Probably every person wants to have his own business, which will bring good profit. You just need to choose the right direction and start making money. The jewelry business has always been elite, so entering it requires large financial investments. Since precious jewelry is not the most popular product among consumers, the franchise of a jewelry store will help reduce the cost of opening a point and advertising. Such a move will provide the store with customers, a sonorous and popular name, as well as a guarantee of product quality.
Jewelry Market Development
Due to a significant change in the economic situation, the jewelry market has recently undergone its reorganization. Today, consumers are increasingly choosing unique and well-known branded jewelry of the classical style from silver and gold of the middle price segment. Elite jewelry is also gaining popularity, but in any case, they are purchased more often as a gift.
Opening requirements
To open a franchise jewelry store, you should carefully study all the requirements of the future franchisor. The owners of large jewelry brands give preference to entrepreneurs who already have experience in the retail trade, and especially to the jewelry industry. The conditions for approval of a franchise can be put forward in completely different areas, for which you need to prepare in advance. It is the company that owns the brand that determines the future standards of work, suppresses all unauthorized ideas and regulates the preparation of documentation.
Choice of premises
The highest demands are made on him, since any jewelry store should be in the area of maximum traffic. The franchise of a jewelry store involves the search for options by the franchisee, but you can conclude a lease only with the approval of the brand owner. Sometimes the franchisor also assists in the selection of premises, but charges a fee for this. This helps not only in the search, the owner of the brand can also conduct all negotiations on a lease, since his weighty vote will be decisive in determining the payment.
Sophistication and luxury
That is what should be synonymous with the interior of any jewelry store. This includes:
- decoration of the room;
- alarm installation;
- jewelry highlighting;
- manufacture of specialized secure display cases.
The franchise of a jewelry store involves the full payment of this step from the franchisee, while under strict requirements from a major brand.
In some cases, at this stage, a young entrepreneur is provided with free software for further work, but often he has to pay for it.
Range
Depending on the number of brands sold in the store, single-brand and multi-brand points can be distinguished. The latter include the franchise of the Sokolov jewelry store, the products of which are mostly presented on display windows along with products of other popular brands.
Since jewelry is not a cheap product, the most significant amounts always go for their purchase and replenishment of the assortment. At the same time, it is important to correctly evaluate the help of a patron, who may himself be a manufacturer or purchase products from jewelry factories. The franchisor can provide goods with its own margin, but it must take into account the possibility of profit for the franchisee. The availability of the opportunity is also important:
- exchange of defective goods;
- tracking residues and stale products;
- passing the goods of high-quality examination;
- formation of a sales plan;
- commodity loan;
- redemption of unsold goods;
- installments to pay for the purchase.
Special conditions
Some jewelry brands offer their new partners not to spend money on the purchase of goods immediately and purchase it under a commission agreement. This is how the franchise of the Sunlight jewelry store works, obliging its franchisees to make certain transactions on their behalf.
Experience transfer
In addition to material costs and obligations, any franchisor must train his new partner and his employees. This occurs during internships at operating retail outlets in the network or at theoretical seminars. The training includes the basics:
- product calculations;
- communication with customers;
- conducting transactions.
Powerful advertising
Since expensive jewelry is not purchased every day, jewelry companies pursue an aggressive advertising policy, which includes all franchisees. This gives a guarantee of brand awareness in all localities. Also, any jewelry store franchise will certainly participate in all loyalty programs, promotions and so on.
Brand Features
Each jewelry retail chain lures customers with its features. Thus, the Pandora jewelry store franchise offers customers bracelets with various charms, beads and clips, which can be combined to your liking, creating individual jewelry for each woman. Also, stores offer for sale separately only beads that can be attached to existing bracelets.
The trademark "Sofiyskaya Embankment" offers to purchase Orthodox jewelry, and was created with the blessing of the church.
The franchise of a silver jewelry store will be ideal on the basis of the SKAZKA Natali Romanovoi brand, which specializes in the sale of just such jewelry.
Negative reviews
It is impossible to find them on any site providing franchise catalogs or in personal conversations with company representatives. Brands do not allow the spread of anti-advertising, which can affect their income, so you can find out about the bad faith of a patron at the initial stages of cooperation.
The main complaint of all franchisees is the inaccuracy of the information provided. So, many franchisors indicate entry fees and payback periods of projects are too optimistic and enticing. Entrepreneurs who fall into the trap already after a while learn that the data provided is not completely complete and reflect only the approximate cost of the first purchase of goods. At the same time, there are no estimates on the amount of rent, repair, purchase of equipment and further items of material investments. In reality, such projects can cost several times the declared amount, which implies that the real payback period is several times longer.
Also, experienced jewelry brands carefully hide all negative information about themselves. For example, is the Sunlight jewelry store franchise, reviews of which on the Internet exceptionally positive, really a profitable business? You can find out about this only from real franchisees, whose contacts are carefully hidden.
Workflow Features
Even with a successful start of the franchise, there is no guarantee that pitfalls will not emerge in the process of cooperation. Most often, franchisors treat their small partners as subordinates, putting forward increasingly stringent and unreasonable requirements. Constant total control can lead to real losses in work, and not vice versa. So, a large brand can oblige a franchisee to buy from it expensive expensive collections or stale jewelry that is not in demand.It is important here that the franchisee at the first stages reveal his dissatisfaction, otherwise the situation can be disastrous for the business.
Some unscrupulous patrons use their small partners to promote the brand in new cities. They force the entrepreneur to invest in the development of the business, and after receiving his success, they break off the supply contract and terminate cooperation, forcing him to leave the business. After that, a ready-made outlet with an established client base is already transferred to the use of the patron and begins to make a profit directly to the brand, as part of their network. The entrepreneur at the same time is "with nothing."
In any case, investing in the jewelry business should be overwhelming, since sales peaks fall only on holidays, and stores should work all year round, timely paying wages, paying bills and purchasing new goods. In many ways, this is facilitated by high-quality advertising, positive customer reviews, a wide selection, reasonable prices and the right trading place. Therefore, if you decide to engage in the jewelry business, be sure to study all the nuances before starting so as not to be left with anything.