Find a full strategic Launch Plan for High End Jewellery Retailers -
This was the final thesis/assignment as part of the 2013 University of Toronto E-commerce & E-mobile curriculum.
The mandate was to develop a full business plan for an existing High end Jewellery retailer named Bandiera, (with 2 stores in Toronto, Ontario Canada). The plan had to assess and determine how they could expand sales and brand by leveraging the ecommerce & digital channels. The plan includes full strategic analysis, SWOT, porter 5 forces and waterfall strategic decisions. As well as the Brand Architecture.
Find high end ecommerce sales market estimates incude sales for a broad competitive range including Tiffany, Blue Niles, Amazon, Ebay and more.
6. Situation Analysis – Category
Insights
Strategic Implications
Opportunities for Bandiera
Canadian retail sales of Jewellery exceeds $2.9
Biilion/year (6), experiencing strong +9% growth
Canadian consumers continue to
actively use retail point of sales to
Capitalize on the high level of
interest & search activities to
YOY in 2013 (7), and one of the strongest organic
fulfill their needs for Jewellery
drive foot traffic
Brick & Mortar sales remain dominant representing
~95%+ of sales. In 2012, US retailer Signet
Although online % sales is small, it is
rapidly growing as consumers
Suppliers limit retailers ability to
sell online, however expand
Jewelers reported that ecommerce sales
expand it use for research, and
“show rooming” & expertise in
represented a small 3-4% of revenue, but are
growing rapidly +48% & 20% in the US and UK
confidence grow in buying.
the product offered. Explore
diamond jewellery.
Luxury Jewellery makers /suppliers, will
progressively move to sell directly to consumers,
Retailers must be in a ready state to
start ecommerce, and build stronger
Expand website functionality,
content and product visibility
especially watches (11) (12) (13)
1-to-1 customer relationships
Keep traffic onsite. Explore CRM
+14% growth from 2008-2012
respectively. (16) For Tiffany, ecommerce accounts
for 6% of sales (13)
& lead generation opportunities
Continued Jewellery sales growth is expected tracing
to the increasing number of working women and
Opportunities for retailers to use
diamond as a way to build own
Enter the own line of custom
diamond Jewellery, that could
subsequently wages, driving their need for more
brand design and craftsmanship
help drive leads via wish list or
custom Jewellery design (16) (26)
ecommerce sales
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9. Situation Analysis – Channel
Insights
Strategic Implications
Opportunities for Bandiera
Consumer Powers: For high end jewellery, a
high % of Canadians 36% (10) use online to
Consumers confidence in buying high end
jewellery online is growing, forcing more
Develop an online “readiness” plan
that include a) new site
research, who can visit a store to touch/try the
brands/suppliers to sell online.
2) ecommerce for 1-2 product lines
jewellery, then buy online.
3) lead generation/email
Suppliers Powers: Are defending vs online
via increase marketing spend, social media
Small independent retailers must adapt to
balance how to 1) represent supplier
Partner with 1-2 high end suppliers
(Watches) to sell online, some or
support (12) & events to get closer to
brands, 2) own the customer relationship
all of the product offering.
consumers. They are enforcing strict rules of
“no online sales” for its retail partners. (24)
3) defend against online.
Competitors: Suppliers will start opening
own storefront (Hermes). Tiffany, Birks and
Local retailers must use local listing,
location based services and smart social
Start web redesign and expand
social media content presence on
large retail chains, have strong “Store Brands”
media content development to maximize
Google+, youtube, Foursquare,
loyalty & can maximize Brick & Clicks sales
(Buy online, pick up in store). (40) (31) (32)
search ability, service and product lines.
Yelp. Develop the content once but
can be duplicated across platforms.
New Entrants: Emergence of pure click Blue
Nile, Amazon & Ebay. Driven by the US
Monitor the impact of sales on high end
watches and propose new online business
Work together with suppliers
brands on hybrid Brick & clicks
retailers who populates & leverage both
model with Suppliers. Explore building own
ecommerce offering where
platforms to sell into Canada. Suppliers could
start selling online. (38) (39)
brand design and craftsmanship
consumer can buy online but pick
up the product instore.
Substitutes: Consumers can research, find
Retailers may decide if they want or not
Develop own store brands of
and purchase pre-own or new in the box high
enter the pre-own business, so they can
jewellery to consumer direct.
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13. Situation Analysis – Competitors
Insights
Strategic Implications
Opportunities for Bandiera
National Brick & Mortar chains, Tiffany & Birks
have extensive/product rich web sites
Big retailers can leverage their scale to
develop immersive online experience
Leverage some of the immersive
tactics to build a deeper connection
including ecommerce functionality. (31) (32)
to further develop a relationship with
with existing customers on selected
They leverage diamond & own custom
Jewellery brands to drive sales.
customers.
product lines.
Small-Mid size Brick & Mortar retailers such as
Spence (32) & Watch It (36) can combine
Local retail jewelers can defend
against large retailers by focusing their
Develop plan and communication
strategies that balances a strong local
online & retail to sell directly to consumers,
USP around a core competencies.
reach to drive store traffic and some
focusing on their core proposition. They use
local media (Radio & Print) to drive store &
Online is very effective in educating
consumers on their jewellery offerings.
of the rare to find/exclusive high end
Jewellery Bandiera carries (i.e. Ulysse
site traffic.
