Question

Topic: Strategy

How To Create Vlaue For A Niche Eyewear Brand

Posted by Anonymous on 2/6/2010 at 7:36 AM ET 500 Points
Hi,
I am in talks with a famous jewelery group in India to manufacture precious metal eyewear in gold and other precious metal.
The business model is such that I would be providing him the designs to work on and he would be making the models according to my demand. I would then brand and market the same to dealers across India. The frames would be a niche market and would sell a very few numbers.
I have roped in the jeweller as his recall in the market is huge and branding becomes an easy exercise. The brand would belong to me, yet the tagline would carry the jewellers name. This is fine with them.
Now,
1. How do I ensure that my potential dealers do not see through me and order directly to the jeweller. Please understand that making and signing an agreement is not possible.
2. Why should the dealer pay me more, when he can get the same from the jeweler on a cheaper price?
3. I am further value adding the product with exclusive accessories like premium cases, product glossary and packaging. These are the frills to create a premium feel to the product. However this does not warrant the dealer to pay me my profit which is his dealer price.
Yet how do I ensure he does.

How do I go about the whole thing?

Thanks in advance.

Regards,
Benny John
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RESPONSES

  • Posted by CarolBlaha on 2/6/2010 at 8:33 AM Member
    This scenerio happens in many industries. Many flooring manufacturers manufacture in the same facility, furniture, foods-- it's all about you. You are the contact person and to the dealer, it's seamless. Sure they can go direct to the jeweler, but the value you add is convenience. They'd have to find them, the designs, understanding importing is difficult, etc etc. That is not their business.

    Some dealers will. Walmart's plan this year is to start going direct to the manufacturers. And I have worked with a few others that are sophisticated enough buyers they can ;make it work. So maybe you will lose to some. But there are plenty of others to sell to.

    People buy from people they like to do business with. It's not all about price. It's the value you add.

    Sell Well and Prosper tm
  • Posted on 2/6/2010 at 8:50 AM Member
    WELL IF YOU ARE REALLY LOOKING FOR A WAY OUT TRY THESE OR GIVE THESE A THOUGHT:-

    GO BACK TO DRAWING BOARD AND SEE STEP 1.I KNOW THERE ARE LOT OF BENEFITS OF USING JEWELLERS NAME BUT BELIEVE ME THIS IS A WRONG MOVE...LOOK AT IT IN TWO WAYS..IF YOU START ON YOUR OWN I..E UR OWN BRAND NAME THEN THOUGH IT MAY TAKE TIME YET YOU WILL BE ABLE TO ESTALISH AN INDEPENDENT BRAND WITH ONLY YOU WORTHY OF CREDIT. YOUR BRAND BECOMES MAKER INDEPENDENT AND HENCE DEALERS CANT CUT YOU OUT AS BELIEVE ME BRAND IS MOST IMPORTANT THING THAN PRODUCT IN ITSELF.

    IN 2ND CASE HOW DO YOU GURANTEE THAT ONCE YOU ARE ESTABLISHED USING JEWELLERS NAME, THAT IT WONT BE HI JACKED BY HIM....THINK ABOUT IT THERE IS STILL TIME....YOUR CHOICE IS REALLY BETWEEN A TOUGH WAY AND A DEAD END.


    ALSO IN AN ENTREPRENEURIAL VENTURE , BEGINNING IS IMPORTANT..MAKE COMPROMISES IN BEGINNING BUT NOT SO MUCH SO AS TO BEND OVER...WHAT I AM SAYING IS THAT WHEN YOU GIVE VALUE ADD DO THIS AS A GOODWILL EXCERCISE. INCLUDE DEALER IN ASKING WHAT VALUE ADDS DOES HE WANT TO GIVE TO HIS CLIENTS..HOW MUCH HE WILL BE WILLING TO CONTRIBUTE ETC...BARRIERS BREAK WHEN PEOPLE TALK..TRY THIS ...YOU HAVE GOT NOTHING TO LOSE...BEST OF LUCK WITH YOUR VENTURE
  • Posted on 2/6/2010 at 8:03 PM Moderator
    Karashe08, you might want to consider not using all caps in future messages. The message is very hard to read, and the convention online is that all caps signify that you are yelling.
  • Posted by Jay Hamilton-Roth on 2/7/2010 at 9:12 AM Member
    By making customers ask for the eyewear by brand ("the original") you create the "accept no substitute" feeling. This means you need to aggressively create an marketing campaign that builds the elite brand with the target audience you're targeting.
  • Posted on 2/8/2010 at 7:12 AM Author
    Carol, thanks for your message. I agree that the value they pay is for the convenience that I offer, yet since the jeweller is quite reputed and has his presence in most of the cities, it would just be a matter of time before the dealers start approaching him.
    Yet. I think what you say makes sense. They would not be able to derive the designs that I intend to showcase.
    Karashe, the product would be sold under my brand name. So this is good enough. I would only mention the jewelers name in my tag line to drive home the main point, which is the purity of the gold that goes into the product.
    jayhamilton, my target audience are above the age of 35. high net worth individuals. aggressive marketing marketing is again the key word here. maybe BTL activities with only print media should click.

