Of course, this question worries everyone who wants to have their own jewelry store. And it’s true: beauty pleases the eye and soul, but how does it feel in your pocket?
To the question “Is it profitable to sell jewelry?” there is no clear answer. If you sell wisely, then, of course, it is profitable. But not everyone is born a professional; knowledge comes with experience.
That's why today I will tell you a few secrets. They will help even beginners make a profit in a minimum period of time.
Types of jewelry - types of profit
There are three types of jewelry:
- cheap
- mid-price category
- Expensive
Cheap jewelry (50 – 200 rubles per purchase)
Costume jewelry in the cheap segment retails for about 100-500 rubles. In purchase it costs 50-200 rubles.
Cheap jewelry and looks cheap. It is of poor quality, there is no question of any brand. In addition, all competitors have it. After all, this is the favorite pastime of all losers - to come to the market and pick up a bunch of cheap petroleum products.
This is the favorite pastime of all losers - to come to the market and pick up a bunch of cheap petroleum products.
You can’t put a large markup on it - maximum 100%. And, of course, in order to achieve serious momentum with it, you need to sell jewelry in huge quantities.
A considering that connoisseurs of such jewelry are schoolgirls and students from poor areas, then you should not expect an explosion in sales, they do not buy as much as the seller would like.
Mid-price jewelry (250 – 500 rubles per purchase)
Costume jewelry in the middle price segment is the most popular. It sells for 600-2000 rubles. The markup on such jewelry is about 300%. Profit is easy to predict.
In shopping centers, mid-price jewelry is best sold.
This is good quality jewelry from famous designers and brands. They look decent and are bought more readily than cheap jewelry. Such products are sold in beautiful stores - islands and pavilions in shopping centers.
Many ladies can afford this jewelry, in particular the office ladies community, who are not averse to regularly pampering themselves with beautiful jewelry in different styles on payday.
Besides, you will never have to blush for the quality of such jewelry. And this is important for forming a pool of regular Clients. It is on them that one must place the biggest bet in the jewelry trading business.
Expensive jewelry (from 600 rubles per purchase)
Expensive jewelry - products from elite brands - also sells well. A caste of connoisseurs of such jewelry has already formed. And, of course, these ladies are unlikely to change their preferences, because you quickly get used to good things.
Due to the fact that a piece of such jewelry is expensive, and also the markup, which is about 300%, you can make good money on luxury jewelry.
Where to sell costume jewelry of each segment?
Let me emphasize once again that it is important to understand where you will be trading. If in cheap markets and in the corners of department stores, then choose the cheap segment. If in shopping centers where people specifically go shopping for branded clothing and accessories, then your segment is medium and expensive jewelry.
The last two are preferable for profit, because that’s what we’re talking about now.
Competition
Of course, competition also affects benefits. 80% of the market is filled with cheap junk from the low segment. Yes, in physical terms this segment has the most sales – about 50%. But if we talk not in turnover, but in profit, then mid-price jewelry is confidently ahead of everyone else.
80% of the market is filled with cheap junk from the low segment.
If you can earn 200 rubles on cheap jewelry, then from the sale of one piece of jewelry in the mid-price category, you will put 500 rubles in your pocket! Therefore, where cheap sellers earn 30 thousand per month, their more successful colleagues have a net profit of 120 thousand!
In any case, there is no need to be afraid of competition when it comes to jewelry. Research shows that there are a lot of points selling costume jewelry in every city, but the market... is not even 40% full. This means that your chances of achieving success in this area are extremely high.
A jewelry store is a good idea for a business. A properly organized business can become quite profitable and pay for itself within a year. Success is guaranteed by demand: high-quality jewelry appeals to women of any age. Such items are suitable for everyday wear, and new collections are released every season, forcing fashionistas to replenish their supplies.
The second success factor is the high markup that can be set for this type of product. The norm for costume jewelry is 200–300%. Under such conditions, its sale will soon begin to generate a stable income, so it is worth finding out in detail how to open a jewelry store and get an interesting, profitable business.
First you need to study the features of the product, consumer preferences and sales opportunities in order to be able to accurately answer the questions: what, to whom, where and how to sell. When the preliminary steps have been completed and the necessary information has been collected, it is time to begin implementing the plan.
You will need to complete a number of documents, install equipment, purchase the first batch of goods, and hire sellers. In short, there will be a lot to do. In order not to forget about anything when planning to open a jewelry store, you need to draw up a business plan with all the details and preliminary calculations.
We draw up a business plan
The main requirement for this document is that it really be a plan that clearly explains how you can earn income with the help of a jewelry store.
Product Detail
In this paragraph of the business plan, you need to indicate what kind of jewelry has been chosen and why it will be in demand. For example, the choice was made in favor of products of the mid-price category and a little more expensive, with ornamental stones and the use of hypoallergenic jewelry alloys, since these items are safe, aesthetically pleasing and suitable for any style of clothing.
