On This Page:
- Steps To Opening Your Own Jewelry Business
- How Big is the Jewelry Industry?
- What are the Key Segments of the Jewelry Industry?
- What External Factors Affect the Jewelry Market?
- Who are the Key Competitors in the Jewelry Market?
- What are the Key Customer Segments in the Jewelry Market?
- What are the Typical Startup Costs for a New Jewelry Business?
- Is Owning a Jewelry Business Profitable?
- What are the Keys to Launching a New Jewelry Business?
- How to Start a Jewelry Business FAQs
- Helpful Videos
- Additional Resources
It’s no secret that the jewelry industry has seen an increase in popularity over the years. With more people looking to make a profit selling their handmade pieces, it can be difficult to know where to start.
Luckily for you, this article will guide you through what you need and how to start a jewelry business.
Many fortunes have been made in the jewelry business. Whether you’re looking to start a jewelry manufacturing business and/or run a jewelry store, you have come to the right place since below we will show you how to launch a successful jewelry company.
Importantly, a critical step in starting an jewelry business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.
Steps To Opening Your Own Jewelry Business
Find a niche.
Finding jewelry items that are popular within your community is important for this business. You need to know what you will be selling, so finding fine jewelry pieces that people want is key. Remember to consider who your target audience will be and how much they can afford to spend on the jewelry you make.
Choose a jewelry style.
There are many different jewelry styles that you can choose to create. Depending on your tastes, finding jewelry with different styles is up to you. Narrowing down the jewelry styles that are popular in your area will help you start selling faster. You could even combine jewelry styles if there is a piece of jewelry people seem to be looking for but they do not know where to find it.
Create a jewelry business plan.
A jewelry business plan is important to have so you can map out your goals and what you will need to do to achieve them. This document should also list your estimated expenses, as well as potential sources of income. Having a jewelry business plan will help you stay on track while running your jewelry business.
Produce quality pieces.
Quality always comes first when starting a jewelry business. Your customers need to trust that the jewelry they are buying is worth the price. Make sure all of your pieces are made with precision and care and take the time to perfect each one before selling it.
Market your jewelry.
No matter how good your jewelry is, if no one knows about it, you will not make any sales. Use different marketing techniques to get the word out there about your jewelry line. Some popular methods include using social media posts, setting up your own website and the online store for selling jewelry online, and participating at local craft fairs.
You may also choose to launch your own jewelry store.
The jewelry business is a great way to make a profit while doing something you love. With a little bit of hard work and dedication, you can be on your way to starting your own jewelry business. Remember to always put quality first and take the time to perfect each piece before selling it.
How Big is the Jewelry Industry?
The jewelry market size in the US is expected to reach $57.96 billion and is expected to increase at an annual growth rate of 0.8%. This is due to the increasing use of technology and the digital platforms that propel the demand for luxury jewelry globally.
What are the Key Segments of the Jewelry Industry?
The market is broadly divided into three key segments: luxury jewelry, fashion jewelry, and costume jewelry segments.
Luxury Jewelry
Luxury jewelry includes fine jewelry products created from 18-karat gold, pure platinum, or sterling silver. The jewelry tends to be finely crafted and is often ornate in design—the type usually worn by celebrities on the red carpet at movie premieres and other high-profile events. The luxury jewelry segment is subdivided into high-end and mid-priced jewelry.
High-end jewelry: This segment includes jewelry that is handmade and retails for more than $1000 per piece. Some jewelry in this segment can cost hundreds of thousands or even millions of dollars.
Mid-priced jewelry: This jewelry is also handmade, but retails for between $100 to $1,000 per piece. The mid-priced jewelry segment may also include jewelry that is not handmade.
Fashion Jewelry
The fashion market includes jewelry that typically costs less than $100 per item. These jewelry pieces are mass-produced in factories, intending to be fashionable jewelry that appeals to a large market segment. This segment is further subdivided into contemporary and traditional segments.
Contemporary segment: This jewelry is made out of low-cost materials, such as plastic or brass, and uses quartz or battery-operated movements. The contemporary segment includes jewelry that has a modern design and often uses new materials.
Traditional jewelry: This segment is often characterized by classic, timeless jewelry design. It usually uses semi-precious stones and semi-precious metals. This jewelry may be dainty or ornate, depending on the style of the piece. This jewelry has more than one metal component (i.e., jewelry with base metal and plating).
