Events & AwardsJun 06, 2025
Here Are the 2025 Retailer Hall of Fame InducteesThis year’s honorees include a Midwest retailer and two multi-store independents, one in New York and the other in New England.
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.
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 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.
More on Independents
The Latest
CollectionsJun 06, 2025
Piece of the Week: Harwell Godfrey’s ‘Granny Squares Eleanor’ Necklace As an homage to iconic crochet blankets, the necklace features the nostalgic motif through a kaleidoscope of cabochon-cut stones.
Events & AwardsJun 05, 2025
The 12 Fresh Faces in Couture’s Design AtelierDiscover the dozen up-and-coming brands exhibiting in the Design Atelier for the first time.
Brought to you by
The True Power Behind the Counter: Why Sales Associates Are the Heart of the Jewelry BusinessWhen investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.
SourcingJun 05, 2025
A Rare Suite of Rubies Has Arrived in Las VegasThe “Royal Ruby” Collection is a quintet of untreated rubies curated by collector Jack Abraham.
Weekly QuizJun 05, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsJun 05, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
MajorsJun 05, 2025
Platinum Guild International Updates Leadership TeamTwo existing executives have been given new roles.
Brought to you by
Clienteling Isn’t a Buzzword. It’s an Essential Business Model.More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.
Events & AwardsJun 05, 2025
Zillion Announces 'Women in STEM' Scholarship RecipientMeredith Tiderington, an electrical engineering student, was selected for the award.
Lab-GrownJun 04, 2025
GIA Reverting to More General Terminology for Lab-Grown DiamondsIt will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”
Events & AwardsJun 04, 2025
As JCK Talks Returns, Don’t Miss These 12 SessionsFrom design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.
CrimeJun 04, 2025
10 Safety Tips for the Las Vegas Shows The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.
MajorsJun 04, 2025
Amy Curran Promoted at Hill & Co.Her new role is director of strategic initiatives.
CollectionsJun 03, 2025
In Her Latest Collection, Viviana Langhoff Is Leaning Into GoldThe designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.
FinancialsJun 03, 2025
Signet Jewelers Sees Turnaround in Q1 With Sales Ticking Up 2%On an earnings call, CEO J.K. Symancyk discussed what’s working for the company and how it’s preparing for the potential impact of tariffs.
SurveysJun 03, 2025
Consumer Confidence Improves in May The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.
CollectionsJun 03, 2025
Dakota Johnson Is Roberto Coin’s New Brand AmbassadorThe actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.
GradingJun 03, 2025
Mason-Kay Jade Adds ‘Fei Cui’ to Jade ReportsThe company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."
SourcingJun 02, 2025
Gemfields’ June Auction to Include 36-Carat RubyThe large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.
GradingJun 02, 2025
GSI Opens New Lab in Thailand Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.
TrendsJun 02, 2025
Amanda’s Style File: Three Gems for June Those born in June have a myriad of options for their birthstone jewelry.
SourcingJun 02, 2025
David Allouche Joins Grandview Klein DiamondsThe diamond industry veteran has been named its senior sales executive.
FinancialsMay 30, 2025
Movado’s Q1 Sales Slip Amid ‘Challenging’ Retail Environment The company plans to raise the prices of select watches to offset the impact of tariffs.
Policies & IssuesMay 30, 2025
Tariffs & Designers: Navigating Pricing in an Unstable EnvironmentBetween tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.
CollectionsMay 30, 2025
Piece of the Week: Renato Cipullo’s ‘Hematite Blaze’ NecklaceDesigned by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.
Policies & IssuesMay 30, 2025
Trade Court Declares Trump’s Tariffs InvalidHowever, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.
CollectionsMay 29, 2025
Britney Spears Files Trademark for New Jewelry LineThe pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.