Characteristics of the target audience
Having carefully studied the tastes and preferences of women in your city, you need to determine the category of potential buyers and draw up a typical portrait. The chosen type of jewelry is interesting to women 25-50 years old. They already have a regular income and can afford to buy such jewelry, but their needs are sometimes different. For young people it is important to look stylish and follow fashion; they can be demanding of the brand. Those who are older actively care about their health and know that there is no allergy from a silver-plated chain, amber beads are useful for thyroid diseases, etc. They are rarely guided by fashion and will agree to purchase jewelry from last season that meets their requirements.
Competition
Surely every shopping center has such a department, so even at the planning stage you need to find out the strengths and weaknesses of future competitors. What suppliers do they work with? How often is the assortment updated? Is the markup high? What methods of attracting clients are used?
With this information, you will be able to figure out how to resist competition. The methods may be different. For example, develop original packaging for purchases, come up with a lottery for receipts, offer discounts on birthdays. It may be worth opening a jewelry and accessories store to diversify the offer and thereby attract more customers.
Possible risks
There are few of them when trading costume jewelry. Firstly, this is competition. If it is too high, then it will be possible to squeeze out the ranks of rivals only by lowering prices.
Secondly, dependence on fashion and tastes of the target audience. What is not sold at the peak of its popularity has every chance of staying in stock for a long time. The situation can only be saved by a master who is able to disassemble a thing and make something new out of it.
Thirdly, seasonality. Women always strive to look better, but this desire intensifies en masse before graduation, New Year and March 8th. After these periods, sales decline. There’s nothing you can do about it, the only way to insure yourself is to properly prepare for the season in order to sell as much jewelry as possible.
Choosing a location for a future store
It's no secret that success depends on the choice of location. The area of the city, traffic, and proximity to other departments are important. The recommendations here are simple: jewelry is usually purchased spontaneously, so it is better to spend money on rent in a busy shopping center. It will be very good if there are departments nearby that target the same target audience.
As for the area, to begin with you should limit yourself to 5–6 m2. It will be possible to place shelving here, and the seller will be comfortable.
It is undesirable to occupy less than 5 m2; such savings have more disadvantages than advantages:
- a small department does not look very respectable, especially if there is a large competitors’ pavilion in the shopping center;
- a small number of people can approach him at the same time;
- if UTII is chosen as the taxation system, the base yield will be 9,000 rubles.
An island-type department would be an ideal option for selling jewelry. It is visible from all sides and you don’t even need to go into it to look at the thing you like. In addition, ready-made modules for jewelry are now sold. There are already display cases and shelves protected by shockproof glass, built-in light boxes, and stands for decorations. However, if you have limited funds, you can find a company that inexpensively makes such things to order.
Supplier selection
China, Korea and Türkiye are famous for their attractive prices for good jewelry. Buying in Europe is more expensive, but fashion originates here, so all products perfectly correspond to it, differing in safety and quality. Suppliers can also be found nearby, among domestic manufacturers.
Department design and advertising
Faceless display windows are unlikely to attract buyers, so it would be a good idea to come up with a name for your department in advance, develop a sign design, arrange shelves with goods, and think about lighting. Original branded price tags, in turn, attract the eye and contribute to the formation of the store’s image. Before the opening, it is worth advertising on TV, radio or in newspapers.
Approximate payback calculation
First you need to calculate the inventory required for at least the first month of trading. Let's assume that there should be 1000 pieces of jewelry in the department, the average purchase price of each is 200 rubles. The total amount of the reserve is 200,000 rubles.
Things will be sold, but empty shelves need to be filled. An average of 10 units are sold per day. This means that for a month, by conservative standards, you need a supply of 300 jewelry, worth 60,000 rubles. Let’s round up to 100,000. This means that to start trading you will need 300,000 worth of jewelry.
Start-up costs when opening a store:
- purchase of a batch of costume jewelry – 300,000;
- purchase of a trading module – 100,000;
- design and production of signs, various types of advertising – 50,000;
- cash register, including a machine for cashless payments – 30,000;
- the cost of document preparation services is 20,000.
Total: 500 thousand rubles.
Let’s assume that the product is sold at twice the purchase price, and the monthly revenue is 150,000 rubles. Approximate expenses for the same period will be 20,000 (rent) + 30,000 (salaries to sellers) + 15,000 (taxes, purchase of stationery, etc.) + 55 (purchase of a new batch of jewelry to replace sold-out ones). After all deductions, 30,000 will remain, therefore, in the most conservative scenario, it will take 17 months to recoup the investment. But in reality, the revenue may be twice as much, for example, during the season or with a higher markup, so you will have to wait less than a year.