Costume Jewelry
The costume market includes jewelry that typically costs less than $50 per piece. The term “costume” refers to jewelry that is made out of cheaper materials, such as plastic or glass. Costume jewelry is usually made from base metal alloys with few precious metals, which results in jewelry that is inexpensive and can be mass-produced. The costume jewelry segment is further divided into the designer and non-designer segments.
Designer jewelry: This jewelry adheres to the quality standards expected of jewelry in the fashion jewelry segment. The designer costume jewelry segments include jewelry pieces created by well-known designers, such as Kenneth Jay Lane and Adriana Orsini.
Non-designer jewelry: Generally speaking, this type of jewelry has simpler designs, and is made from less expensive materials. It is not created by a well-known jewelry designer.
The key difference between selling costume jewelry and fashion jewelry is cost. Generally speaking, the higher the price point, the more likely it is to be considered either fashion or luxury jewelry rather than costume jewelry.
What External Factors Affect the Jewelry Market?
Several external factors can affect the jewelry business. These factors can include the following:
The economy
The jewelry business is closely linked to the overall economy, as people tend to reduce their spending on luxury items during tough economic times. Jewelry is often considered a luxury item, so when the economy is weak, demand for jewelry typically decreases.
Changes in fashion
The fashion market is constantly changing, as new trends emerge and old ones disappear. If a jewelry company doesn’t keep up with the latest trends, it may find itself struggling to stay afloat. To stay relevant in the market, jewelry companies need to keep up with the latest fashion trends. If jewelry companies don’t do this, they can quickly find themselves out of business.
Who are the Key Competitors in the Jewelry Market?
The global jewelry market includes jewelry manufacturers, traders, wholesalers, retailers, and designers.
Jewelry manufacturers
Jewelry manufacturers are the companies that design and produce the jewelry. They create jewelry in mass quantities.
Jewelry traders
Jewelry traders purchase jewelry in bulk quantities to resell them for a profit. They buy jewelry from jewelry manufacturers and sell it to jewelry wholesalers, local retailers, and other jewelry designers.
Jewelry wholesalers
Jewelry wholesalers are middlemen that work with jewelry retailers to bring in fine jewelry products from the manufacturer to sell directly to consumers at a much lower price.
Jewelry retailers
Jewelry retailers are businesses that specialize in the sale of jewelry. They may sell jewelry that they have designed themselves, jewelry that has been manufactured by another company, or jewelry that has been imported from other countries. Jewelry retailers are businesses that sell to the general public, local businesses and sometimes they also sell jewelry in their own online store.
Jewelry designers
Jewelry designers create handmade jewelry for other businesses to sell. They may work with a jewelry manufacturer to design and create jewelry, or they may design jewelry and then have a jewelry retailer sell it in their jewelry store or on online marketplaces.
What are the Key Customer Segments in the Jewelry Market?
There are a few key customer segments in the market.
Mass market
This customer segment consists of consumers who are looking for affordable, everyday wear jewelry. They are looking for jewelry that is stylish, but not too expensive. Most jewelry sold at regular jewelry stores is in this category.
Middle market
The mid-market consists of consumers who are looking for jewelry that falls somewhere in between affordable and high-end. This customer segment consists of consumers who are looking for jewelry that can be worn on special occasions but is still affordable. Consumers who make purchases in the mass market may consider jewelry from middle-market retailers like David Yurman or Zales.
Luxury market
This customer segment consists of consumers who are looking for high-end fine jewelry. Consumers looking for jewelry in this category are mostly interested in jewelry that has designer names. The jewelry itself may be considered high-end, but the price is still very much affordable for people with higher incomes. Tiffany & Co., Harry Winston, and Cartier are examples of jewelry brands that target this particular customer segment.
This customer segment also consists of jewelry buyers who are looking for jewelry that they can wear on special occasions but is still expensive enough that it is not seen as unattainable by other consumers. Consumers in this market are willing to pay a high price tag for jewelry if the jewelry has significant meaning attached to it. One of the jewelry brands that target this customer segment is Rolex, jewelry boutiques in Beverly Hills, and Saks Fifth Avenue.
