The presence in online space helps Ritani understand customers more deeply in order to significantly increase sales. But this is not the only reason for its success. The main reason is the way that she chose to position herself. Ritani used the strengths of both the online and the real business models to find the golden mean and prepare for the future.
The shortcomings of electronic commerce are very noticeable for the diamond industry. Physical inspection and fitting of the product are one of the most important factors in costly purchases, for example, diamond jewelry. Real brick jewelry stores in the world today seem to be struggling desperately with online stores, improving the quality of customer service, increasing customer awareness and giving the right advice during their purchases, drawing attention to "star" advertising, and so on.
To overcome these obstacles, Ritani resorted to the "virtual and real" model (combining the convenience of online shopping with visiting real stores), within which it establishes partnerships with independent jewelers around the country. Customers can search for products on the Internet, order their design and the product on the website of Ritani, and a week later visit a local store for trying on the ordered product. In this case, customers can refuse to purchase goods. But Mark Keeney, vice president of marketing, says: "The likelihood of making purchases is very, very high."
230 real jewelry shops that have partnerships with Ritani have the exclusive right to their zip code. They receive a percentage of the profits from any sale in their zone, even if buyers order the goods at their home addresses. The 100-year-old company Wilson & Son, now owned by Michael Wilson in Westchester, began collaborating with Ritani about two years ago. When he was approached, he really liked the idea of such a partnership.
He says: "The number of buyers we have decreased, because there is too much competition on the Internet ... I, as a regional store, do not have such power in marketing as Ritani". Expressing his consent to this partnership, he said: "Westchester is a very prosperous place, but people are too shy when it comes to going to a jewelry store. This partnership has attracted to me a younger population and more diverse in terms of culture and economic aspects. This led to the emergence of excellent relations. "
2015 was the best for Ritani - the revenues amounted to USD 75 million. The company attributes most of this success to the "virtual and real" model. Similarly, several other jewelry stores have begun to apply this hybrid business model.
https://betterdiamondinitiative.org/jewelry-industrys-clicks-bricks-model-turns-successful/
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