Starting a business
All the actions described above are a preliminary stage, mostly theoretical. Once everything is ready, it’s time to begin the practical steps of opening a store.
Choice of legal status
If you plan to open a small store, then it will be enough to register or. Most often, entrepreneurs choose an individual entrepreneur: it’s easier to open, the fines are lower, you can dispose of the proceeds as you wish, which is very important when trading jewelry. What if sales rise higher than expected during the season and you will need to buy another batch of goods? The individual entrepreneur can freely take money from the proceeds for this.
However, in the case where a business is conceived by several people who plan to expand it and eventually create a network of costume jewelry departments in different shopping centers of the city, it is better to register an LLC.
Choosing a tax system
Since 2013, companies whose activities are suitable for the application of the simplified tax system can choose any of them. On forums it is often advised to use the first one, since it is fixed and depends not on profit, but on other indicators, including the area of the sales department. The jewelry store has few square meters, so the tax will also be small.
However, this option is suitable for a long-existing department with good profits, but for a recently opened department whose revenue is small, it is better to choose. The tax on the first small income will also be modest, and even during periods of decreased demand there is no need to fear that there will not be enough money to pay it.
Paperwork
After registering a legal entity, you will need to register with the tax office, obtain an INN and Goskomstat codes, register with pension and medical funds, and social insurance. Then you can start preparing the documents necessary to start operating the store:
- rental agreement for retail space;
- papers from Rospotrebnadzor confirming that the store does not violate the standards established for objects of this type;
- contracts for preventive disinfection, garbage removal, disposal of hazardous household waste, ventilation cleaning;
- documents from fire departments confirming the safety of the premises. It will also be necessary to appoint one of the employees as the head of fire safety and train him;
- documents for cash register;
- product certificates and letters of refusal from licensing authorities. The fact is that jewelry is not subject to licensing.
You can complete all the documents yourself without much difficulty, but you can spend 20–30 thousand on the services of companies that provide assistance in such matters. The freed up time will be useful for installing equipment and other preparations for the opening of the department.
Knowing how to open a jewelry store from scratch, you can plan and start a truly interesting and profitable business. You will have to face minor risks in the form of competition and dependence on fashion, but the relative simplicity of paperwork, moderate investments and quick payback make the jewelry trade attractive for those who want to receive a stable income.
Do-it-yourself designer jewelry is a popular fashion trend, as well as an interesting home business from scratch, because... Almost every woman can learn it. There are many directions in making jewelry, for example, beadwork, soutache embroidery, bone and wood carving, weaving from wires and threads, leather and other techniques. Only you will understand which one to choose for yourself after trying at least several directions.
Home business from scratch: choosing a direction!
Experienced experts advise starting a home business from scratch, recommending areas that are definitely worth taking on:
- a technique that is easier to master;
- a technique that I really like (even despite my lack of skill).
The ideal option will be when you find a craft where these 2 tips coincide.
If this does not happen, this is not a problem, because:
- techniques that are easier to master can then be improved and complicated, creating your own style, unique to others.
— if you like a technique that you know nothing about, is it worth pursuing? Of course, it’s worth at least trying and understanding whether you have enough perseverance to learn new material. When you manage to master your favorite direction, your work will turn into something you love and you won’t have to work a day.
For whom do you create designer jewelry?
They are preferred by girls who like handicrafts and love to express themselves by wearing unusual and unique designer jewelry. This description alone is not enough. Make a more detailed analysis of the audience that prefers designer jewelry. These can be categories of teenagers from 14 to 20 years old, from 20 to 40 years old, and older ladies.
You can also sort the decorations by purpose, such as for everyday office work, for a formal evening event, for relaxation and the beach.
Why can’t you first make the decoration and then think about who to sell it to?
Or rather, many people do this, but professionals do not advise this. Because different age groups have their own preferences in design, set of stones, color of material. The decoration may be beautiful, but it will never find its buyer, because... there will be no advertising in places where its target audience gathers.
For example, for young girls, products with light, bright, translucent gemstones, which will be collected into elegant jewelry, will be better. For older ladies with a large build, wide, massive bracelets in richer, deeper dark tones are suitable. For the beach, beads and bracelets will be different from evening holiday decorations. 
You also need to decide on the style of execution:
1. Ethnic style, which is characterized by woven products made from threads and leather. Designer jewelry made of wood and bones, metal, natural stones. The stones are usually large and rough; you won’t find pearls here. Amulets and amulets are more often represented. Clients can be members of forums, social networks. groups interested in yoga, spirituality, esotericism.
2. The classic style is mainly designed with decorations made of natural, beautifully crafted stones. The ideal stone is pearl. Clients are office employees who need to do things strictly and tastefully.
3. Romantic direction - it can be divided into both vintage and modern youth. The material used is polymer clay, artificial beads, natural stones, soutache weaving.
