SurveysDec 04, 2024
In-Store Shopping Outpaced Online Over the Holiday Weekend, Says NRF A total of 126 million consumers shopped in stores over the five-day period, about 5 million more than last year.
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
Lab-GrownDec 04, 2024
GJEPC Says Indian Trade Will Use FTC-Approved Terminology for Lab-Grown DiamondsThe FTC’s Jewelry Guides require “clear and conspicuous” disclosure when advertising lab-grown diamonds.
SourcingDec 04, 2024
Designer Saul Fraiman Retires After 55 YearsThe fine jewelry designer, who came out of retirement in 2017, is putting down his sketchpad for good.
Brought to you by
Protecting Your Sparkle: Why Screening Has Become Essential While no reputable jeweler would knowingly sell lab-grown stones as natural, it's a growing possibility.
AuctionsDec 04, 2024
30-Carat Pink Diamond Fetches $2.6M at BonhamsThe Type IIa, very light pink colored diamond was the highlight of the recent Hong Kong jewelry auction.
Weekly QuizNov 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeDec 03, 2024
Man Sentenced to Life in Prison for Murder of Florida JewelerJohn Willard Craiger, 83, fatally shot jeweler Ghazi “Gus” Michel Osta following an argument in the store.
ColumnistsDec 03, 2024
Peter Smith: How a Leadership Hire Can Make or Break a CompanyIn his latest column, Smith provides a list of questions every business needs to be asking their next potential leader.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
SourcingDec 03, 2024
Gemstone Cutter Glenn Lehrer Dies at 71An innovative artist inspired by the natural world, Lehrer is remembered for being a visionary and a shining light.
WatchesDec 03, 2024
Jaeger-LeCoultre and Vacheron Constantin Appoint New CEOsJérôme Lambert returns as CEO of Jaeger-LeCoultre, while Laurent Perves takes the lead role at Vacheron Constantin.
MajorsDec 03, 2024
Neiman Marcus’ ‘Fantasy Gifts’ Sparkle In Pavé This Holiday SeasonThe extravagant gifts in this year’s “A Neiman’s Fantasy” Holiday Book range from a Messika diamond necklace to pavé diamond cowboy boots.
GradingDec 02, 2024
Jewelry Appraiser Craig Lynch Dies at 70The industry veteran is remembered for his faith, his dedication to his family, his wealth of knowledge and his generosity in sharing it.
SurveysDec 02, 2024
10-Year Rewind: Comparing 2024 Holiday Shoppers With the Consumers of 2015PricewaterhouseCoopers’ 2024 holiday trends survey took a 10-year look back to see what mattered to consumers then versus now.
Lab-GrownDec 02, 2024
Lab-Grown Diamond Jewelry Set Sells for $55K at Charity AuctionMonique Lhuillier and Kay Jewelers collaborated to create the pieces, which were offered at the recent Baby2Baby gala.
Policies & IssuesNov 27, 2024
G7 Announces Botswana as Second Verification ‘Node’ for Rough DiamondsBotswana joins Antwerp as a certification center for rough under the G7 ban on Russian diamonds.
SourcingNov 27, 2024
Gemfields Reports 'Disappointing' High-Quality Emerald Auction ResultsThe miner said its November sale, which earned $16.1 million, felt the effect of competitive pricing by a rival Zambian producer.
CollectionsNov 27, 2024
Piece of the Week: Mignon Faget’s ‘Crescent Starry Night’ Tassel EarringsMignon Faget honors its hometown of New Orleans with a piece inspired by “The Crescent City.”
TechnologyNov 27, 2024
Nivoda Secures Additional Funding The London-based business-to-business diamond and gemstone marketplace just closed on a $51 million round of Series C funding.
SourcingNov 26, 2024
De Beers Stays With ‘A Diamond Is Forever’ for 2024 Holiday Campaign“Forever Present” highlights gifting opportunities for natural diamonds, celebrating familial, friendship, and romantic relationships.
AuctionsNov 26, 2024
Christie’s To Auction Collection of Suzanne Belperron JewelsIt’s one of the most impressive assemblages of the French designer’s pieces ever to come to auction, Christie’s said.
ColumnistsNov 26, 2024
The Smart Lab: 7 Strategies for Refining Your Holiday Email Marketing CampaignsSuccessful email marketing campaigns are all about timing, personalization, and compelling CTAs, Emmanuel Raheb writes.
MajorsNov 26, 2024
GIA’s Board of Governors Adds 2 New MembersRetail leader Lisa Bridge and geology professor Dr. Wendy Bohrson joined the organization’s board.
MajorsNov 26, 2024
Ben Bridge Jeweler Unveils This Year’s ‘Benny Bear’ Look out for a black bear wearing a purple Santa hat and its zippered tummy pouch made for holding a holiday gift from Ben Bridge Jeweler.
SourcingNov 25, 2024
William Goldberg Celebrates 2 Major Milestones With New Book“The William Goldberg Way” was released in honor of the company’s 75th anniversary and 25 years of its proprietary Ashoka diamond.
Lab-GrownNov 25, 2024
Lab-Grown Co. Lusix Sold to 2 Companies for $4M Fenix and Dholakia Lab-Grown Diamonds have jointly acquired the Israel-based company, which grows diamonds using solar power.
Events & AwardsNov 25, 2024
The Original Miami Beach Antique Show Panel to Feature Fred SavageThe actor and watch enthusiast will be part of the show’s education lineup.
EditorsNov 22, 2024
Out & About: Inside the CD Peacock MansionStep inside the nearly 21,000-square-foot suburban Chicago jewelry store with Editor-in-Chief Michelle Graff.
