Thursday, July 21, 2016

Jewelry retailers escape the crisis to bet on B2B and direct sales

São Paulo-To intensify operations B2B (business to business) and bet on direct sales, retail jewelry companies harvest now, with the prospect that the crisis is at an end, results that show the ability to adapt to the recession and keep sales to more affluent classes.
One of the largest crystals, Swarovski has decided to increase its stake in sales of parts for other companies that operate in the retail, depending on the added value that the brand name items accumulate when added to another product.
"At the beginning of the economic crisis, still there in 2014, we have decided to intensify our B2B performance, offer our crystals to other companies. So, we increased our range of operations and add value to the products of the companies concerned, "the Director of Brazil and Latin America Professional for Swarovski, Monica Orcioli.
Through partnerships, the Swarovski Crystal company markets to retailers of clothing and footwear, such as Hawaiian and Osklen.
"Are strategic alliances. We conducted a survey that showed us that 40% of consumers would be predisposed to pay a larger value for items that have a Crystal our embedded, "he says.
With that, the other companies have increased sales and B2B operation of the company gained great representativeness in the recipes of the brand within Brazil.
If last year grew 10% in the country Swarovski front last year, about 20% of this revenue-not open by the company-professional operation.
"Until 2019, we hope that this representation is the same as or similar to the retail operation in stores, 50%", Orcioli.
For this year, the Director expects the company as a whole (retail and B2B) come back to register growth of 10%. 2017 the intention is to move at least 15%. "Achieving this goal will be possible through the continuation and strengthening of our current partnerships. Selectively, always seek to also work with market leaders, develop new programs and new projects. Another bet is to increase the speed of development of sales platforms, "said she to the DCI.
One of these platforms, according to the Director, is selling corporate gifts for promotions of malls and other retailers.
Strategy known by companies like Natura and Herbalife, direct sales were the output found by Frances Jewels, that previously only sold parts for e-commerce, to broaden your results and keep the growth during the crisis.
"We tested the resale through direct selling and work so well. At the very beginning of the crisis we decided to have this sales channel, which helped us to maintain the pace of growth of the store in 10% a month, "says the CEO of Frances Jewels, Sabrina Nunes.
With five years of life, the store had to move so that the bold goal of growing 30 times in three years was reached. "The crisis brought problems such as higher prices and lower average ticket. With the dealerships, driblamos this problem by increasing the volume of sales, "he explains.
The result from the sale of earrings, rings, bracelets and necklaces was a turnover of 1.8 million R$ in 2015. The number meant a breakthrough of over 50% compared to 2014. For this year, the goal is to overcome the R$ 2,500,000, which would represent an increase of nearly 40% over the past year.
"Currently our biggest investments are geared to technology such as fraud prevention on purchases via the internet, and in the dissemination of our materials via social networks," she adds.
Resilience
How quickly to adapt to the recession to maintain the gains shows on the balance sheet in the industry. In Brazil, according to the Brazilian Institute of gems and precious metals (IBGM), revenues from sales of valuable parts like the jewelry and watches surpassed the figure of $ 15 billion for the first time in 2015. The amount represented an increase of 12% in relation to the number of 2014. Today, there are over 19000 stores, with more than 40000 vacancies occupied in all regions.
DCI News Item translated automatically
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