Understand what style you will work in and who will become your client!
To build a profitable home business from scratch in the field of designer jewelry, listen to the advice of experienced craftsmen:
Anna Kochetova - about how necklaces, beads and bracelets are created for a specific client
IT tools used by Sence Of Color
- 1C:UNF
- 1c accounting
Muscovite Anna Kochetova gave up her status position in an IT company for the sake of her passion for creativity. She founded the jewelry brand Sense of Color, which is based on the selection of individual jewelry. The master takes into account the characteristics of the client’s figure, as well as her clothing style and image. Anna Kochetova, founder of Sense of Color, told the Biz360 portal how to do something special and unique for each customer.
38 years old, founder of the brand. She graduated from the Moscow Aviation Technology Institute (now the Russian State Technological University) with a degree in IT engineer. Since 2011, she has been a jewelry designer and founder of the Sense of Color brand. The initial investment in the project amounted to about 200 thousand rubles.
Searching for a special business idea
I have always dreamed of having a creative profession. Since childhood I was interested in art and attended art school; my mother and aunt taught me handicrafts. But I graduated from school in the 90s, and it was necessary to “get a good profession.”
Having trained as an IT engineer, I worked in my specialty for about 10 years in one of the 1C franchisee companies. During this time, she worked her way up from a programmer to a project manager and department head.
But dreams of art were not forgotten. I planned to return to creativity after the birth of the child - in principle, that’s how it happened. During my maternity leave, I began to look for new ways to use my talents. I've always had a lot of ideas for crafts, and I had to decide which ones were worth bringing to life.
To understand my desires and plans, I took part in a 10-day coaching session. This is a training in which a coach (trainer) helps participants formulate exactly what they want and in what direction they need to move. At the final stage, I realized that I want to help women express themselves through beauty and seek life balance.
I chose jewelry making as my new field of activity. I have always liked this, and I already had experience in this matter. While working in IT automation, I dabbled in jewelry as a hobby. But having decided to turn my hobby into a business, I understood perfectly well: there are millions of good craftsmen in this market. And in order not to get lost among them, you need to look for some new approaches and solutions.
“Goes with everything” - it doesn’t happen
The sole goal of almost all jewelry makers is to sell their products. Usually no one thinks about whether they suit the customer or not. I decided not to just make and sell accessories. And I set myself the task of selecting for each client only what truly suits her.
But this required knowledge in matters of style and wardrobe selection, which I did not have at that time. I decided to fill this gap by enrolling in an image consultant course. The training lasted only a month, but it gave me a system of knowledge about the formation of image and clothing style.
The main topic of this course is how a woman should dress, emphasizing her strengths as much as possible and hiding her shortcomings. A separate part of the training was devoted to the principles by which people of different psychotypes choose their clothes.
After completing the courses, I worked for several months as an image consultant to gain the necessary practice. In addition, I received training from a jeweler. The total investment in training amounted to about 90,000 rubles. We also had to spend money on making a website (50,000 rubles) and materials (about 60,000 rubles).
Now there are a large number of craftsmen on the costume jewelry market. But among their products there are many things that can be called art objects. They may be beautiful, but it is not clear how to use them and what to do with them. Even the authors themselves don’t know what to wear them with. In such cases, they say that the item “goes with everything.” In reality, this means that there is no need. In my work, I proceeded from exactly what image should be created with the help of jewelry. This is what makes me different from others.
The name for the project Sense Of Color (“sense of color”) came from childhood. When I started studying at art school, the teacher told my mother that I had an amazing sense of color and I definitely needed to study seriously. The family remembered this, and these words also sank into my soul.
Only imported materials
I work only with imported materials. These include ribbons, laces, leather, silver-plated metal, stones and Swarovski crystals. I am not satisfied with the quality of domestic fittings. I purchase materials from Russian distributors - for example, from Swarovski representatives.
It is common to think that jewelry is an emotional purchase and a trinket for pleasure. Through my work I prove that jewelry is a practical thing that can completely change a woman’s image with little effort. High-quality materials and careful work make it possible for jewelry not to lose its “marketable appearance” for several years.
Of course, costume jewelry is usually not worn for that long. But clients say that my clothes go with a lot of things. And I’m working on this, which also makes me different from others. Sometimes they come to me 3-4 years after purchase for restoration of a favorite item - for example, to change the lock or some other part.
How is communication with clients organized?
On our website senseofcolor.ru There are about 60 ready-made jewelry presented - mainly necklaces and earrings. These are things that suit many women and many outfits. All of them are made by hand, so even when purchasing from a catalog, the customer receives a product that is somewhat different from the others. Even if it is a serial item, it is impossible to do the same thing twice with your hands. It always turns out differently.
