices that would enhance the whole experience. You might provide snacks and/or beverages that might also fit the theme.

No matter what you choose, embrace the experience completely so that your people in your market don’t have to wonder about what your story is or question your relevance to them.

And finally, if you believe that you have a point of differentiation, test your theory. Gather everyone on your team and give them a blank piece of paper and five minutes to write down what your point of differentiation is. Have each person do that without discussing it with anyone else and look at the answers. I suspect that you will get answers that are all over the place.

“We provide the best service!”
Really?

“We’ve been in business for 100 years.”
Does that really matter?

“We have the best selection.”
If it’s the wrong stuff, who cares?

I suspect that two things will emerge from doing this simple exercise, as long as you honestly have people do it by themselves. One is that there will be no consensus, which is a problem, and the second is that you will find out you need to go back to the drawing board and figure out a relevant point of differentiation.

Retailers can make concerted choices as to what their story is and then go about executing that choice across all aspects and touch-points of the business. Not making a decision about your story is a choice in and of itself, and it has proven to be a very costly decision for many of the retailers who are no longer in business.

Peter Smith is president of Vibhor, a public speaker and author of “Sell Something” and “Hiring Squirrels.” He spent 30 years building sales teams in retail and wholesale and he can be contacted at Dublinsmith@yahoo.com, peter@vibhorgems.com, on LinkedIn, Facebook (Hiring Squirrels), or Twitter, @Hiring Squirrels.

Peter Smithis an industry consultant, speaker, and sales trainer, and author of 3 books on sales. Reach him at TheRetailSmiths@gmail.com.

The Latest

Counterfeit Van Cleef & Arpels Alhambra jewelry
CrimeApr 28, 2025
Customs Seizes Nearly 2,000 Pieces of Counterfeit Van Cleef & Arpels Jewelry

U.S. customs agents in El Paso, Texas, intercepted the package, which would have been worth $9 million if the jewelry was genuine.

Suzanne Kalan Tech Ring Jacket Collection
TrendsApr 28, 2025
Suzanne Kalan Launches Tech Ring Jacket Collection

Health monitors become statement pieces when paired with the brand’s new collection of stackable diamond-studded bands.

JCK Industry Fund
Events & AwardsApr 28, 2025
JCK Industry Fund Announces 2025 Grant Recipients

Ten organizations were selected this year.

Supplier Spotlight -Recorded-Webinar.png
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest Addition

Supplier Spotlight Sponsored by GIA

Sylvie Jewelry Auranova Collection Campaign Imagery
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection

“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Pomellato Nudo toi et moi ring
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%

Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.

Deborah Meyers Experience The Birds Earrings
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ Earrings

Designer Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.

ejap cohort 1872x1052.png
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs

Six new retail businesses were selected for the 2025 program, which began in January.

Melee diamonds from De Beers
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid Uncertainty

The company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy