'Clicks & Bricks' A Winning Diamond Jewelry Retail Model

Retail and Consumer Confidence
09/01/2017 09:08

The ‘Clicks and Bricks’ retail sales model for jewelry combines the strengths of online shopping and the bricks and mortar business model, a successful and growing formula that is providing great returns for companies like Ritani, writes Better Diamond Initiative (BDI). "Ritani, which was a wholesaler earlier, has transformed into an USD 50M online jewelry company. It is the 40th Most Promising Company of America according to the Forbes’s list", and the main reason is the combination of online and physical retailing. E-commerce has taken off in the diamond industry, but high-end purchases are still limited by the customer's desire to physically try out times before purchase, while bricks& mortar shops enhance the customer shopping experience with guidance and education, but are limited in reach. 

BDI writes, "To tackle these obstacles, Ritani has found ‘Clicks and Bricks’ model, in which it has partnered with independent jewelers across the country. Customers can browse products, custom design and order a product online from Ritani’s website, and after a week, visit the local store to try the ordered product on. Customer can also deny buying the product. But Mark Keeney, VP – Marketing says, “the close rates are very, very high’." The arrangement works as follows: The brick and mortar jewelers that partner with Ritani have the exclusive rights to their own zip code. They get percentage of profit of any sale within their area, even if customers order products to their own residential addresses. In 2015, Ritani had $75 million in revenue. The company gives most of the credit of this success to the ‘clicks and bricks’ model. This hybrid business model has been adopted by other retailers, and looks to have a promising future.