When ordering in the online store, customers can make small individual wishes (for example, change the lock). They can also consult with me which products are most suitable for them. I can tell you about each item on my website, what it goes with, how to wear it, and whether it is worth using for a specific person.
There are quite a lot of orders for an individual product. I try to meet such buyers personally. For the meeting, which lasts about an hour, I bring samples of materials, as well as several finished products. Together with the client, we determine the type and concept of the decoration. We focus on my ideas about what the client’s image should be, as well as her wishes.
Then I lay out samples of materials on the desired background and send a photo of this “application” to the customer. I don't use drawn sketches. As practice has shown, people do not always understand how a drawn thing will look in real life.
Then we discuss the details by phone, Skype or instant messenger and approve the final layout. The duration of these preliminary works depends on the customer. Sometimes the discussion takes no more than half an hour. And it happens that changing and coordinating layouts occurs in several stages, and the whole process takes 1-2 weeks. Sometimes people contact me to repair or remake old jewelry. In such cases, it takes longer to complete the order.
The process of making one item takes from 1 to 14 days. It happens that the workpiece needs to be put aside and nothing done with it for some time. Then some interesting and fresh ideas may come that are different from what was planned at the beginning.
If necessary, I refer my clients to image consultants. They offer each woman looks based on what would be good for her to wear. They also select Sense Of Color jewelry and advise what is best to wear it with. This collaboration is successful in every sense. We are not talking about “emotional purchases” here: I saw something beautiful and bought it. Our goal is to choose things for people that will highlight the advantages of their figure and face, tell something about them and fill them with self-confidence.
Promotion through personal communication
The first clients of Sense Of Color were my friends and acquaintances. Many of them still wear those first pieces from the brand. Friends recommended these items in their social circles, attracting new customers. Word of mouth still remains the main way to reach new audiences. The recommendations of image consultants, with whom I was already familiar at that time, also played a role. They recommended my products to their clients if the jewelry matched the image they were creating.
Also, many buyers come from social networks. The brand’s website, as well as pages on Facebook and Instagram, appeared in the first months of the project. I am personally involved in filling out the website and maintaining social networks. The experience with inviting third-party specialists to write content was unsuccessful. The main topics of posts on social networks are how and for whom jewelry is created under the Sense Of Color brand. I almost never do paid brand promotion through the Internet and social networks. The name I have earned in the field of handmade jewelry over 6 years allows me to attract users of social networks without additional investments.
I don’t use marketplaces like “Masters Fair”. This format does not allow conveying to the buyer the main value of the brand - an individual selection of jewelry for a specific person. Participation in exhibitions, which I abandoned long ago, also does not bring results. They were attended mainly by those clients who already knew me from social networks and recommendations from friends. And it is not always possible to interest other exhibition visitors in the format of quick communication.
Another unsuccessful method of promotion was selling through stores. My jewelry was in one of the three largest department stores in Moscow, in a store of one of the brands. But nothing was for sale there. The fact is that stores do not promote brands, and most of the sellers in them are unprofessionals who do not know how to choose a good thing for a buyer that suits him. Therefore, such stores are now actually a cemetery for Russian designers.
Jewelry for different budgets
Earrings “from the catalog” cost from 3-5 thousand rubles, necklaces from 5-7 thousand, bracelets from 2-5 thousand rubles. Prices for custom-made jewelry start from 3,000 rubles. Prepayment when starting work on an order is 70% of the cost of the product.
The average bill for one purchase is about 10,000 rubles. Typically an order consists of two or more products. Almost every month at least one client buys 6-7 products at once. Such purchases are made not only for gifts. Sometimes I meet with a client and offer her several products to choose from. And she takes everything! Thus, she composes her wardrobe and completely closes the issue of accessories.
When working with “gift” orders, I try to find out from the customer as much necessary information as possible about the recipient and his tastes. But it happens that buyers are afraid of not getting the gift right. For such cases, the online store has gift certificates for 3, 5 and 7 thousand rubles. They are especially in demand during the holiday periods.
You can pay for your order in a variety of ways: by card, from a mobile operator account, in communication stores or using instant payment terminals. All these payments are made using the Robokassa payment system. Non-cash transfers from a current account and payments via PayPal are also accepted. Upon receipt of the goods from the courier, payment in cash is possible.
The finished order in Moscow and the Moscow region is delivered by couriers. Delivery cost is 300-350 rubles. You can also pick up purchases yourself at one of the order pick-up points; this will cost the client 150 rubles. Orders over 9,000 rubles are delivered free of charge. Jewelry is sent to other regions of Russia through a transport company. I cooperate with one of these companies, it takes care of the payment and issues checks. And then he transfers the money to me in one sum.
With a small team
Three craftsmen make Sense Of Color jewelry. They work under a contract, but the staff has been constant for many years. I think through the design, control the production of each product and help the craftsmen as needed.
