Reforms from factories to point of sale drive improved sell-through.
An extensive restructuring of Hot Diamonds over the past year is beginning to bear fruit, the company revealed to Professional Jeweller.
Root and branch improvements – driven by feedback from the brand’s 700 UK retailers – delivered a resurgence in sales into retailers in the first half of last year, and a spike in sell-through in the final weeks before Christmas, according to Adryan Cresswell, head of commerce for HD Group, the parent organisation for Hot Diamonds.
Retailers identified a price range of £50-100 as the sweet spot for Hot Diamonds designs, which all incorporate at least one diamond into its sterling silver, rhodium-plated collections.
This feedback sparked an intense drive for the best quality products at the right price points for the company’s factories in Thailand and China. “We were prepared to keep going back month-after-month in pursuit of the perfect value proposition,” explained Cresswell.
The intense design and manufacturing work also created the ability to deliver more new collections per year. The company is midway through the roll out of five new lines: Wild Roses, Shades of Spring, Cote d’Azur, Love Bites and Pearls, which all use a mixture of sterling silver, diamonds, gold vermeil and semi-precious stones in nature-inspired collections priced in the desired £50-100 range.
Retailers also suggested that the Hot Diamonds merchandising material was causing difficulties, leading to a complete redesign of the brand’s POS and packaging. “We were hearing that the old red displays made customers think that everything was in a sale,” Cresswell explained as he revealed the new gloss white displays that are currently being delivered to retailers.
Around 40% of Hot Diamonds’ retailers have the new displays and, according to Cresswell, have reported “a very significant increase in sell-through for the brand” since the switch.
The year ahead will see the brand focus predominately on improving building on its success with existing retailers, rather than searching for new doors but, Cresswell teased, there are also two big deals with as yet unnamed national chains about to be announced.