With economy on the rise, here's a get-ready checklist

Expert Columnists - Jan Brassem - Big Picture

Save

E-mail

With economy on the rise, here's a get-ready checklist

By Jan Brassem

October 21, 2009

Jan Brassem is managing director of Brassem Global Consulting, a global sourcing and mergers and acquisitions firm.

Let's take a breath and look forward because--let's face it--looking back [at circle one: a) Lousy sales b) Jewelry bankruptcies c) Non-jewelry competition d) Sinking economy e) All of the above] is, to say the least, depressing.

The Wall Street Journal and the financial crowd think the U.S. economy will stop bleeding around November or December. By extension, the jewelry industry should pick up by early 2010.

With a new, expanding economy on the horizon, are jewelry managers positioned to capitalize on it? By this time, they should have done the following:

--Created an analytics initiative. By now, managers should have placed one executive with proper technological support in charge of all data collection and analysis. That analysis should, for instance, be able to measure the relative importance of packaging, store(s) name, price, guarantee, etc.

--Managers should be getting ready for severe inflation by 2010-2011, the result of the Federal Reserve Board's decision to buy $1.15 trillion, in effect putting $1.15 trillion into U.S. circulation.

--Started a social networking strategy and model: YouTube, Twitter, Facebook are just a few players in a scene that levels the playing field between small businesses and corporate giants.

--Prepared for a lean, mean operation. Managers should have thrown out unneeded samples, unused desks, meaningless reports and old, inefficient systems.

--Invested in updated technology. The jeweler should have taken advantage of lower, recession-time prices and invested in product development, tools, production technology, jewelry design and so forth.

--Pursued mergers and acquisitions. The best deals are made during downturns. Since sales and profits are weak during a recession (internal) growth is hard to come by, meaning managers should have an external growth strategy, such as acquiring another store.

--Refocused the financial model. The downturn changed the way many suppliers, bankers and customers think and operate. Successful and nimble jewelers anticipated these changes and adapted their business models to take advantage.

There is a long list of sophisticated financial "facilities" available to jewelers who may have struggled through the recession due to inadequate lender support. Not counting the "rainy-day" bank balance, here's a partial list: inventory and/or extended vendor financing, receivables financing, secured-bank financing, purchase-order financing, partial equity sale, just-in-time inventory purchase, outside investor, gold leasing and joint venture with manufacturer.

--Understand the new consumer. By now the jewelry manager has measured the purchasing judgments and buying patterns of social networking, Gen Y and green consumer groups, and designed group-specific product segments for each.

New beginnings are usually messy and confusing, and they require strong management and visionary leadership. I hope you're up to it.

Save

E-mail

Expert Columnists - Jan Brassem - Big Picture

With economy on the rise, here's a get-ready checklist

Technology bypasses jewelry, but what if it didn't?

What changes lie ahead for the jewelry industry?

Be analytical in your post-recovery game plan

Seize the downturn and grow your business

More Expert Columnists - Jan Brassem - Big Picture

Design Portfolio

BROWSE

Video

Jewelry Information On The Web

Coming soon.

This section will be available shortly. Please check back periodically for updates.

Retailer Toolbar

Best of Awards
A monthly contest held in every important jewelry category to recognize the industry's most outstanding product design and marketing.

Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.

ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.

Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.

Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.

CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.

Expert Columnists - Jan Brassem - Big Picture

With economy on the rise, here's a get-ready checklist

Expert Columnists - Jan Brassem - Big Picture

More Like This

Design Portfolio

Video

Jewelry Information On The Web

Retailer Toolbar