To find good craftsmen, I turned to friends for help. They recommended people to me who wanted to work. One of the assistants is my client. She still wears the jewelry that she ordered from me, but now she makes new ones for herself.
I am the only one who communicates with clients. I’m not ready to entrust this part of the work to a stranger. The fact is that it is personal communication with clients that brings good results in the form of orders.
I outsourced my bookkeeping. Other services for the company are performed in the same way: from website development to packaging production. My plans for the future are to free myself as much and as efficiently as possible. I want to have more time and energy to come up with new things.
Seasonality and other business nuances
The bulk of Sense Of Color customers are women aged 30 to 45 years. Sometimes men who are looking for gifts also contact us. One of them ordered four jewelry at once - for his daughter, wife, mother and aunt.
The most orders are in December and February: jewelry is bought as gifts for the New Year and March 8th. The decline occurs in January, May and July. But there have been no strong drops in demand not related to seasonality over the 7 years of the project’s existence. Even the periods of sharp depreciation of the ruble in 2014-2015 managed to pass quite smoothly.
Sometimes it happens that a woman buys jewelry for herself with her last money. This doesn’t bother me at all: I feel like a woman in my jewelry, and so do my clients, and that’s the main thing. The worse a woman does, the better she should look. I bought jewelry with my last money - something in my life changed and began to improve.
Most buyers of Sense Of Color jewelry live in Moscow and the Moscow region. Orders came from St. Petersburg, Yaroslavl, Cheboksary, Ufa, Kazan, Samara, as well as from Russian-speaking residents of Europe.
At least half of customers return for repeat purchases. Working with such clients is somewhat easier than with new ones: I already know what type of jewelry suits them. Repeated requests occur the following year after purchase, and after 3-4 years.
For some customers, Sence Of Color products are not just jewelry, but a way to solve a serious problem. For example, sometimes women come in who have a scar on their neck (for example, after surgery on the thyroid gland). And my decoration covers it. When a client puts on my jewelry, tears appear in her eyes. She needs decoration not even for beauty, but to cover her pain. Walking around every day in a turtleneck with a long neck will drive you crazy. A woman always remains a woman. I tell these stories on social networks - naturally, without the clients’ names.
Our plans for the near future include developing cooperation with jewelers, which we have just begun. The fact is that I am often asked to make a piece of jewelry to order - to cast earrings, a ring, or even a souvenir in the form of a dumbbell. Such clients have to be refused. Working together with jewelers will allow you not to lose such customers.
A jeweler I know and I started a project called Designed by kid. This is a piece of jewelry made for a parent based on a drawing by their child.
I'm passionate about what I do. This is my life. Beauty will save the world, and it moves me forward every day.
The material uses photographs by Victoria Igoshina. 
Trade with shine
Just four years ago, the Russian costume jewelry market was seriously “sagging”: the decline in retail sales amounted to 30-40%, which forced some companies to curtail their activities. Now the situation in this market is the opposite.
Echo of an explosion
Sales of costume jewelry on the global market are impulsive and explosive. Another surge of interest in it appeared in Europe and America in 2002. After a long decline, famous fashion houses began to actively turn to costume jewelry again as a means that can seriously complement and emphasize the style of clothing. A year later, the blast wave reached Russia. Investors felt an increase in consumer interest, and new retail outlets selling costume jewelry began to open actively in the capital.
“Today, the market is expanding due to the arrival of new wholesale and retail players,” says Selena CEO Valery Kurgansky. – Over the past three years, their number has increased three to four times. In any shopping center today there are not one or two jewelry departments, as there were several years ago, but several times more.
“Owners of prestigious shopping centers have stopped looking at costume jewelry as something frivolous,” adds Igor Gutlin, commercial director of the Ankor company. “That’s why they willingly rent out their space for selling jewelry. For example, in the Okhotny Ryad shopping center, in addition to us, at least five other companies sell it.
The middle class is leading
Costume jewelry can be divided into three price groups: cheap, medium and expensive. Cheap products include those whose retail price does not exceed 500 rubles. The bulk of products in this group are sold for 100-200 rubles. per product. As a rule, these are Chinese, Afghan, Syrian products. Jewelry costing 200-500 rubles is also made in China. But, as a rule, they are labeled Made in Italy, and their quality is slightly higher. Cheap jewelry on the Moscow market accounts for approximately half of total sales (in physical terms). It is usually sold in markets, kiosks in underground passages and subways.
The middle price group includes goods that are sold under their own brand. The retail price of such jewelry is 500-1500 rubles. per product. As a rule, this is costume jewelry from domestic, German, French and Italian companies (Grey Stone, Bijoux Land, Selena, Iness M. Paris, Etalon-Zhenavi, Altes, Avenue, etc.), as well as some Chinese and Korean manufacturers. This is high-quality and fashionable jewelry, which provides capital traders with at least 40% of sales in physical terms. And in monetary terms, this group of costume jewelry takes precedence over cheap and expensive jewelry.
