What's Your Added Value?

Does your product add something more than competitors?

Many companies come up with great ideas. But, are they good enough to beat out the competition? Does their product offer something that will truly create value to the customer? Or, is it simply just another product to add to the pile of others just like it? These are some questions companies need to ask themselves before they produce a product because while it may be a great idea, it may not be that practical.

Introducing an innovative, expensive product into a market where simplicity is the main seller can be difficult. So, it is imperative that you make sure you are producing a product people will think they can not live without. Some questions you can ask yourself are: Is this market increasing or decreasing? It is extremely difficult to be successful in a declining market. Can my product be used with preexisting products? If so, this could open the door for a partnership with an already established, successful business. Does it add a value people will maintain and continue to buy? For obvious reasons, you want repeat business- this means they are loyal customers and it also means a steady revenue stream. 

Perhaps you are entering a market where similar products are already established by big name brands.  Now is the time to ask ourself if your product offers something different or better than these name brand, similar products. It is difficult to get people to change from what they know; in some markets brand loyalty is very high. So, one way to get people to change is offering a better, or comparable product, at a lower price. If it does a the same or a better job and costs a fraction of the price- why not change to a different product?

There are obviously many more questions to ask when expanding your company. However, if you do your homework it can be possible to expand and be successful. 

Do You Want A Piece Of The $67.3 Billion Pie?

By 2018, the jewelry market is expected to reach $67.3 Billion. With the convenience of the internet, expanding your business into the United States is even easier. Online shopping is convenient and, typically, consumers can find lower prices. Ever since the recession, consumers have started to be more price sensitive. This is a major incentive for costume jewelry retailers because costume jewelry is cheaper than high-end jewels.

Another incentive is that no single company controls more than a 6% share of sales. Jewelry manufacturing in the United States has been declining because of strong foreign competition; so, the United States has started to produce their product overseas. This opens a huge window for companies, like you, wanting to expand into the United States because the brand loyalty just is not there anymore. Since the recession, people are more price sensitive and have less brand loyalty, especially if the products are not even made in the United Sates. As a result, they are open to changing brands if they like the quality, aesthetics and price.

In addition, the second largest customer segment for buying jewelry are people between 24 and 35 years old. This customer segment has the lowest income, yet, spend a lot of money on jewelry. So, providing them access to jewelry that is more affordable and versatile is one effective way to penetrate the market.

Since costume jewelry is less event-centric, people buy it more often and year-round rather than just around the holidays. In addition, more men are starting to wear jewelry which expands the customer market making the demand for jewelry even larger.

In the United States, there is something for everyone. By knowing how to leverage your product and which way to promote your business, you can successfully expand your business into the United States.