Nardin, branded/custom diamond)
Small after market high end retailers Watch
Finders (35), leverages online to aggressively
Online/Mobile web is a key part of
explaining the brand value, providing
Redesign the website to create a
more product focus experience and
sell, merchandise and educate their product
deep insights into high end Jewellery
opportunities to connect and drive to
that pushes to their retail locations.
& store unique offerings.
the store.
Pure e-commerce site E-bay (38) and Amazon
(39) sell a wide variety of Jewellery, with little
Increased pricing & distribution
pressure, as Canadians become more
As part of the new website design,
launch an ecommerce site for
to no issues with shipments, insurance and
comfortable with using ecommerce to
diamond Jewellery (custom) that can
returns. US based brick & mortar stores are
using Ebay as beachfront to sell into Canada
buy high end luxury Jewellery from US
retailers
act as lead generation for the full
product offering.
See"appendix"for"visual"comparison"for"each"compe:tor"
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15. Situation Analysis – Commerce (11) (29 to 39)
Insights
Strategic Implications
Opportunities for Bandiera
Product Selection: Online jewelers can offer a
very wide selection (thousands) of items/designs.
Online/ecommerce channel is limited
by not being able to fully convey
Expand web site offering (diamond)
& increase product info on site to
Online is a convenient and powerful research tool
jewelries external visual qualities
improve research and gain
able to organize on taste, type, occasion, price.
authority with visitors.
Trial: Jewellery carries strong sentimental
emotions, status building and attachment. It often
Online/ecommerce channel
limitations & cannot convey external
Currently all detail product info &
visual resides with supplier website.
requires a live “high touch” experience, in which an
visual qualities (brilliance, colour) or
Opportunity exist for Bandiera to
individual must touch & feel the Jewellery. However,
you can try in-store, then buy online.
physical attributes (weight, size and
feel)
improve show rooming.
Security: Luxury Jewellery is subject to fraud for
both from the seller & buyers. Online retailers have
Determine level of risk involved by
increasing online presence. Duplicate
Test supply chain & distribution
strategy with diamond and custom
to provide transactional security, & require extra
(if possible) Amazon’s insurance/
own Jewellery products
personal information (SIN, Passport). (39)
payment processes.
Pricing: Online offers better pricing via (11)
comparison and research. However, Jewellery
In the case of High end luxury
Jewellery, leverage the appeal of
Gain loyalty via increased
communication w/active customers.
remains an expensive purchase requiring validation.
having brand product exclusivity.
Develop exclusive offers/events.
Shipping & Returns: Flexible shipping and
returns are crucial. Insurance on product shipments
Similar to security adopt best in class
shipping, returns and insurance.
Provide no hassle return with 100%
customer satisfaction and full
is vital as well as ensuring that there will be
refund.
someone to provide a signature. (29) (39)
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17. Situation Analysis – Consumers – Bandiera’s Income*by*CMA*
Opportunities exist for Bandiera to target similar profile high end Jewellery buyers by
in local GTA arean (58). Further, they can drive store & online traffic via improved SEO
ranking, reputation, mobile browsing and social."
Bandiera’s Demo profile
in"Woodbridge"
Bandiera’s Demo profile
in"Yorkville"
Source"–"Globalnews.com,"“Income"by"postal"code:"Mapping"Canada’s"richest"&"poorest"neighbourhoods”,"(Canada"
hjp://globalnews.ca/news/370804/incomeAbyApostalAcode/"""
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18. Situation Analysis – Consumers
Insights
Strategic Implications
Bandiera Opportunities
More than 36% of Canadians aged 16 yrs+,
use online to research and shop for Jewellery
Leverage online shopping to drive to
information and product rich site, that
Capitalize on trend to build a richer
website with more pics & product
Luxury goods in 2010. It is one of top 5 most
will establish authority and drive leads,
info, minimizing traffic flow to
active categories with 16-25 & 25-44
consumers. (10)
purchase & store traffic
supplier site, & own the relationship.
Research on local merchant listing sites,
Google Maps and LBS apps, shows that very
Opportunities exist for high end Jewelers
to drive local GTA/Ontario (58) store &
Bandiera should claim local listings
and mobile LBS sites with content
few jewellery retailers take advantage of
online traffic, improve SEO ranking,
update & information on
claiming/owning their space with content and
information. (58)
reputation, mobile browsing and social
connections by adding content to listing/
Foursquare, Yelp, 411.
maps/LBS sites
Independent high end jewellery retailers
select highly affluent locations in the GTA to
Select highly targeted offline and online
mediums that reach highly affluent
Explore offline media targeting the
ultra affluent (Cars, Island for sales).
maximize foot traffic & sales. (58)
potential customers in the GTA
Test Real time bidding platform to
drive site traffic
Customer service and strong one-to-one
relationships are critical to expand long term
Imperative for high end jewellery
retailers to collect customer information
Leverage existing customer data to
develop a CRM strategy. The goal
sales growth. This can be leveraged to
in order to nurture a long term
are to increase share of wallet with
communicate special offers or new product
information.
relationship.
active customers, reactivate
dormant and foster new leads
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30. E-Business Strategies to push Site & Store
Online
Local
Sites
RTB
SEO
Email/
CRM
Bandiera
Web Site
Print &
OOH
SEM
Retail Stores
Mobile
PR
Social
Media
Events