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EXCLUSIVE: PACO UNDERHILL SAYS LUXURY JEWELERS CAN MAINTAIN IMAGE YET ADAPT TO YOUNGER SHOPPERS |  June 15, 2011 (0 comments)

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Las Vegas, NV—Famed retail anthropologist Paco Underhill, founder of New York-based Envirosell and author of a series of top-selling retail books, was a keynote speaker during the recent Couture Jewelry Show here. Underhill, who has addressed the jewelry industry on multiple occasions in the past, focused his talk on the changing retail landscape, especially the importance of female consumers and the next generation.

Underhill discussed luxury retailing in an exclusive video interview with The Centurion. To view the video, click here.

It’s a real challenge to be able to stretch across generations, he said, acknowledging an issue that has troubled many luxury jewelers. “Abercrombie and Fitch doesn’t want older customers,” he said, citing the national teen retailer’s penchant for stores that feature dark interiors, loud music, and scantily-clad models in its advertising. But luxury jewelers need to appeal to both older customers who can afford their goods and younger customers whom they hope to cultivate as they mature into wealth. So while loud music and dark interiors aren’t an appropriate approach for jewelers, they need to keep in mind the importance of visual appeal in their stores.

“Worldwide, we are watching the evolution of visual acuity. Our visual language is expanding faster than the spoken word,” said Underhill.

Another key issue in the retail landscape is adapting to a global marketplace. Even in small town USA, the makeup of population is changing and jewelers and other retailers need to be sensitive to the communities they serve. Prejudice—or even the perception of prejudice—is tantamount to shooting oneself in the foot. As an example, he cited Selfridges, one of London’s largest and most fashionable department stores, which saw shoe sales rocket after installing female sales associates in its famous shoe department. Why? Because London has a burgeoning population of affluent Muslim women who love shoe shopping but don’t want male associates touching their feet.

“We’re no longer in a peaches-and-cream society. Luxury was originally designed to sell to the aristocracy, but the majority of wealth today is in the hands of people who earned it themselves,” he said. He also said most luxury retailers around the world are better equipped to serve customers with a variety of languages and currencies, while American retailers typically still speak only English and don’t have any options for accepting foreign currency.

Another advancement in luxury retail he cited is a transition from nose-to-nose to hip-to-hip selling. For jewelers, this means installing freestanding vitrines that open from either side instead of traditional showcases that open only from the back. The goal is for the sales associate to work side by side with the customer instead of putting the physical barrier of the case between them.

In many cultures, shopping begins with an offer of refreshments—easy enough for jewelers to adapt—and it also keeps the customer in the store longer, Underhill said. He also added that both chairs and mirrors are a necessity for luxury jewelers. A full-length mirror should be standard, and if jewelers can provide a dressing room for a woman to bring in her outfit and try it on with the jewelry, even better. Chairs, meanwhile, serve as parking for the shopper’s companion—be that husband, friend, or, as in the case of some cultures, family members who shop en masse.

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