Designer market
This customer segment consists of consumers who are looking for unique, one-of-a-kind jewelry. These consumers are often willing to pay a higher price for fine jewelry that is unlike anything they can find at a regular jewelry store or an online jewelry business through an ecommerce platform or online store. This market is typically served by designers who have their own jewelry lines. Some examples of designers who target this customer segment are Alex Woo, Monique Lhuillier, and John Hardy.
What are the Typical Startup Costs for a New Jewelry Business?
To start a jewelry business can be very lucrative, but there are some initial costs that you’ll need to cover before you can get started. The most important of these costs is usually the purchase of jewelry-making supplies and tools. You’ll also need to budget for paid advertising and marketing, as well as for a place to sell your jewelry.
Here’s a breakdown of some of the typical startup costs for a jewelry business:
- Jewelry-making supplies and tools: $100-$1,000
- Advertising and marketing: $100-$1,000
- Website development: $500-$2,000
- Booth rental at trade shows: $200-$1,000
- Jewelry store (if applicable): $100,000 – $250,000 to build
These are just some of the costs you’ll incur when starting your business. Be sure to budget for other incidentals, such as shipping. Here are some additional initial costs for a jewelry business:
Licenses and fees
Another expense is your license and permit fees. These fees vary from state to state but typically cost several hundred dollars. You will also need to register your business with the state and federal governments.
Insurance
Another major expense for many businesses is insurance costs. These costs can also vary widely depending on what type of insurance coverage you need in particular areas of your business. For example, business property insurance is very different from general liability insurance.
Legal and accounting services
If you are not familiar with legal and accounting terminology, it is a good idea to hire a lawyer and an accountant to help you set up your business properly. These services can be expensive, but they are well worth the money to avoid any future legal problems or financial mistakes.
By taking the time to understand these costs and prepare for them, you can give your business the best chance for success.
Is Owning a Jewelry Business Profitable?
Starting a jewelry business can be quite profitable. If you’re able to satisfy your customers, they’ll likely become repeat customers and tell their friends about your store. This will help you grow your business over time. Just make sure to keep overhead costs low and price your products appropriately.
What are the Keys to Launching a New Jewelry Business?
There are a few key things that you need to do to start a successful jewelry business. Here are the most important ones to help get you started:
1. Write a Jewelry Business Plan
A business plan is essential for any new business, and this is especially true for a jewelry business. Your business plan should include market research, your product line, your marketing strategy, your financial projections, and more. This document will help you stay on track and make sure that you are covering all of the important bases as you launch your new business.
2. Choose the Right Location
When starting your own jewelry business, it’s important to choose a location that will be conducive to success. You’ll want to find a space that is accessible to your target market and that has plenty of traffic. You’ll also want to make sure that you have the necessary tools and equipment to run your business effectively. Or, if you are selling online or via wholesale, you will not need a physical storefront.
3. Have a Strong Branding Strategy
Your business needs a reliable jewelry brand identity to be successful. This means developing a clear vision for your company and crafting a unique identity that will set you apart from the competition. It’s important to stand out in a crowded marketplace, and effective branding can help you do just that.
4. Invest in Quality Equipment
To produce high-quality jewelry, you’ll need quality equipment. When starting a jewelry business, it’s important to invest in machinery that will enable you to create the products that your customers want.
5. Build a Strong Customer Base
To be successful, a business needs to build a strong customer base. This means attracting your target audience, retaining existing customers, and building a jewelry brand reputation. There are many ways to do this, including offering quality products, providing excellent customer service, and running marketing campaigns that target your ideal audience.
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How to Start a Jewelry Business FAQs
What are the most popular jewelry pieces to sell?
The most popular jewelry pieces to sell are probably necklaces, earrings, and bracelets. However, it depends on your target market. If you're targeting older women, then more classic jewelry pieces like necklaces and earrings will be more popular. If you're targeting younger women, then bracelets and trendy jewelry will be more popular.
If you are just beginning your business, it's also a good idea to meet with an expert who can help you determine exactly what jewelry pieces sell the best in your market. They should be able to provide you with advice about creating new jewelry pieces based on current jewelry trends and fashion choices.
