Hill & Co has released its first instalment in a new series of reports titled The Business of Jewelry Report. This comprehensive publication, titled “Breaking the Chain”, is designed to offer insights and strategies to help jewellers navigate the evolving landscape of supply chains and consumer behaviour. The report aims to address key challenges such as supply chain consolidation, technological advancements, and shifting consumer demands.
Supply Chain Disruption and Strategic Adaptation
At the core of the report is the theme of shortening and streamlining jewellery supply chains. Hill & Co. challenges businesses to consider whether the traditional supply chain model is still viable in today’s fast-paced market. In their exploration of this issue, the report provides an in-depth look at how jewellers can take control of their supply chain, optimising operations through the adoption of new strategies and technologies.
Harvard Business School professor Dennis Campbell and Hill & Co.’s Chief Growth Strategist, Disha Solanki, co-authored a section detailing how jewellers can strategically prepare for the future. Their advice focuses on building resilience by adopting a proactive stance in response to market changes, allowing businesses to future-proof their operations.
Engaging with Today’s Informed Consumer
In addition to supply chain strategies, the report also delves into changing consumer dynamics. Andrea Lucille Pooler, Principal Consultant at Hill & Co., highlights the importance of understanding the distinct needs of modern luxury jewellery consumers. Whether targeting the sustainability-focused “Eco Emma” or the corporate buyer “Corporate Carla”, the report advises jewellers to refine their messaging and marketing to resonate with these informed consumers. Pooler’s insights underline that brand positioning and consumer engagement are more critical than ever in a market where buyers are increasingly discerning.
Technology as a Catalyst for Change
One of the key features of the report is the exploration of technological innovation as a driver for change within the jewellery industry. Dominic Hill, CEO of Loupe, emphasises the transformative potential of artificial intelligence (AI), blockchain, and cloud-based systems in enhancing the efficiency of supply chains. According to Hill, these tools are no longer optional but essential for businesses looking to remain competitive in a rapidly evolving market.
Blockchain, for example, can offer unprecedented transparency and traceability, crucial for meeting consumer expectations regarding the ethical sourcing of diamonds and gemstones. Additionally, AI can improve demand forecasting, allowing jewellers to optimise their inventory and reduce waste.
Evaluating Direct-to-Consumer (D2C) Models
Another critical aspect of the report is a contribution from Nan Lung Palmer, who examines the viability of direct-to-consumer (D2C) strategies. Palmer provides a balanced view of the pros and cons, noting that while D2C offers businesses greater control over their brand and customer relationships, it also requires a substantial investment in infrastructure and marketing. The report urges jewellers to weigh these factors carefully before committing to a D2C model, as mistakes can be costly.
A Look Towards the Future
The Business of Jewellery Report aims to equip jewellers with the knowledge and tools necessary to thrive in an increasingly complex market. Elle Hill, CEO of Hill & Co., notes that this is the first of many planned publications designed to help the industry adapt and grow. A year-end 2024 wrap-up is planned, along with a second edition of the report slated for spring 2025.