    Again, thanks everyone for the responses
  • Posted on 2/8/2010 at 7:17 AM Author
    Now, this had me thinking and your views on the same are most important.
    This is a niche brand and I intend to sell only a few units, 20 a year would be more than great.
    Rather than going the dealer route, do you think it would be prudent if I try a direct approach.
    Have a website that is informative and showcases the product. Beliefs of the company. Brand standards. Then get the customers to get in touch with you and then approach them personally anywhere across the length of the country, physically showcase and sell.
    This would also enable me to better explain and further increase the quality of the sale and increase the worthiness of the brand. What say guys?
    My marketing budget is like close to zero, yet I could also try the print media and advertise in some of the leading magazines.
  • Posted by CarolBlaha on 2/8/2010 at 7:37 AM Member
    There is no reason you can't do a combination of both. Just because you go with a dealer doesn't mean you can't sell anything direct. The value a dealer adds is he is already in front of your customers. Your issue will be finding the right dealer, the one who would understand (and sell) your eye wear as jewellery. That's going to be a small pool of dealers as it is. You will need to make sure the dealer is thoroughly trained in your product so that they can speak it as if you were standing right there.

    I almost see a more logical jump would be sell thru a jeweller or high end retailer that puts out catalogues like Neiman Marcus and Tiffany. The downside is, those guys understand jewellry and high end, but they don't understand eyes.

    If you want to go magazines, go the route of press and product releases vs advertisements. I work with a couple high end decorative products-- these guys are in every design mag and HDTV show, but don't pay for any traditional ad space.
  • Posted on 2/9/2010 at 7:58 AM Author
    Thanks for your message Carol.

    Of course I would be going the dealer route,yet this would be at a later stage. At the initial stages as mentioned in my previous post I would concentrate primarily on direct sales. Volumes are going to be low, yet the margins higher. Soon after I will follow sales leads and start approaching opticians who are interested in showcasing the same. Wish to mention that opticians are the only dealer channels I am looking at.
    Also, rather than having many dealers I am planning to have only a few dealers who understand the product.

    Your comment on advertising makes sense. Now lets see how I can reach the right people to do this for me.
    Again, why should they do this for me?
    Which are some of the best fashion and lifestyle magazines? All that I can think of now is monocle and cosmopolitan?

  • Posted by CarolBlaha on 2/9/2010 at 8:18 AM Accepted
    I don't think this is a fit for Cosmopolitan.

    Think New Yorker, Men's Flair, Vogue, Elle, InStyle, Harpers Bazaar. Think sites like https://www.justluxe.com/?ref=gooHP&gclid=CNrb976p5Z8CFQ8MswodnVzlHg
    and Luxist. Think the airline magazines.

    Why would they publish it? It's news. These editors while on the lookoout for trends-- get them often via press releases. Make them non-sales oriented but news related.

    I am working with a luxury line, and what started as a press release will become a full blown article that I was interviewed on. The slant was about how the product is made, it's innovative use of recycled material and Amish craftsmen-- the manufacturer contributed that. I contributed by talking overall enviro trends. Nobody said anything about selling the product, but after reading the article the message is there. And it's more credible as a news blurb than an advertisement. Then one article spurs another one. The majority of their marketing is based on press releases and getting articles published.

    My advice would be instead of buying space in a couple magazines-- spend it working with someone who has those media contacts and can get these kind of things published.
  • Posted on 2/10/2010 at 8:48 AM Author
    Thanks for your message Carol.

    At the outset I am planning to enter only the Indian market by way of making my presence felt in magazines that reach my target audience. The in flight magazines is definitely a good idea. I tried goggling for the same and drew a blank. Most flight operators subscribe to different magazines.

    Thanks for sharing info on that great website. That was very useful.

    Now I need to play my cards right and get in touch with the right people who can carry my story as you have said. My only tool is the internet and will try to make some connections.

    Your valuable inputs are much awaited. Thanks again.
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