“This jewelry allows you to create a very beautiful assortment at a retail outlet and attract more customers,” says Andrey Berezenkov, marketing director of Gray Stone. – Therefore, retailers most often purchase middle-class costume jewelry from wholesalers.
Jewelry of the mid-price group is actively sold in display sections and boutiques of large shopping centers, in department stores, through online stores, as well as in small specialized stores.
Luxury brand products account for approximately 10% of total sales. On average, their retail price is 1500-4000 rubles. per product. Although there are jewelry costing $300-700. The expensive price group includes jewelry from well-known brands - Yves Saint-Laurent, Christian Dior, Ted Lapidus, Christian Lacroix, Kenzo, Valentino, etc. Fine jewelry is sold in prestigious stores and boutiques where clothing from the same brands is sold. This segment is mainly occupied by importers of expensive clothing and perfumes, who independently purchase jewelry from famous artists for their stores.
According to the product structure, the market is also divided into two large groups: costume jewelry itself and hair accessories.
– The hair accessories market has its own characteristics. It shows more pronounced seasonal declines in sales. In summer they are sold more, in winter – less,” says Andrey Berezenkov. – By the way, last year can rightfully be called the year of hair accessories. Their sales increased by 100-150%.
Mini format is relevant
There are no large stores selling exclusively costume jewelry in the capital's market. The main sales are made in small retail outlets.
“A large store specializing in the sale of jewelry alone cannot be successful and profitable,” says Valery Kurgansky. – Such a store must also sell other accessories for women: hats, umbrellas, gloves, scarves... But selling only jewelry is profitable for “island” outlets located in shopping centers.
Such jewelry islands are counters and display cases located in the open spaces of shopping centers. Their area ranges from 4 to 20 square meters, and the range includes at least 500 types of products.
According to Andrey Berezenkov, Marketing Director of Gray Stone, the best option for selling costume jewelry today is to create a Cash & Carry store where jewelry is displayed in the public domain.
“The world has not yet come up with anything more successful in this business,” says Andrey Berezenkov. – After all, women want to try on jewelry and see how it looks on them. In Europe and America, costume jewelry has been sold in such stores for many years. And in Moscow, the first such points appeared only two years ago - at the Lady Collection chain.
Profitable business
The retail costume jewelry market attracts new players with minimal investments and stable income: the trade margin on costume jewelry ranges from 100-300%, and sometimes even higher. Some wholesalers, in an effort to ensure high liquidity of their goods on the retail market, recommend that their clients make minimal retail markups. But even with this approach, the owners fully cover their losses from the remnants of the collections that were not sold during the season.
There are no problems with purchasing goods from retail outlet owners. Wholesalers regularly provide retail with costume jewelry.
“Several large, serious wholesalers operate in the capital’s market, so owners of retail outlets have an excellent opportunity to choose the best products for their business from them,” says Igor Gutlin, commercial director of the Ankor company. – For example, we cooperate with twelve suppliers of costume jewelry.
Wholesalers provide goods to verified customers for sale or with deferred payment. And some are even ready to take back the unsold remains of old collections in exchange for new ones.
The availability of goods, as well as small initial investments, allow beginners to successfully enter this business.
– Retail area of 15-20 sq. m can be quite densely filled with products totaling $10-12 thousand, says Andrey Berezenkov. – Together with renting space and purchasing commercial equipment, opening a business will require $22-25 thousand. Trading jewelry is a successful model for a small family business that can bring in $4-5 thousand a month.
The success of a jewelry outlet directly depends on its location. In crowded places, the turnover per square meter of retail space is $750-800 per month. But the rent in such locations is also higher.
“Our observations show that in this business, the winner is the one who, although he pays a high rent, is located in a place where the flow of people dries up only late in the evening or when the shopping center is closed,” says Andrey Berezenkov.
If you expand the assortment at the expense of related product groups, then the turnover can be even higher.
“In our network, in addition to jewelry and hair accessories, there are souvenirs made of glass and crystal, leather goods and artificial flowers,” Igor Gutlin shares his experience. – This assortment attracts many more buyers. At the same time, costume jewelry gives us 30% of our turnover.
More expensive than gold
Costume jewelry is in stable demand. Most women would rather buy jewelry made from non-precious materials that quickly goes out of fashion than gold.
“Women’s logic is clear,” says Valery Kurgansky. – A gold chain cannot decorate in the same way as a chic necklace bought for the same money, for example, made of artificial stones. In addition, costume jewelry uses materials and forms that cannot be used in jewelry.
Jewelry manufacturing technologies are constantly being improved. For example, the Austrian company Swarovski has made another revolution in the production of artificial crystals. Over the past two years, it has offered the market crystals in 60 new color shades. Many jewelry with such rhinestones look more spectacular than jewelry with natural precious stones.