Meet with a jewelry consultant at least once before opening your store so they can assess your current inventory and suggest future purchases. Their job is also to enhance the impact of jewelry items by pairing them with matching jewelry and scarves, as well as jewelry stands and boxes.
Do I need a business license for my jewelry business?
The business license requirements are different in every state. A jewelry business may require a local license, which can be obtained from the local tax office. Some jewelry businesses may need to register with the state and get a tax ID number. However, the jewelry license requirements vary considerably depending on your location and whether you make jewelry for sale or not.
Jewelry business guidance can be obtained from jewelry trade associations. It is advisable to check with local jewelry organizations for the best advice on jewelry licensing requirements.
How can I make my jewelry stand out from the competition?
There are a few ways you can make your jewelry stand out from the competition, such as by using unique and unexpected materials, by creating bold and eye-catching designs, or by targeting a specific niche market. You can also promote your jewelry line through social media channels, or by participating in local craft fairs and other events. You can also start your online store where you can post images of your jewelry pieces. By taking the time to create a strong branding strategy and marketing plan, you can help your jewelry business succeed in today's competitive marketplace.
What type of insurance do I need for my jewelry business?
When starting a business, you will need to ensure you have the appropriate insurance in place. Your business insurance should include product liability insurance to protect you in case any products you sell are found to be defective.
You should also consider property insurance to protect your business premises and contents in case of fire, theft, or other damage. If you transport jewelry or other valuables for sale, you will also need cargo insurance.
What are the industry standards for pricing jewelry pieces?
When pricing jewelry pieces, it is important to take several factors into account. The main factors to consider are the cost of materials, the time it took to make the jewelry (if you create handmade jewelry), and overhead costs. In general, jewelry prices fall into one of three categories: high-end, mid-range, or budget.
High-end jewelry is typically made with expensive materials such as gold and diamonds. The pieces often take a long time to make and have intricate designs. As a result, high-end jewelry typically has a high price tag.
Mid-range jewelry is made with less expensive materials such as silver and semiprecious stones. The pieces may not be as intricate as high-end jewelry, but they still require a good amount of labor to create. As a result, midrange jewelry typically has a price tag that falls somewhere in between high-end and budget jewelry.
Budget jewelry is made with the cheapest materials possible. The pieces are often simple and mass-produced. As a result, budget jewelry typically has the lowest price tag of all three categories.
When pricing your jewelry, it is important to find the right balance between quality and affordability. It is also important to stay within the industry standards for your particular type of jewelry. If you charge too much, you may scare away potential customers. If you charge too little, you may not be able to cover your costs and make a profit.
What are some of the common mistakes jewelry businesses make?
There are some common mistakes when one tries to start a jewelry business. One of the most common is not having a jewelry business plan. Without a plan, you won't know what steps to take to grow your business, and you'll be more likely to make mistakes.
Another common mistake is not doing enough research. Before starting your business, learn as much as you can about the industry and your target market. You can search online. This will help you develop a strategy that will be successful.
Another mistake jewelry entrepreneurs often make is pricing their products too high or too low. You need to find the right balance so that you're charging enough to cover your costs and make a profit, but not so much that potential customers won't buy your products.
Finally, jewelry businesses often make the mistake of not marketing themselves enough. You need to create a marketing strategy and execute it consistently to attract customers.
What jewelry supplies and tools should I stock up on?
When preparing to start your business, you'll want to make sure to stock up on basic jewelry supplies and tools. This includes tools like pliers, wire cutters, and a jewelry saw, as well as supplies like wire, beads, and findings. You can find more specific jewelry-making supplies and tools at your local craft store.
Many jewelry-making supplies and tools come in a jewelry kit, so if you're looking to save money but still want the basics, consider purchasing one of these kits. You'll get jewelry supplies and jewelry-making tools at a discounted price plus instructions on how to use the items in the kit.
Helpful Videos
How To Start An Online Jewelry Business in 2021 (For Beginners)
3 Things I Wish I Knew BEFORE Starting A Jewelry Business
Start a Handmade Jewelry Business Online in 2021
Additional Resources
Wholesale Jewelry-Making Supplies
Federal Trade Commission Tips & Advice for Jewelry Business Owners
Business Plan Template & Guide For Small Businesses
How To Write A Great Business Plan
100 Business Plan Examples To Use To Create Your Plan