Signs of retailers "50% discount" every day do not find a response from buyers

When the Federal Reserve Bank of the United States wants to slow down economic growth, it raises interest rates. When he wants to stimulate economic growth, he lowers interest rates. This is the application of the law of supply and demand. It works in the same way in the retail markets: when the price increases, consumer demand weakens; When the prices in shops fall, usually crowds of buyers.
 
For many years, jewelers use price-based marketing: signboards "50% discount" usually decorate the showcases of their stores, luring buyers who went in search of profitable purchases.

But recently these signs "50% discount" were replaced by the signs "discounts up to 70%", but there is no increase in the flow of customers. In fact, retail prices for jewelry have been falling since the end of 2013; At the same time, demand continues to weaken. Worse still, our example with jewelery merchants suggests that there is no end to this: a decrease in the number of customers and a decrease in average checks for purchases hurt the sales volume in the industry.

Questions of the "general situation"
What's going on? We all heard the explanation of the "general situation". First, people born during the post-war demographic explosion - more mature, healthy consumers - do not buy jewelry to the same extent as previous generations. Secondly, people of the third millennium - a young, mostly healthy demographic group of the population - postpone marriage at a later date. Even when they marry or get married, they do not buy a traditional diamond engagement ring, often preferring something more modern and less expensive. In addition, representatives of the third millennium generation do not want "things", they want "sensations and adventures." A study conducted by De Beers showed that the tourism industry,

Two major obstacles to increasing the price of jewelry
The main reason that jewelers lost their power in the formation of prices - the ability to raise prices - is that they also lost confidence in their prices. Signs of retailers "50% discount" every day do not find a response from buyers who see the same advertisement day after day in the shopping complex. When buyers do not know how much they have to pay for a piece of jewelry, they do not buy it, often because of skepticism, fear and mistrust of the retailer. We call this "price roulette", and traders always lose the game. Secondly, most of the jewelry is not branded, so buyers do not really know anything about the quality of these products, especially in the market where the goods are discretionary,

Diamond dealers can not understand.
We noticed that, faced with a decline in consumer demand, the diamond industry requires a price increase for diamonds. This is absolutely contrary to the laws of supply and demand. Prices for diamonds reached a peak in mid-2011, and since then began to decline. Trying to raise prices, dealers with diamonds, it seems, can lose that small number of buyers who are still on the market.

Forecast: times change
Retailers of jewelry and their suppliers need to rethink their marketing and product strategy. They should ask the question: "How can I attract the attention of childless families with both working spouses of the third millennium"? The purchase of a jewelry should be an "event".

There are many marketing consultants who know that the diamond and jewelry industry must do to survive and develop. The problem is that the jewelry industry is basically rooted in the 19th century, and traders do not seem to want to admit that the market has changed. Merchants must reach consumers of the 21st century and meet the current needs of new customers, such as they are now, and not the needs of people who lived several generations ago. In our opinion, they need help from the outside.

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