1. Identify who are your customers.
2. Identify the needs of the customer
3. Perceptions
4.Is it going to be fashionable?
5.1 Legal Issues
6. will selling the product in any way break a contract or legal requirement?
7.product cost
8 Test it before you sell it<
1.1 Factors include:-
a.What age group?
- Pensioners are far less likely to buy an 'arctic monkeys' pendant than a sixth former
b. What is the majorities occupation? - students are unlikely to buy diamonte dress ear-rings
c. What is their wealth status? - Fewer multi-million pound pink diamonds are going to sell on Mutley Plain than Lower Manhattan, New York.
1.2 Types of research application
a. Customer contact - just ask the customer! sounds obvious but you will be surprised how few multi-national companies ever bother
b. exhibition stands/stalls. - initially you need to keep the overheads to a minimum and this is a great way of finding out who your customers are.
c. Traditional company methods - these include advertising, competitions, telesales, event sponsoring, PR, direct marketing, e-sales etc.
1.3 Forward planning. Your customers are likely to change. In particular by 2015 people aged over 60 will account for 30% of the retail fashion sector.
1.4 watch the statistics. Review the demographics of where you operate at least once a year. Government web-sites give a free and valuable resource for finding out levels of age-groups, unemployment rates, and even the above statistics.
Once you have worked out who your customers are then you have to examine what they actually need. There is a research formula called maslows Pyramid developed by a psychologist called Abraham Maslow. The formula sets out five states of motivational factors which influence people in buying things:-
2.1 Physiological needs
e.g.Will an investment in Gold or Silver pay for food and shelter when I am too old to work?
2.2 Safety needs?
Will this Locket help keep our family closer
2.3 Social needs
Will this necklace complete the outfit I need to get into a group of people/place
2.4 Esteem Needs
Will this big chunky silver chain make me look richer or stupid?
2.5 Self-fulfilment
needs Will a purchase of this ring persuade Teresa to date me?
3.1How will that product look and will it appeal to a buyers needs?Does it look attractive, elegant and will it satisfy the above five needs 3.2 Will it blend in with existing products. e.g. unlikely a high-end Bond Street jeweller will find smiley face tongue bars compliment their range of Rolex watches 3.3 What is the perceived value of the product?Find out from customers what they would expect to pay for that item.
4.1 research current fashion shows/catwalks. Look at the latest outfits and try and design an item that will compliment or enhance it.
4.2. research media/latest film releases e.g. watch what the celebrities are wearing
4.3 research current colour trends - look around at what is now a fashionable colour. A huge amount of research has already been spent by the car and paint industries so research the colour of the latest cars/paints etc. If in doubt stick with white and pink.
4.4 research current shape trends - look at the latest designs of architecture, furniture and art. Are we in an age of straight lines, curves or abstract shapes?
4.5 Keep up to date with the latest news e.g. wrist bands for aid to Africa/tsunami appeal
4.6 Keep up to date with the latest social trends - do people prefer glitzy nights out in a club or a restaurant meal with a few friends.
Crucial factors include
1. Has the design or similar design already been copy-right protected. Should we copy-right/design protect it now or wait to see if the product sells?
2. Is the product safe? consider not just the consumer but also the children of the customer i.e. does the silver jewellery have any sharp projections or does the costume jewellery high lead or nickel contents.
3. Was it made using safe manufacturing processes - not only check materials and quantities meet legal requirements but also check the manufacturing process. e.g. The glass beads used to make a necklaces sold from a craft-fair were found to have asbestos dust inside them (asbestos had been used in the heat process of holing the glass ball.)
4. Where any components of the design bought in from outside factories if so check their health and safety records.
5. Is the product fake? seemingly respectable Uk wholesalers in the Uk sell (often not knowing themselves)counterfeit brand-named goods particularly copy Louis Vinton bags, copy Gucci watches etc. If in any doubt stay well away. Don't risk A £20,000 fine for the sake of a few pounds profit.
Often overlooked however all shop leases have strict rules on what can and cannot be sold. Even licenses issued by the local Authority for market stalls have strict rules on for example not selling any product that is similar to their craft fair stalls/existing traders. More relevant to jewellery are the strict hallmarking requirements if you are selling gold or silver.
7.1. Is it cost efficient to produce or sell this product i.e. will it make a profit? 7.2 Compare competitors prices -is there an already established market price for it? 7.3 If buying abroad check Currency exchange - check both up to date and historical exchange rates. Make a judgement as to whether the pound will decrease in value during the buying period. 7.4 Commodity markets - check the gold and silver markets daily - For us this is now probably the most important cost factor as silver has risen 30% in value over the past 5 months. 7.5 Tax considerations - check the VAT and Duty rates.
8.1 Check the product's materials.
In our case this means checking it has the right levels of silver, titanium, gemstones etc
8.2 Check its strength
- wear it yourself for a week. For silver jewellery pay special attention to weld-joins, porosity, clasp-strength etc. Its pointless trying to sell anything if in a weeks time the customer brings it back for a refund
8.3 Check other factors relevant to the product-e.g. leave a water-proof watch in a bath overnight or see if a stone discolours when exposed to washing-up liquid.