Industry and Market Feasibility

The jewelry industry is set to grow in the next few years. The annual sales are also
projected to grow exponentially at 5-6% by the year 2020. The consumer tastes for jewelry across
the globe have changed with innovations being the only way forward. For a business to make a
mark in the market, it needs to have the zeal for innovation and the energy to reach as many
clients as possible across the globe. Jewelry made in one part of the continent needs to find a
market at the far end of another continent. Thus, social media has become the main vehicle that
dictates how the jewelry industry crisscrosses the globe. Additionally, consumers are fast leaning
towards branded jewelry as seen in the figure below: The graph is a depiction of the growth of
branded jewelry which will capture a 30-40% industry share.

Source: Dauriz, Remy, & Tochtermann, (2014).
Product or Service Feasibility

The industry is highly fragmented with many artisans fighting to capture the distribution
contracts and recognition in the market. Some artisans work locally and also distribute locally as

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well. Others have national distribution channels. While some design products for large scale
company productions, others make the pieces themselves (Rocha, Ferreira, & Silva, 2018).
Competition for Smart Jewelers products takes the form of artists who design products and these
are solely sold via the larger companies which effectively lock out Smart Jewelers; and
companies with in-house designers and strong marketing teams and, marketing channels.
The Smart jewelers products will have one focus consumer; the end consumers. The
business will be used as a distribution channel to reach the closest and farthest consumer at
competitive pricing. The idea is to save the consumer the hassle of having to look for jewelry
pieces scattered across different designers and distributor shops. The Smart jewelers online shop
will be a one-stop shop that will display and sell already sourced pieces for the consumer who
only wants to select from the best available prices in the market, without having to hop from one
shop to another.

Financial Feasibility

The first month of the business will be spent setting up the virtual shop and initializing
marketing via word of mouth. The second month will be spent building inventory. The available
capital will purchase inventory sourced from individual artisans. Additionally, the business
owner will visit different galleries in an attempt to set up sources for the jewelry pieces and more
so, the branded jewelry. In the second month, the business’ Instagram and Facebook pages will
also be set up. These are not going to cost the business in terms of financial costs. The third
month will be the commencement of the business. At this time the business will have talked and
hopefully secured contacts with YouTube influencers. The business will advertise (5 seconds
advertisements) in relevant YouTube channels owned by influencers in the jewelry sector. The
sales are expected to increase from the fourth month going forward. The profits made from the

FEASIBILITY ANALYSIS 4

sales will be ploughed back into the business in form of additional capital. This capital will
increase inventory and pay the YouTube channels’ advertisements. At around the 8 th month,
there should be enough profits from sales to hire one salesperson. The salesperson will do the
traveling and search for new product suppliers while the business owner works at enhancing the
visibility of the product on the different social media platforms.
Entrepreneurial Readiness

Smart Jewelry will be formed as a sole proprietorship. The owner has always had a flare
for fashion and is an artistic individual. Even at a young age, the owner would make jewelry
from all sorts of materials. She has since perfected her childhood skills and does her own
personal pieces. The inspiration to start a jewelry shop came after much persuasion from close
friends and family who believed in her work and her business acumen. Although the business
will focus on other artisans’ works, the owner hopes to eventually incorporate her own unique
pieces in the shop’s online display. The owner has chosen to pursue her business side of skills-
manship before delving into her artistic side. This is because the first few months will call for the
owner to put on several hats leaving little room and time for creativity. Also, it will be easier to
add her creative pieces at an already established store than attempting to introduce them at the
beginning of a virgin business.
Based on your assessment, does the business idea need to be modified, changed

significantly, or abandoned?

The idea should be modified to include hand-made pieces by the owner as she too has
skills in making art pieces that could count for unique jewelry. Additionally, the business should
also look into starting its own YouTube channel where it will give all kinds of information to its
customers. Examples of such information include fashion tips, fashion hacks, upcoming events

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in the world of fashion and jewelry, and business entrepreneurial ideas. This will allow for the
business to build its own list of followers and its market base as well.

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References

Dauriz, L., Remy, N., & Tochtermann, T. (2014). A multifaceted future: The jewelry industry in
2020. Retrieved on December, 4, 2014.
Rocha, H. T., Ferreira, L. P., & Silva, F. J. G. (2018). Analysis and Improvement of Processes in
the Jewelry Industry. Procedia Manufacturing, 17, 640-646.