Fashion magazines that popularize accessories also contribute to the growth in demand for jewelry. These publications prepare at least 25% of potential buyers to purchase jewelry.
“Fashion magazines and popular TV shows are so brainwashing the generation of 12-25 year olds that sales of costume jewelry for this age group are growing by leaps and bounds,” notes Andrei Berezenkov. – After every interesting publication about new Gray Stone jewelry, which was not initiated by us, we receive 100-200 calls with the question: “Where to buy this?”
Half of jewelry purchases are made by young girls. Marketing research conducted by major market players allowed us to paint a collective portrait of jewelry buyers. These are active girls aged 16-25 who carefully monitor their wardrobe, are familiar with the fashionable colors of the current season, know clothing brands and go to “parties” in affordable cafes. Their parents give them money for pocket money, or they earn good money themselves. And many have wealthy boyfriends.
In the wake of fashion
All the world's jewelry follows in the footsteps of clothing fashion. Clothing is primary in this process, and jewelry is just an accessory that complements it. Therefore, jewelry collections change radically twice a year - in spring-summer and autumn-winter. But since designers work all year round, the collections on sale are replenished with new products every month. The goods for the outlet are selected by an experienced specialist - a buyer.
“The buyer’s main task is to guess what jewelry will be in demand in the near future,” says Konstantin Soloviev, director of Bacasco. – Buyers and merchandisers have to constantly keep their finger on the pulse of fashion, analyze their own sales, and also intuitively assess future consumer needs in order to purchase the most popular goods from wholesalers. Typically, owners of retail outlets work with several wholesalers at once, which allows them to diversify their assortment.
It is generally accepted that jewelry is a product exclusively for women. But this market also has something to offer men. And not just cufflinks and tie pins. Designers create special series of steel jewelry for men: bracelets, necklaces and rings. However, our men do not yet have the habit of complementing their image with such things. Men account for no more than 5-10% of all jewelry purchases. The main consumers of such jewelry are artists, pop musicians, and representatives of show business. It has also been noted that men do not know how to choose jewelry as a gift for women and therefore practically do not do it. During sales peaks - before the New Year, March 8, school graduation parties - women take on these concerns.
Another thing is informal youth groups. Punks, rockers, and metalheads love to decorate themselves with chains, earrings, bracelets and other trinkets. Therefore, some companies specifically include products for this target group in their range.
“In our sales, the share of costume jewelry for “informals” is 10%,” says Konstantin Solovyov, director of Bacasco.
When forming an assortment, many stores do not lose sight of such a consumer audience as teenage girls from 12 years old. Andrey Berezenkov considers them the most grateful customers. For them, Gray Stone has a lot of special jewelry and accessories for sale on the Gray Stone network.
Classics + ethnic
Classical jewelry never disappears from shelves and is always in demand. According to Konstantin Solovyov, classics occupy 20-30% of the market. The main purpose of classic jewelry is to highlight the elegance of a woman. Other groups of costume jewelry are more closely tied to changing fashion trends. These include hi-tech, avant-garde, romantic, and ethnic jewelry. The latter is very popular now and, according to forecasts, will be fashionable next season.
“According to the designers’ forecasts, glamor, ethnicity and classics are the three main trends in fashion jewelry for the fall-winter of 2005-2006,” says Andrey Berezenkov. – But you cannot blindly trust these forecasts when planning your business. You can know what will be fashionable, but you still can’t guess what kind of jewelry our women will prefer to buy. Among them, there is a large proportion of those who select jewelry for fashionable seasonal clothing, based entirely on their own taste. And this sometimes greatly undermines the sales of fashion jewelry.
Growth or stagnation?
Specialists of the consulting group “Ready Business Store” believe that this year an increase in sales of mid-price jewelry by 20-30% is possible. In the future, sales of cheap Chinese and Korean jewelry will gradually decline, especially in large cities. Sales of costume jewelry in supermarkets will increase by an average of 10-15%.
Andrey Berezenkov also believes that the costume jewelry market will grow.
“The market will be divided by several large retail chains,” says Berezenkov. – Singles will consolidate. Competition will intensify because newcomers will actively enter the business. Two large global chains are also expected to enter the market: the American Claire's and the British Dsk Concession. The Americans have already opened a representative office in Moscow and are currently engaged in market research.
Valery Kurgansky does not agree with these forecasts. In his opinion, the costume jewelry market is close to saturation, and therefore, in the near future, sales growth will stop.
– Against this background, mixed-format stores (jewelry plus accessories) will become the most successful and in demand. These will be medium-sized stores owned by large chains that will actively advertise themselves. However, small points in crowded shopping centers will also remain competitive, says Valery Kurgansky.